Senate Chamber, Lansing, Friday, October 3, 2025.
12:05 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator John Cherry. The roll was called by the Secretary of the Senate, who announced that a quorum was present.
Albert—present | Hauck—present | Moss—present |
Anthony—present | Hertel—present | Nesbitt—present |
Bayer—present | Hoitenga—present | Outman—excused |
Bellino—present | Huizenga—present | Polehanki—present |
Brinks—present | Irwin—present | Runestad—present |
Bumstead—present | Johnson—present | Santana—present |
Camilleri—present | Klinefelt—present | Shink—present |
Cavanagh—present | Lauwers—present | Singh—present |
Chang—present | Lindsey—present | Theis—present |
Cherry—present | McBroom—present | Victory—present |
Daley—present | McCann—present | Webber—present |
Damoose—present | McMorrow—present | Wojno—present |
Geiss—present |
Senator Sarah Anthony of the 21st District offered the following invocation: Dear God, help us pass this budget. Amen.
The Assistant President pro tempore, Senator Cherry, led the members of the Senate in recital of the Pledge of Allegiance.
Senator McCann entered the Senate Chamber.
Senator Lauwers moved that Senator Outman be excused from today’s session. The motion prevailed.
Senator Singh moved that Senators Brinks and Moss be temporarily excused from today’s session. The motion prevailed.
Senator Singh moved that the Senate recess subject to the call of the Chair. The motion prevailed, the time being 12:07 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Cherry. During the recess, Senators Moss and Brinks entered the Senate Chamber.
By unanimous consent the Senate proceeded to the order of
Senator Singh moved that the Senate recess subject to the call of the Chair. The motion prevailed, the time being 12:51 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Cherry.
12:50 a.m.
1:04 a.m.
Senator Singh moved that Joint Rule 9 be suspended to permit immediate consideration of the conference reports relative to the following bills:
The motion prevailed, a majority of the members serving voting therefor.
Senator Anthony submitted the following:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 11z, 12d, 15, 20, 20d, 21f, 21h, 22a, 22b, 22c, 22d, 22k, 22l, 22m, 22p, 24, 24a,
25f, 25g, 26a, 26b, 26c, 26d, 27a, 27c, 27g, 27k, 27p, 27r, 28, 29, 30d, 31a, 31d, 31f, 31j, 31n, 31aa, 32d,
32n, 32p, 32t, 33, 35a, 35d, 35m, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54b, 54d, 55, 56, 61a,
61b, 61d, 61j, 62, 65, 67, 67a, 67d, 67f, 74, 81, 94, 94a, 94d, 97a, 97g, 97k, 98, 98d, 99, 99c, 99h, 99i, 99s,
99x, 99aa, 99ee, 99ff, 99hh, 99ii, 99jj, 101, 104, 104b, 104h, 107, 111, 147, 147a, 147c, 147e, 147g, 152a, and 161a (MCL 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1611z, 388.1612d, 388.1615, 388.1620, 388.1620d, 388.1621f, 388.1621h, 388.1622a, 388.1622b,
388.1622c, 388.1622d, 388.1622k, 388.1622l, 388.1622m, 388.1622p, 388.1624, 388.1624a, 388.1625f,
388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1626d, 388.1627a, 388.1627c, 388.1627g, 388.1627k,
388.1627p, 388.1627r, 388.1628, 388.1629, 388.1630d, 388.1631a, 388.1631d, 388.1631f, 388.1631j,
388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632p, 388.1632t, 388.1633, 388.1635a, 388.1635d,
388.1635m, 388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a, 388.1651c, 388.1651d, 388.1651e,
388.1651g, 388.1653a, 388.1654, 388.1654b, 388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b,
388.1661d, 388.1661j, 388.1662, 388.1665, 388.1667, 388.1667a, 388.1667d, 388.1667f, 388.1674,
388.1681, 388.1694, 388.1694a, 388.1694d, 388.1697a, 388.1697g, 388.1697k, 388.1698, 388.1698d,
388.1699, 388.1699c, 388.1699h, 388.1699i, 388.1699s, 388.1699x, 388.1699aa, 388.1699ee, 388.1699ff,
388.1699hh, 388.1699ii, 388.1699jj, 388.1701, 388.1704, 388.1704b, 388.1704h, 388.1707, 388.1711,
388.1747, 388.1747a, 388.1747c, 388.1747e, 388.1747g, 388.1752a, and 388.1761a), sections 6, 97g, and
99ii as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148, sections 11a, 11j, 11k, 11m, 11s, 11z, 15, 20, 20d, 21h, 22a, 22b, 22c, 22d, 22l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d,
27a, 27c, 27g, 27k, 27p, 28, 29, 30d, 31a, 31d, 31f, 31j, 31n, 32d, 32n, 32p, 33, 35a, 35d, 39, 39a, 41, 41b,
51a, 51c, 51d, 51e, 51g, 53a, 54, 54b, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 97a, 97k,
98, 98d, 99h, 99s, 99x, 99aa, 99ee, 99ff, 99hh, 99jj, 104, 104h, 107, 147, 147a, 147c, 147e, and 152a as
amended and sections 12d, 27r, 35m, 55, 67a, 67d, 94d, 99, 99c, 99i, and 147g as added by 2024 PA 120, sections 11x, 21f, 32t, and 101 as amended and section 22k as added by 2023 PA 103, section 104b as amended by 2018 PA 265, section 111 as amended by 1997 PA 93, and section 161a as amended by 2006 PA 342, and by adding sections 12e, 12f, 18d, 31c, 32y, 35e, 35f, 61v, 97n, 99o, 99p, 99q, and 99mm; and to repeal acts and parts of acts.
Recommends:
First: That the House recede from the Substitute of the House as passed by the House.
Second: That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 12d, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 22m, 22p, 24, 24a,
25f, 25g, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27h, 27l, 27p, 27r, 28, 29, 30d, 31a, 31d, 31f, 31n, 31aa, 32d,
32n, 32t, 33, 35a, 35m, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 55, 56, 61a, 61b, 61d, 61j,
62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 97g, 97k, 98, 99, 99h, 99ee, 101, 104, 104b, 104h, 107, 111, 147, 147a,
147c, 147e, 152a, 152b, 161a, 201, 201f, 206, 207a, 207b, 207c, 210, 210b, 210d, 212, 216e, 217a, 217b,
217c, 222, 229a, 230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 244, 247, 248, 251, 252, 254, 256,
260, 263, 263b, 264, 268, 269, 270, 270c, 275k, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, and 286
(MCL 388.1603, 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s,
388.1611x, 388.1612d, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1621f, 388.1621h,
388.1622a, 388.1622b, 388.1622d, 388.1622k, 388.1622l, 388.1622m, 388.1622p, 388.1624, 388.1624a,
388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1626d, 388.1627a, 388.1627b, 388.1627c,
388.1627h, 388.1627l, 388.1627p, 388.1627r, 388.1628, 388.1629, 388.1630d, 388.1631a, 388.1631d,
388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1633, 388.1635a, 388.1635m,
388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a, 388.1651c, 388.1651d, 388.1651e, 388.1651g,
388.1653a, 388.1654, 388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661d, 388.1661j,
388.1662, 388.1665, 388.1667, 388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1694e,
388.1697g, 388.1697k, 388.1698, 388.1699, 388.1699h, 388.1699ee, 388.1701, 388.1704, 388.1704b,
388.1704h, 388.1707, 388.1711, 388.1747, 388.1747a, 388.1747c, 388.1747e, 388.1752a, 388.1752b,
388.1761a, 388.1801, 388.1801f, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1810, 388.1810b,
388.1810d, 388.1812, 388.1816e, 388.1817a, 388.1817b, 388.1817c, 388.1822, 388.1829a, 388.1830,
388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1841, 388.1841a, 388.1841b, 388.1841c, 388.1841e,
388.1844, 388.1847, 388.1848, 388.1851, 388.1852, 388.1854, 388.1856, 388.1860, 388.1863, 388.1863b,
388.1864, 388.1868, 388.1869, 388.1870, 388.1870c, 388.1875k, 388.1876, 388.1877, 388.1878, 388.1879,
388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1885, and 388.1886), sections 3, 11x, 19, 21f, 27b,
32t, and 283 as amended and sections 22k, 27h, 217a, and 241b as added by 2023 PA 103, sections 6 and 97g as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148, sections 11a, 11j, 11k, 11m, 11s, 15, 20, 20d, 21h, 22a, 22b, 22d, 22l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27c,
27l, 27p, 28, 29, 30d, 31a, 31d, 31f, 31n, 32d, 32n, 33, 35a, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a,
54, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 97k, 98, 99h, 99ee, 104, 104h, 107, 147,
147a, 147c, 147e, 152a, 152b, 201, 206, 207a, 207b, 207c, 217b, 222, 229a, 230, 236, 236c, 236j, 241, 241a,
241c, 244, 248, 251, 252, 254, 256, 260, 263, 263b, 264, 268, 269, 270c, 275k, 276, 277, 278, 279, 280, 281,
and 282 as amended and sections 12d, 27r, 35m, 55, 94e, 99, 201f, 216e, 217c, 236d, 241e, 247, and 270 as added by 2024 PA 120, section 18 as amended by 2022 PA 144, section 101 as amended by 2025 PA 5, section 104b as amended by 2018 PA 265, section 111 as amended by 1997 PA 93, section 161a as amended by 2006 PA 342, section 210 as amended and section 210d as added by 2015 PA 85, sections 210b, 285, and 286 as amended by 2021 PA 86, section 212 as amended by 2016 PA 249, and section 284 as amended by 2017 PA 108, and by adding sections 12e, 18d, 22r, 22s, 31c, 32y, 35e, 61v, 97n, 99mm, 164k, 164l, 201i, 217f, 236e, 236s, and 241h; and to repeal acts and parts of acts.
Sec. 3. (1) “Average daily attendance”, for the purposes of complying with federal law, means 92% of the pupils counted in membership on the pupil membership count day, as defined in section 6(7).
“Board” means the governing body of a district or public school academy.
“Center” means the center for educational performance and information created in section 94a.
“Community district” means a school district organized under part 5b of the revised school code, MCL 380.381 to 380.396.
“Cooperative education program” means a written voluntary agreement between and among districts to provide certain educational programs for pupils in certain groups of districts. The written agreement must be approved by all affected districts at least annually and must specify the educational programs to be provided and the estimated number of pupils from each district who will participate in the educational programs.
“Department”, except as otherwise provided in this article, means the department of education.
“District” means, except as otherwise specifically provided in this act, a local school district established under the revised school code or, except in sections 6(4), 6(6), 11x, 11y, 11aa, 12c, 13, 20, 22a, 22p, 27l, 31a, 51a(14), 105, 105c, and 166b, a public school academy. Except in section 20, district also includes a community district.
“District of residence”, except as otherwise provided in this subsection, means the district in which a pupil’s custodial parent or parents or legal guardian resides. For a pupil described in section 24b, the pupil’s district of residence is the district in which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the pupil’s district of residence is considered to be the district or intermediate district in which the pupil is counted in membership under that section. For a pupil under court jurisdiction who is placed outside the district in which the pupil’s custodial parent or parents or legal guardian resides, the pupil’s district of residence is considered to be the educating district or educating intermediate district.
“District superintendent” means the superintendent of a district or the chief administrator of a public school academy.
Sec. 6. (1) “Center program” means a program operated by a district or by an intermediate district for special education pupils from several districts in programs for pupils with autism spectrum disorder, pupils with severe cognitive impairment, pupils with moderate cognitive impairment, pupils with severe multiple impairments, pupils with hearing impairment, pupils with visual impairment, and pupils with physical impairment or other health impairment. Programs for pupils with emotional impairment housed in buildings that do not serve regular education pupils also qualify. Unless otherwise approved by the department, a center program either serves all constituent districts within an intermediate district or serves several districts with less than 50% of the pupils residing in the operating district. In addition, special education center program pupils placed part-time in noncenter programs to comply with the least restrictive environment provisions of section 1412 of the individuals with disabilities education act, 20 USC 1412, may be considered center program pupils for pupil accounting purposes for the time scheduled in either a center program or a noncenter program.
“District and high school graduation rate” means the annual completion and pupil dropout rate that is calculated by the center pursuant to nationally recognized standards.
“District and high school graduation report” means a report of the number of pupils, excluding adult education participants, in the district for the immediately preceding school year, adjusted for those pupils who have transferred into or out of the district or high school, who leave high school with a diploma or other credential of equal status.
“Membership”, except as otherwise provided in this article, means for a district, a public school academy, or an intermediate district the sum of the product of .90 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate district on the pupil membership count day for the current school year, plus the product of .10 times the final audited count from the supplemental count day of full-time equated pupils in
grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate district for the immediately preceding school year. A district’s, public school academy’s, or intermediate district’s membership is adjusted as provided under section 25e for pupils who enroll after the pupil membership count day in a strict discipline academy operating under sections 1311b to 1311m of the revised school code, MCL 380.1311b to 380.1311m. All pupil counts used in this subsection are as determined by the department and calculated by adding the number of pupils registered for attendance plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit. The amount of the foundation allowance for a pupil in membership is determined under section 20. In making the calculation of membership, all of the following, as applicable, apply to determining the membership of a district, a public school academy, or an intermediate district:
Except as otherwise provided in this subsection, and pursuant to subsection (6), a pupil is counted in membership in the pupil’s educating district or districts. Except as otherwise provided in this subsection, an individual pupil must not be counted for more than a total of 1.0 full-time equated membership.
If a pupil is educated in a district other than the pupil’s district of residence, if the pupil is not being educated as part of a cooperative education program, if the pupil’s district of residence does not give the educating district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by an exception specified in subsection (6) to the requirement that the educating district must have the approval of the pupil’s district of residence to count the pupil in membership, the pupil is not counted in membership in any district.
A special education pupil educated by the intermediate district is counted in membership in the intermediate district.
A pupil placed by a court or state agency in an on-grounds program of a juvenile detention facility, a child caring institution, or a mental health institution, or a pupil funded under section 53a, is counted in membership in the district or intermediate district approved by the department to operate the program.
A pupil enrolled in the Michigan Schools for the Deaf and Blind is counted in membership in the pupil’s intermediate district of residence.
A pupil enrolled in a career and technical education program supported by a millage levied over an area larger than a single district or in an area vocational-technical education program established under section 690 of the revised school code, MCL 380.690, is counted in membership only in the pupil’s district of residence.
A pupil enrolled in a public school academy is counted in membership in the public school academy.
For the purposes of this section and section 6a, for a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, that is in compliance with section 553a of the revised school code, MCL 380.553a, a pupil’s participation in the cyber school’s educational program is considered regular daily attendance, and for a district or public school academy, a pupil’s participation in a virtual course as that term is defined in section 21f is considered regular daily attendance. Beginning July 1, 2021, this subdivision is subject to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021. For the purposes of this subdivision, for a pupil enrolled in a cyber school, all of the following apply with regard to the participation requirement as described in this subdivision:
Except as otherwise provided in this subdivision, the pupil shall participate in each scheduled course on pupil membership count day or supplemental count day, as applicable. If the pupil is absent on pupil membership count day or supplemental count day, as applicable, the pupil must attend and participate in class during the next 10 consecutive school days if the absence was unexcused, or during the next 30 calendar days if the absence was excused.
For a pupil who is not learning sequentially, 1 or more of the following must be met on pupil membership count day or supplemental count day, as applicable, for each scheduled course to satisfy the participation requirement under this subdivision:
The pupil attended a live lesson from the teacher.
The pupil logged into a lesson or lesson activity and the login can be documented.
The pupil and teacher engaged in a subject-oriented telephone conversation.
There is documentation of an email dialogue between the pupil and teacher.
There is documentation of activity or work between the learning coach and pupil.
An alternate form of attendance as determined and agreed upon by the cyber school and the pupil membership auditor was met.
For a pupil using sequential learning, the participation requirement under this subdivision is satisfied if either of the following occurs:
Except as otherwise provided in this sub-subparagraph, the pupil and the teacher of record or mentor complete a 2-way interaction for 1 course during the week on which pupil membership count day or
supplemental count day, as applicable, occurs, and the 3 consecutive weeks following that week. However, if a school break is scheduled during any of the weeks described in this sub-subparagraph that is 4 or more days in length or instruction has been canceled districtwide during any of the weeks described in this sub- subparagraph for 3 or more school days, the district is not required to ensure that the pupil and the teacher of record or mentor completed a 2-way interaction for that week. As used in this sub-subparagraph:
“2-way interaction” means the communication that occurs between the teacher of record or mentor and pupil, where 1 party initiates communication and a response from the other party follows that communication. Responses as described in this sub-sub-subparagraph must be to the communication initiated by the teacher of record or mentor, and not some other action taken. This interaction may occur through, but is not limited to, means such as email, telephone, instant messaging, or face-to-face conversation. A parent- or legal-guardian-facilitated 2-way interaction is considered a 2-way interaction if the pupil is in any of grades K to 5 and does not yet possess the skills necessary to participate in 2 -way interactions unassisted. The interactions described in this sub-sub-subparagraph must relate to a virtual course on the pupil’s schedule and pertain to course content or progress.
“Mentor” means a professional employee of the district who monitors the pupil’s progress, ensures the pupil has access to needed technology, is available for assistance, and ensures access to the teacher of record. A mentor may also be the teacher of record if the mentor meets the definition of a teacher of record under this sub-subparagraph and the district is the provider for the course.
“Teacher of record” means a teacher to whom all of the following apply:
The teacher is responsible for providing instruction, determining instructional methods for each pupil, diagnosing learning needs, assessing pupil learning, prescribing intervention strategies and modifying lessons, reporting outcomes, and evaluating the effects of instruction and support strategies. The teacher of record may coordinate the distribution and assignment of the responsibilities described in this sub-sub-sub- subparagraph with other teachers participating in the instructional process for a course.
The teacher is certified for the grade level or is working under a valid substitute permit, authorization, or approval issued by the department.
The teacher has a personnel identification code provided by the center.
“Week” means a period that starts on Wednesday and ends the following Tuesday.
The pupil completes a combination of 1 or more of the following activities for each scheduled course on pupil membership count day or supplemental count day, as applicable:
Documented attendance in a virtual course where synchronous, live instruction occurred with the teacher.
Documented completion of a course assignment.
Documented completion of a course lesson or lesson activity.
Documented pupil access to an ongoing lesson, which does not include a login.
Documented physical attendance on pupil membership count day or supplemental count day, as applicable, in each scheduled course, if the pupil will attend at least 50% of the instructional time for each scheduled course on-site, face-to-face with the teacher of record. As used in this sub-sub-subparagraph, “teacher of record” means that term as defined in subparagraph (iii)(A).
For purposes of subparagraph (iii), each scheduled course currently being attempted by the pupil, rather than every course on the pupil’s schedule for the entire term, is considered a part of each scheduled course for the pupil.
For a new district or public school academy beginning its operation after December 31, 1994, membership for the first 2 full or partial fiscal years of operation is determined as follows:
If operations begin before the pupil membership count day for the fiscal year, membership is the average number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year and on the supplemental count day for the current school year, as determined by the department and calculated by adding the number of pupils registered for attendance on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.
If operations begin after the pupil membership count day for the fiscal year and not later than the supplemental count day for the fiscal year, membership is the final audited count of the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day for the current school year.
If a district is the authorizing body for a public school academy, then, in the first school year in which pupils are counted in membership on the pupil membership count day in the public school academy, the determination of the district’s membership excludes from the district’s pupil count for the immediately
preceding supplemental count day any pupils who are counted in the public school academy on that first pupil membership count day who were also counted in the district on the immediately preceding supplemental count day.
For an extended school year program approved by the superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance, on a pupil membership count day, is counted in membership.
To be counted in membership, a pupil must meet the minimum age requirement to be eligible to attend school under section 1147 of the revised school code, MCL 380.1147, and must be less than 20 years of age on September 1 of the school year except as follows:
A special education pupil who is enrolled and receiving instruction in a special education program or service approved by the department, who does not have a high school diploma, and who is less than 26 years of age as of September 1 of the current school year is counted in membership.
A pupil who is determined by the department to meet all of the following may be counted in membership:
Is enrolled in a public school academy or an alternative education high school diploma program, that is primarily focused on educating pupils with extreme barriers to education, such as being homeless as that term is defined under 42 USC 11302.
Had dropped out of school.
Is less than 22 years of age as of September 1 of the current school year.
If a child does not meet the minimum age requirement to be eligible to attend school for that school year under section 1147 of the revised school code, MCL 380.1147, but will be 5 years of age not later than December 1 of that school year, the district may count the child in membership for that school year if the parent or legal guardian has notified the district in writing that the parent or legal guardian intends to enroll the child in kindergarten for that school year.
An individual who has achieved a high school diploma is not counted in membership. An individual who has achieved a high school equivalency certificate is not counted in membership unless the individual is a student with a disability as that term is defined in R 340.1702 of the Michigan Administrative Code. An individual participating in a job training program funded under former section 107a or a jobs program funded under former section 107b, administered by the department of labor and economic opportunity, or participating in any successor of either of those 2 programs, is not counted in membership.
If a pupil counted in membership in a public school academy is also educated by a district or intermediate district as part of a cooperative education program, the pupil is counted in membership only in the public school academy unless a written agreement signed by all parties designates the party or parties in which the pupil is counted in membership, and the instructional time scheduled for the pupil in the district or intermediate district is included in the full-time equated membership determination under subdivision (q) and section 101. However, for pupils receiving instruction in both a public school academy and in a district or intermediate district but not as a part of a cooperative education program, the following apply:
If the public school academy provides instruction for at least 1/2 of the class hours required under section 101, the public school academy receives as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the public school academy provides divided by the number of hours required under section 101 for full-time equivalency, and the remainder of the full-time membership for each of those pupils is allocated to the district or intermediate district providing the remainder of the hours of instruction.
If the public school academy provides instruction for less than 1/2 of the class hours required under section 101, the district or intermediate district providing the remainder of the hours of instruction receives as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the district or intermediate district provides divided by the number of hours required under section 101 for full-time equivalency, and the remainder of the full-time membership for each of those pupils is allocated to the public school academy.
An individual less than 16 years of age as of September 1 of the current school year who is being educated in an alternative education program is not counted in membership if there are also adult education participants being educated in the same program or classroom.
The department shall give a uniform interpretation of full-time and part-time memberships.
The number of class hours used to calculate full-time equated memberships must be consistent with section 101. In determining full-time equated memberships for pupils who are enrolled in a postsecondary institution or for pupils engaged in an internship or work experience under section 1279h of the revised school code, MCL 380.1279h, a pupil is not considered to be less than a full-time equated pupil solely because of the effect of the pupil’s postsecondary enrollment or engagement in the internship or work experience, including necessary travel time, on the number of class hours provided by the district to the pupil.
Full-time equated memberships for pupils in kindergarten are determined by dividing the number of instructional hours scheduled and provided per year per kindergarten pupil by the same number used for determining full-time equated memberships for pupils in grades 1 to 12. However, to the extent allowable under federal law, for a district or public school academy that provides evidence satisfactory to the department that it used federal title I money in the 2 immediately preceding school fiscal years to fund full- time kindergarten, full-time equated memberships for pupils in kindergarten are determined by dividing the number of class hours scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number used for determining full-time equated memberships for pupils in grades 1 to 12. The change in the counting of full-time equated memberships for pupils in kindergarten that took effect for 2012-2013 is not a mandate.
For a district or a public school academy that has pupils enrolled in a grade level that was not offered by the district or public school academy in the immediately preceding school year, the number of pupils enrolled in that grade level to be counted in membership is the average of the number of those pupils enrolled and in regular daily attendance on the pupil membership count day and the supplemental count day of the current school year. Membership is calculated by adding the number of pupils registered for attendance in that grade level on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2.
A pupil enrolled in a cooperative education program may be counted in membership in the pupil’s district of residence with the written approval of all parties to the cooperative agreement.
If, as a result of a disciplinary action, a district determines through the district’s alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil’s home or otherwise apart from the general school population, if that placement is authorized in writing by the district superintendent and district alternative or disciplinary education supervisor, and if the district provides appropriate instruction as described in this subdivision to the pupil at the pupil’s home or otherwise apart from the general school population, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours required under section 101 for full-time equivalency. For the purposes of this subdivision, a district is considered to be providing appropriate instruction if all of the following are met:
The district provides at least 2 nonconsecutive hours of instruction per week to the pupil at the pupil’s home or otherwise apart from the general school population under the supervision of a certificated teacher.
The district provides instructional materials, resources, and supplies that are comparable to those otherwise provided in the district’s alternative education program.
Course content is comparable to that in the district’s alternative education program.
Credit earned is awarded to the pupil and placed on the pupil’s transcript.
If a pupil was enrolled in a public school academy on the pupil membership count day, if the public school academy’s contract with its authorizing body is revoked or the public school academy otherwise ceases to operate, and if the pupil enrolls in a district within 45 days after the pupil membership count day, the department shall adjust the district’s pupil count for the pupil membership count day to include the pupil in the count.
For a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the product of
.90 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .10 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent.
If a district’s membership for a particular fiscal year, as otherwise calculated under this subsection, would be less than 1,550 pupils, the district has 4.5 or fewer pupils per square mile, as determined by the department, and the district does not receive funding under section 22d(2), the district’s membership is considered to be the membership figure calculated under this subdivision. If a district educates and counts in its membership pupils in grades 9 to 12 who reside in a contiguous district that does not operate grades 9 to 12 and if 1 or both of the affected districts request the department to use the determination allowed under this sentence, the department shall include the square mileage of both districts in determining the number of pupils per square mile for each of the districts for the purposes of this subdivision. If a district has established a community engagement advisory committee in partnership with the department of treasury, is required to submit a deficit elimination plan or an enhanced deficit elimination plan under section 1220 of the revised school code, MCL 380.1220, and is located in a city with a population between 9,000 and 11,000, as
determined by the department, that is in a county with a population between 150,000 and 160,000, as determined by the department, the district’s membership is considered to be the membership figure calculated under this subdivision. The membership figure calculated under this subdivision is the greater of the following:
The average of the district’s membership for the 3-fiscal-year period ending with that fiscal year, calculated by adding the district’s actual membership for each of those 3 fiscal years, as otherwise calculated under this subsection, and dividing the sum of those 3 membership figures by 3.
The district’s actual membership for that fiscal year as otherwise calculated under this subsection.
Full-time equated memberships for special education pupils who are not enrolled in kindergarten but are enrolled in a classroom program under R 340.1754 of the Michigan Administrative Code are determined by dividing the number of class hours scheduled and provided per year by 450. Full-time equated memberships for special education pupils who are not enrolled in kindergarten but are receiving early childhood special education services under R 340.1755 or R 340.1862 of the Michigan Administrative Code are determined by dividing the number of hours of service scheduled and provided per year per pupil by 180.
A pupil of a district that begins its school year after Labor Day who is enrolled in an intermediate district program that begins before Labor Day is not considered to be less than a full-time pupil solely due to instructional time scheduled but not attended by the pupil before Labor Day.
(aa) For the first year in which a pupil is counted in membership on the pupil membership count day in a middle college program, the membership is the average of the full-time equated membership on the pupil membership count day and on the supplemental count day for the current school year, as determined by the department. If a pupil described in this subdivision was counted in membership by the operating district on the immediately preceding supplemental count day, the pupil is excluded from the district’s immediately preceding supplemental count for the purposes of determining the district’s membership.
(bb) A district or public school academy that educates a pupil who attends a United States Olympic Education Center may count the pupil in membership regardless of whether or not the pupil is a resident of this state.
(cc) A pupil enrolled in a district other than the pupil’s district of residence under section 1148(2) of the revised school code, MCL 380.1148, is counted in the educating district.
(dd) For a pupil enrolled in a dropout recovery program that meets the requirements of section 23a, the pupil is counted as 1/12 of a full-time equated membership for each month that the district operating the program reports that the pupil was enrolled in the program and was in full attendance or based on the number of successfully completed courses by the pupil with each course equivalent to 1/12 of a full- time equated membership. A district may claim more than 1/12 of a full-time equated membership within a month for an enrolled pupil who was in full attendance and successfully completed more than 1 required course. However, if the special membership counting provisions under this subdivision and the operation of the other membership counting provisions under this subsection result in a pupil being counted as more than 1.0 FTE in a fiscal year, the payment made for the pupil under sections 22a and 22b must not be based on more than 1.0 FTE for that pupil, and any portion of an FTE for that pupil that exceeds 1.0 is instead paid under section 25g. The district operating the program shall report to the center the number of pupils who were enrolled in the program and were in full attendance for a month not later than 30 days after the end of the month. A district shall not report a pupil as being in full attendance for a month unless both of the following are met:
A personalized learning plan is in place on or before the first school day of the month for the first month the pupil participates in the program.
Either of the following is met:
The pupil meets the district’s definition under section 23a of satisfactory monthly progress for that month or, if the pupil does not meet that definition of satisfactory monthly progress for that month, the pupil did meet that definition of satisfactory monthly progress in the immediately preceding month and appropriate interventions, as defined by the district, are implemented within 10 school days after it is determined that the pupil does not meet that definition of satisfactory monthly progress.
For the first 2 months that the pupil participates in the program, the pupil earns 0.25 credit by the end of the second month. A pupil described in this sub-subparagraph may be retroactively reported as being in full attendance for the first month that the pupil participated in the program.
(ee) A pupil participating in a virtual course under section 21f is counted in membership in the district enrolling the pupil.
(ff) If a public school academy that is not in its first or second year of operation closes at the end of a school year and does not reopen for the next school year, the department shall adjust the membership count of the district or other public school academy in which a former pupil of the closed public school academy enrolls and is in regular daily attendance for the next school year to ensure that the district or other public school academy receives the same amount of membership aid for the pupil as if the pupil were counted in the district or other public school academy on the supplemental count day of the preceding school year.
(gg) If a special education pupil is expelled under section 1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a, and is not in attendance on the pupil membership count day because of the expulsion, and if the pupil remains enrolled in the district and resumes regular daily attendance during that school year, the district’s membership is adjusted to count the pupil in membership as if the pupil had been in attendance on the pupil membership count day.
(hh) A pupil enrolled in a community district is counted in membership in the community district.
(ii) A part-time pupil enrolled in a nonpublic school in grades K to 12 in accordance with section 166b must not be counted as more than 0.75 of a full-time equated membership.
(jj) A district that borders another state or a public school academy that operates at least grades 9 to 12 and is located within 20 miles of a border with another state may count in membership a pupil who is enrolled in a course at a college or university that is located in the bordering state and within 20 miles of the border with this state if all of the following are met:
The pupil would meet the definition of an eligible student under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, if the course were an eligible course under that act.
The course in which the pupil is enrolled would meet the definition of an eligible course under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, if the course were provided by an eligible postsecondary institution under that act.
The department determines that the college or university is an institution that, in the other state, fulfills a function comparable to a state university or community college, as those terms are defined in section 3 of the postsecondary enrollment options act, 1996 PA 160, MCL 388.513, or is an independent nonprofit degree-granting college or university.
The district or public school academy pays for a portion of the pupil’s tuition at the college or university in an amount equal to the eligible charges that the district or public school academy would pay to an eligible postsecondary institution under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, as if the course were an eligible course under that act.
The district or public school academy awards high school credit to a pupil who successfully completes a course as described in this subdivision.
(kk) A pupil enrolled in a middle college program may be counted for more than a total of 1.0 full-time equated membership for any of the school years in which the pupil is enrolled in the middle college program, but the total full-time equated membership for that pupil for all of the school years in which the pupil is enrolled in high school must not be greater than 5.00 full-time equated membership if the pupil is enrolled in more than the minimum number of instructional days and hours required under section 101 and the pupil is expected to complete the 5-year program with both a high school diploma and at least 60 transferable college credits or is expected to earn an associate’s degree in fewer than 5 years. A pupil who graduates with both a high school diploma and at least 60 transferable college credits or an associate degree at least 1 semester early is considered to have completed the middle college program in fewer than 5 years.
(ll) If a district’s or public school academy’s membership for a particular fiscal year, as otherwise calculated under this subsection, includes pupils counted in membership who are enrolled under section 166b, all of the following apply for the purposes of this subdivision:
If the district’s or public school academy’s membership for pupils counted under section 166b equals or exceeds 5% of the district’s or public school academy’s membership for pupils not counted in membership under section 166b in the immediately preceding fiscal year, then the growth in the district’s or public school academy’s membership for pupils counted under section 166b must not exceed 10%.
If the district’s or public school academy’s membership for pupils counted under section 166b is less than 5% of the district’s or public school academy’s membership for pupils not counted in membership under section 166b in the immediately preceding fiscal year, then the district’s or public school academy’s membership for pupils counted under section 166b must not exceed the greater of the following:
Five percent of the district’s or public school academy’s membership for pupils not counted in membership under section 166b.
Ten percent more than the district’s or public school academy’s membership for pupils counted under section 166b in the immediately preceding fiscal year.
If 1 or more districts consolidate or are parties to an annexation, then the calculations under subparagraphs (i) and (ii) must be applied to the combined total membership for pupils counted in those districts for the fiscal year immediately preceding the consolidation or annexation.
“Public school academy” means that term as defined in section 5 of the revised school code, MCL 380.5.
“Pupil” means an individual in membership in a public school. A district must have the approval of the pupil’s district of residence to count the pupil in membership, except approval by the pupil’s district of residence is not required for any of the following:
A nonpublic part-time pupil enrolled in grades K to 12 in accordance with section 166b.
A pupil receiving 1/2 or less of the pupil’s instruction in a district other than the pupil’s district of residence.
A pupil enrolled in a public school academy.
A pupil enrolled in a district other than the pupil’s district of residence if the pupil is enrolled in accordance with section 105 or 105c.
A pupil who has made an official written complaint or whose parent or legal guardian has made an official written complaint to law enforcement officials and to school officials of the pupil’s district of residence that the pupil has been the victim of a criminal sexual assault or other serious assault, if the official complaint either indicates that the assault occurred at school or that the assault was committed by 1 or more other pupils enrolled in the school the pupil would otherwise attend in the district of residence or by an employee of the district of residence. A person who intentionally makes a false report of a crime to law enforcement officials for the purposes of this subdivision is subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for that conduct. As used in this subdivision:
“At school” means in a classroom, elsewhere on school premises, on a school bus or other school- related vehicle, or at a school-sponsored activity or event whether or not it is held on school premises.
“Serious assault” means an act that constitutes a felony violation of chapter XI of the Michigan penal code, 1931 PA 328, MCL 750.81 to 750.90h, or that constitutes an assault and infliction of serious or aggravated injury under section 81a of the Michigan penal code, 1931 PA 328, MCL 750.81a.
A pupil whose district of residence changed after the pupil membership count day and before the supplemental count day and who continues to be enrolled on the supplemental count day as a nonresident in the district in which the pupil was enrolled as a resident on the pupil membership count day of the same school year.
A pupil enrolled in an alternative education program operated by a district other than the pupil’s district of residence who meets 1 or more of the following:
The pupil has been suspended or expelled from the pupil’s district of residence for any reason, including, but not limited to, a suspension or expulsion under section 1310, 1311, or 1311a of the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
The pupil had previously dropped out of school.
The pupil is pregnant or is a parent.
The pupil has been referred to the program by a court.
A pupil enrolled in the Michigan Virtual School, for the pupil’s enrollment in the Michigan Virtual School.
A pupil who is the child of a person who works at the district or who is the child of a person who worked at the district as of the time the pupil first enrolled in the district but who no longer works at the district due to a workforce reduction. As used in this subdivision, “child” includes an adopted child, stepchild, or legal ward.
An expelled pupil who has been denied reinstatement by the expelling district and is reinstated by another school board under section 1311 or 1311a of the revised school code, MCL 380.1311 and 380.1311a.
A pupil enrolled in a district other than the pupil’s district of residence in a middle college program if the pupil’s district of residence and the enrolling district are both constituent districts of the same intermediate district.
A pupil enrolled in a district other than the pupil’s district of residence who attends a United States Olympic Education Center.
A pupil enrolled in a district other than the pupil’s district of residence under section 1148(2) of the revised school code, MCL 380.1148.
A pupil who enrolls in a district other than the pupil’s district of residence as a result of the pupil’s school not making adequate yearly progress under the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95.
However, if a district educates pupils who reside in another district and if the primary instructional site for those pupils is established by the educating district after 2009-2010 and is located within the boundaries of that other district, the educating district must have the approval of that other district to count those pupils in membership.
“Pupil membership count day” of a district or intermediate district means:
(a) Except as provided in subdivision (b) or (c), either of the following:
The first Wednesday in October each school year.
For a district or building in which school is not in session on the Wednesday described in subparagraph
due to conditions not within the control of school authorities, with the approval of the superintendent, the immediately following day on which school is in session in the district or building.
Except as otherwise provided in subdivision (c), for a district or intermediate district maintaining school during the entire school year, the following days:
Fourth Wednesday in July.
First Wednesday in October.
Second Wednesday in February.
Fourth Wednesday in April.
If a date listed in subdivision (a) or (b) is on a day of religious or cultural significance, as determined by the district or intermediate district, the immediately following day on which school is in session in the district or building.
“Pupils in grades K to 12 actually enrolled and in regular daily attendance” means, except as otherwise provided in this section, pupils in grades K to 12 in attendance and receiving instruction in all classes for which they are enrolled on the pupil membership count day or the supplemental count day, as applicable. Except as otherwise provided in this section and subsection, a pupil who is absent from any of the classes in which the pupil is enrolled on the pupil membership count day or supplemental count day and who does not attend each of those classes during the 10 consecutive school days immediately following the pupil membership count day or supplemental count day, except for a pupil who has been excused by the district, is not counted as 1.0 full-time equated membership. Except as otherwise provided in this section, a pupil who is excused from attendance on the pupil membership count day or supplemental count day and who fails to attend each of the classes in which the pupil is enrolled within 30 calendar days after the pupil membership count day or supplemental count day is not counted as 1.0 full-time equated membership. Except as otherwise provided in this section, in addition, a pupil who was enrolled and in attendance in a district, intermediate district, or public school academy before the pupil membership count day or supplemental count day of a particular year but was expelled or suspended on the pupil membership count day or supplemental count day is only counted as 1.0 full-time equated membership if the pupil resumed attendance in the district, intermediate district, or public school academy within 45 days after the pupil membership count day or supplemental count day of that particular year. Except as otherwise provided in this section, a pupil not counted as 1.0 full-time equated membership due to an absence from a class is counted as a prorated membership for the classes the pupil attended. For purposes of this subsection:
“Appropriately placed” means holding a valid Michigan educator credential with the required grade
range and discipline or subject area for the assignment, as defined by the superintendent of public instruction.
“Class” means either of the following, as applicable:
A period of time in 1 day when pupils and an individual who is appropriately placed under a valid certificate, substitute permit, authorization, or approval issued by the department, are together and instruction is taking place. This subdivision does not apply for the 2020-2021, 2021-2022, 2022-2023, and 2023-2024 school years.2024-2025 and 2025-2026 school years.
For the 2020-2021, 2021-2022, 2022-2023, and 2023-2024 2024-2025 and 2025-2026 school years
only, a period of time in 1 day when pupils and a certificated teacher, a teacher engaged to teach under section 1233b of the revised school code, MCL 380.1233b, or an individual working under a valid substitute permit, authorization, or approval issued by the department are together and instruction is taking place.
“Rule” means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
“The revised school code” means the revised school code, 1976 PA 451, MCL 380.1 to 380.1852.
“School district of the first class”, “first class school district”, and “district of the first class” mean, for the purposes of this article only, a district that had at least 40,000 pupils in membership for the immediately preceding fiscal year.
“School fiscal year” means a fiscal year that commences July 1 and continues through June 30.
“State board” means the state board of education.
“Superintendent”, unless the context clearly refers to a district or intermediate district superintendent, means the superintendent of public instruction described in section 3 of article VIII of the state constitution of 1963.
“Supplemental count day” means the day on which the supplemental pupil count is conducted under section 6a.
“Tuition pupil” means a pupil of school age attending school in a district other than the pupil’s district of residence for whom tuition may be charged to the district of residence. Tuition pupil does not include a pupil who is a special education pupil, a pupil described in subsection (6)(d) to (n), or a pupil whose parent or guardian voluntarily enrolls the pupil in a district that is not the pupil’s district of residence. A pupil’s district of residence shall not require a high school tuition pupil, as provided under section 111, to attend another school district after the pupil has been assigned to a school district.
“State school aid fund” means the state school aid fund established in section 11 of article IX of the state constitution of 1963.
“Taxable value” means, except as otherwise provided in this article, the taxable value of property as determined under section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.
“Textbook” means a book, electronic book, or other instructional print or electronic resource that is selected and approved by the governing board of a district and that contains a presentation of principles of a subject, or that is a literary work relevant to the study of a subject required for the use of classroom pupils, or another type of course material that forms the basis of classroom instruction.
“Total state aid” or “total state school aid”, except as otherwise provided in this article, means the total combined amount of all funds due to a district, intermediate district, or other entity under this article.
Sec. 11. (1) For the fiscal year ending September 30, 2025, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $17,769,551,300.00
$125,000,000.00 from the school transportation fund created under section 22k, an amount not to exceed
$71,000,000.00 from the enrollment stabilization fund created under section 29, an amount not to exceed
$30,000,000.00 from the school meals reserve fund created under section 30e, an amount not to exceed
$18,000,000.00 from the great start readiness program reserve fund created under section 32e, an amount not to exceed $334,100,000.00 $481,400,000.00 from the MPSERS retirement obligation reform reserve fund created under section 147b, and an amount not to exceed $30,000,000.00 from the educator fellowship public provider fund created in section 27d. For the fiscal year ending September 30, 2026, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $18,366,334,700.00 from the state school aid fund, the sum of $73,151,100.00 from the general fund, an amount not to exceed $100,000,000.00 from the school consolidation and infrastructure fund created under section 11x, an amount not to exceed $125,000,000.00 from the school transportation fund created under section 22k, an amount not to exceed $71,000,000.00 from the enrollment stabilization fund created under section 29, an amount not to exceed $18,000,000.00 from the great start readiness program reserve fund created under section 32e, an amount not to exceed $30,000,000.00 from the educator fellowship public provider fund created under section 27d, an amount not to exceed $97,037,400.00 from the state school aid pupil support reserve fund created under section 22r, and an amount not to exceed $600,000.00 from the general pupil support reserve fund created under section 22s. In addition, all available federal funds are only appropriated as allocated in this article for the fiscal year years ending September 30, 2025 and September 30, 2026.
The appropriations under this section are allocated as provided in this article. Money appropriated
under this section from the general fund must be expended to fund the purposes of this article before the expenditure of money appropriated under this section from the state school aid fund.
Any general fund allocations under this article that are not expended by the end of the fiscal year are transferred to the school aid stabilization fund created under section 11a.
Sec. 11a. (1) The school aid stabilization fund is created as a separate account within the state school aid fund.
The state treasurer may receive money or other assets from any source for deposit into the school aid stabilization fund. The state treasurer shall deposit into the school aid stabilization fund all of the following:
Unexpended and unencumbered state school aid fund revenue for a fiscal year that remains in the state school aid fund as of the bookclosing for that fiscal year.
Money statutorily dedicated to the school aid stabilization fund.
Money appropriated to the school aid stabilization fund.
Money available in the school aid stabilization fund may not be expended without a specific appropriation from the school aid stabilization fund. Money in the school aid stabilization fund must be expended only for purposes for which state school aid fund money may be expended.
The state treasurer shall direct the investment of the school aid stabilization fund. The state treasurer shall credit to the school aid stabilization fund interest and earnings from fund investments.
Money in the school aid stabilization fund at the close of a fiscal year remains in the school aid stabilization fund and does not lapse to the unreserved school aid fund balance or the general fund.
If the maximum amount appropriated under section 11 from the state school aid fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year, there is appropriated from the school aid stabilization fund to the state school aid fund an amount equal to the projected shortfall as determined by the department of treasury, but not to exceed available money in the school aid stabilization fund. If the money in the school aid stabilization fund is insufficient to fully fund an amount equal to the projected shortfall, the state budget director shall notify the legislature as required under section 296(2) and state payments in an amount equal to the remainder of the projected shortfall must be prorated in the manner provided under section 296(3).
For 2024-2025, 2025-2026 in addition to the appropriations in section 11, there is appropriated from the school aid stabilization fund to the state school aid fund the amount necessary to fully fund the allocations under this article.
Sec. 11j. From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $23,000,000.00 for 2024-2025 2025-2026 for payments to the school loan bond redemption fund in the department of treasury on behalf of districts and intermediate districts. Notwithstanding section 296 or any other provision of this act, funds allocated under this section are not subject to proration and must be paid in full.
Sec. 11k. For 2024-2025, 2025-2026, there is appropriated from the general fund to the school loan revolving fund an amount equal to the amount of school bond loans assigned to the Michigan finance authority, not to exceed the total amount of school bond loans held in reserve as long-term assets. As used in this section, “school loan revolving fund” means that fund created in section 16c of the shared credit rating act, 1985 PA 227, MCL 141.1066c.
Sec. 11m. From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 an amount not to exceed $1,000,000.00 $5,000,000.00 for fiscal year cash-flow borrowing costs solely related to the state school aid fund established under section 11 of article IX of the state constitution of 1963.
Sec. 11s. (1) From the state school aid fund money appropriated in section 11, there is allocated
$5,000,000.00 for 2024-2025 2025-2026 only and from the general fund money appropriated in section 11, there is allocated $3,075,000.00 $3,000,000.00 for 2024-2025 2025-2026 only for the purpose of providing services and programs to children who reside within the boundaries of a district with the majority of its territory located within the boundaries of a city for which an executive proclamation of emergency concerning drinking water is issued in the current or immediately preceding 9 10 fiscal years under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least 4,500 pupils in membership for the 2016-2017 fiscal year or has at least 2,700 2,600 pupils in membership for a fiscal year after 2016-2017.
From the general fund money allocated in subsection (1), there is allocated to a district with the majority of its territory located within the boundaries of a city for which an executive proclamation of emergency concerning drinking water is issued in the current or immediately preceding 9 10 fiscal years under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, and that has at least 4,500 pupils in membership for the 2016-2017 fiscal year or has at least 2,700 2,600 pupils in membership for a fiscal year after 2016-2017, an amount not to exceed $2,425,000.00 for 2024-2025 2025-2026 for the purpose of employing school nurses, classroom aides, school social workers, and community health workers; for the provision of behavioral or mental health supports, parental engagement activities, community coordination activities, and other support services; and for purchasing program supplies. The district shall provide a report to the department in a form, manner, and frequency prescribed by the department. The department shall provide a copy of that report to the governor, the house and senate school aid subcommittees, the house and senate fiscal agencies, and the state budget director within 5 days after receipt. The report must provide at least the following information:
How many personnel were hired using the funds allocated under this subsection.
A description of the services provided to pupils by those personnel.
How many pupils received each type of service identified in subdivision (b).
Any other information the department considers necessary to ensure that the children described in subsection (1) received appropriate levels and types of services.
For 2024-2025, 2025-2026 only, from the general fund money allocated in subsection (1), there is allocated an amount not to exceed $650,000.00 $575,000.00 for nutritional services to children described in subsection (1).
For 2024-2025, 2025-2026 only, from the state school aid fund money allocated in subsection (1), there is allocated an amount not to exceed $5,000,000.00 to an intermediate district that has a constituent district described in subsection (2) for interventions and supports for students in grades K to 12 who were impacted by an executive proclamation of emergency described in subsection (1) concerning drinking water. Funds under this subsection must be used for behavioral supports, social workers, counselors, psychologists, nursing services, including, but not limited to, vision and hearing services, transportation services, parental engagement, community coordination, and other support services.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 11x. (1) The school consolidation and infrastructure fund is created as a separate account within the state school aid fund for the purpose of improving student academic outcomes, increasing the efficiency of the state’s public education system, and creating a healthy and safe space for students in this state.
The state treasurer may receive money or other assets from any source for deposit into the school consolidation and infrastructure fund. The state treasurer shall direct the investment of the school consolidation and infrastructure fund. The state treasurer shall credit to the school consolidation and infrastructure fund interest and earnings from school consolidation and infrastructure fund investments.
Money in the school consolidation and infrastructure fund at the close of the fiscal year remains in the school consolidation and infrastructure fund and does not lapse to the state school aid fund or the general fund.
The department of treasury is the administrator of the school consolidation and infrastructure fund for auditing purposes.
Money available in the school consolidation and infrastructure fund must not be expended without a specific appropriation.
From the state school aid fund money appropriated under section 11, there is allocated for 2022-2023 only an amount not to exceed $5,000,000.00 for grants to districts and intermediate districts to support the cost of a feasibility study or analysis of consolidation or the consolidation of services among 1 or more buildings within a district, among 1 or more districts, or among 1 or more intermediate districts. Districts and intermediate districts may apply for a grant under this subsection to the department on a first-come, first- serve basis. The maximum amount of a grant to be distributed under this subsection may not exceed
$250,000.00. Notwithstanding section 17b, the department shall make payments under this subsection on a schedule determined by the department.
To be eligible for a grant under subsection (6), a district or intermediate district must demonstrate to the department, in the manner prescribed by the department, that it will conduct a feasibility study or analysis and that all of the following will be met:
Within 30 days after completion of the study or analysis, the district or intermediate district will make the results of the study or analysis available to all districts and intermediate districts included in the study or analysis. Within 60 days after the completion of the study or analysis, the district or intermediate district will make the results available on a publicly available website.
The study or analysis may include, but is not limited to, consolidation opportunities in the following areas:
Financial services, which may include, but is not limited to, the following:
Budgeting and staffing.
Payroll.
Employee benefits.
State reporting.
Software consolidation to achieve common software throughout the intermediate district.
Human resources, which may include, but is not limited to, the following:
Onboarding.
Title IX administration.
Hiring.
Software consolidation to achieve common software throughout the intermediate district.
Information technology, which may include, but is not limited to, the following:
Software consolidation to achieve common software throughout the intermediate district.
Fiber projects.
Cybersecurity.
One-to-one device management.
Grant management and reporting, which may include, but is not limited to, the following:
Management of all state grant sites and databases.
Grant reporting.
Cash management, which may include, but is not limited to, the opportunities for intermediate districts and districts to contract on cash flow management to maximize interest earnings.
Debt issuance and management, including at least all of the following:
Refunding opportunities.
New bond issue analysis.
School facility consolidation.
Consolidation of transportation-related activities.
The physical consolidation of districts.
An intermediate district that receives a grant under this section shall meet with its constituent districts located within the intermediate district to discuss the results of the study or analysis and to implement changes where feasible. The application for an intermediate district must include a brief description of how the intermediate district will conduct these meetings.
To be eligible for the receipt of funding for infrastructure-related projects appropriated from the school consolidation and infrastructure fund created under this section, a district must allow for the facility condition assessments described in section 11y to be conducted in the district. It is the intent of the legislature that money in the school consolidation and infrastructure fund will not be appropriated for infrastructure projects until the completion of the facility condition assessments described in section 11y.
Sec. 12d. (1) From the school consolidation and infrastructure fund created under section 11x, there is allocated for 2023-2024 only an amount not to exceed $110,000,000.00 for the purposes of this section.
From the amount allocated in subsection (1), there is allocated an amount not to exceed $75,000,000.00 for grants to districts and intermediate districts to support costs related to internal consolidation within the district or intermediate district. All of the following apply to grants under this subsection:
The department shall allow grants for applicants that have already taken actions for internal consolidation within the previous 2 years and grants for applicants that have not yet begun internal consolidation activities.
The department shall prioritize applications from districts and intermediate districts that meet any of the following criteria:
Are in an opportunity index band, as described in section 31a, of 3 or higher.
Are an intermediate district for which the percentage of pupils in membership who were determined to be economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum percentage for a district or public school academy to be in an opportunity index band, as described in section 31a, of 3 or higher.
Are experiencing declining enrollment.
Have no ability to issue bonds for infrastructure needs, or have made a good-faith effort, as determined by the department, to issue bonds for infrastructure needs.
Grants may be used for operational expenses related to internal consolidation and for infrastructure needs. Infrastructure needs may include, but are not limited to, the removal of buildings.
From the amount allocated in subsection (1), $35,000,000.00 is allocated as follows:
$15,000,000.00 to Detroit Public Schools Community District to support the construction of the Cooley High School athletic complex.
$10,000,000.00 to Wayne RESA to support the construction of an academic and professional building in the city of Wayne.
$5,000,000.00 to Beecher Community School District to support the construction of a high school in the district.
$4,000,000.00 to Taylor School District for costs related to a new high school in the district.
$1,000,000.00 to the School District of the City of Hamtramck to support the costs of building infrastructure upgrades and maintenance.
(4) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 15. (1) If a district or intermediate district fails to receive its proper apportionment, the department, upon satisfactory proof that the district or intermediate district was entitled justly, shall apportion the deficiency in the next apportionment. Subject to subsections (2) and (3), if a district or intermediate district has received more than its proper apportionment, the department, upon satisfactory proof, shall deduct the excess in the next apportionment. Notwithstanding any other provision in this article, state aid overpayments to a district, other than overpayments in payments for special education or special education transportation, may be recovered from any payment made under this article other than a special education or special education transportation payment, from the proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of millage levied or pledged under section 1211 of the revised school code, MCL 380.1211. State aid overpayments made in special education or special education transportation payments may be recovered from subsequent special education or special education transportation payments, from the proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of millage levied or pledged under section 1211 of the revised school code, MCL 380.1211.
If the result of an audit conducted by or for the department affects the current fiscal year membership,
the department shall adjust affected payments in the current fiscal year. A deduction due to an adjustment made as a result of an audit conducted by or for the department, or as a result of information obtained by the department from the district, an intermediate district, the department of treasury, or the office of auditor general, must be deducted from the district’s apportionments when the adjustment is finalized. At the request of the district and upon the district presenting evidence satisfactory to the department of the hardship, the department may grant up to an additional 4 years for the adjustment and may advance payments to the district otherwise authorized under this article if the district would otherwise experience a significant hardship in satisfying its financial obligations. However, a district that presented satisfactory evidence of hardship and was undergoing an extended adjustment during 2018-2019 may continue to use the period of extended adjustment as originally granted by the department.
If, based on an audit by the department or the department’s designee or because of new or updated information received by the department, the department determines that the amount paid to a district or intermediate district under this article for the current fiscal year or a prior fiscal year was incorrect, the department shall make the appropriate deduction or payment in the district’s or intermediate district’s allocation in the next apportionment after the adjustment is finalized. The department shall calculate the deduction or payment according to the law in effect in the fiscal year in which the incorrect amount was paid. If the district does not receive an allocation for the fiscal year or if the allocation is insufficient to pay the amount of any deduction, the amount of any deduction otherwise applicable must be satisfied from the proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of millage levied or pledged under section 1211 of the revised school code, MCL 380.1211, as determined by the department.
If the department makes an adjustment under this section based in whole or in part on a membership audit finding that a district or intermediate district employed an educator in violation of certification requirements under the revised school code and rules promulgated by the department, the department shall prorate the adjustment according to the period of noncompliance with the certification requirements.
The department may conduct audits, or may direct audits by designee of the department, for the current fiscal year and the immediately preceding fiscal year of all records related to a program for which a district or intermediate district has received funds under this article.
Expenditures made by the department departments under this article that are caused by the write-off of prior year accruals may be funded by revenue from the write-off of prior year accruals.
In addition to funds appropriated in section 11 for all programs and services, there is appropriated for 2024-2025 and 2025-2026 for obligations in excess of applicable appropriations an amount equal to the collection of overpayments, but not to exceed amounts available from overpayments.
Sec. 18. (1) Except as provided in another section of this article, each district or other entity shall apply the money received by the district or entity under this article to salaries and other compensation of teachers and other employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks, other supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the total amount received by a district under sections 22a and 22b or received by an intermediate district under section 81 may be transferred by the board to either the capital projects fund or to the debt retirement fund for debt service. A district or other entity shall not apply or take the money for a purpose other than as provided in this section. The department shall determine the reasonableness of expenditures and may withhold from a recipient of funds under this article the apportionment otherwise due upon a violation by the recipient. A district must not be prohibited or limited from using funds appropriated or allocated under this article that are permitted for use for noninstructional services to contract or subcontract with an intermediate district, third party, or vendor for the noninstructional services.
A district or intermediate district shall adopt an annual budget in a manner that complies with the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days after a district board adopts its annual operating budget for the following school fiscal year, or after a district board adopts a subsequent revision to that budget, the district shall make all of the following available through a link on its website homepage, or may make the information available through a link on its intermediate district’s website homepage, in a form and manner prescribed by the department:
The annual operating budget and subsequent budget revisions.
Using data that have already been collected and submitted to the department, a summary of district expenditures for the most recent fiscal year for which they are available, expressed in the following 2 visual displays:
A chart of personnel expenditures, broken into the following subcategories:
Salaries and wages.
Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long- term care benefits.
Retirement benefit costs.
All other personnel costs.
A chart of all district expenditures, broken into the following subcategories:
Instruction.
Support services.
Business and administration.
Operations and maintenance.
Links to all of the following:
The current collective bargaining agreement for each bargaining unit.
Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long- term care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or employee in the district.
The audit report of the financial audit conducted under subsection (4) for the most recent fiscal year for which it is available.
The bids required under section 5 of the public employees health benefit act, 2007 PA 106, MCL 124.75.
The district’s written policy governing procurement of supplies, materials, and equipment.
The district’s written policy establishing specific categories of reimbursable expenses, as described in section 1254(2) of the revised school code, MCL 380.1254.
Either the district’s accounts payable check register for the most recent school fiscal year or a statement of the total amount of expenses incurred by board members or employees of the district that were reimbursed by the district for the most recent school fiscal year.
The total salary and a description and cost of each fringe benefit included in the compensation package for the superintendent of the district and for each employee of the district whose salary exceeds $100,000.00.
The annual amount spent on dues paid to associations.
The annual amount spent on lobbying or lobbying services. As used in this subdivision, “lobbying” means that term as defined in section 5 of 1978 PA 472, MCL 4.415.
Any deficit elimination plan or enhanced deficit elimination plan the district was required to submit under the revised school code.
Identification of all credit cards maintained by the district as district credit cards, the identity of all individuals authorized to use each of those credit cards, the credit limit on each credit card, and the dollar limit, if any, for each individual’s authorized use of the credit card.
Costs incurred for each instance of out-of-state travel by the school administrator of the district that is fully or partially paid for by the district and the details of each of those instances of out-of-state travel, including at least identification of each individual on the trip, destination, and purpose.
For the information required under subsection (2)(a), (2)(b)(i), and (2)(c), an intermediate district shall provide the same information in the same manner as required for a district under subsection (2).
For the purposes of determining the reasonableness of expenditures, whether a district or intermediate district has received the proper amount of funds under this article, and whether a violation of this article has occurred, all of the following apply:
The department shall require that each district and intermediate district have an audit of the district’s or intermediate district’s financial and pupil accounting records conducted at least annually, and at such other times as determined by the department, at the expense of the district or intermediate district, as applicable. The audits must be performed by a certified public accountant or by the intermediate district superintendent, as may be required by the department, or in the case of a district of the first class by a certified public accountant, the intermediate superintendent, or the auditor general of the city. A district or intermediate district shall retain these records for the current fiscal year and from at least the 3 immediately preceding fiscal years.
If a district operates in a single building with fewer than 700 full-time equated pupils, if the district has stable membership, and if the error rate of the immediately preceding 2 pupil accounting field audits of the district is less than 2%, the district may have a pupil accounting field audit conducted biennially but must continue to have desk audits for each pupil count. The auditor must document compliance with the audit cycle in the pupil auditing manual. As used in this subdivision, “stable membership” means that the district’s membership for the current fiscal year varies from the district’s membership for the immediately preceding fiscal year by less than 5%.
A district’s or intermediate district’s annual financial audit must include an analysis of the financial and pupil accounting data used as the basis for distribution of state school aid.
The pupil and financial accounting records and reports, audits, and management letters are subject to requirements established in the auditing and accounting manuals approved and published by the department.
All of the following must be done not later than November 1 each year for reporting the prior fiscal year data:
A district shall file the annual financial audit reports with the intermediate district and the department. If the issuance of single audits is delayed for the 2024-25 school year due to a late issuance of a Compliance Supplement, the single audit portion of that audit must be filed within 30 days of the issuance of the Compliance Supplement by OMB.
The intermediate district shall file the annual financial audit reports for the intermediate district with the department. If the issuance of single audits is delayed for the 2024-25 school year due to a late issuance of a Compliance Supplement, the single audit portion of that audit must be filed within 30 days of the issuance of the Compliance Supplement by OMB.
The intermediate district shall enter the pupil membership audit reports, known as the audit narrative, for its constituent districts and for the intermediate district, for the pupil membership count day and supplemental count day, in the Michigan student data system.
The annual financial audit reports and pupil accounting procedures reports must be available to the public in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Not later than January 31 of each year, the department shall notify the state budget director and the legislative appropriations subcommittees responsible for review of the school aid budget of districts and intermediate districts that have not filed an annual financial audit and pupil accounting procedures report required under this section for the school year ending in the immediately preceding fiscal year.
By the first business day in November of each fiscal year, each district and intermediate district shall submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with the district’s or intermediate district’s audited financial statements and consistent with accounting manuals and charts of accounts approved and published by the department. For an intermediate district, the report must also contain the website address where the department can access the report required under section 620 of the revised school code, MCL 380.620. The department shall ensure that the prescribed Michigan public school accounting manual chart of accounts includes standard conventions to distinguish expenditures by allowable fund function and object. The functions must include at minimum categories for instruction, pupil support, instructional staff support, general administration, school administration, business administration, transportation, facilities operation and maintenance, facilities acquisition, and debt service; and must include object classifications of salary, benefits, including categories for active employee health expenditures, purchased services, supplies, capital outlay, and other. A district shall report the required level of detail consistent with the manual as part of the comprehensive annual financial report.
By the last business day in September of each year, each district and intermediate district shall file with
the center the special education actual cost report, known as “SE-4096”, on a form and in the manner prescribed by the center. An intermediate district shall certify the audit of a district’s report.
By not later than 1 week after the last business day in September of each year, each district and intermediate district shall file with the center the audited transportation expenditure report, known as “SE-4094”, on a form and in the manner prescribed by the center. An intermediate district shall certify the audit of a district’s report.
The department shall review its pupil accounting and pupil auditing manuals at least annually and shall periodically update those manuals to reflect changes in this article. Any changes to the pupil accounting manual that are applicable for the school year that begins after March 31 of a fiscal year must be published by not later than March 31 of that fiscal year. However, if legislation is enacted that necessitates adjustments to the pupil accounting manual after March 31 of a fiscal year, and a district incurs a violation of the amended pupil accounting manual in the subsequent fiscal year, the department must notify the district of that violation and allow the district 30 days to correct the violation before the department is allowed to impose financial penalties under this act related to the violation.
If a district that is a public school academy purchases property using money received under this article, the public school academy shall retain ownership of the property unless the public school academy sells the property at fair market value.
If a district or intermediate district does not comply with subsections (4), (5), (6), (7), and (12), or if the department determines that the financial data required under subsection (5) are not consistent with audited financial statements, the department shall withhold all state school aid due to the district or intermediate district under this article, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsections (4), (5), (6), (7), and (12). If the district or intermediate district does not comply with subsections (4), (5), (6), (7), and (12) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld.
If a district or intermediate district does not comply with subsection (2), the department may withhold up to 10% of the total state school aid due to the district or intermediate district under this article, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsection (2). If the district or intermediate district does not comply with subsection (2) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld.
By November 1 of each year, if a district or intermediate district offers virtual learning under section 21f, or for a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551, the district or intermediate district shall submit to the department a report that details the per- pupil costs of operating the virtual learning by vendor type and virtual learning model. The report must include information concerning the operation of virtual learning for the immediately preceding school fiscal year, including information concerning summer programming. Information must be collected in a form and manner determined by the department and must be collected in the most efficient manner possible to reduce the administrative burden on reporting entities.
By March 31 of each year, the department shall submit to the house and senate appropriations subcommittees on state school aid, the state budget director, and the house and senate fiscal agencies a report summarizing the per-pupil costs by vendor type of virtual courses available under section 21f and virtual courses provided by a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551.
As used in subsections (12) and (13), “vendor type” means the following:
Virtual courses provided by the Michigan Virtual University.
Virtual courses provided by a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551.
Virtual courses provided by third party vendors not affiliated with a public school in this state.
Virtual courses created and offered by a district or intermediate district.
An allocation to a district or another entity under this article is contingent upon the district’s or entity’s compliance with this section.
The department shall annually submit to the senate and house subcommittees on school aid and to the senate and house standing committees on education an itemized list of allocations under this article to any association or consortium consisting of associations in the immediately preceding fiscal year. The report must detail the recipient or recipients, the amount allocated, and the purpose for which the funds were distributed.
Sec. 19. (1) A district or intermediate district shall comply with all applicable reporting requirements specified in state and federal law. Data provided to the center, in a form and manner prescribed by the center, must be aggregated and disaggregated as required by state and federal law. In addition, a district or intermediate district shall cooperate with all measures taken by the center to establish and maintain a statewide P-20 longitudinal data system.
Each district shall furnish to the center not later than 5 weeks after the pupil membership count day and by the last business day in June of the school fiscal year ending in the fiscal year, in a manner prescribed by the center, the information necessary for the preparation of the district and high school graduation report, information regarding completion of early middle college credentials obtained and postsecondary credits obtained in any college acceleration program, and information necessary for the preparation of the state and federal accountability reports. This information must meet requirements established in the pupil auditing manual approved and published by the department. The center shall calculate an annual graduation and pupil dropout rate for each high school, each district, and this state, in compliance with nationally recognized standards for these calculations. The center shall report all graduation and dropout rates to the senate and house education committees and appropriations committees, the state budget director, and the department not later than 30 days after the publication of the list described in subsection (5). Before reporting these graduation and dropout rates, the department shall allow a school or district to appeal the calculations. The department shall consider and act upon the appeal within 30 days after it is submitted and shall not report these graduation and dropout rates until after all appeals have been considered and decided.
By the first business day in December and by the last business day in June of each year, and within 30 days of any changes in employment or assignment status, a district shall furnish to the center, in a manner prescribed by the center, information related to educational personnel and personnel vacancies as necessary for reporting required by state and federal law. For the purposes of this subsection, the center shall only require districts and intermediate districts to report information that is not already available from the office of retirement services in the department of technology, management, and budget. , including, but not limited to, information concerning vacancy start and end dates and reasons for vacancies and vacancy terminations.
If a district or intermediate district fails to meet the requirements of this section, the department shall withhold 5% of the total funds for which the district or intermediate district qualifies under this article until the district or intermediate district complies with this section. If the district or intermediate district does not comply with this section by the end of the fiscal year, the department shall place the amount withheld in an escrow account until the district or intermediate district complies with this section.
Before publishing a list of school or district accountability designations as required by the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95, and utilizing data that were certified as accurate and complete after districts and intermediate districts adhered to deadlines, data quality reviews, and correction processes leading to local certification of final student data in subsection (2), the department shall allow a school or district to appeal any calculation errors used in the preparation of accountability metrics. The department shall consider and act upon the appeal within 30 days after it is submitted and shall not publish the list until after all appeals have been considered and decided.
The department shall implement statewide standard reporting requirements for education data approved by the department in conjunction with the center. The department shall work with the center, intermediate districts, districts, and other interested stakeholders to implement this policy change. A district or intermediate district shall implement the statewide standard reporting requirements not later than 2017-2018 or when a district or intermediate district updates its education data reporting system, whichever is later.
A district or intermediate district shall collect and submit to the center tribal affiliation data for all students and staff and the identification of student participation in federal programs funded under 20 USC 7401 to 7546 and participation in federal programs funded under the Johnson-O’Malley Supplemental Indian Education Program Modernization Act, Public Law 115-404. The data must be reported in a form and manner prescribed by the center in consultation with the federally recognized Indian tribes in this state and the department in adherence to the department’s tribal consultation policy. A district or intermediate district shall begin completion of the reporting requirement under this subsection by not later than the 2024-2025 fiscal year.
Sec. 20. (1) For 2024-2025, the target foundation allowance is $9,608.00.For 2025-2026, the target foundation allowance is $10,050.00.
The department shall calculate the amount of each district’s foundation allowance as provided in this section, using a target foundation allowance in the amount specified in subsection (1).
Except as otherwise provided in this section, the department shall calculate the amount of a district’s foundation allowance as follows, using in all calculations the total amount of the district’s foundation allowance as calculated before any proration:
For a district that had a foundation allowance for the immediately preceding fiscal year that was equal to the target foundation allowance for the immediately preceding fiscal year, the district receives a foundation allowance in an amount equal to the target foundation allowance described in subsection (1) for the current fiscal year.
For a district that had a foundation allowance for the immediately preceding fiscal year that was greater than the target foundation allowance for the immediately preceding fiscal year, the district’s foundation allowance is an amount equal to the lesser of (the sum of the district’s foundation allowance for the immediately preceding fiscal year plus any per pupil amount calculated under section 20m(2) in the immediately preceding fiscal year plus the increase in the target foundation allowance for the current fiscal year, as compared to the immediately preceding fiscal year) or (the product of the district’s foundation allowance for the immediately preceding fiscal year times the percentage increase in the United States Consumer Price Index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b).
For a district that had a foundation allowance in the immediately preceding fiscal year that was less than the target foundation allowance in effect for that fiscal year, the district’s foundation allowance is an amount equal to the lesser of (the sum of district’s foundation allowance for the immediately preceding fiscal year plus any per pupil amount calculated under section 20m(2) in the immediately preceding fiscal year plus the increase in the target foundation allowance for the current fiscal year, as compared to the immediately preceding fiscal year) or (the product of the district’s foundation allowance for the immediately
preceding fiscal year times the percentage increase in the United States Consumer Price Index in the calendar year ending in the immediately preceding fiscal year as reported by the May revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b).
For a district that has a foundation allowance that is not a whole dollar amount, the department shall round the district’s foundation allowance up to the nearest whole dollar.
Except as otherwise provided in this subsection, the state portion of a district’s foundation allowance is an amount equal to the district’s foundation allowance or the target foundation allowance for the current fiscal year, whichever is less, minus the local portion of the district’s foundation allowance. Except as otherwise provided in this subsection, for a district described in subsection (3)(b) and (c), the state portion of the district’s foundation allowance is an amount equal to the target foundation allowance minus the district’s foundation allowance supplemental payment per pupil calculated under section 20m and minus the local portion of the district’s foundation allowance. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the department shall calculate the state portion of the district’s foundation allowance as if that reduction did not occur. For a receiving district, if school operating taxes continue to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, the taxable value per membership pupil of property in the receiving district used for the purposes of this subsection does not include the taxable value of property within the geographic area of the dissolved district. For a community district, if school operating taxes continue to be levied by a qualifying school district under section 12b of the revised school code, MCL 380.12b, with the same geographic area as the community district, the taxable value per membership pupil of property in the community district to be used for the purposes of this subsection does not include the taxable value of property within the geographic area of the community district.
The allocation calculated under this section for a pupil is based on the foundation allowance of the
pupil’s district of residence. For a pupil enrolled under section 105 or 105c in a district other than the pupil’s district of residence, the allocation calculated under this section is based on the lesser of the foundation allowance of the pupil’s district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil’s district of residence, the allocation calculated under this section is based on the foundation allowance of the educating district if the educating district’s foundation allowance is greater than the foundation allowance of the pupil’s district of residence. The calculation under this subsection must take into account a district’s per-pupil allocation under section 20m.
Except as otherwise provided in this subsection, for pupils in membership, other than special education pupils, in a public school academy, the allocation calculated under this section is an amount per membership pupil other than special education pupils in the public school academy equal to the target foundation allowance specified in subsection (1), or, for a public school academy that was issued a contract under section 552 of the revised school code, MCL 380.552, to operate as a school of excellence that is a cyber school,
$9,150.00. $10,050.00. Notwithstanding section 101, for a public school academy that begins operations after the pupil membership count day, the amount per membership pupil calculated under this subsection must be adjusted by multiplying that amount per membership pupil by the number of hours of pupil instruction provided by the public school academy after it begins operations, as determined by the department, divided by the minimum number of hours of pupil instruction required under section 101(3). The result of this calculation must not exceed the amount per membership pupil otherwise calculated under this subsection.
For pupils in membership, other than special education pupils, in a community district, the allocation calculated under this section is an amount per membership pupil other than special education pupils in the community district equal to the foundation allowance of the qualifying school district, as described in section 12b of the revised school code, MCL 380.12b, that is located within the same geographic area as the community district.
Subject to subsection (4), for a district that is formed or reconfigured after June 1, 2002 by consolidation of 2 or more districts or by annexation, the resulting district’s foundation allowance under this section beginning after the effective date of the consolidation or annexation is the lesser of the sum of the average of the foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the original or affected districts plus $100.00 or the highest foundation allowance among the original or affected districts. This subsection does not apply to a receiving district unless there is a subsequent consolidation or annexation that affects the district. The calculation under this subsection must take into account a district’s per-pupil allocation under section 20m.
The department shall round each fraction used in making calculations under this section to the fourth decimal place and shall round the dollar amount of an increase in the target foundation allowance to the nearest whole dollar.
State payments related to payment of the foundation allowance for a special education pupil are not calculated under this section but are instead calculated under section 51e.
To assist the legislature in determining the target foundation allowance for the subsequent fiscal year, each revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, must calculate a pupil membership factor, a revenue adjustment factor, and an index as follows:
The pupil membership factor is computed by dividing the estimated membership in the school year ending in the current fiscal year, excluding intermediate district membership, by the estimated membership for the school year ending in the subsequent fiscal year, excluding intermediate district membership. If a consensus membership factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.
The revenue adjustment factor is computed by dividing the sum of the estimated total state school aid fund revenue for the subsequent fiscal year plus the estimated total state school aid fund revenue for the current fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund and excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated total school aid fund revenue for the current fiscal year plus the estimated total state school aid fund revenue for the immediately preceding fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference.
The index is calculated by multiplying the pupil membership factor by the revenue adjustment factor. If a consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for state school aid appropriations not later than 7 days after the conclusion of the revenue conference.
Payments to districts and public school academies are not made under this section. Rather, the calculations under this section are used to determine the amount of state payments under section 22b.
If an amendment to section 2 of article VIII of the state constitution of 1963 allowing state aid to some or all nonpublic schools is approved by the voters of this state, each foundation allowance or per-pupil payment calculation under this section may be reduced.
As used in this section:
“Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94.
“Current fiscal year” means the fiscal year for which a particular calculation is made.
“Dissolved district” means a district that loses its organization, has its territory attached to 1 or more other districts, and is dissolved as provided under section 12 of the revised school code, MCL 380.12.
“Immediately preceding fiscal year” means the fiscal year immediately preceding the current fiscal year.
“Local portion of the district’s foundation allowance” means an amount that is equal to the difference between (the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills) and (the quotient of the product of the captured assessed valuation under tax increment financing acts times the district’s certified mills divided by the district’s membership excluding special education pupils).
“Membership” means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.
“Nonexempt property” means property that is not a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, commercial personal property, or property occupied by a public school academy.
“Principal residence”, “qualified agricultural property”, “qualified forest property”, “supportive housing property”, “industrial personal property”, and “commercial personal property” mean those terms as defined in section 1211 of the revised school code, MCL 380.1211.
“Receiving district” means a district to which all or part of the territory of a dissolved district is attached under section 12 of the revised school code, MCL 380.12.
“School operating purposes” means the purposes included in the operation costs of the district as prescribed in sections 7 and 18 and purposes authorized under section 1211 of the revised school code, MCL 380.1211.
“School operating taxes” means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes.
“Tax increment financing acts” means parts 2, 3, 4, and 6 of the recodified tax increment financing act, 2018 PA 57, MCL 125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670.
“Taxable value per membership pupil” means taxable value, as certified by the county treasurer and reported to the department, for the calendar year ending in the current state fiscal year divided by the district’s membership excluding special education pupils for the school year ending in the current state fiscal year.
Sec. 20d. In making the final determination required under former section 20a of a district’s combined state and local revenue per membership pupil in 1993-94 and in making calculations under section 20 for 2024-2025, 2025-2026, the department and the department of treasury shall comply with all of the following:
For a district that had combined state and local revenue per membership pupil in the 1994-95 fiscal year of $6,500.00 or more and served as a fiscal agent for a state board designated area vocational education center in the 1993-94 school year, total state school aid received by or paid on behalf of the district under this act in 1993-94 excludes payments made under former section 146 and under section 147 on behalf of the district’s employees who provided direct services to the area vocational education center. Not later than June 30, 1996, the department shall make an adjustment under this subdivision to the district’s combined state and local revenue per membership pupil in the 1994-95 fiscal year and the department of treasury shall make a final certification of the number of mills that may be levied by the district under section 1211 of the revised school code, MCL 380.1211, as a result of the adjustment under this subdivision.
If a district had an adjustment made to its 1993-94 total state school aid that excluded payments made under former section 146 and under section 147 on behalf of the district’s employees who provided direct services for intermediate district center programs operated by the district under former section 51 and sections 51a to 56, if nonresident pupils attending the center programs were included in the district’s membership for purposes of calculating the combined state and local revenue per membership pupil for 1993-94, and if there is a signed agreement by all constituent districts of the intermediate district agreeing to an adjustment under this subdivision, the department shall calculate the foundation allowances for 1995-96 and 1996-97 of all districts that had pupils attending the intermediate district center program operated by the district that had the adjustment as if their combined state and local revenue per membership pupil for 1993-94 included resident pupils attending the center program and excluded nonresident pupils attending the center program.
Sec. 21f. (1) A primary district shall enroll an eligible pupil in virtual courses in accordance with the provisions of this section. A primary district shall not offer a virtual course to an eligible pupil unless the virtual course is published in the primary district’s catalog of board-approved courses or in the statewide catalog of virtual courses maintained by the Michigan Virtual University pursuant to section 98. The primary district shall also provide on its publicly accessible website a link to the statewide catalog of virtual courses maintained by the Michigan Virtual University. Unless the pupil is at least age 18 or is an emancipated minor, a pupil must not be enrolled in a course that meets virtually for more than 15 days in a school year without the consent of the pupil’s parent or legal guardian.
Subject to subsection (3), a primary district shall enroll an eligible pupil in up to 2 virtual courses as requested by the pupil during an academic term, semester, or trimester.
A pupil may be enrolled in more than 2 virtual courses in a specific academic term, semester, or trimester if both of the following conditions are met:
The primary district has determined that it is in the best interest of the pupil.
The pupil agrees with the recommendation of the primary district.
If the number of applicants eligible for acceptance in a virtual course does not exceed the capacity of the provider to provide the virtual course, the provider shall accept for enrollment all of the applicants eligible for acceptance. If the number of applicants exceeds the provider’s capacity to provide the virtual course, the provider shall use a random draw system, subject to the need to abide by state and federal antidiscrimination laws and court orders. A primary district that is also a provider shall determine whether or not it has the capacity to accept applications for enrollment from nonresident applicants in virtual courses and may use that limit as the reason for refusal to enroll a nonresident applicant.
A primary district may not establish additional requirements beyond those specified in this subsection that would prohibit a pupil from taking a virtual course. A pupil’s primary district may deny the pupil enrollment in a virtual course if any of the following apply, as determined by the district:
The pupil is enrolled in any of grades K to 5.
The pupil has previously gained the credits that would be provided from the completion of the virtual course.
The virtual course is not capable of generating academic credit.
The virtual course is inconsistent with the remaining graduation requirements or career interests of the pupil.
The pupil has not completed the prerequisite coursework for the requested virtual course or has not demonstrated proficiency in the prerequisite course content.
The pupil has failed a previous virtual course in the same subject during the 2 most recent academic years.
The virtual course is of insufficient quality or rigor. A primary district that denies a pupil enrollment request for this reason shall enroll the pupil in a virtual course in the same or a similar subject that the primary district determines is of acceptable rigor and quality.
The cost of the virtual course exceeds the amount identified in subsection (10), unless the pupil or the pupil’s parent or legal guardian agrees to pay the cost that exceeds this amount.
The request for a virtual course enrollment did not occur within the same timelines established by the primary district for enrollment and schedule changes for regular courses.
The request for a virtual course enrollment was not made in the academic term, semester, trimester, or summer preceding the enrollment. This subdivision does not apply to a request made by a pupil who is newly enrolled in the primary district.
If a pupil is denied enrollment in a virtual course by the pupil’s primary district, the primary district shall provide written notification to the pupil of the denial, the reason or reasons for the denial under subsection (5), and a description of the appeal process. The pupil may appeal the denial by submitting a letter to the superintendent of the intermediate district in which the pupil’s primary district is located. The letter of appeal must include the reason provided by the primary district for not enrolling the pupil and the reason why the pupil is claiming that the enrollment should be approved. The intermediate district superintendent or designee shall respond to the appeal within 5 days after it is received. If the intermediate district superintendent or designee determines that the denial of enrollment does not meet 1 or more of the reasons specified in subsection (5), the primary district shall enroll the pupil in the virtual course.
To provide a virtual course to an eligible pupil under this section, a provider must do all of the following:
Ensure that the virtual course has been published in the pupil’s primary district’s catalog of board- approved courses or published in the statewide catalog of virtual courses maintained by the Michigan Virtual University.
Assign to each pupil a teacher of record and provide the primary district with the personnel identification code assigned by the center for the teacher of record. If the provider is a community college, the virtual course must be taught by an instructor employed by or contracted through the providing community college.
Offer the virtual course on an open entry and exit method, or aligned to a semester, trimester, or accelerated academic term format.
If the virtual course is offered to eligible pupils in more than 1 district, the following additional requirements must also be met:
Provide the Michigan Virtual University with a course syllabus that meets the definition under subsection (14)(g) in a form and manner prescribed by the Michigan Virtual University for inclusion in a statewide catalog of virtual courses.
Not later than October 1 of each fiscal year, provide the Michigan Virtual University with an aggregated count of enrollments for each virtual course the provider delivered to pupils under this section during the immediately preceding school year, and the number of enrollments in which the pupil earned 60% or more of the total course points for each virtual course.
To provide a virtual course under this section, a community college shall ensure that each virtual course it provides under this section generates postsecondary credit.
For any virtual course a pupil enrolls in under this section, the pupil’s primary district must assign to the pupil a mentor and shall supply the provider with the mentor’s contact information.
For a pupil enrolled in 1 or more virtual courses, the primary district shall use foundation allowance or per-pupil funds calculated under section 20 to pay for the expenses associated with the virtual course or courses. A primary district is not required to pay toward the cost of a virtual course an amount that exceeds 6.67% of the target foundation allowance for the current fiscal year as calculated under section 20.
A virtual learning pupil has the same rights and access to technology in the pupil’s primary district’s school facilities as all other pupils enrolled in the pupil’s primary district. The department shall establish standards for hardware, software, and internet access for pupils who are enrolled in more than 2 virtual courses under this section in an academic term, semester, or trimester taken at a location other than a school facility.
If a pupil successfully completes a virtual course, as determined by the pupil’s primary district, the pupil’s primary district shall grant appropriate academic credit for completion of the course and shall count that credit toward completion of graduation and subject area requirements. A pupil’s school record and transcript must identify the virtual course title as it appears in the virtual course syllabus.
The enrollment of a pupil in 1 or more virtual courses must not result in a pupil being counted as more than 1.0 full-time equivalent pupils under this article. The minimum requirements to count the pupil in membership are those established by the pupil accounting manual as it was in effect for the 2015-2016 school year or as subsequently amended by the department if the department notifies the legislature about the proposed amendment at least 60 days before the amendment becomes effective.
Subject to the requirements in this subsection, a district may provide instruction under this section for not more than 15 days in a school year. If a district plans to provide instruction under this section to pupils for not more than 15 days during a school year, the district’s plan must be approved by the board of the district and the district must provide notice of the plan to impacted pupils and their parents or legal guardians before enactment of the plan. Days of instruction under this subsection may only be used for the following purposes, as defined by the department:
Emergency closures.
Student testing days.
Professional development purposes, not to exceed a total of 30 hours during a school year.
“Instructor” means an individual who is employed by or contracted through a community college.
“Mentor” means a professional employee of the primary district who monitors the pupil’s progress, ensures the pupil has access to needed technology, is available for assistance, and ensures access to the teacher of record. A mentor may also serve as the teacher of record if the primary district is the provider for the virtual course and the mentor meets the requirements under subdivision (e).
“Primary district” means the district that enrolls the pupil and reports the pupil for pupil membership purposes.
“Provider” means the district, intermediate district, community college, or other third-party vendor that the primary district pays to provide the virtual course or the Michigan Virtual University if it is providing the virtual course.
“Teacher of record” means a teacher who meets all of the following:
Is appropriately placed under a valid Michigan teaching certificate or a teaching permit, authorization, or approval issued by the department. As used in this subparagraph, “appropriately placed” means holding a valid Michigan educator credential with the required grade range and discipline or subject area for the assignment, as defined by the superintendent of public instruction.
Is responsible for providing instruction, determining instructional methods for each pupil, diagnosing learning needs, assessing pupil learning, prescribing intervention strategies and modifying lessons, reporting outcomes, and evaluating the effects of instruction and support strategies.
Has a personnel identification code provided by the center.
If the provider is a community college, is an instructor employed by or contracted through the providing community college.
“Virtual course” means a course of study that is capable of generating a credit or a grade and that is provided in an interactive learning environment where any portion of the curriculum is delivered using the internet and in which pupils may be separated from their instructor or teacher of record by time or location, or both.
“Virtual course syllabus” means a document that includes all of the following:
An alignment document detailing how the course meets applicable state standards or, if the state does not have state standards, nationally recognized standards.
The virtual course content outline.
The virtual course required assessments.
The virtual course prerequisites.
Expectations for actual instructor or teacher of record contact time with the virtual learning pupil and other communications between a pupil and the instructor or teacher of record.
Academic support available to the virtual learning pupil.
The virtual course learning outcomes and objectives.
The name of the institution or organization providing the virtual content.
The name of the institution or organization providing the instructor or teacher of record.
The course titles assigned by the provider and the course titles and course codes from the National Center for Education Statistics (NCES) school codes for the exchange of data (SCED).
The number of eligible pupils that will be accepted by the provider in the virtual course. A primary district that is also the provider may limit the enrollment to those pupils enrolled in the primary district.
The results of the virtual course quality review using the guidelines and model review process published by the Michigan Virtual University.
“Virtual learning pupil” means a pupil enrolled in 1 or more virtual courses.
Sec. 21h. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is allocated $6,137,400.00 for 2024-2025 2025-2026 for assisting districts assigned by the superintendent to participate in a partnership and districts that are required to submit a deficit elimination plan or an enhanced deficit elimination plan under section 1220 of the revised school code, MCL 380.1220, and are located in a city with a population between 8,000 and 10,000 as determined by the department, that is in a county with a population between 150,000 and 160,000, as determined by the department, district agreement to improve student achievement and district financial stability. It is the intent of the legislature that the appropriation in this section will be funded with state school aid pupil support reserve fund money through 2027-2028. The superintendent shall identify any conditions that may be contributing to low academic performance within a district being considered for assignment to a partnership district agreement. The purpose of the partnership district agreement is to identify district needs, develop intervention plans, and partner with public, private, and nonprofit organizations to coordinate resources and improve student achievement. Assignment of a district to a partnership district agreement is made by the superintendent.
A district described in subsection (1) is eligible for funding under this section if the district includes at least 1 school that has been identified as low performing under the approved federal accountability system. or the state accountability system. A district described in this subsection must do all of the following to be eligible for funding under this section:
For a partnership district under this section, within Within 90 days of assignment to the partnership district agreement described in this section, and for a district described in subsection (1) that is not a partnership district under this section, complete a comprehensive needs assessment or evaluation in collaboration with an intermediate district, community members, education organizations, and postsecondary institutions, as applicable, that is approved by the superintendent. The comprehensive needs assessment or evaluation must include at least all of the following:
A review of the district’s implementation and utilization of a multi-tiered system of supports to ensure that it is used to appropriately inform instruction.
A review of the district and school building leadership and educator capacity to substantially improve student outcomes.
A review of classroom, instructional, and operational practices and curriculum to ensure alignment with research-based instructional practices and state curriculum standards.
Develop an academic and financial operating or intervention a district continuous improvement plan that has been approved by the superintendent and that addresses the needs identified in the comprehensive needs assessment or evaluation completed under subdivision (a). The intervention district continuous improvement plan must include at least all of the following:
Specific actions that will be taken by the district and each of its partners to improve student achievement.
Specific measurable benchmarks that will be met within 18 months to improve student achievement and identification of expected student achievement outcomes to be attained within 3 years after assignment to the partnership.
(d) Provide access to training for district leadership, including, but not limited to, the superintendent or chief administrator and school board or board of directors members, on areas of education fiscal and policy matters. The department may require training for district leadership and all board members under this subdivision at a rate and frequency needed to support measurable academic outcomes for the district.
Upon approval of the academic and financial operating or intervention district continuous improvement plan developed under subsection (2), the department shall assign a team of individuals with expertise in comprehensive school and district reform to partner with the district, the intermediate district, community organizations, education organizations, and postsecondary institutions identified in the academic and financial operating or intervention plan to review the district’s use of existing financial resources to ensure that those resources are being used as efficiently and effectively as possible to improve student academic achievement and to ensure district financial stability. The superintendent of public instruction may waive burdensome administrative rules for a partnership district for the duration of the partnership district agreement. and for a district described in subsection (1) that is not a partnership district under this section and that receives funding under this section in the current fiscal year.
Funds allocated under this section, excluding funds allocated under subsection (5), may be used to pay for district expenditures approved by the superintendent to improve student achievement. Funds may be used
for professional development for teachers or district or school leadership, increased instructional time, teacher mentors, literacy, numeracy, reducing K-3 class sizes, reducing chronic absenteeism, or other expenditures that directly impact student achievement and cannot be paid from existing district financial resources. Notwithstanding section 17b, the department shall make payments to districts under this section on a schedule determined by the department.
From the funds allocated under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $137,400.00 for the purchase of a data analytics tool to be used by districts described in subsection (1). The superintendent of public instruction shall require districts described in subsection (1) to purchase a data analytics tool funded under this subsection as part of the agreements described in this section.
The department shall annually report to the legislature on the activities funded under this section and how those activities impacted student achievement in districts that received funds under this section. To the extent possible, participating districts receiving funding under this section shall participate in the report.
In addition to the allocation under subsection (1), from the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $36,000,000.00 to districts described in subsection (1) for 2023-2024 only for supplemental funding to be used by districts for the purposes of this section in equal installments of $12,000,000.00 in each of the fiscal years 2023-2024, 2024-2025, and 2025-2026. The funds allocated under this subsection for 2023-2024 are a work project appropriation, and any unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide assistance to districts eligible for funding under this section. The estimated completion date of the work project described in this subsection is September 30, 2026.
Sec. 22a. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $4,144,000,000.00 for 2023-2024 and there is allocated an amount not to exceed
To ensure that a district receives an amount equal to the district’s 1994-95 total state and local per- pupil revenue for school operating purposes, there is allocated to each district a state portion of the district’s 1994-95 foundation allowance in an amount calculated as follows:
Except as otherwise provided in this subsection, the state portion of a district’s 1994-95 foundation allowance is an amount equal to the district’s 1994-95 foundation allowance or $6,500.00, whichever is less, minus the difference between the sum of the product of the taxable value per membership pupil of all property in the district that is nonexempt property times the district’s certified mills and, for a district with certified mills exceeding 12, the product of the taxable value per membership pupil of property in the district that is commercial personal property times the certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the district captured under tax increment financing acts divided by the district’s membership. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, the department shall calculate the state portion of the district’s foundation allowance as if that reduction did not occur. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, taxable value per membership pupil of all property in the receiving district that is nonexempt property and taxable value per membership pupil of property in the receiving district that is commercial personal property do not include property within the geographic area of the dissolved district; ad valorem property tax revenue of the receiving district captured under tax increment financing acts does not include ad valorem property tax revenue captured within the geographic boundaries of the dissolved district under tax increment financing acts; and certified mills do not include the certified mills of the dissolved district. For a community district, the department shall reduce the allocation as otherwise calculated under this section by an amount equal to the amount of local school operating tax revenue that would otherwise be due to the community district if not for the operation of section 386 of the revised school code, MCL 380.386, and the amount of this reduction is offset by the increase in funding under section 22b(2).
For a district that had a 1994-95 foundation allowance greater than $6,500.00, the state payment under this subsection is the sum of the amount calculated under subdivision (a) plus the amount calculated under
this subdivision. The amount calculated under this subdivision must be equal to the difference between the district’s 1994-95 foundation allowance minus $6,500.00 and the current year hold harmless school operating taxes per pupil. If the result of the calculation under subdivision (a) is negative, the negative amount is an offset against any state payment calculated under this subdivision. If the result of a calculation under this subdivision is negative, there is not a state payment or a deduction under this subdivision. The taxable values per membership pupil used in the calculations under this subdivision are as adjusted by ad valorem property tax revenue captured under tax increment financing acts divided by the district’s membership. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, ad valorem property tax revenue captured under tax increment financing acts do not include ad valorem property tax revenue captured within the geographic boundaries of the dissolved district under tax increment financing acts.
For pupils in membership in a qualifying public school academy, there is allocated under this section to the authorizing body that is the fiscal agent for the qualifying public school academy for forwarding to the qualifying public school academy an amount equal to the 1994-95 per-pupil payment to the qualifying public school academy under section 20.
A district or qualifying public school academy may use funds allocated under this section in conjunction with any federal funds for which the district or qualifying public school academy otherwise would be eligible.
Except as otherwise provided in this subsection, for a district that is formed or reconfigured after June 1, 2000 by consolidation of 2 or more districts or by annexation, the resulting district’s 1994-95 foundation allowance under this section beginning after the effective date of the consolidation or annexation is the average of the 1994-95 foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district in the fiscal year in which the consolidation takes place who reside in the geographic area of each of the original districts. If an affected district’s 1994-95 foundation allowance is less than the 1994-95 basic foundation allowance, the amount of that district’s 1994-95 foundation allowance is considered for the purpose of calculations under this subsection to be equal to the amount of the 1994-95 basic foundation allowance. This subsection does not apply to a receiving district unless there is a subsequent consolidation or annexation that affects the district.
Payments under this section are subject to section 25g.
As used in this section:
“1994-95 foundation allowance” means a district’s 1994-95 foundation allowance calculated and certified by the department of treasury or the superintendent under former section 20a as enacted in 1993 PA 336 and as amended by 1994 PA 283.
“Certified mills” means the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94.
“Current fiscal year” means the fiscal year for which a particular calculation is made.
“Current year hold harmless school operating taxes per pupil” means the per-pupil revenue generated by multiplying a district’s 1994-95 hold harmless millage by the district’s current year taxable value per membership pupil. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, taxable value per membership pupil does not include the taxable value of property within the geographic area of the dissolved district.
“Dissolved district” means a district that loses its organization, has its territory attached to 1 or more other districts, and is dissolved as provided under section 12 of the revised school code, MCL 380.12.
“Hold harmless millage” means, for a district with a 1994-95 foundation allowance greater than
$6,500.00, the number of mills by which the exemption from the levy of school operating taxes on a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, commercial personal property, and property occupied by a public school academy could be reduced as provided in section 1211 of the revised school code, MCL 380.1211, and the number of mills of school operating taxes that could be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, as certified by the department of treasury for the 1994 tax year. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, school operating taxes do not include school operating taxes levied within the geographic area of the dissolved district.
“Membership” means the definition of that term under section 6 as in effect for the particular fiscal year for which a particular calculation is made.
“Nonexempt property” means property that is not a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, commercial personal property, or property occupied by a public school academy.
“Principal residence”, “qualified agricultural property”, “qualified forest property”, “supportive housing property”, “industrial personal property”, and “commercial personal property” mean those terms as defined in section 1211 of the revised school code, MCL 380.1211.
“Qualifying public school academy” means a public school academy that was in operation in the 1994-95 school year and is in operation in the current fiscal year.
“Receiving district” means a district to which all or part of the territory of a dissolved district is attached under section 12 of the revised school code, MCL 380.12.
“School operating taxes” means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes as defined in section 20.
“Tax increment financing acts” means parts 2, 3, 4, and 6 of the recodified tax increment financing act, 2018 PA 57, MCL 125.4201 to 125.4420 and 125.4602 to 125.4629, or the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2670.
“Taxable value per membership pupil” means each of the following divided by the district’s membership:
For the number of mills by which the exemption from the levy of school operating taxes on a principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, commercial personal property, and property occupied by a public school academy may be reduced as provided in section 1211 of the revised school code, MCL 380.1211, the taxable value of principal residence, qualified agricultural property, qualified forest property, supportive housing property, industrial personal property, commercial personal property, and property occupied by a public school academy for the calendar year ending in the current fiscal year. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, mills do not include mills within the geographic area of the dissolved district.
For the number of mills of school operating taxes that may be levied on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, the taxable value of all property for the calendar year ending in the current fiscal year. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, school operating taxes do not include school operating taxes levied within the geographic area of the dissolved district.
Sec. 22b. (1) Except as otherwise provided in this section, for discretionary nonmandated payments to districts under this section, there is allocated for 2023-2024 an amount not to exceed $6,219,000,000.00 from the state school aid fund and general fund appropriations in section 11 and an amount not to exceed
$72,000,000.00 from the community district education trust fund appropriation in section 11, and there is allocated for 2024-2025 an amount not to exceed $6,213,000,000.00 $6,220,000,000.00 from the state school aid fund and general fund appropriations in section 11 and an amount not to exceed $41,000,000.00 from the community district education trust fund appropriation in section 11, . For 2023-2024, $33,700,000.00 must be deposited from the general fund into the state school aid fund to reimburse the state school aid fund for community district education trust fund costs in excess of $72,000,000.00, as required under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262. and there is allocated for 2025-2026 an amount not to exceed $6,696,500,000.00 from the state school aid fund and general fund appropriations in section 11. In addition, there is allocated for 2025-2026 only an amount not to exceed $124,000,000.00 from the state school aid fund appropriation in section 11. For 2024-2025, the amount necessary, estimated at $70,200,000.00 $77,700,000.00, must be deposited from the general fund into the state school aid fund to reimburse the state school aid fund for community district education trust fund costs in excess of
$41,000,000.00, as required under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262. If For 2024-2025 only, if the amount allocated under this subsection from the community district education trust fund appropriation under section 11 is insufficient to pay for an increase under this section, any amount exceeding that allocation may be paid from other allocations under this subsection. Except for money allocated under this section from the community district education trust fund appropriation in section 11, funds allocated under this section that are not expended in the fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22a and 51c to fully fund those allocations for the same fiscal year.
Subject to subsection (3) and section 296, the allocation to a district under this section is an amount equal to the sum of the amounts calculated under sections 20, 20m, 51a(2), 51a(3), 51a(11), and 51e, minus
the sum of the allocations to the district under sections 22a and 51c. For a community district, the allocation as otherwise calculated under this section is increased by an amount equal to the amount of local school operating tax revenue that would otherwise be due to the community district if not for the operation of section 386 of the revised school code, MCL 380.386, to offset the absence of local school operating revenue in a community district in the funding of the state portion of the foundation allowance under section 20(4), and, for 2024-2025 only, this increase must be paid from the community district education trust fund allocation in subsection (1). to offset the absence of local school operating revenue in a community district in the funding of the state portion of the foundation allowance under section 20(4).
To receive an allocation under subsection (1), each district must do all of the following:
Comply with section 1280b of the revised school code, MCL 380.1280b.
Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.
Furnish data and other information required by state and federal law to the center and the department in the form and manner specified by the center or the department, as applicable.
Comply with section 1230g of the revised school code, MCL 380.1230g.
Comply with section 21f.
For a district that has entered into a partnership district agreement with the department, comply with section 22p.
Districts are encouraged to use funds allocated under this section for the purchase and support of payroll, human resources, and other business function software that is compatible with that of the intermediate district in which the district is located and with other districts located within that intermediate district.
From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs incurred by this state related to commercial or industrial property tax appeals, including, but not limited to, appeals of classification, that impact revenues dedicated to the state school aid fund.
From the allocation in subsection (1), the department shall pay up to $1,000,000.00 in litigation costs incurred by this state associated with lawsuits filed by 1 or more districts or intermediate districts against this state. If the allocation under this section is insufficient to fully fund all payments required under this section, the payments under this subsection must be made in full before any proration of remaining payments under this section.
It is the intent of the legislature that all constitutional obligations of this state have been fully funded under sections 22a, 31d, 51a, 51c, 51e, and 152a. If a claim is made by an entity receiving funds under this article that challenges the legislative determination of the adequacy of this funding or alleges that there exists an unfunded constitutional requirement, the state budget director may escrow or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the claim before making any payments to districts under subsection (2). If funds are escrowed, the escrowed funds are a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of litigation. The work project is completed upon resolution of the litigation.
If the local claims review board or a court of competent jurisdiction makes a final determination that this state is in violation of section 29 of article IX of the state constitution of 1963 regarding state payments to districts, the state budget director shall use work project funds under subsection (7) or allocate from the discretionary funds for nonmandated payments under this section the amount as may be necessary to satisfy the amount owed to districts before making any payments to districts under subsection (2).
If a claim is made in court that challenges the legislative determination of the adequacy of funding for this state’s constitutional obligations or alleges that there exists an unfunded constitutional requirement, any interested party may seek an expedited review of the claim by the local claims review board. If the claim exceeds $10,000,000.00, this state may remove the action to the court of appeals, and the court of appeals has and shall exercise jurisdiction over the claim.
If payments resulting from a final determination by the local claims review board or a court of competent jurisdiction that there has been a violation of section 29 of article IX of the state constitution of 1963 exceed the amount allocated for discretionary nonmandated payments under this section, the legislature shall provide for adequate funding for this state’s constitutional obligations at its next legislative session.
If a lawsuit challenging payments made to districts related to costs reimbursed by federal title XIX Medicaid funds is filed against this state, then, for the purpose of addressing potential liability under such a lawsuit, the state budget director may place funds allocated under this section in escrow or allocate money from the funds otherwise allocated under this section, up to a maximum of 50% of the amount allocated in subsection (1). If funds are placed in escrow under this subsection, those funds are a work project appropriation and the funds are carried forward into the following fiscal year. The purpose of the work project is to provide for any payments that may be awarded to districts as a result of the litigation. The work
project is completed upon resolution of the litigation. In addition, this state reserves the right to terminate future federal title XIX Medicaid reimbursement payments to districts if the amount or allocation of reimbursed funds is challenged in the lawsuit. As used in this subsection, “title XIX” means title XIX of the social security act, 42 USC 1396 to 1396w-6.
As used in this section:
“Dissolved district” means that term as defined in section 20.
“Local school operating revenue” means school operating taxes levied under section 1211 of the revised school code, MCL 380.1211. For a receiving district, if school operating taxes are to be levied on behalf of a dissolved district that has been attached in whole or in part to the receiving district to satisfy debt obligations of the dissolved district under section 12 of the revised school code, MCL 380.12, local school operating revenue does not include school operating taxes levied within the geographic area of the dissolved district.
“Receiving district” and “school operating taxes” mean those terms as defined in section 20.
Sec. 22d. (1) From the state school aid fund money appropriated under section 11, an amount not to exceed
$12,306,900.00 $12,873,100.00 is allocated for 2024-2025 2025-2026 for supplemental payments to rural districts under this section.
From the allocation under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $3,734,400.00 $3,906,200.00 for payments under this subsection to eligible districts. A district that meets all of the following is an eligible district under this subsection:
Operates grades K to 12.
Has fewer than 250 pupils in membership.
Each school building operated by the district meets at least 1 of the following:
Is located in the Upper Peninsula at least 30 miles from any other public school building.
Is located on an island that is not accessible by bridge.
The amount of the additional funding to each eligible district under subsection (2) is determined under a spending plan developed as provided in this subsection and approved by the superintendent of public instruction. The spending plan must be developed cooperatively by the intermediate superintendents of each intermediate district in which an eligible district is located. The intermediate superintendents shall review the financial situation of each eligible district, determine the minimum essential financial needs of each eligible district, and develop and agree on a spending plan that distributes the available funding under subsection (2) to the eligible districts based on those financial needs. The intermediate superintendents shall submit the spending plan to the superintendent of public instruction for approval. Upon approval by the superintendent of public instruction, the amounts specified for each eligible district under the spending plan are allocated under subsection (2) and must be paid to the eligible districts in the same manner as payments under section 22b.
Subject to subsection (7), from the allocation in subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $8,042,100.00 $8,412,100.00 for payments under this subsection to districts that have fewer than 10.0 pupils per square mile, as determined by the department, or that have greater than 250 square miles.
The funds allocated under subsection (4) are allocated as follows:
An amount equal to $6,093,400.00 $6,373,700.00 is allocated to districts with fewer than 8.0 pupils per square mile, as determined by the department, on an equal per-pupil basis.
The balance of the funding under subsection (4) is allocated as follows:
For districts with at least 8.0 but fewer than 9.0 pupils per square mile, as determined by the department, the allocation is an amount per pupil equal to 75% of the per-pupil amount allocated to districts under subdivision (a).
For districts with at least 9.0 but fewer than 10.0 pupils per square mile, as determined by the department, the allocation is an amount per pupil equal to 50% of the per-pupil amount allocated to districts under subdivision (a).
For districts that have greater than 250 square miles, have at least 10.0 pupils per square mile, and do not receive funding under subsection (2), as determined by the department, the allocation is an amount per pupil equal to 100% of the per-pupil amount allocated to districts under subdivision (a).
If the total funding allocated under subdivision (b) is insufficient to fully fund payments as calculated under that subdivision, the department shall prorate payments to districts under subdivision (b) on an equal per-pupil basis. If funding allocated under subdivision (b) remains unallocated after making calculations under that subdivision, the department may provide the remaining unallocated funding on an equal per-pupil basis to districts receiving funding under subdivision (b)(i) and (ii).
Subject to subsection (7), from the allocation under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $530,400.00 $554,800.00 for payments under this subsection to districts where each school building operated by the district is located on an island that is accessible by bridge.
A district receiving funds allocated under subsection (2) is not eligible for funding allocated under subsection (4) or (6). A district receiving funds allocated under subsection (6) is not eligible for funding under subsection (2) or (4).
Sec. 22k. (1) The school transportation fund is created as a separate account within the state school aid fund for the purpose of supporting district transportation costs.
The state treasurer may receive money or other assets from any source for deposit into the school transportation fund. The state treasurer shall direct the investment of the school transportation fund. The state treasurer shall credit to the school transportation fund interest and earnings from school transportation fund investments.
Money in the school transportation fund at the close of the fiscal year remains in the school transportation fund and does not lapse to the state school aid fund or the general fund.
The department of treasury is the administrator of the school transportation fund for auditing purposes.
Money available in the school transportation fund must not be expended without a specific appropriation.
For the fiscal year ending September 30, 2023 2026 only, $350,000,000.00 $130,000,000.00 from the state school aid fund must be deposited into the school transportation fund.
Sec. 22l. (1) From the school transportation fund money appropriated under section 11, there is allocated for 2024-2025 2025-2026 only an amount not to exceed $125,000,000.00 to districts and intermediate districts for transportation costs. Funding for each district or intermediate district is as follows:
The department must assign each district and intermediate district to an octile based on the number of riders per square mile and calculate the median cost per rider for each octile.
Funds must be distributed to each district and intermediate district as follows:
An initial amount at the lesser of the octile’s median cost per rider or the actual transportation cost per general education rider at the district or intermediate district.
An additional amount for districts and intermediate districts that have outlier costs per rider that are deemed reasonable, as determined by the department.
If funds are insufficient to fully fund payments under this section, payments may be prorated on an equal percentage basis.
In addition to the funds allocated under subsection (1), from the school transportation fund money appropriated under section 11, there is allocated for 2022-2023 only an amount not to exceed $200,000.00 to an intermediate district for a study on district transportation costs. The intermediate district receiving funds under this subsection must submit a report to the department, the state budget director, the house and senate appropriations subcommittees on school aid, and the house and senate fiscal agencies by February 29, 2024 on the outcomes of the study under this subsection. Notwithstanding section 18a, funds allocated under this subsection may be available for expenditure until September 30, 2026. A recipient of funding under this subsection must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2026.
To remain eligible for funding under subsection (1), by not later than December 1 of the current fiscal year, a school district must submit, in a form and manner determined by the department, to their intermediate district, and a public school academy must submit, in a form and manner determined by the department, to the intermediate district in which the public school academy is located, the number of nonpublic school students the district expects to transport as required under section 1321 of the revised school code, MCL 380.1321. Intermediate districts shall submit this information to the department by not later than February 1.
The department shall compile the reports provided by intermediate districts under subsection (3) into 1 legislative report. The department shall provide this report not later than March 1 of each fiscal year for which funding is allocated under this section to the house and senate subcommittees responsible for school aid, the house and senate fiscal agencies, and the state budget director.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 22m. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 an amount not to exceed $3,500,000.00 for supporting the integration of local data systems into the Michigan data hub network based on common standards and applications that are in compliance with section 19(6). In addition, from the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $1,500,000.00 for the purposes of this section.
An entity that is the fiscal agent for no more than 5 consortia of intermediate districts that previously received funding from the technology readiness infrastructure grant under former section 22i for the purpose of establishing regional data hubs that are part of the Michigan data hub network is eligible for funding under this section.
The center shall work with an advisory committee composed of representatives from intermediate districts within each of the data hub regions to coordinate the activities of the Michigan data hub network.
The center, in collaboration with the Michigan data hub network, shall determine the amount of funds distributed under this section to each participating regional data hub within the network, based upon a competitive grant process. The center shall ensure that the entities receiving funding under this section represent geographically diverse areas in this state.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the center.
To receive funding under this section, a regional data hub must have a governance model that ensures local control of data, data security, and student privacy issues. The integration of data within each of the regional data hubs must provide for the actionable use of data by districts and intermediate districts through common reports and dashboards and for efficiently providing information to meet state and federal reporting purposes.
Participation in a data hub region in the Michigan data hub network under this section is voluntary and is not required.
Entities receiving funding under this section shall use the funds for all of the following:
Creating an infrastructure that effectively manages the movement of data between data systems used by intermediate districts, districts, and other educational organizations in Michigan based on common data standards to improve student achievement.
Utilizing the infrastructure to put in place commonly needed integrations, reducing cost and effort to do that work while increasing data accuracy and usability.
Promoting the use of a more common set of applications by promoting systems that integrate with the Michigan data hub network.
Promoting 100% district adoption of the Michigan data hub network.
Ensuring local control of data, data security, and student data privacy.
Utilizing the infrastructure to promote the actionable use of data through common reports and dashboards that are consistent statewide.
Creating a governance model to facilitate sustainable operations of the infrastructure in the future, including administration, legal agreements, documentation, staffing, hosting, and funding.
Evaluating future data initiatives at all levels to determine whether the initiatives can be enhanced by using the standardized environment in the Michigan data hub network.
By not later than January 1 of each fiscal year, the center shall prepare a summary report of information provided by each entity that received funds under this section that includes measurable outcomes based on the objectives described under this section and a summary of compiled data from each entity to provide a means to evaluate the effectiveness of the project. The center shall submit the report to the house and senate appropriations subcommittees on school aid and to the house and senate fiscal agencies.
Sec. 22p. (1) Subject to subsection (2), to receive funding under section 22b, a district or public school academy that is assigned by the superintendent of public instruction as a partnership district must have a signed 3-year partnership district agreement with the department that includes all of the following:
Measurable academic outcomes benchmarks that the district or public school academy will achieve for each school operated by the district or public school academy that is subject to the partnership district agreement after 18 months and after 36 months from the date the agreement was originally signed. Measurable academic outcomes benchmarks under this subdivision must include all of the following:
Outcomes that put pupils Pupils on track to meet or exceed grade level proficiency, and that are based on with consideration for district or public school academy needs identified as required under section 21h.
Either of the following, as applicable:
At least 1 proficiency or growth outcome benchmark based on state assessments described in section 104b or 104c.
At least 1 proficiency or growth outcome benchmark based on a benchmark assessment described in section 104h.
Outcomes that are intended to measure improved Improved high school graduation rates, as applicable.
Outcomes that measure attendance Attendance rates.
Accountability measures to be imposed if the district or public school academy does not achieve the measurable academic outcomes benchmarks described in subdivision (a) or section 21h(2)(b) for each school operated by the district or public school academy that is subject to the partnership district agreement. For a district assigned as a partnership district as described in this subsection, accountability measures under this subdivision must include the reconstitution of the school. For a public school academy assigned as a partnership district as described in this subsection, accountability measures under this subdivision may include the reconstitution of the school.
For a public school academy assigned as a partnership district as described in this subsection, a requirement that, if reconstitution is imposed on a school that is operated by the public school academy and that is subject to the partnership district agreement, the school must be reconstituted as described in section 507, 528, or 561, as applicable, of the revised school code, MCL 380.507, 380.528, and 380.561.
For a district assigned as a partnership district as described in this subsection, a provision that, if reconstitution is imposed on a school that is operated by the district and that is subject to the partnership district agreement, reconstitution may require closure of the school building, but, if the school building remains open, reconstitution must include, but is not limited to, all of the following:
The district shall make significant changes to the instructional and noninstructional programming of the school based on the needs identified through a comprehensive review of data in compliance with section 21h.
The district shall review whether the current principal of the school should remain as principal or be replaced.
The reconstitution plan for the school must require the adoption of goals similar to the goals measurable benchmarks included in the partnership district agreement, with a limit of 3 years to achieve the goals. If the goals are not achieved within 3 years, the superintendent of public instruction shall impose a second reconstitution plan.
(2) If a district or public school academy is assigned as a partnership district as described in subsection (1) during the current fiscal year, it shall ensure that it has a signed partnership district agreement as described in subsection (1) in place by not later than 90 days after the date that it is assigned as a partnership district. If a district or public school academy described in this subsection does not comply with this subsection, the department shall withhold funding under section 22b for that district or public school academy until the district or public school academy has a signed partnership district agreement as described in subsection (1) in place.
Sec. 24. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 an amount not to exceed $7,650,000.00 for payments to the educating district or intermediate district for educating pupils assigned by a court or the department of health and human services
to reside in or to attend a juvenile detention facility or child caring institution licensed by the department of health and human services and approved by the department to provide an on-grounds education program. The amount of the payment under this section to a district or intermediate district is calculated as prescribed under subsection (2).
The department shall allocate the total amount allocated under this section by paying to the educating district or intermediate district an amount equal to the lesser of the district’s or intermediate district’s added cost or the department’s approved per-pupil allocation for the district or intermediate district. For the purposes of this subsection:
“Added cost” means 100% of the added cost each fiscal year for educating all pupils assigned by a court or the department of health and human services to reside in or to attend a juvenile detention facility or child caring institution licensed by the department of health and human services or the department of licensing and regulatory affairs and approved by the department to provide an on-grounds education program. Added cost is computed by deducting all other revenue received under this article for pupils described in this section from total costs, as approved by the department, in whole or in part, for educating those pupils in the on-grounds education program or in a program approved by the department that is located on property adjacent to a juvenile detention facility or child caring institution. Costs reimbursed by federal funds are not included.
“Department’s approved per-pupil allocation” for a district or intermediate district is determined by dividing the total amount allocated under this section for a fiscal year by the full-time equated membership total for all pupils approved by the department to be funded under this section for that fiscal year for the district or intermediate district.
A district or intermediate district educating pupils described in this section at a residential child caring institution may operate, and receive funding under this section for, a department-approved on-grounds educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring institution was licensed as a child caring institution and offered in 1991-92 an on-grounds educational program that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate district.
Special education pupils funded under section 53a are not funded under this section.
Sec. 24a. From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $1,355,700.00 for 2024-2025 2025-2026 for payments to intermediate districts for pupils who are placed in juvenile justice service facilities operated by the department of health and human services. The amount of the payment to each intermediate district is an amount equal to the state share of those costs that are clearly and directly attributable to the educational programs for pupils placed in facilities described in this section that are located within the intermediate district’s boundaries. The intermediate districts receiving payments under this section shall cooperate with the department of health and human services to ensure that all funding allocated under this section is utilized by the intermediate district and department of health and human services for educational programs for pupils described in this section. Pupils described in this section are not eligible to be funded under section 24. However, a program responsibility or other fiscal responsibility associated with these pupils must not be transferred from the department of health and human services to a district or intermediate district unless the district or intermediate district consents to the transfer. Sec. 25f. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $1,600,000.00 for 2024-2025 2025-2026 for payments to strict discipline academies and
qualified districts, as provided under this section.
To receive funding under this section, a strict discipline academy or qualified district must first comply with section 25e and use the pupil transfer process described in that section for changes in enrollment as prescribed under that section and apply annually for funding under section 24.
The total amount allocated to a strict discipline academy or qualified district under this section is equal to the strict discipline academy’s or qualified district’s pupil membership in the immediately preceding year multiplied by an amount calculated by dividing the total allocation under this section by the total pupil membership for eligible strict discipline academies and qualified districts in the immediately preceding year. However, the sum of the amounts received by a strict discipline academy or qualified district under this section and under section 24 must not exceed the product of the strict discipline academy’s or qualified district’s per-pupil allocation calculated under section 20 multiplied by the strict discipline academy’s or qualified district’s full-time equated membership. The department shall allocate funds to strict discipline academies and qualified districts under this section on a monthly basis.
Special education pupils funded under section 53a are not funded under this section.
The department shall make payments to strict discipline academies and qualified districts under this section according to the payment schedule under section 17b.
For purposes of this section, the pupil membership for the current fiscal year for a qualified district is the actual number of pupils that are in the custody of a county juvenile agency as described in subsection (7)(a).
As used in this section:
“Qualified district” means a public school academy that is not a strict discipline academy that enrolls individuals who are in the custody of a county juvenile agency to which both of the following are applicable:
The agency had custody of individuals who were enrolled in a strict discipline academy in the 2020- 2021 school year.
The strict discipline academy that the individuals described in subparagraph (i) were enrolled in subsequently closed.
“Strict discipline academy” means a public school academy established under sections 1311b to 1311m of the revised school code, MCL 380.1311b to 380.1311m.
Sec. 25g. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $3,050,000.00 $1,250,000.00 for 2024-2025 2025-2026 for the purposes of this section. Except as otherwise provided in this section, if the operation of the special membership counting provisions under section 6(4)(dd) and the other membership counting provisions under section 6(4) result in a pupil being counted as more than 1.0 FTE in a fiscal year, the payment made for the pupil under sections 22a and 22b must not be based on more than 1.0 FTE for that pupil, and that portion of the FTE that exceeds 1.0 is paid under this section in an amount equal to that portion multiplied by the educating district’s foundation allowance or per-pupil payment calculated under section 20. It is the intent of the legislature that, for 2025- 2026, 2026-2027, the allocation from the state school aid fund money appropriated in section 11 for the purposes described in this section will be $750,000.00.
Special education pupils funded under section 53a are not funded under this section.
If the funds allocated under this section are insufficient to fully fund the adjustments under subsection (1), the department shall prorate payments under this section on an equal per-pupil basis.
The department shall make payments to districts under this section according to the payment schedule under section 17b.
Sec. 26a. From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $14,000,000.00 for 2024-2025 2025-2026 to reimburse districts and intermediate districts under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2024. The department shall pay the allocations by not later than 60 days after the department of treasury certifies to the department and to the state budget director that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient.
Sec. 26b. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $5,284,000.00 $5,549,000.00 for 2024-2025 2025-2026 for payments to districts, intermediate districts, and community college districts for the portion of the payment in lieu of taxes obligation that is attributable to districts, intermediate districts, and community college districts under section 2154 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.2154.
(2) If the amount appropriated under this section is insufficient to fully pay obligations under this section, payments are prorated on an equal basis among all eligible districts, intermediate districts, and community college districts.
Sec. 26c. (1) From the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $28,300,000.00 $37,700,000.00 for 2023-2024 2024-2025 and there is allocated an amount not to exceed $34,500,000.00 $43,300,000.00 for 2024-2025 2025-2026 to the promise zone fund created in subsection (3). The funds allocated under this section reflect the amount of revenue from the collection of the state education tax captured under section 17 of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1677.
Funds allocated to the promise zone fund under this section must be used solely for payments to eligible districts and intermediate districts, in accordance with section 17 of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1677, that have a promise zone development plan approved by the department of treasury under section 7 of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1667. Eligible districts and intermediate districts shall use payments made under this section for reimbursement for qualified educational expenses as that term is defined in section 3 of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1663.
The promise zone fund is created as a separate account within the state school aid fund to be used solely for the purposes of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679. All of the following apply to the promise zone fund:
The state treasurer shall direct the investment of the promise zone fund. The state treasurer shall credit to the promise zone fund interest and earnings from fund investments.
Money in the promise zone fund at the close of a fiscal year remains in the promise zone fund and does not lapse to the general fund.
Subject to subsection (2), the state treasurer may make payments from the promise zone fund to eligible districts and intermediate districts under the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used for the purposes of a promise zone authority created under that act.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 26d. (1) From the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $14,400,000.00 for 2024-2025 2025-2026 for reimbursements to intermediate districts as required under section 15b of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2665b.
The amounts reimbursed under subsection (1) must be used by the intermediate district only for the purposes for which the property taxes were originally levied.
The Michigan strategic fund and the Michigan economic development corporation shall work with the department of treasury in identifying the amount of tax revenues that are to be reimbursed under subsection (1).
Notwithstanding section 17b, the department of treasury shall make payments under this section on a schedule determined by the department of treasury.
Sec. 27a. (1) From the educator fellowship public provider fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $10,000,000.00, from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed
$10,000,000.00, and from the general fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 an amount not to exceed $5,000,000.00 for the MI future educator fellowship program. The funds allocated under this section must be used to offset tuition costs for individuals who are working toward earning their initial teacher certification. At the close of the fiscal year, money allocated under this section that is unspent must be deposited as follows:
For state school aid fund money, into the educator fellowship public provider fund in section 27d.
For general fund money, into the educator fellowship private provider fund in section 27e.
To establish initial eligibility for an award from funding under this section, an individual must meet all of the following conditions by the date of enrollment described in subdivision (b):
Have graduated from high school with a diploma or certificate of completion or achieved a high school equivalency certificate.
Be admitted to an eligible educator preparation program; be working toward a teacher certification; be enrolled in enough coursework to be considered enrolled full-time during the academic year, as determined by the student’s educator preparation program, or the equivalent of full-time participation for individuals enrolled in an alternative certification program, as defined by the department; and, for students at institutions of higher education, be considered at least a junior-level student, as determined by the institution of higher education.
Not have previously earned a teacher certification.
Timely complete a grant application in a form and manner prescribed by the department of lifelong education, advancement, and potential.
Timely file the Free Application for Federal Student Aid for the enrollment period described in subdivision (b).
Timely apply for all available gift aid for the enrollment period described in subdivision (b).
Agree to repay any funds received from funding under this section if the individual does not maintain enrollment in their educator preparation program, the individual does not successfully complete their educator program, or the individual does not complete the work requirement described in subsection (7).
Have a high school or college grade point average of at least 3.0.
Be a resident of this state, as determined for purposes of the Free Application for Federal Student Aid.
To establish continuing eligibility for an award under this section at an eligible educator preparation program, an individual must meet all of the following conditions:
Maintain full-time continuous enrollment in an eligible educator preparation program, as determined by the educator preparation program, or the equivalent of full-time participation for individuals enrolled in an alternative certification program, as defined by the department, excluding any period of time missed due to a medical or other emergency, as determined by the department of lifelong education, advancement, and potential.
Maintain satisfactory academic progress, including a grade point average of at least 3.0, in courses provided by the eligible educator preparation program and meet requirements established by the eligible educator preparation program.
Participate in relevant academic and career advising programs offered by the eligible educator preparation program.
Timely file the Free Application for Federal Student Aid for each academic year in which the individual receives an award from funding under this section.
Timely apply for all available gift aid for each academic year in which the individual applies for funding under this section.
Maintain residency in this state, as determined for purposes of the Free Application for Federal Student Aid.
An award under this section must not exceed $10,000.00 per academic year or the cost of tuition at the eligible educator preparation program attended, whichever is less. As used in this subsection, the cost of tuition at an educator preparation program that is an institution of higher education is the in-district resident rate plus other required fees, as determined by the department of lifelong education, advancement, and potential; and the cost of tuition at an educator preparation program that is an alternative certification provider is the cost of tuition plus other required fees, as determined by the department of lifelong education, advancement, and potential.
Awards under this section must be distributed to eligible educator preparation programs on behalf of an eligible recipient on a timeline determined by the department of lifelong education, advancement, and potential.
Pending available funds, applicants may renew their award for up to 3 years, or until program completion, whichever comes first.
To be an eligible recipient of fellowship funding under this section, an individual must pledge to work as a certified teacher in a public school or a qualifying public preschool program in this state and must meet 1 of the following work requirements:
For a recipient of funding under this section who received an award for 1 academic year, 3 years of work as a certified teacher in a public school or a qualifying public preschool program in this state.
For a recipient of funding under this section who received an award for 2 academic years, 4 years of work as a certified teacher in a public school or a qualifying public preschool program in this state.
For a recipient of funding under this section who received an award for 3 academic years, 5 years of work as a certified teacher in a public school or a qualifying public preschool program in this state.
For a recipient working in a critical needs district, 3 years of work as a certified teacher. As used in this subdivision, “critical needs district” means a district with a median household income in the lowest quartile in each prosperity region, as determined by the department.
If an award recipient does not maintain enrollment in their educator preparation program as required under subsection (3)(a), does not successfully complete their educator preparation program, or does not meet the work requirement described in subsection (7), any amount received from funds under this section converts to a 0% interest loan that must be repaid to this state within 10 years, plus any deferment period as determined and approved by the department of lifelong education, advancement, and potential. The amount of repayment must be reduced proportionate to the number of years worked in schools or qualifying public preschool programs in this state as a certificated teacher out of 5 years. The department of lifelong education, advancement, and potential shall develop guidance to enforce this subsection.
An individual may not concurrently receive funding through programs funded under this section and grow your own programs funded under section 27b.
If the amount allocated in subsection (1) is insufficient to fully fund awards under this section, there is appropriated from the educator fellowship public provider fund in section 27d or the educator fellowship private provider fund in section 27e, as applicable, the amount necessary to fully fund these programs. The state budget director shall provide notification to the house and senate appropriations subcommittees on K to 12 school aid and the house and senate fiscal agencies for any additional appropriation described under this subsection.
Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section on a schedule determined by the department of lifelong education, advancement, and potential.
The department of lifelong education, advancement, and potential shall report to the chairpersons of the house appropriations subcommittee on school aid and education and the senate appropriations subcommittee on pre-K to 12 by February 1 15 of the current fiscal year. The report must include the following:
The number and amount of awards granted in the previous fiscal year.
The number of recipients in the previous fiscal year that had their awards converted to loans under subsection (8).
As used in this section, “eligible educator preparation program” means a public or nonpublic institution of higher education or an alternative route provider that meets all of the following, as applicable:
Is approved by the department to offer teacher preparation programming.
Enrolls 1 or more future educator fellowship recipients.
Has not been deemed as ineligible to receive Michigan achievement scholarship funding under section 248 as a result of exceeding tuition restraint requirements described in section 248.
Sec. 27b. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2022- 2023 2025-2026 only an amount not to exceed $20,000,000.00 and from the federal funding appropriated under section 11, there is allocated for 2022-2023 only an amount not to exceed $155,000,000.00 from the federal funding awarded to this state from the coronavirus state fiscal recovery fund under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2, $70,000,000.00 to districts, and intermediate districts, and consortia of intermediate districts for a grow your own program programs and educator development programs as described in subsection (2).this section and subject to subsection (5).
Districts and intermediate districts receiving funding under this section shall use the funding to implement a grow your own program. A grow your own program described in this subsection must be implemented to improve the teacher talent pipeline and provide a no-cost pathway for support staff members to become certified teachers. Allowable expenses for grow your own programs include, but are not limited to:
Tuition and fees for attendance at a state-approved education preparation provider for an accelerated degree, for a traditional bachelor’s degree for current staff who are not teachers, or for an advanced degree. As used in this subdivision, “advanced degree” includes, but is not limited to, a postbaccalaureate credential or certificate.
Books.
Testing fees.
Travel to and from coursework.
Substitute employee salary and wages for the duration of the educator preparation program attended by the recipient staff of the district or intermediate district.
Costs for curriculum, materials, professional development, and hands-on-learning experiences to implement a program within the district or intermediate district to encourage students in any of grades 6 through 12 to consider a career in education. Not more than 10% of funds received by a district or intermediate district under this section may be used for this purpose.
(3) The department shall establish a competitive grant process to distribute funds under this section. A district, or intermediate school district, or consortium of intermediate districts must apply for funds in a form and manner prescribed by the department. As part of the application described in this subsection, a district, or intermediate district, or consortium of intermediate districts must submit the following information and assurances:
Demonstrated need for funding in the district, or intermediate district, or consortium of intermediate districts or the broader community, including projected workforce needs, and a proposed spending plan on how the funds will be utilized that includes, but is not limited to, expected tuition, fees, and books for the program.
Number of support staff projected to participate in a grow your own program described in this section.
For funds for the purposes described in subsection (2)(f), a description of the program being implemented and the number of students the program is intended to reach.
(d) Assurances that the pathway programs described in this section will be no cost for participants and that participants will be compensated as an employee for the duration of their training, including a paid residency, fellowship, or student teaching.
Identification of eligible recipients and a pledge to hire an eligible recipient as a full-time teacher upon their receipt of an initial teaching certificate and provide for student teaching opportunities.
A pledge that, before providing funding under this section to an eligible recipient, the district or intermediate district will require that the eligible recipient pledge to serve as a full-time teacher at the district or intermediate district for at least the same number of years as the recipient participated in a grow your own program. If the district or intermediate district is unable to hire an eligible recipient as required under subdivision (e), the eligible recipient may serve the years the recipient pledged to serve under this subdivision at another district, intermediate district, or nonpublic school.
(4) An individual may not concurrently receive funding for programs under this section and programs funded under sections 27a and 27c.
The federal funding allocated under this section is intended to respond to the COVID-19 public health emergency and its negative impacts.
(6) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.by not later than December 15, 2025.
(7) The funds allocated under this section for 2022-2023 are a work project appropriation, and any unexpended funds for 2022-2023 are carried forward into 2023-2024. The purpose of the work project is to continue support for grow your own programs in districts and intermediate districts. The estimated completion date of the work project is December 31, 2026.
Sec. 27c. (1) From the state school aid fund money appropriated in section 11, there is allocated
$30,000,000.00 for 2024-2025 2025-2026 and from the educator fellowship public provider fund money appropriated in section 11, there is allocated $20,000,000.00 for 2024-2025 2025-2026 for the MI future educator student teacher stipend program. Except as otherwise provided in this section, the funds allocated under this section must be paid to eligible educator preparation programs for payments to eligible student teachers working in a district. At the close of the fiscal year, state school aid fund money allocated under this section that is unspent must be deposited into the educator fellowship public provider fund in section 27d.
An eligible student teacher under this subsection must meet all of the following:
The individual must be admitted to an eligible educator preparation program, be working toward a teacher certification, and be participating in required student teaching coursework. , and be maintaining satisfactory academic progress. As used in this subdivision, “required student teaching coursework” means credit hours, or the program equivalent, required by an eligible educator preparation program for successful completion of the program. This coursework must include regular placement in a district where the student gains real-world, first-hand experience working in a classroom, teaching students, engaging in the day-to- day activities of a certified teacher, and working daily under the guidance of a certified teacher.
The individual must timely complete an application in a form and manner prescribed by the department of lifelong education, advancement, and potential. The application must include the district in which the individual is working as a student teacher and must include a certification by the district and the individual’s eligible educator preparation program that the student is working as a student teacher. If the individual’s eligible educator preparation program is not provided by a public institution of higher education, the district in which the individual is working must also provide an assurance that they will forward any amount received under this section from the department of lifelong education, advancement, and potential for purposes of the program described in this section to the individual’s eligible educator preparation program.
The individual must not have received a payment from funds under this subsection previously, unless the individual is enrolled in an eligible educator preparation program that requires multiple semesters of student teaching. An individual may receive not more than 2 awards under this section.
If an individual is employed by their district as a teacher of record, they are not eligible for payment under this section.
An individual that is a current City Year corps member enrolled in an eligible educator preparation program is eligible for payment under this section.
The department of lifelong education, advancement, and potential shall pay each eligible educator preparation program an amount not to exceed $9,600.00 per academic semester for each eligible student teacher working in a district. If the individual’s eligible educator preparation program is not provided by a public institution of higher education, the department of lifelong education, advancement, and potential shall pay an amount not to exceed $9,600.00 per academic semester to the district in which the individual is working as a student teacher, and that district must forward the amount received to the individual’s eligible educator preparation program. If funding allocated under this section is insufficient to fully fund all eligible student teachers, the department of lifelong education, advancement, and potential shall first award funding for eligible student teachers who are also Pell grant recipients and then shall distribute funding in the order in which applications were received. It is intended that payments under this subsection are made at the beginning of the semester in 1 lump sum for eligible student teachers.
Eligible educator preparation programs shall pay funds received under this section, in entirety, to the eligible student teacher.
Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section on a schedule determined by the department of lifelong education, advancement, and potential.
If the amount allocated in subsection (1) is insufficient to fully fund awards under this section, there is appropriated from the educator fellowship public provider fund in section 27d the amount necessary to fully fund the programs described in this section. The state budget director shall notify the house and senate appropriations subcommittees on K to 12 school aid and the house and senate fiscal agencies of any additional appropriation described in this subsection.
As used in this section, “eligible educator preparation program” means an institution of higher education that meets all of the following:
Is a public or private institution of higher education in this state.
Has an established school of education with an educator preparation program approved by the department.
Has not been deemed as ineligible to receive Michigan achievement scholarship funding under section 248 as a result of exceeding tuition restraint requirements described in section 248.
Sec. 27h. (1) From Subject to the provisions of this subsection, in addition to the money appropriated in section 11, from the state school aid fund money appropriated in section 11, there is allocated appropriated for 2023-2024 2024-2025 only for the purposes of this section an amount not to exceed
$50,000,000.00. $49,418,800.00. Programs funded under this section are intended to expand support for new teachers, school counselors, and administrators; improve their instructional practices; and improve teacher retention. The appropriation and allocations in this section are conditional on the effective issuance of a directive by the state budget director, pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.451a, to lapse all remaining funding from a work project that was established under this section in 2023-2024. The amount appropriated and allocated under this section may not exceed the amount lapsed from the work project as described in the immediately preceding sentence.
From the allocation appropriation under subsection (1), the department shall provide grants to districts for mentor stipends to support and retain quality teachers, school counselors, and administrators in this state.services for teachers and school administrators as required under sections 1249b and 1526 of the revised school code, MCL 380.1249b and 380.1526.
To receive a grant under this section, a district must apply for the grant in a form and manner prescribed by the department, and must ensure that mentoring services funded under this section align with the research-based mentor standards developed by the department under subsection (6), as determined by the department.
Districts that receive grants under subsection (2) may use the funding for any of the following allowable expenditures:
Stipends for any of the following individuals:
Veteran teachers who serve as mentor teachers of teachers participating in grow your own programs.
Veteran teachers who serve as mentor teachers for teachers who are within their first 3 years of teaching.
Stipends for any of the following individuals:
Veteran school counselors who serve as mentor school counselors of school counselors participating in grow your own programs.
Veteran school counselors who serve as mentor school counselors for school counselors who are within their first 3 years of serving as school counselors.
Stipends for any of the following individuals:
Veteran school administrators who serve as mentor school administrators of school administrators participating in grow your own programs.
Veteran school administrators who serve as mentor school administrators for school administrators who are within their first 3 years of serving as school administrators.
(d) Training for mentor teachers. , mentor school counselors, and mentor administrators.
(e) Books, materials, professional learning expenses, and other resources necessary for mentoring and onboarding new teachers. Professional learning expenses under this subdivision must be in addition to professional learning requirements described under section 1526 of the revised school code, MCL 380.1526.
(f) Staffing costs to cover time spent by both new and mentor teachers , school counselors, and administrators dedicated to mentoring and onboarding rather than being in the classroom or performing other job duties.
(g) Contracting with 1 or more established state professional organizations to provide mentoring services to school administrators. Only An amount equal to $3,000.00 per administrator per year or the actual program cost, whichever is lesser, of the costs described in this subdivision may be reimbursed from grant funding under subsection (2). The department shall develop a list of approved providers of mentoring activities for school administrators as described in this subdivision. Programs on the list must align with the research-based mentor standards developed under subsection (6).
(5) From the allocation appropriation under subsection (1), there is allocated $500,000.00 for a competitive grant to assist the department with the development of research-based mentor standards, curricula, and professional learning to ensure mentors are prepared to support new teachers. Intermediate districts and other educational entities are eligible to apply for this grant in a form and manner determined by the department.
(6) From the allocation appropriation under subsection (1), there is allocated $500,000.00 for a competitive grant to conduct a program evaluation of activities funded under this section. The evaluation must identify recommendations to strengthen the program. Qualified evaluators are eligible to apply for this grant in a form and manner prescribed by the department. The funds allocated under this subsection for 2023- 2024 2024-2025 are a work project appropriation, and any unexpended funds for 2023-2024 2024-2025 are carried forward into 2024-2025. 2025-2026. The purpose of the work project is to evaluate the activities under this section. The estimated completion date of the work project is September 30, 2027.2028.
(7) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
(8) Subject to subsection (6), (7), the funds allocated under this section for 2023-2024 2024-2025 are a work project appropriation, and any unexpended funds for 2023-2024 2024-2025 are carried forward into 2024-2025. 2025-2026. The purpose of the work project is to continue support for grants for mentor stipends. The estimated completion date of the work project is September 30, 2028. 2029. It is the intent of the legislature that up to $10,000,000.00 be expended each year. If the annual expenditures described in this subsection total less than $10,000,000.00 after grants to all eligible applicants have been awarded, the department may reallocate those funds to support mentoring services for other certified educators not otherwise permitted under subsection (2).
Sec. 27l. (1) From the state school aid fund money appropriated in section 11, there is allocated
$63,800,000.00 for 2023-2024 only to districts in an equal amount per pupil. It is the intent of the legislature that districts will use the funds to increase educator compensation.
(2) In addition to the funds allocated in subsection (1), an amount not to exceed $4,000,000.00 for 2023- 2024 only from the state school aid fund money appropriated in section 11 is allocated to public school academies in an equal amount per pupil. It is the intent of the legislature that public school academies will use the funds received under this subsection to increase educator compensation.From the state school aid fund money appropriated in section 11, there is allocated $203,000,000.00 for 2024-2025 only, and from the MPSERS obligation reform reserve fund money appropriated under section 11, there is allocated the remaining balance, estimated at $147,300,000.00 for 2024-2025 only to districts and intermediate districts for the purposes of this section. The state school aid fund allocation in this section is conditional on the effective issuance of a directive by the state budget director, pursuant to section 451a of the management and budget act, 1984 PA 431, MCL 18.451a, to lapse all remaining funding from a work project that was established under section 27k in 2023-2024. The amount allocated from the state school aid fund under this section may not exceed the amount lapsed from the work project as described in the immediately preceding sentence.
Sec. 27p. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 only an amount not to exceed $12,500,000.00 to Marquette-Alger RESA for an apprenticeship model grow your own program as part of a consortia of at least 45 intermediate districts.
The intermediate district receiving funding under this section shall use the funding to implement a grow your own program. A grow your own program described in this section must be implemented to improve the teacher talent pipeline and provide a no-cost pathway for support staff members to become certified teachers. Allowable expenses for grow your own programs under this section include, but are not limited to, all of the following:
Tuition and fees for an accelerated degree, for a traditional bachelor’s degree for current candidates who are not teachers, or for an advanced degree. As used in this subdivision, “advanced degree” includes, but is not limited to, a postbaccalaureate credential or certificate.
Books.
Testing fees.
Travel to and from coursework.
Substitute employee salary and wages for the duration of the educator preparation program attended by the recipient staff of the district or intermediate district.
Costs for curriculum, materials, professional development, and hands-on-learning experiences to implement a program within the district or intermediate district to encourage students in any of grades 6 to 12 to consider a career in education. Not more than 10% of funds received by a district or intermediate district under this section may be used for this purpose.
An intermediate district may not concurrently receive funding under this section and receive funding under section 27b for 2022-2023, unless already awarded by the department under section 27b before July 1, 2024. An intermediate district receiving funding under this section shall not give funding received under this section to a constituent district that is receiving funding under section 27b.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue support for the grow your own programs under this section. The estimated completion date of the work project is September 30, 2027.
Sec. 27r. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 only an amount not to exceed $7,000,000.00 to Kent ISD for the West Michigan Teacher Collaborative as a part of a consortium of at least 3 intermediate districts. The West Michigan Teacher Collaborative shall use the funding to implement a grow your own program.
A grow your own program described in this section must be implemented to improve the teacher talent pipeline and provide a no-cost pathway for support staff members to become certified teachers. Allowable expenses for grow your own programs under this section include, but are not limited to, all of the following:
Tuition and fees for an accelerated degree, for a traditional bachelor’s degree for current candidates who are not teachers, or for an advanced degree. As used in this subdivision, “advanced degree” includes, but is not limited to, a postbaccalaureate credential or certificate.
Books and supplies.
Testing fees.
Travel to and from coursework.
Substitute employee salary and wages for the duration of the educator preparation program attended by the recipient staff of the district or intermediate district.
Costs for curriculum, materials, professional development, and hands-on learning experiences to implement a program within the district or intermediate district to encourage students in grades 6 to 12 to consider a career in education. Not more than 10% of the funding may be used for this purpose.
In addition to the allowable uses in subsection (2), the West Michigan Teacher Collaborative may use the money received under this section for any of the following purposes:
Recruiting, retaining, and developing teachers to ensure greater efficacy, satisfaction, and outcomes.
Serving as a convener and model for other local and intermediate school districts interested in developing and improving grow your own programs.
Engaging in rigorous program evaluation and research so that this state can learn from its investments and innovations and become a top state for educators.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
The funds allocated under this section for 2024-2025 are a work project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue support for the grow your own programs under this section. The estimated completion date of the work project is September 30, 2028.
Sec. 28. (1) To recognize differentiated instructional costs for different types of pupils as well as additional costs to provide essential services in 2024-2025, 2025-2026, the following sections provide a weighted foundation allocation or an additional payment of some type in the following amounts, as allocated under those sections:
Section 22d, isolated and rural districts, $12,306,900.00. $12,873,100.00.
Section 22l, transportation reimbursement, $125,000,000.00.
Section 29, declining enrollment, $71,000,000.00.
Section 31a, at risk, $1,034,924,000.00.$1,293,655,000.00.
Section 32d, great start readiness program, $627,720,000.00.$656,217,600.00.
Section 41, bilingual education for English language learners, $50,186,100.00.$62,732,600.00.
Section 51c, special education, mandated percentages, $1,016,400,000.00.$1,107,900,000.00.
Section 54d, early on, $23,670,700.00.
Section 61a, career and technical education, standard reimbursement, $39,899,800.00.$41,733,800.00.
Section 61d, career and technical education incentives, $5,304,300.00.$13,400,000.00.
Section 147a, Michigan public school employees’ retirement system cost offset, $709,939,000.00.
(2) The funding described in subsection (1) is not a separate allocation of any funding but is instead a listing of funding allocated in the sections listed in subsection (1).
Sec. 29. (1) The enrollment stabilization fund is created as a separate account in the state school aid fund for the purpose of stabilizing the effects of declining enrollment.
The state treasurer may receive money or other assets from any source for deposit into the enrollment stabilization fund. The state treasurer shall direct the investment of the enrollment stabilization fund. The state treasurer shall credit to the enrollment stabilization fund interest and earnings from enrollment stabilization fund investments.
Money in the enrollment stabilization fund at the close of the fiscal year remains in the enrollment stabilization fund and does not lapse to the state school aid fund or the general fund.
The department of treasury is the administrator of the enrollment stabilization fund for auditing purposes.
Money available in the enrollment stabilization fund must not be expended without a specific appropriation.
From the enrollment stabilization fund money appropriated under section 11, there is allocated an amount not to exceed $71,000,000.00 for 2024-2025 2025-2026 for districts and intermediate districts for which membership in the immediately preceding fiscal year, as calculated under section 6 in the immediately preceding fiscal year, exceeds membership in the current fiscal year, as calculated under section 6 in the current fiscal year.
The allocation under subsection (6) must be an amount equal to the sum of the product of .50 and the district’s or intermediate district’s membership for the immediately preceding fiscal year, as calculated under section 6 of the immediately preceding fiscal year, and the product of .50 and the district’s or intermediate district’s membership in the current fiscal year, as calculated under section 6 of the current fiscal year, minus the district’s or intermediate district’s membership in the current fiscal year, as calculated under section 6 of the current fiscal year, multiplied by the target foundation allowance for the current fiscal year.
Sec. 30d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $100,000,000.00 for 2023-2024, and an amount not to exceed $170,000,000.00
$200,000,000.00 for 2024-2025, and from the school meals reserve fund money appropriated in section 11, there is allocated an amount not to exceed $90,000,000.00 for 2023-2024 and an amount not to exceed
$30,000,000.00 for 2024-2025 2025-2026, and from the general fund money appropriated in section 11, there is allocated an amount not to exceed $1,600,000.00 for 2025-2026 only for the purpose of making payments to participating entities to provide free school lunch and breakfast to public school and nonpublic school pupils in grades pre-K to 12.
To receive funding under this section, a participating entity must participate in the National School Lunch Program and must do all of the following:
Provide reimbursable breakfasts and reimbursable lunches at no cost to all students for any school breakfast program or school lunch program operated by the participating entity.
Submit information regarding the number of reimbursable breakfasts and reimbursable lunches served in a manner prescribed by the department.
Maximize federal reimbursement for reimbursable breakfasts and reimbursable lunches by operating under the CEP if the participating entity has an identified student percentage greater than or equal to the minimum requirement to be eligible to participate in the CEP. For purposes of this subdivision, all eligible participating entities must elect CEP on behalf of a single school, a group or groups of schools, or all schools in the participating entity, as applicable, in a manner that maximizes federal reimbursement.
Meet all applicable state and federal standards in its school breakfast and lunch programs, as determined by the department.
Take all efforts to maximize and implement policies that require parents or guardians to fill out relevant family income information, in a manner prescribed by the department, for the purposes of determining student eligibility for federal free or reduced cost meal reimbursement rates and CEP eligibility determinations.
Forgive all school meal debt related to federally reimbursable meals, as determined by the department.
Participating entities are encouraged to offer meals that meet students’ dietary restrictions, including the provision of gluten-free meals, vegetarian meals, vegan meals, and, upon request, kosher meals, halal meals, and meals meeting any allergy restrictions as confirmed by a doctor’s note. Participating entities are encouraged to purchase food from Michigan growers when possible and practical.
For each eligible participating entity, the department shall pay an amount equal to the following:
The amount equal to the federal rate per student paid per pupil per free breakfast and lunch under the Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j, multiplied by the number of breakfasts and lunches provided by the participating entity to students, less the federal revenue received by the participating entity under the school breakfast program and the school lunch program under the Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j, and other state lunch payments received under section 31d.
The amount equal to the federal rate per student paid per pupil per free breakfast and lunch under the Child Nutrition Act of 1966, 42 USC 21 1771 to 1793, and the Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j, multiplied by the number of breakfasts and lunches provided by the participating entity, as applicable, to children participating in the Great Start Readiness Program under section 32d at the participating entity, less all other federal and state lunch payments made for those children. For purposes of this subdivision, compliance with 7 CFR 226.9 is required. The department shall assign rates of reimbursement pursuant to 7 CFR 226.9, at least annually, on the basis of family size and income information reported by each eligible participating entity. Assigned rates of reimbursement must be adjusted annually to reflect changes in the national average payment rates.
Notwithstanding section 17b, the department may make payments under this section on a schedule determined by the department.
As used in this section:
“CEP” means the Community Eligibility Provision under the Richard B. Russell National School Lunch Act, 42 USC 1751 to 1769j.
“Participating entity” means a district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind.
In addition to the appropriations in section 11, if the amount allocated in subsection (1) is insufficient to fully reimburse districts for meals as required in this section, there is appropriated from the school meals reserve fund created in section 30e the amount necessary to fully fund these reimbursements.
Sec. 31a. (1) There is allocated for 2023-2024 an amount not to exceed $1,035,150,000.00 from the state school aid fund money appropriated in section 11 and an amount not to exceed $1,500,000.00 from the general fund money appropriated in section 11, and there There is allocated for 2024-2025 an amount not to exceed $1,078,074,000.00 from the state school aid fund money appropriated in section 11 and an amount not to exceed $1,500,000.00 from the general fund money appropriated in section 11 2025-2026 an amount not to exceed $1,336,805,000.00 from the state school aid fund money appropriated in section 11 and an amount not to exceed $1,500,000.00 from the general fund money appropriated in section 11 for payments to eligible districts and eligible public school academies for the purposes of ensuring that pupils are proficient in English language arts by the end of grade 3, that pupils are proficient in mathematics by the end of grade 8, that pupils are attending school regularly, that high school graduates are career and college ready, and for the purposes under subsections (7), (8), (23), and (24).(23).
For a district or public school academy to be eligible to receive funding under this section, other than funding under subsection (7), (8), (23), or (24), (23), the district or public school academy, for grades K to 12, must comply with the requirements under section 1280f of the revised school code, MCL 380.1280f, and must use resources to address early literacy and numeracy, and for at least grades K to 12 or, if the district or public school academy does not operate all of grades K to 12, for all of the grades it operates, must
implement a multi-tiered system of supports that is an evidence-based framework that uses data driven problem solving to integrate academic and behavioral instruction and that uses intervention delivered to all pupils in varying intensities based on pupil needs. The multi-tiered system of supports described in this subsection must provide at least all of the following essential components:
Team-based leadership.
A tiered delivery system.
Selection and implementation of instruction, interventions, and supports.
A comprehensive screening and assessment system.
Continuous data-based decision making.
From the state school aid fund money allocated under subsection (1), there is allocated for 2023-2024 an amount not to exceed $952,000,000.00, and there is allocated for 2024-2025 an amount not to exceed
$1,034,924,000.00 there is allocated for 2025-2026 an amount not to exceed $1,293,655,000.00 to continue a weighted foundation per pupil payment for districts and public school academies enrolling economically disadvantaged pupils. The department shall pay under this subsection to each eligible district or eligible public school academy an amount per pupil equal to a percentage calculated under subsection (4) multiplied by the target foundation allowance for the following, as applicable:
(a) Except as otherwise provided under subdivision (b), (c), or (d) the greater of the following:
The number of membership pupils in the district or public school academy who are determined to be economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after the pupil membership count day of the immediately preceding fiscal year.
If the district or public school academy is in the community eligibility program, the number of pupils determined to be eligible based on the product of the identified student percentage multiplied by the total number of pupils in the district or public school academy, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after the pupil membership count day of the immediately preceding fiscal year. These calculations must be made at the building level. This subparagraph only applies to an eligible district or eligible public school academy for the fiscal year immediately following the first fiscal year in which it is in the community eligibility program. As used in this subparagraph, “identified student percentage” means the quotient of the number of pupils in an eligible district or eligible public school academy who are determined to be economically disadvantaged, as reported to the center in a form and manner prescribed by the center, not later than the fifth Wednesday after the pupil membership count day in the fiscal year preceding the first fiscal year in which the eligible district or eligible public school academy is in the community eligibility program, divided by the total number of pupils counted in an eligible district or eligible public school academy on the pupil membership count day in the fiscal year preceding the first fiscal year in which the eligible district or eligible public school academy is in the community eligibility program.
If the district or public school academy began operations as a district or public school academy after the pupil membership count day of the immediately preceding school year, the number of membership pupils in the district or public school academy who are determined to be economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after the pupil membership count day of the current fiscal year.
If the district or public school academy began operations as a district or public school academy after the pupil membership count day of the current fiscal year, the number of membership pupils in the district or public school academy who are determined to be economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after the supplemental count day of the current fiscal year.
If, for a particular fiscal year, the number of membership pupils in a district or public school academy who are determined under subdivision (a) to be economically disadvantaged or to be eligible based on the identified student percentage varies by more than 20 percentage points from the number of those pupils in the district or public school academy as calculated under subdivision (a) for the immediately preceding fiscal year caused by an egregious reporting error by the district or public school academy, the department may choose to have the calculations under subdivision (a) instead be made using the number of membership pupils in the district or public school academy who are determined to be economically disadvantaged, as reported to the center in the form and manner prescribed by the center not later than the fifth Wednesday after the supplemental count day of the immediately preceding fiscal year.
Each district or public school academy must be assigned an opportunity index score each fiscal year, the value of which is the quotient of the number of economically disadvantaged pupils as determined under subsection (3) for the district or public school academy and the total number of pupils in the district or public school academy in the immediately preceding fiscal year, multiplied by 100 and rounded up to the nearest whole number. Each district or public school academy must be assigned an opportunity index band as follows:
A district or public school academy with an opportunity index score greater than or equal to 0 but less than 20 must be assigned to band 1 and shall receive reimbursement under subsection (3) at a rate of at least
35.0% and less than 36.0%. The reimbursement rate under this subdivision must be an amount equal to the district’s opportunity index score minus 1, multiplied by the band adjustment factor applicable to this subdivision, plus 35.0%.
A district or public school academy with an opportunity index score greater than or equal to 20 but less than 44 must be assigned to band 2 and shall receive reimbursement under subsection (3) at a rate of at least 36.0% and less than 37.5%. The reimbursement rate under this subdivision must be an amount equal to the district’s opportunity index score minus 20, multiplied by the band adjustment factor applicable to this subdivision, plus 36.0%.
A district or public school academy with an opportunity index score greater than or equal to 44 but less than 59 must be assigned to band 3 and shall receive reimbursement under subsection (3) at a rate of at least 37.5% and less than 39.0%. The reimbursement rate under this subdivision must be an amount equal to the district’s opportunity index score minus 44, multiplied by the band adjustment factor applicable to this subdivision, plus 37.5%.
A district or public school academy with an opportunity index score greater than or equal to 59 but less than 73 must be assigned to band 4 and shall receive reimbursement under subsection (3) at a rate of at least 39.0% and less than 42.0%. The reimbursement rate under this subdivision must be an amount equal to the district’s opportunity index score minus 59, multiplied by the band adjustment factor applicable to this subdivision, plus 39.0%.
A district or public school academy with an opportunity index score greater than or equal to 73 but less than 85 must be assigned to band 5 and shall receive reimbursement under subsection (3) at a rate of at least 42.0% and less than 47.0%. The reimbursement rate under this subdivision must be an amount equal to the district’s opportunity index score minus 73, multiplied by the band adjustment factor applicable to this subdivision, plus 42.0%.
A district or public school academy with an opportunity index score greater than or equal to 85 must be assigned to band 6 and shall receive reimbursement under subsection (3) at a rate of 47.0%.
As used in this subsection, “band adjustment factor” means an amount equal to the difference between the lowest and highest reimbursement bounds for each band, divided by the number of possible opportunity index scores in that band.
(5) Except as otherwise provided in this section, a district or public school academy receiving funding under this section shall use that money only to provide instructional programs and direct noninstructional services, including, but not limited to, medical, mental health, or counseling services, for at-risk pupils; for school health clinics; and for the purposes of subsection (6), (7), (8), (23), or (24). (23). In addition, a district that is a school district of the first class or a district or public school academy in which at least 50% of the pupils in membership were determined to be economically disadvantaged in the immediately preceding state fiscal year, as determined and reported as described in subsection (3), may use the funds it receives under this section for school security or school parent liaison personnel. The uses of the funds described in the immediately preceding sentence must align to the needs assessment and the multi-tiered system of supports model and, for funds spent on parent liaison personnel, must connect parents to the school community. A district or public school academy shall not use any of the money received under this section for administrative costs. The instruction or direct noninstructional services provided under this section may be conducted before or after regular school hours or by adding extra school days to the school year.
A district or public school academy that receives funds under this section and that operates a school breakfast program under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds received under this section an amount, not to exceed $10.00 per pupil for whom the district or public school academy receives funds under this section, necessary to pay for costs associated with the operation of the school breakfast program.
From the state school aid fund money allocated under subsection (1), there is allocated for 2023-2024 an amount not to exceed $33,000,000.00, and there is allocated for 2024-2025 an amount not to exceed
$33,000,000.00 there is allocated for 2025-2026 an amount not to exceed $33,000,000.00, to support primary health care services provided to children and adolescents up to age 21. These funds must be expended in a form and manner determined jointly by the department and the department of health and human services. When making funding decisions for new adolescent health centers under this subsection, the department and department of health and human services shall prioritize support for primary health care services in unserved and underserved counties as determined by the department of health and human services. For 2023-2024, an amount not to exceed 4% of the funds allocated for 2023-2024 under this subsection, and for 2024-2025, an An amount equal to 4% of the funds allocated for 2024-2025 under this subsection must be made available for technical support and coordination services from a nonprofit organization exclusively dedicated to serving adolescent health centers in this state and that has a membership that includes federally qualified health centers, local public health departments, hospital
systems, and public school districts. As a requirement of being awarded the funds under this subsection as prescribed under this subsection, a nonprofit organization described in this subsection shall make readily available technical support and coordination services to all child and adolescent health centers in this state. Funds appropriated under this subsection for 2023-2024 only are a work project appropriation and any unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to continue to improve child and adolescent health center program sites and improve delivery of patient care. The estimated completion date of the work project is September 30, 2025.
From the state school aid fund money allocated under subsection (1), there is allocated for 2023-2024 an amount not to exceed $5,150,000.00 and for 2024-2025 an amount not to exceed $10,150,000.00 2025- 2026 an amount not to exceed $10,150,000.00 for the state portion of the hearing and vision screenings as described in part 93 of the public health code, 1978 PA 368, MCL 333.9301 to 333.9329, and, from the general fund money allocated under subsection (1), there is allocated for 2023-2024 an amount not to exceed
$1,500,000.00 and for 2024-2025 an amount not to exceed $1,500,000.00 from the general fund money allocated under subsection (1), there is allocated for 2025-2026 an amount not to exceed $1,500,000.00 for the state portion of the dental screenings as described in part 93 of the public health code, 1978 PA 368, MCL 333.9301 to 333.9329. A local public health department shall pay at least 50% of the total cost of the screenings. The frequency of the vision screenings must be as required under R 325.13091 to R 325.13096 of the Michigan Administrative Code and the frequency of the hearing screenings must be as required under R 325.3271 to R 325.3276 of the Michigan Administrative Code. Funds must be awarded in a form and manner approved jointly by the department and the department of health and human services. Notwithstanding section 17b, the department shall make payments to eligible entities under this subsection on a schedule determined by the department.
Each district or public school academy receiving funds under this section shall submit to the department by July 15 of each fiscal year a report, in the form and manner prescribed by the department, that includes a brief description of each program conducted or services performed by the district or public school academy using funds under this section, the amount of funds under this section allocated to each of those programs or services, the total number of at-risk pupils served by each of those programs or services, and the data necessary for the department and the department of health and human services to verify matching funds for the temporary assistance for needy families program. In prescribing the form and manner of the report, the department shall ensure that districts are allowed to expend funds received under this section on any activities that are permissible under this section. If a district or public school academy does not comply with this subsection, the department shall withhold an amount equal to the August payment due under this section until the district or public school academy complies with this subsection. If the district or public school academy does not comply with this subsection by the end of the fiscal year, the withheld funds are forfeited to the school aid fund.
To receive funds under this section, a district or public school academy must allow access for the department or the department’s designee to audit all records related to the program for which it receives those funds. The district or public school academy shall reimburse the state for all disallowances found in the audit.
Subject to subsections (6), (7), (8), (23), and (24), (23), for schools in which more than 40% of pupils are identified as at-risk, a district or public school academy may use the funds it receives under this section to implement tier 1, evidence-based practices in schoolwide reforms that are guided by the district’s comprehensive needs assessment and are included in the district improvement plan. Schoolwide reforms must include parent and community supports, activities, and services, that may include the pathways to potential program created by the department of health and human services or the communities in schools program. As used in this subsection, “tier 1, evidence-based practices” means research based instruction and classroom interventions that are available to all learners and effectively meet the needs of most pupils.
A district or public school academy that receives funds under this section may use those funds to provide research based professional development and to implement a coaching model that supports the multi- tiered system of supports framework. Professional development may be provided to district and school leadership and teachers and must be aligned to professional learning standards; integrated into district, school building, and classroom practices; and solely related to the following:
Implementing the multi-tiered system of supports required in subsection (2) with fidelity and utilizing the data from that system to inform curriculum and instruction.
Implementing section 1280f of the revised school code, MCL 380.1280f, as required under subsection (2), with fidelity.
A district or public school academy that receives funds under subsection (3) may use funds received under subsection (3) for support staff providing services to at-risk pupils.
Beginning in 2024-2025, a A district or public school academy may use up to 60% of the funds it receives under this section for the following purposes:
Up to 30% to reduce the teacher to pupil ratio in grades K to 3. in schools for which the percentage of pupils in membership who were determined to be economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum percentage for a district or public school academy to be assigned to opportunity index band 5.
Up to 30% to support retention and recruitment efforts that help reduce staff turnover and vacancies of instructional and support staff if the district or public school academy is assigned to opportunity index band 4, 5, or 6.
Funds used as described in subsection (14) must align with the needs assessment and the multi-tiered system of supports model. A district or public school academy shall not use any of the money described in subsection (14) for administrative costs or to supplant existing funding, including, but not limited to, maintaining existing salaries or costs. A district or public school academy shall report its intent to use funds described in subsection (14) to the department by not later than November 1 of the current fiscal year.
A district or public school academy determined to be eligible to use a portion of funds received under subsection (3) for the purposes described in subsection (14) retains the ability to use funding for the purposes described in subsection (14) for the fiscal year in which eligibility was determined plus 2 additional fiscal years beyond that fiscal year.
By August 1 of each fiscal year, the department must provide a report to districts and public school academies that lists the eligible schools under subsection (14)(a) for the upcoming fiscal year.Beginning with the fiscal year ending September 30, 2026, and each year thereafter, for a district receiving funding under this section through the opportunity index formula, the district must provide a report to parents or legal guardians that details the amount of funding received under that allocation, how the district distributed that funding in a way to target buildings with the highest needs, and what evidence-based interventions were implemented with those dollars. The report must include a method, including contact information, for parents or legal guardians to provide feedback on the use of these dollars as well as to seek more information about services and interventions available for their children.
A district or public school academy that receives funds under this section may use up to 10% of the funds received under this section to provide evidence-based instruction for pre-kindergarten instructional and noninstructional services to children who meet at least 1 of the criteria in subsection (25)(a)(i) to (x).at- risk pupils.
Except as otherwise provided in this subsection, if necessary, the department shall prorate payments under this section, except payments under subsection (7), (8), (23), or (24), (23), by reducing the amount of the allocation as otherwise calculated under this section by an equal percentage per district. Subject to the availability of funds, if proration is necessary under this subsection, the department must ensure that no district receives an amount less than 11.5% of the target foundation for each economically disadvantaged pupil enrolled in the district.
If a district is dissolved pursuant to section 12 of the revised school code, MCL 380.12, the intermediate district to which the dissolved district was constituent shall determine the estimated number of pupils that are economically disadvantaged and that are enrolled in each of the other districts within the intermediate district and provide that estimate to the department for the purposes of distributing funds under this section within 60 days after the district is declared dissolved.
A district or public school academy that receives funds under this section may use funds received under this section to provide an anti-bullying or crisis intervention program.
The department shall collaborate with the department of health and human services to prioritize assigning Pathways to Potential success coaches to elementary schools that have a high percentage of pupils in grades K to 3 who are not proficient in English language arts, based upon state assessments for pupils in those grades.
From the state school aid fund money allocated under subsection (1), there is allocated for 2023-2024 only an amount not to exceed $35,000,000.00 to support primary health care services provided to children and adolescents up to age 21 and for the provision of space upgrades in child and adolescent health center programs. All of the following apply to this allocation:
The funds must be used for only the following purposes:
Modernizing antiquated medical equipment.
Improving security and patient safety measures.
Investing in new patient-centered technologies.
Renovating physical spaces to improve patient privacy and the care setting.
The funds must be expended in a form and manner determined jointly by the department and the department of health and human services.
To be eligible to receive funding under this subsection, a child and adolescent health center program that serves students in the current fiscal year must submit an application in a form and manner determined by the department and the department of health and human services.
An amount equal to 4% of the funds allocated for 2023-2024 under this subsection must be made available for technical support and coordination services from a nonprofit organization exclusively dedicated to serving adolescent health centers in this state and that has a membership that includes federally qualified health centers, local public health departments, hospital systems, and public school districts. As a requirement of being awarded the funds under this subsection as prescribed under this subsection, a nonprofit organization described in this subsection shall make readily available technical support and coordination services to all child and adolescent health centers in this state.
Funds appropriated under this subsection are a work project appropriation and any unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to continue to improve child and adolescent health center program sites and improve delivery of patient care. The estimated completion date of the work project is September 30, 2025.
(24) From the state school aid fund money appropriated under section 11, there is allocated for 2023- 2024 only an amount not to exceed $10,000,000.00 for an electronic patient data and health care analytic system to be made available to each child and adolescent health center program. The department of health and human services shall collaborate on system implementation with a nonprofit organization exclusively dedicated to serving child and adolescent health center programs in this state and that has a membership that includes federally qualified health centers, local public health departments, hospital systems, and public school districts, including, but not limited to, technology assessment, design, coordination, and system implementation with child and adolescent health center programs. Funds appropriated under this subsection are a work project appropriation and any unexpended funds for 2023-2024 are carried forward into 2024- 2025. The purpose of the work project is to continue to implement an electronic patient data and health care analytic system. The estimated completion date of the work project is September 30, 2028.
(25) As used in this section:
“At-risk pupil” means a pupil in grades pre-K to 12 for whom the district has documentation that the pupil meets any of the following criteria:
The pupil is economically disadvantaged.
The pupil is an English language learner.
The pupil is chronically absent as defined by and reported to the center.
The pupil is a victim of child abuse or neglect.
The pupil is a pregnant teenager or teenage parent.
The pupil has a family history of school failure, incarceration, or substance abuse.
The pupil is an immigrant who has immigrated within the immediately preceding 3 years.
The pupil did not complete high school in 4 years and is still continuing in school as identified in the Michigan cohort graduation and dropout report.
For pupils for whom the results of the state summative assessment have been received, is a pupil who did not achieve proficiency on the English language arts, mathematics, science, or social studies content area assessment.
Is a pupil who is at risk of not meeting the district’s or public school academy’s core academic curricular objectives in English language arts or mathematics, as demonstrated on local assessments.
“Economically disadvantaged” means a pupil who has been determined eligible for free or reduced- price meals as determined under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769j; who is in a household receiving supplemental nutrition assistance program or temporary assistance for needy families assistance; or who is homeless, migrant, or in foster care, as reported to the center.
“English language learner” means limited English proficient pupils who speak a language other than English as their primary language and have difficulty speaking, reading, writing, or understanding English as reported to the center.
Sec. 31d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $29,553,400.00 for 2024-2025 2025-2026 for the purpose of making payments to districts and other eligible entities under this section.
The amounts allocated from state sources under this section are used to pay the amount necessary to reimburse districts for 6.0127% of the necessary costs of the state mandated portion of lunch programs provided by those districts. The department shall calculate the amount due to each district under this section using the methods of calculation adopted by the Michigan supreme court in the consolidated cases known as Durant v State of Michigan, 456 Mich 175 (1997).
The payments made under this section include all state payments made to districts so that each district receives at least 6.0127% of the necessary costs of operating the state mandated portion of the lunch program in a fiscal year.
The payments made under this section to districts and other eligible entities that are not required under section 1272a of the revised school code, MCL 380.1272a, to provide a lunch program must be in an amount not to exceed $10.00 per eligible pupil plus 5 cents for each free lunch and 2 cents for each reduced price lunch provided, as determined by the department.
From the federal funds appropriated in section 11, there is allocated for 2024-2025 2025-2026 all available federal funding, estimated at $901,400,000.00 for child nutrition programs and, for 2024-2025, 2025-2026, all available federal funding, estimated at $15,000,000.00, $22,000,000.00, for food distribution programs.
Notwithstanding section 17b, the department shall make payments to eligible entities other than districts under this section on a schedule determined by the department.
In purchasing food for a lunch program funded under this section, a district or other eligible entity shall give preference to food that is grown or produced by Michigan businesses if it is competitively priced and of comparable quality.
Sec. 31f. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $16,900,000.00 for 2024-2025 2025-2026 for the purpose of making payments to districts to reimburse for the cost of providing breakfast.
The funds allocated under this section for school breakfast programs are made available to all eligible applicant districts that meet all of the following criteria:
The district participates in the federal school breakfast program and meets all standards as prescribed by 7 CFR parts 210, 220, 225, 226, and 245.
Each breakfast eligible for payment meets the federal standards described in subdivision (a).
The payment for a district under this section is at a per meal rate equal to the lesser of the district’s actual cost or 100% of the statewide average cost of a meal served, as determined and approved by the department, less federal reimbursement, participant payments, and state breakfast reimbursements received under section 30d. The department shall determine the statewide average cost using costs as reported in a manner approved by the department for the preceding school year.
Notwithstanding section 17b, the department may make payments under this section pursuant to an agreement with the department.
In purchasing food for a school breakfast program funded under this section, a district shall give preference to food that is grown or produced by Michigan businesses if it is competitively priced and of comparable quality.
Sec. 31n. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 for the purposes of this section an amount not to exceed $106,545,000.00 and from the general fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 for the purposes of this section an amount not to exceed $1,300,000.00. The department and the department of health and human services shall continue a program to distribute this funding to add licensed behavioral health providers for general education pupils, and recipients of the funds under subsection (6) shall continue to seek federal Medicaid match funding for all eligible mental health and support services.
The department and the department of health and human services shall maintain an advisory council for programs funded under this section and any other funding under this act to improve or maintain the mental health of students, except for programs funded under section 31a(7) and (8). The advisory council shall define goals for implementation of programs, and shall provide feedback on that implementation. At a minimum, the advisory council shall consist of representatives of state associations representing school health, school mental health, school counseling, education, health care, and other organizations, representatives from the department and the department of health and human services, and a representative from the school safety and mental health commission. The department and department of health and human services, working with the advisory council, shall determine an approach to increase capacity for mental health and support services in schools for general education pupils, and shall determine where that increase in capacity qualifies for federal Medicaid match funding.
The advisory council shall develop a fiduciary agent checklist for intermediate districts to facilitate development of a plan to submit to the department and to the department of health and human services. The department and department of health and human services shall determine the requirements and format for intermediate districts to submit a plan for possible funding under subsection (6). The department shall make applications for funding for this program available to districts and intermediate districts by not later than December 1 of each fiscal year for which funds are allocated under this section and shall award the funding by not later than February 1 of each fiscal year for which funds are allocated under this section.
The department of health and human services shall amend the state Medicaid plan to obtain appropriate Medicaid waivers as necessary for the purpose of generating additional Medicaid match funding for school mental health and support services for general education pupils, and this expansion is called Caring for Students (C4S).
From the state school aid fund money allocated under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $14,300,000.00 to be distributed to the network of child and adolescent health centers to place a licensed master’s level behavioral health provider in schools that do not currently have services available to general education students. Child and adolescent health centers that are part of the network described in this subsection shall provide a commitment to maintain services and implement all available federal Medicaid match methodologies. The department of health and human services shall use all existing or additional federal Medicaid match opportunities to maximize funding allocated under this subsection. The department shall provide funds under this subsection to child and adolescent health centers that are part of the network described in this subsection in the same proportion that funding under section 31a(7) is provided to child and adolescent health centers that are part of the network described in this subsection and that are located and operating in those districts. A payment from funding allocated under this subsection must not be paid to an entity that is not part of the network described in this subsection.
From the state school aid fund money allocated under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $87,245,000.00 to be distributed to intermediate districts for the provision of mental health and support services to general education students. Recipients of funds under this subsection shall continue to seek federal Medicaid match funding for all eligible mental health and support
services. If a district or intermediate district is not able to procure the services of a licensed master’s level behavioral health provider, the district or intermediate district shall notify the department and the department of health and human services and, if the department and department of health and human services verify that the district or intermediate district attempted to procure services from a master’s level behavioral health provider and was not able to do so, then the district or intermediate district may instead procure services from a provider with less than a master’s degree in behavioral health. To be able to use the exemption in the immediately preceding sentence, the district or intermediate district must submit evidence satisfactory to the department and department of health and human services demonstrating that the district or intermediate district took measures to procure the services of a licensed master’s level behavioral health provider but was unable to do so, and the department and department of health and human services must be able to verify this evidence. From the first $56,173,600.00 of the funds allocated under this subsection, the department shall distribute up to $1,003,100.00 for 2024-2025 2025-2026 to each intermediate district that submits a plan approved by the department and the department of health and human services by February 1 of each fiscal year for which funds are allocated under this section. The department shall distribute the remaining
$31,071,400.00 of the funds allocated under this subsection for 2024-2025 2025-2026 to intermediate districts on an equal per-pupil basis based on the combined total number of pupils in membership in the intermediate district and its constituent districts, including public school academies that are considered to be constituent districts under section 705(7) of the revised school code, MCL 380.705. The department and department of health and human services shall work cooperatively in providing oversight and assistance to intermediate districts and shall monitor the program upon implementation. An intermediate district shall use funds awarded under this subsection to provide funding to its constituent districts, including public school academies that are considered to be constituent districts under section 705(7) of the revised school code, MCL 380.705, for the provision of mental health and support services to general education students. In addition to the criteria identified under subsection (9), an intermediate district shall consider geography, cost, or other challenges when awarding funding to its constituent districts. Districts receiving funding under this subsection are encouraged to provide suicide prevention and awareness education and counseling.
If funding awarded to an intermediate district remains after funds are provided by the intermediate district to its constituent districts, the intermediate district shall notify the department and department of health and human services and submit evidence satisfactory to the department and department of health and human services demonstrating how it would like to use funds for purposes other than hiring licensed behavioral health providers for general education pupils. With permission from the department and department of health and human services, the intermediate district may hire or contract for experts to provide mental health and support services to general education students residing within the boundaries of the intermediate district, including, but not limited to, expanding, hiring, or contracting for staff and experts to provide those services directly or to increase access to those services through coordination with outside mental health agencies; the intermediate district may also contract with 1 or more other intermediate districts for coordination and the facilitation of activities related to providing mental health and support services to general education students residing within the boundaries of the intermediate district; the intermediate district may also use the funds under this section to create or strengthen school-based behavioral health assessment teams that focus on providing age-appropriate interventions, identifying behaviors that suggest a pupil may be struggling with mental health challenges, providing treatment and support of the pupil, and using disciplinary interventions and the criminal justice system as methods of last resort; and the intermediate district may also use the funds under this section to provide evidence-based trainings that support student mental health.
If funding awarded to an intermediate district under this section remains unspent, or if the intermediate district submits an application requesting a lower allocation than the maximum amount permitted, the department, in conjunction with the intermediate district, may reallocate the funds to another intermediate district or other intermediate districts capable of expending the funds before the funding deadline in accordance with this section as if those funds were originally allocated to the intermediate district or intermediate districts to which the funds are being reallocated.
A district requesting funds under this section from the intermediate district in which it is located shall submit an application for funding for the provision of mental health and support services to general education pupils. A district receiving funding from the application process described in this subsection shall provide services to nonpublic students upon request. An intermediate district shall not discriminate against an application submitted by a public school academy simply on the basis of the applicant being a public school academy. The department shall approve grant applications based on the following criteria:
The district’s commitment to maintain mental health and support services delivered by licensed providers into future fiscal years.
The district’s commitment to work with its intermediate district to use funding it receives under this section that is spent by the district for general education pupils toward participation in federal Medicaid match methodologies. A district must provide a local match of at least 20% of the funding allocated to the district under section 31n.
The district’s commitment to adhere to any local funding requirements determined by the department and the department of health and human services.
The extent of the district’s existing partnerships with community health care providers or the ability of the district to establish such partnerships.
The district’s documentation of need, including gaps in current mental health and support services for the general education population.
The district’s submission of a formal plan of action identifying the number of schools and students to be served.
Whether the district will participate in ongoing trainings.
Whether the district will submit an annual report to the state.
Whether the district demonstrates a willingness to work with the state to establish program and service delivery benchmarks.
Whether the district has developed a school safety plan or is in the process of developing a school safety plan.
Any other requirements determined by the department or the department of health and human services.
Funding under this section, including any federal Medicaid funds that are generated, must not be used to supplant existing services.
Both of the following are allocated to the department of health and human services from the general fund money allocated under subsection (1):
For 2024-2025, 2025-2026, an amount not to exceed $1,000,000.00 for the purpose of upgrading technology and systems infrastructure and other administrative requirements to support the programs funded under this section.
For 2024-2025, 2025-2026, an amount not to exceed $300,000.00 for the purpose of administering the programs under this section and working on generating additional Medicaid funds as a result of programs funded under this section.
From the state school aid fund money allocated under subsection (1), there is allocated for 2024-2025 2025-2026 an amount not to exceed $5,000,000.00 to intermediate districts on an equal per intermediate district basis for the purpose of administering programs funded under this section. Recipients of the funds under this subsection shall continue to seek federal Medicaid match funding for all eligible mental health and support services and participate in all learning collaboratives about C4S required by the department and department of health and human services.
The department and the department of health and human services shall work with the advisory council to develop proposed measurements of outcomes and performance. Those measurements must include, at a minimum, the number of pupils served, the number of schools served, and where those pupils and schools were located. The department and the department of health and human services shall compile data necessary to measure outcomes and performance, and districts and intermediate districts receiving funding under this section shall provide data requested by the department and department of health and human services for the measurement of outcomes and performance. The department and department of health and human services shall provide an annual report by not later than December 1 of each year to the house and senate appropriations subcommittees on school aid and health and human services, to the house and senate fiscal agencies, and to the state budget director. At a minimum, the report must include measurements of outcomes and performance, proposals to increase efficacy and usefulness, proposals to increase performance, and proposals to expand coverage.
A district or intermediate district that receives funding directly or indirectly under this section may carry over any unexpended funds received under this section for up to 2 fiscal years beyond the fiscal year in which the funds were received.
Sec. 31aa. (1) From the state school aid fund money appropriated in section 11, there is allocated
$150,000,000.00 $300,000,000.00 for 2024-2025, and from the general fund money appropriated in section 11, there is allocated $1,500,000.00 for 2024-2025 only, 2025-2026 only, and from the general fund money appropriated in section 11, there is allocated $21,000,000.00 for 2025-2026 only, to support school safety and mental health.
$14,000,000.00 may be used to provide payments to districts, intermediate districts, nonpublic schools, and the Michigan Schools for the Deaf and Blind that opt in and agree to receive funding under this section, subsection, for activities to improve student mental health and improve student safety. It is the intent of the legislature that, for 2025-2026, the allocation from the state school aid fund money appropriated in section 11 for purposes described in this section will be $25,000,000.00, and that, for 2025-2026, the allocation from the state school aid fund money and general fund money appropriated in section 11 for purposes described
in this section will not be used to make continued payments related to support staff hired or contracted for using funds received under this section. The allowable expenditures of funds under this section subsection are as follows:
Hiring or contracting for support staff for student mental health needs, including, but not limited to, school psychologists, social workers, counselors, and school nurses.
Purchasing and implementing mental health screening tools.
Purchasing a statewide, integrated technology platform , such as bhworks, that streamlines behavioral health documentation and care coordination.
Providing school-based mental health personnel access to consultation with behavioral health clinicians to respond to complex student mental health needs.
Purchasing and implementing an online behavioral health tool moderated and led by licensed behavioral health professionals.
Hiring or contracting a behavioral health coordinator.
Evidence-based trainings to support mental health.
Costs associated with collaboration between school employees, families, and community partners to address the academic, behavioral, and social needs of all students through collaborative partnerships, resource coordination, data collection, and data sharing.
Costs associated with conducting a systematic school mental health needs assessment and resource mapping that identifies programmatic and systemic needs and helps staff determine priorities and create action plans.
Coordination with local law enforcement.
Training for school staff on threat assessment.
Training for school staff and students on threat response.
Training for school staff on crisis communication.
Safety infrastructure, including, but not limited to, cameras, door blocks, hardened vestibules, window screening, and technology necessary to operate buzzer systems. This may also include firearm detection software that integrates to existing security cameras to detect and alert school personnel and first responders to visible firearms on school property.
Age-appropriate training for students and families on responsible firearm ownership, including safe handling and safe storage of firearms.
School resource officers and safety dogs. School resource officers hired under this subsection must be properly licensed and in good standing with the Michigan commission on law enforcement standards, and must be in compliance with all applicable laws.
Student Safety Management System, the information technology platform and related services to improve student safety by mitigating cyberbullying, school violence, human trafficking, and self-harm that supports students from grades K to 12.
A secure platform, administered by the department of state police, for school officials, emergency responders, and emergency management coordinators to house all school safety-related items, including, but not limited to, EOP templates, EOP guidance, reference documents, and security assessments. The platform should use existing password-protected access control methods schools currently utilize and, to the extent possible, be capable of integrating with existing platforms or technologies used by districts for school safety. Through permissions-based access control, the platform should be able to relay information clearly and in real time to each person or entity necessary to provide a unified response to a safety incident, or to take appropriate action in response to an anticipated disruption to the normal functions of the surrounding community.
Emergency infrastructure needs to respond to an immediate threat to the health or safety of students and staff in the district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind. A district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind shall not expend funds for this purpose without first obtaining approval from the department. In making a determination of approval, the department shall, at a minimum, assess whether the district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind is responding to an immediate threat to the health or safety of students and staff, and whether the district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind has other sources of funding that should be utilized first.
A contract with a vendor for a comprehensive safety and security assessment or a comprehensive safety and security event assessment in schools operated by the district, intermediate district, nonpublic school, or the Michigan Schools for the Deaf and Blind.
An emergency response system.
(2) By not later than December 31 of each fiscal year, from the state school aid fund money allocated in subsection (1), the department shall make payments to districts, intermediate districts, and the Michigan Schools for the Deaf and Blind that opt in and agree to receive funding in an equal amount per pupil based on the total number of pupils in membership in each district, intermediate district, and the Michigan Schools for the Deaf and Blind that opts in and agrees to receive funding. By December 31 of each fiscal year, from the general fund money allocated in subsection (1), (2), the department shall make payments to nonpublic schools that opt in and agree to receive funding in an equal amount per pupil based on the total number of pupils in membership in each nonpublic school that opts in and agrees to receive funding, using pupil counts determined by the department. The department shall ensure that the amount per pupil paid to nonpublic schools does not exceed the amount per pupil paid to districts and intermediate districts. Districts, intermediate districts, the Michigan Schools for the Deaf and Blind, and nonpublic schools may opt in and agree to receive funding in a form and manner determined by the department.
(3) Recipients of funding under this section must provide a final expense report to the department by June July 1 of each fiscal year. If the department determines that the eligible recipient has misused the funds allocated under this section, the eligible recipient shall reimburse the department for the amount of state funding misused.
(4) The department shall use the information received under subsection (3) (6) to compile a report that includes the number of recipients that have hired school resource officers using funds received under this section and any supporting information provided by the recipients. By not later than August 1 , 2025, and each August 1 thereafter, of each year, the department shall provide the report compiled under this subsection to the senate and house appropriations subcommittees on school aid, the senate and house fiscal agencies, the senate and house policy offices, the state budget office, and the Michigan commission on law enforcement standards.
(5) Districts receiving funds under this section must coordinate with intermediate districts to avoid duplication of services and to streamline delivery of services to students.
(6) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
As provided under section 18a, recipients may expend funds under this section until the end of the fiscal year immediately following the fiscal year in which the funds are received.
Sec. 32d. (1) From the state school aid fund money appropriated in section 11, there is allocated to eligible intermediate districts and consortia of intermediate districts for great start readiness programs an amount not to exceed $609,720,000.00 for 2024-2025 and $638,217,600.00 for 2025-2026. It is the intent of the legislature that this section will support universal great start readiness programs in a future fiscal year. An From the general fund money appropriated under section 11, there is allocated $600,000.00 for 2024- 2025 and $350,000.00 for 2025-2026, and from the great start readiness reserve fund money appropriated in section 11, there is allocated $18,000,000.00 for 2024-2025 and 2025-2026 for the purposes of this section. For 2024-2025, an intermediate district or consortium shall use funds allocated under this section for great start readiness programs to provide part-day programs, school-day programs, GSRP extended programs, GSRP/Head Start school-day blended programs, or GSRP/Head Start extended blended programs that are comprehensive, free, compensatory classroom programs designed to improve the readiness and subsequent achievement of children who meet the participant eligibility and prioritization guidelines as defined by the department of lifelong education, advancement, and potential. For 2025-2026, an intermediate district or consortium shall use funds allocated under this section for eligible great start readiness program options. For a child to be eligible to participate in a program under this section, the child must be at least 4, but less than 5, years of age as of September 1 of the school year in which the program is offered and must meet those eligibility and prioritization guidelines. After eligible children who will be 4 years of age as of September 1 are enrolled, a child who is not 4 years of age as of September 1, but who will be 4 years of age by not later than December 1, is eligible to participate if both of the following are met:
The child’s parent or legal guardian seeks a waiver from the September 1 eligibility date by submitting a request for enrollment in a program to the responsible intermediate district.
The child meets eligibility and prioritization guidelines.
From the state school aid fund money allocated under subsection (1), an amount not to exceed
intermediate districts or consortia of intermediate districts based on the formula in section 39. An
intermediate district or consortium of intermediate districts receiving funding under this section shall act as the fiduciary for the great start readiness programs. An intermediate district or consortium of intermediate districts receiving funding under this section may collaborate with local governments to identify children eligible for programs funded under this section and may contract with local governments to provide services. To be eligible to receive funds allocated under this subsection from an intermediate district or consortium of intermediate districts, a district, a consortium of districts, a local government, or a public or private for-profit or nonprofit legal entity or agency must comply with this section and section 39. If, For 2024-2025, if, due to the number of GSRP extended program or GSRP/Head Start extended blended program slots awarded, the amount allocated in this subsection is insufficient to award at least the same number of part-day program and school-day program slots as awarded in the immediately preceding fiscal year, there is appropriated from the great start readiness program reserve fund the amount necessary to fully award the same number of part- day program and full-day program slots as awarded in the immediately preceding fiscal year. For 2025- 2026, if the amount allocated in this subsection is insufficient to fully fund allocations calculated under section 39, there is appropriated from the great start readiness program reserve fund the amount necessary and available to fully fund those allocations.
In addition to the allocation From the general fund money allocated under subsection (1), from the general fund money appropriated under section 11, there is allocated an amount not to exceed $600,000.00 for 2024-2025 and an amount not to exceed $350,000.00 for 2025-2026 for a competitive grant to continue a longitudinal evaluation of children who have participated in great start readiness programs. It is the intent of the legislature that the allocation under this subsection will be $350,000.00 for 2025-2026.
Except as otherwise provided in subsection (5), to be eligible for funding under this section, a program must prepare children for success in school through comprehensive part-day programs, school-day programs, GSRP extended programs, GSRP/Head Start school-day blended programs, or GSRP/Head Start extended blended programs, or other eligible great start readiness program options that contain all of the following program components, as determined by the department of lifelong education, advancement, and potential:
Participation in a collaborative recruitment and enrollment process to ensure that each child is enrolled in the program most appropriate to the child’s needs and to maximize the use of federal, state, and local funds. For 2025-2026, as part of this requirement, programs receiving funding under this section must provide current enrollment data, including slots open for enrollment and slots filled, to the intermediate district or consortium of intermediate districts from which funding is received for that program. The enrollment process must ensure that children in families with lower income and children with other risk factors, as determined by the department of lifelong education, advancement, and potential, are enrolled before children with lesser needs.
An age-appropriate educational curriculum that is in compliance with the early childhood standards of quality for prekindergarten birth to kindergarten children adopted by the state board, including, at least, the Connect4Learning curriculum.
Nutritional services for all program participants supported by federal, state, and local resources as applicable.
Physical and dental health and developmental screening services for all program participants.
Referral services for families of program participants to community social service agencies, including mental health services, as appropriate.
Active and continuous involvement of the parents or guardians of the program participants.
A plan to conduct and report annual great start readiness program evaluations and continuous improvement plans using criteria approved by the department of lifelong education, advancement, and potential.
Participation in a school readiness advisory committee convened as a workgroup of the great start collaborative that provides for the involvement of classroom teachers, parents or guardians of program participants, and community, volunteer, and social service agencies and organizations, as appropriate. The advisory committee shall annually review and make recommendations regarding the program components listed in this subsection. The advisory committee also shall make recommendations to the great start collaborative regarding other community services designed to improve all children’s school readiness.
The ongoing articulation of the kindergarten and first grade programs offered by the program provider.
Participation in this state’s great start to quality process with a rating level of at least enhancing quality level.
To help expand access to great start readiness programs, the department of lifelong education, advancement, and potential may waive the requirements under subsection subsections (4) and (8)(c) and a program may be eligible for funding under this section for new or expanding programs if the program demonstrates to the satisfaction of the department of lifelong education, advancement, and potential that the program meets all of the following:
Is a licensed group or child care center or is a licensed program.
Provides the minimum instructional time as required by the department of lifelong education, advancement, and potential.
Participates in this state’s quality rating improvement system at a level determined by the department of lifelong education, advancement, and potential.
Implements a professional educator preparation plan, as defined by the department of lifelong education, advancement, and potential, for educators not meeting teacher credentialing standards described in subsection (8) or (9).
Uses a developmentally appropriate curriculum, as determined by the department of lifelong education, advancement, and potential.
Conducts a developmental screening and referral process, as determined by the department of lifelong education, advancement, and potential.
Commits to participating in program financial review and monitoring, as determined by the department of lifelong education, advancement, and potential.
Provides a plan to implement an approved great start readiness program curriculum and meet additional great start readiness program standards, as determined by the department of lifelong education, advancement, and potential.
A waiver under subsection (5) may be granted for up to 3 years for requirements related to program credentialing and may be granted for up to 2 years for all other requirements, as determined by the department of lifelong education, advancement, and potential.
The department of lifelong education, advancement, and potential shall provide a report to the house and senate appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal agencies that summarizes the number and types of exemptions granted under subsection (5) and progress made by programs granted waivers under subsection (5) by September 30 of each fiscal year. It is the intent of the legislature to review the waiver allowability under subsection (5) before the fiscal year ending September 30, 2027.
An For applications submitted before September 30, 2025, an application for funding under this section must provide for the following, in a form and manner determined by the department of lifelong education, advancement, and potential:
Ensure either of the following:
That the applicant complies with all program components described in subsection (4).
That the applicant meets the requirements of a waiver under subsection (5).
Except as otherwise provided in this subdivision, ensure that children participating in an eligible great start readiness program for whom the intermediate district is receiving funds under this section are children who live with families with a household income that is equal to or less than 400% of the federal poverty guidelines. If the intermediate district determines that all eligible children are being served and that there are no children on the waiting list who live with families with a household income that is equal to or less than 400% of the federal poverty guidelines, the intermediate district may then enroll children who live with families with a household income that is greater than 400% of the federal poverty guidelines. The enrollment process must consider income and risk factors, such that children determined with higher need are enrolled before children with lesser need. For purposes of this subdivision, all age-eligible children served in foster care or who are experiencing homelessness or who have individualized education programs recommending placement in an inclusive preschool setting are considered to live with families with household income equal to or less than 400% of the federal poverty guidelines regardless of actual family income and are prioritized for enrollment within the lowest quintile. The department of lifelong education, advancement, and potential shall publish the household income thresholds under this subdivision in a clear manner on its website and the great start to quality website.
Ensure Except as provided in subsection (5), ensure that the applicant only uses qualified personnel for this program, as follows:
Teachers possessing proper training. A lead teacher must have a valid Michigan teaching certificate with an early childhood or lower elementary endorsement or a bachelor’s or higher degree in child development or early childhood education with specialization in preschool teaching. However, except as otherwise provided in this subparagraph, if an applicant demonstrates to the department of lifelong education, advancement, and potential that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, teachers or paraprofessionals with at least 5 years of experience as a paraprofessional in a great start readiness program, Head Start, or licensed child care center classroom who have significant but incomplete training in early childhood education or child development may be used if the applicant provides to the department of lifelong education, advancement, and potential, and the department of lifelong education, advancement, and potential approves, a plan for each teacher to come into compliance with the standards in this subparagraph. Individuals may qualify with at least 3 years of experience and significant training in early childhood education or child development, based on the recommendation of the intermediate district after a classroom observation. A teacher’s compliance plan must be completed within 3 years of the date of employment. Progress toward completion of the compliance plan consists of at least 2 courses per calendar year.
Paraprofessionals possessing proper training in early childhood education, including an associate degree in early childhood education or child development or the equivalent, or a child development associate (CDA) credential. However, if an applicant demonstrates to the department of lifelong education, advancement, and potential that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, the applicant may use paraprofessionals who have completed at least 1 course that earns college credit in early childhood education or child development or enroll in a child development associate credential with at least 6 months of verified experience in early education and care, if the applicant provides to the department of lifelong education, advancement, and potential, and the department of lifelong education, advancement, and potential approves, a plan for each paraprofessional to come into compliance with the standards in this subparagraph. A paraprofessional’s compliance plan must be completed within 3 years of the date of employment. Progress toward completion of the compliance plan consists of at least 2 courses, 60 clock hours, or an equivalent of training per calendar year.
Include a program budget that contains only those costs that are not reimbursed or reimbursable by federal funding, that are clearly and directly attributable to the great start readiness program, and that would not be incurred if the program were not being offered. Eligible costs include transportation costs. The program budget must indicate the extent to which these funds will supplement other federal, state, local, or private funds. An applicant shall not use funds received under this section to supplant any federal funds received by the applicant to serve children eligible for a federally funded preschool program that has the capacity to serve those children.
(9) For a grant recipient that enrolls pupils in a school-day program or GSRP extended program funded under this section, each child enrolled in the school-day program or GSRP extended program is counted as described in section 39 for purposes of determining the amount of the grant award. This subsection does not apply after September 30, 2025.
(10) For a grant recipient that enrolls pupils in a GSRP/Head Start school-day blended program or GSRP/Head Start extended blended program, an eligible great start readiness program option that blends GSRP and Head Start programming, the grant recipient shall ensure that all Head Start and GSRP policies and regulations are applied to the blended slots, with adherence to the highest standard from either program, to the extent allowable under federal law. A grant recipient may request a waiver from the department of lifelong education, advancement, and potential to align GSRP policies and regulations with Head Start national standards for quality, including ratios, and the department of lifelong education, advancement, and potential may approve the waiver. Not later than March 1 of each year, the department of lifelong education, advancement, and potential will report to the legislature and post on a publicly available website a list by intermediate district or consortium with the number and type of each waiver requested and approved.
(11) To help expand access to great start readiness programs, the department of lifelong education, advancement, and potential may allow great start readiness programs to implement Head Start national performance standards for quality as an alternative to great start readiness program policies and regulations if the great start readiness program demonstrates to the satisfaction of the department of lifelong education, advancement, and potential that the great start readiness program is meeting the requirements of the Head Start national performance standards.
(12) An intermediate district or consortium of intermediate districts receiving a grant under this section shall designate an early childhood coordinator, and may provide services directly or may contract with 1 or more districts or public or private for-profit or nonprofit providers that meet all requirements of subsections subsection (4), and (8), or (9), as applicable.
(13) An intermediate district or consortium of intermediate districts may retain for administrative services provided by the intermediate district or consortium of intermediate districts an amount not to exceed 4% of the grant amount. Expenses incurred by subrecipients engaged by the intermediate district or consortium of intermediate districts for directly running portions of the program are considered program costs or a contracted program fee for service. Subrecipients operating with a federally approved indirect rate for other early childhood programs may include indirect costs, not to exceed the federal 10% de minimis.
(14) An intermediate district or consortium of intermediate districts may expend not more than 2% of the total grant amount for outreach, recruiting, and public awareness of the program, if the intermediate district or consortium of intermediate districts also participates in related statewide marketing and outreach efforts.
(15) Each grant recipient shall enroll children identified under subsection (8)(b) according to how far the child’s household income is below 400% of the federal poverty guidelines by ranking each applicant child’s household income from lowest to highest and dividing the applicant children into quintiles based on how far the child’s household income is below 400% of the federal poverty guidelines, and then enrolling children in the quintile with the lowest household income before enrolling children in the quintile with the next lowest household income until slots are completely filled. If the grant recipient determines that all eligible children are being served and that there are no children on the waiting list who live with families with a household income that is equal to or less than 400% of the federal poverty guidelines, the grant recipient may then enroll children who live with families with a household income that is greater than 400% of the federal poverty guidelines. The enrollment process must consider income and risk factors, such that children determined with higher need are enrolled before children with lesser need. For purposes of this subsection, all age-eligible children served in foster care or who are experiencing homelessness or who have individualized education programs recommending placement in an inclusive preschool setting are considered to live with families with household income equal to or less than 400% of the federal poverty guidelines regardless of actual family income and are prioritized for enrollment within the lowest quintile. This subsection does not apply after September 30, 2025.
(16) An intermediate district or consortium of intermediate districts receiving a grant under this
section shall allow parents of eligible children who are residents of the intermediate district or within the consortium to choose a program operated by or contracted with another intermediate district or consortium of intermediate districts and shall enter into a written agreement regarding payment, in a manner prescribed by the department of lifelong education, advancement, and potential.
(17) An intermediate district or consortium of intermediate districts receiving a grant under this section shall conduct a local process to contract with interested and eligible public and private for-profit and nonprofit community-based providers that meet all requirements of subsection (4) for at least 30% of its total allocation. For 2024-2025, for the purposes of this 30% allocation, an intermediate district or consortium of intermediate districts may count children served by a Head Start grantee or delegate in a GSRP/Head Start school-day blended program, GSRP/Head Start extended blended program, GSRP extended program, and great start readiness school-day program. Children served in a program funded only through Head Start are not counted toward this 30% allocation. An Beginning in 2025-2026, the department of lifelong education, advancement, and potential shall provide guidance to intermediate districts and consortia of intermediate districts on counting children served by Head Start programming for the purposes of this 30% allocation. For 2024-2025, an intermediate district or consortium shall report to the department of lifelong education, advancement, and potential, in a manner prescribed by the department of lifelong education, advancement, and potential, a detailed list of community-based providers by provider type, including private for-profit, private nonprofit, community college or university, Head Start grantee or delegate, and district or intermediate district, and the number and proportion of its total allocation allocated to each provider as subrecipient. Beginning in 2025-2026, an intermediate district or consortium shall report to the department of lifelong education, advancement, and potential, in a manner prescribed by the department of lifelong education, advancement, and potential, information necessary for the department of lifelong education, advancement, and potential to determine the intermediate district’s or consortium of intermediate districts’ compliance with this subsection. If the intermediate district or consortium is not able to contract for at least 30% of its total allocation, the intermediate district or consortium shall notify the department of lifelong education, advancement, and potential and, if the department of lifelong education, advancement, and potential verifies that the intermediate district or consortium attempted to contract for at least 30% of its total allocation and was not able to do so, the intermediate district or consortium may retain and use all of its allocation as provided under this section. To be able to use this exemption, the intermediate district or consortium shall demonstrate to the department of lifelong education, advancement, and potential that the intermediate district or consortium increased the percentage of its total allocation for which it contracts with a community-based provider and the intermediate district or consortium shall submit evidence satisfactory to the department of lifelong education, advancement, and potential, and the department of lifelong education, advancement, and potential must be able to verify this evidence, demonstrating that the intermediate district or consortium took measures to contract for at least 30% of its total allocation as required under this subsection, including, but not limited to, at least all of the following measures:
The intermediate district or consortium notified each nonparticipating licensed child care center located
in the service area of the intermediate district or consortium regarding the center’s eligibility to participate, in a manner prescribed by the department of lifelong education, advancement, and potential.
The intermediate district or consortium provided to each nonparticipating licensed child care center located in the service area of the intermediate district or consortium information regarding great start readiness program requirements and a description of the application and selection process for community- based providers.
The intermediate district or consortium provided to the public and to participating families a list of community-based great start readiness program subrecipients with a great start to quality rating level of at least enhancing quality level.
(18) If an intermediate district or consortium of intermediate districts receiving a grant under this section fails to submit satisfactory evidence to demonstrate its effort to contract for at least 30% of its total allocation, as required under subsection (17), (19), the department of lifelong education, advancement, and potential shall may reduce the allocation to the intermediate district or consortium by a percentage equal to the difference between the percentage of an intermediate district’s or consortium’s total allocation awarded to community-based providers and 30% of its total allocation.
(19) To assist intermediate districts and consortia in complying with the requirement to contract with community-based providers, for at least 30% of their total allocation, the department of lifelong education, advancement, and potential shall do all of the following:
Ensure that a great start resource center or the department of lifelong education, advancement, and potential provides each intermediate district or consortium receiving a grant under this section with the contact information for each licensed child care center located in the service area of the intermediate district or consortium by March 1 of each year.
Provide, or ensure that an organization with which the department of lifelong education, advancement, and potential contracts provides, a community-based provider with a validated great start to quality rating within 90 days of the provider’s having submitted a request and self-assessment. This subdivision does not apply after September 30, 2025.
Ensure that all intermediate district, district, community college or university, Head Start grantee or delegate, private for-profit, and private nonprofit providers are subject to a single great start to quality rating continuous quality improvement system. The rating continuous quality improvement system must ensure that regulators process all prospective providers at the same pace on a first-come, first-served basis and must not allow 1 type of provider to receive a great start to quality rating level ahead of any other type of provider.
By not later than March 1 of each year, compile the results of the information reported by each intermediate district or consortium under subsection (17) (19) and report to the legislature and post on a publicly available website a list by intermediate district or consortium with the number and percentage of each intermediate district’s or consortium’s total allocation allocated to community-based providers by provider type, including private for-profit, private nonprofit, community college or university, Head Start grantee or delegate, and district or intermediate district.
Allow intermediate districts and consortia and eligible community-based providers to utilize materials and supplies purchased for great start readiness programs within their facilities for other early care and education activities, in the following order of priority:
Early care and education activities under a federal award.
Early care and education activities under other state awards.
Early care and education activities under local or regional awards.
(20) A recipient of funds under this section shall report to the center in a form and manner prescribed by the center the information necessary to derive the number of children participating in the program, who meet the program eligibility criteria under subsection (8)(b), the number of eligible children not participating in the program and on a waitlist, and the total number of children participating in the program by various demographic groups and eligibility factors necessary to analyze equitable and priority access to services for the purposes of subsection (3).
(21) As used in this section:
(a) “Federal poverty guidelines” means the guidelines published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902.
(b) “GSRP extended program” means a program that operates for at least the same length of day as a district’s first grade program for a minimum of 5 days per week, 36 weeks per year.
(c) “GSRP/Head Start extended blended program” means a program funded under this section and a Head Start program that are combined for an extended program.
(d) “GSRP/Head Start school-day blended program” means a part-day program funded under this section and a Head Start program, which are combined for a school-day program.
(e) “Part-day program” means a program that operates at least 4 days per week, 30 weeks per year, for at least 3 hours of teacher-child contact time per day but for fewer hours of teacher-child contact time per day than a school-day program.
(f) “School-day program” means a program that operates for at least the same length of day as a district’s first grade program for a minimum of 4 days per week, 30 weeks per year. A classroom that offers a school- day program must enroll all children for the school day to be considered a school-day program.
(22) From the amount state school aid fund money allocated in subsection (2), (1), there is allocated for 2024-2025 and 2025-2026 an amount not to exceed $10,000,000.00 and, from the great start readiness program reserve fund appropriated in section 11, money allocated in subsection (1), there is allocated for 2024-2025 and 2025-2026 an amount not to exceed $18,000,000.00 for reimbursement of transportation costs for children attending great start readiness programs funded under this section. To receive reimbursement under this subsection, by not later than November 1 of each year, a program funded under this section that provides transportation shall submit to the intermediate district that is the fiscal agent for the program a projected transportation budget. The amount of the reimbursement for transportation under this subsection is no more than the projected transportation budget or $500.00 multiplied by the number of children funded for the program under this section. If the amount allocated under this subsection is insufficient to fully reimburse the transportation costs for all programs that provide transportation and submit the required information, the department of lifelong education, advancement, and potential shall prorate the reimbursement in an equal amount per child funded. The department of lifelong education, advancement, and potential shall make payments to the intermediate district that is the fiscal agent for each program, and the intermediate district shall then reimburse the program provider for transportation costs as prescribed under this subsection.
The names of families provided with transportation support along with a documented reason for the need for transportation support and the type of transportation provided.
Financial documentation of actual transportation costs incurred by the program, including, but not limited to, receipts and mileage reports, as determined by the department of lifelong education, advancement, and potential.
Any other documentation or information determined necessary by the department of lifelong education, advancement, and potential.
(24) The department of lifelong education, advancement, and potential shall implement a process to review and approve age-appropriate comprehensive classroom level quality assessments for GSRP grantees that support the early childhood standards of quality for prekindergarten birth to kindergarten children adopted by the state board. The department of lifelong education, advancement, and potential shall make available to intermediate districts at least 2 classroom level quality assessments that were approved in 2018. have been approved by the department of lifelong education, advancement, and potential.
(25) An intermediate district that is a GSRP grantee may approve the use of a supplemental curriculum that aligns with and enhances the age-appropriate educational curriculum in the classroom. If the department
of lifelong education, advancement, and potential objects to the use of a supplemental curriculum approved by an intermediate district, the director of the department of lifelong education, advancement, and potential shall establish a review committee independent of the department of lifelong education, advancement, and potential. The review committee shall meet within 60 days of the department of lifelong education, advancement, and potential registering its objection in writing and provide a final determination on the validity of the objection within 60 days of the review committee’s first meeting.
(26) The department of lifelong education, advancement, and potential shall implement a process to evaluate and approve age-appropriate educational curricula that are in compliance with the early childhood standards of quality for prekindergarten birth to kindergarten children adopted by the state board.
(27) From the funds state school aid fund money allocated under subsection (1), there is allocated for 2024-2025 and 2025-2026 an amount not to exceed $2,000,000.00 for payments to intermediate districts or consortia of intermediate districts for professional development and training materials for educators in programs implementing new curricula or child assessment tools approved for use in the great start readiness program.
(28) A great start readiness program, a GSRP extended program, a GSRP/Head Start school-day blended program, or a GSRP/Head Start extended blended program, or other eligible great start readiness programs funded under this section is are permitted to utilize AmeriCorps Pre-K Reading Corps members in classrooms implementing research-based early literacy intervention strategies.
(29) In addition to the allocation under subsection (1), from the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $25,000,000.00 for 2024-2025 and an amount not to exceed $10,000,000.00 for 2025-2026 only for classroom start up grants to intermediate districts and consortia of intermediate districts for new or expanding great start readiness classrooms. All of the following apply to funding allocated under this subsection:
To receive funding under this subsection, intermediate districts and consortia of intermediate districts must apply for the funding in a form and manner prescribed by the department of lifelong education, advancement, and potential.
The department of lifelong education, advancement, and potential shall pay an amount not to exceed
$50,000.00 for each new or expanded classroom. If funding is insufficient to fully fund all eligible applicants, the department of lifelong education, advancement, and potential must prorate the per-classroom amount on an equal basis. If the allocation is not fully paid in the current fiscal year, the department of lifelong education, advancement, and potential may award any remaining funding from fiscal year 2024-2025 during fiscal year 2025-2026, and may award any remaining funding from fiscal year 2025-2026 during fiscal year 2026-2027 for each new or expanded classroom at an equal amount per classroom, based on remaining available funds, not to exceed $50,000.00 per classroom.
Funds received under this subsection by intermediate districts and consortia of intermediate districts must be paid in full to the entity operating the classroom and may be used for 1 or more of the following purposes:
Costs associated with attracting, recruiting, retaining, and licensing required classroom education personnel to staff new or expanded classrooms.
Supporting facility improvements or purchasing facility space or modular classroom units necessary to provide a safe, high-quality learning environment for children in each new or expanded classroom, and for costs to become a licensed facility such as architectural drawings, permits, and other prelicensure inspection fees.
Outreach material necessary for public awareness that the great start readiness program has openings in the area and for costs associated with enrolling eligible children in new or expanded classrooms.
Supporting costs in each new or expanded classroom associated with improving a provider’s great start to quality rating.level.
The funds allocated under this subsection for 2022-2023 are a work project appropriation, and any unexpended funds for 2022-2023 do not lapse to the state school aid fund and are carried forward into 2023- 2024. The purpose of the work project is to continue support for new or expanded great start readiness classrooms. The estimated completion date of the work project is September 30, 2024.Recipients of funds under this subsection must demonstrate that instructional staff have completed, or are in the process of completing, professional learning in the science of reading. Grant funds may be used to support this professional learning and are intended to ensure new classrooms are well equipped to implement evidence-based early literacy strategies.
The funds allocated under this subsection for 2024-2025 are a work project appropriation, and any unexpended funds for 2024-2025 do not lapse to the state school aid fund and are carried forward into 2025- 2026. The purpose of the work project is to continue support for new or expanded great start readiness classrooms. The estimated completion date of the work project is September 30, 2026.
(30) In addition to the funds allocated in subsection (1), there is allocated from the general fund money appropriated under section 11 for 2024-2025 only an amount not to exceed $1,950,000.00 for an intermediate district or a consortium of intermediate districts to partner with the department of lifelong education, advancement, and potential and community-based organizations to continue implementing statewide outreach and enrollment campaign activities to raise awareness about the availability of services through the great start readiness program, and to promote enrollment.
(31) The funds allocated under subsection (30) (32) for 2024-2025 are a work project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to raise awareness of and participation in great start readiness programming. The estimated completion date of the work project is September 30, 2027.
(32) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under subsection (30) (32) on a schedule determined by the department of lifelong education, advancement, and potential.
(33) As used in this section:
“Child care center” means that term as defined in section 1 of 1973 PA 116, MCL 722.111.
“Licensed child care center” means a child care center that has been issued a license under 1973 PA 116, MCL 722.111 to 722.128, to operate a child care center.
Sec. 32n. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 only an amount not to exceed $75,000,000.00 $79,000,000.00, and from the state school aid pupil support reserve fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $75,000,000.00 to Clinton County RESA to collaborate with the department of lifelong education, advancement, and potential, for the purposes of this section. It is the intent of the legislature that, for 2025-2026, the allocation from the state school aid fund money appropriated in section 11 for the purposes described in this section will be $50,000,000.00.It is the intent of the legislature that, for 2026-2027, the allocation from the state school aid pupil support reserve fund money appropriated in section 11 for the purposes described in this section will be $85,000,000.00. It is the intent of the legislature that, for 2027-2028, the allocation from the state school aid pupil support reserve fund money appropriated in section 11 for the purposes described in this section will be $100,000,000.00.
From the state school aid fund money allocated in subsection (1), there is allocated for 2024-2025 only an amount not to exceed $57,000,000.00, and from the state school aid pupil support reserve fund money allocated in subsection (1), there is allocated for 2025-2026 only an amount not to exceed
Serve children in any of grades K to 12.
Be a community-based organization that is exempt from federal income tax under section 501(c)(3) of the internal revenue code, 26 USC 501, an institution of higher education, a public library, a local government, or an intermediate district.
Provide before-school, after-school, before-and-after-school, or summer school programming to children described in subdivision (a). These programs must be used to support expanded learning opportunities, including, but not limited to, mentoring, leadership, community engagement, agriculture, visual and performing arts, literacy, science, technology, engineering, mathematics, health and wellness, recreation, financial literacy, physical fitness, career and college exploration, youth voice, 21st century skills, conflict resolution, and social engagement programming.
Address measurable goals, including, but not limited to, improved school attendance, academic outcomes, improved attitudes toward school, improved positive behaviors, skill development and retention, higher education aspirations, and improved family engagement and include activities linked to research or quality practices.
Be 1 of the following:
A licensed child care organization.
An entity that has an active application to be a licensed child care organization.
An exempt entity.
The department of lifelong education, advancement, and potential shall establish a competitive grant process for awarding funding under subsection (2). The department of lifelong education, advancement, and potential shall develop the form and manner for applying for the grants. The application must include a request for information on the applicant’s outreach to children, youth, and families who are eligible for free or reduced-price meals under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769j. The application must be open for not less than 30 calendar days. At Except as otherwise provided in this subsection, at least 30 days before the application is opened, the department of lifelong education, advancement, and potential must publish on its public website the criteria that will be used in evaluating the application that must include, but are not limited to, priorities under subsection (5). For 2025-2026 only, the department of lifelong education, advancement, and potential, is not required to publish the evaluation criteria at least 30 days before the application is opened.
Subject to subsection (8), (9), in determining award amounts under subsection (2), the department of lifelong education, advancement, and potential shall, to the extent practicable, ensure that eligible entities in all geographic regions of this state are represented in the distribution of grant funding under subsection (2).
Subject to subsection (8), (9), the department of lifelong education, advancement, and potential shall prioritize the distribution of grant funding under subsection (2) based on, at a minimum, the following:
An applicant’s demonstrated need.
The percentage of low-income families in the geographic area being served. Prioritization must be determined by the average percentage of pupils in the district who are eligible for free and reduced-priced meals as determined under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769j, where eligible entities will provide before-and-after-school or summer school programs.
Whether the application provides services for the full school year.
The applicant’s track record for providing quality, affordable before-and-after-school or summer school services.
Whether an applicant serving children in any of grades K to 8 is a licensed child care organization, is an entity that has an active application to be a licensed child care organization, or has implemented the Michigan Out-of-School Time Standards of Quality if the applicant is an exempt entity and, beginning in 2025-2026, serves at least 15 school-age youth at a single location in grades K to 12.
Subject to subsection (7), an eligible entity that receives grant funding under subsection (2) shall use the funding only to provide before-school, after-school, before-and-after-school, or summer school programming to children described in subsection (2)(a). The programming offered under subsection (2) must meet all of the following:
For programing programming that is offered by a licensed child care organization, be provided to children and youth in a manner in which the children are physically present at the building or location for which the licensed child care organization received its license under 1973 PA 116, MCL 722.111 to 722.128, or, for programing programming that is offered by an exempt entity serving grades K to 12, be provided to children and youth in a manner in which the children and youth are physically present at a building or location designated by the exempt entity.
Provide educational programming in core subject areas, including, but not limited to, mathematics, reading, and science.
Provide data to evaluate the program in a form and manner as prescribed by the department of lifelong education, advancement, and potential.
Subject For 2024-2025 only, and subject to subsections (4) and (5), up to 2% of funding allocated under subsection (2) must be allocated to a nonprofit entity with experience serving youth-serving organizations to provide start-up grants and capacity building, professional development, and technical assistance for implementation of high-quality, evidence-based out-of-school time learning opportunities.
(8) The department of lifelong education, advancement, and potential shall award no not less than 60% of the funding under subsection (2) to community-based organizations.
(9) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section in full upon grant award. Grantees that do not comply with reporting requirements, fail to provide the services proposed in their grant application, or close during the grant period may be required to repay the funding they received under this section to the department of lifelong education, advancement, and potential.
(10) The department of lifelong education, advancement, and potential, in collaboration with the Michigan Afterschool Partnership, shall convene an advisory committee to review the program components listed within this section and make recommendations to the department of lifelong education, advancement, and potential for changes on the program described in this section. The advisory committee shall meet at a schedule set by the department of lifelong education, advancement, and potential, or at least quarterly. The advisory committee shall provide for the involvement of, but not limited to, community-based organizations, regional intermediaries, district administrators, youth, parents, and representatives from the business and philanthropic communities, as appropriate.
(11) From the state school aid fund money allocated in subsection (1), Clinton County RESA shall allocate $18,000,000.00 $22,000,000.00 in 2024-2025 only to recipients under this subsection as follows:
$4,000,000.00 to support the efforts of FFA.
$1,500,000.00 to Brilliant Detroit to support delivery of high-dosage neighborhood-based tutoring and direct noninstructional services for at-risk pupils who are 3 to 12 years of age. Funding under this subdivision is intended to ensure that pupils are proficient in English language arts by the end of grade 3 and proficient in mathematics by the end of grade 8, that all participants are kindergarten ready, and that pupils are prepared to attend school regularly. As used in this subdivision, “at-risk pupil” means that term as defined in section 31a.
$1,200,000.00 to the State Alliance of Michigan YMCAs to provide students in grades 6 to 12 with hands-on civics and model-government programs that offer statewide engagement with peers across this state for the purpose of expanding those students’ opportunities to improve their social studies knowledge, thinking skills, and intellectual processes and dispositions required for active engagement in fulfilling responsibilities of civic participation.
$1,000,000.00 to the Downtown Boxing Gym in Detroit to expand programming. Programming expansion includes, but is not limited to, construction or remodeling of facilities to allow for new or extended programs.
$1,000,000.00 to support the operations of the Flint Center for Educational Excellence.
$800,000.00 to the Detroit Opera for educational programming for grades pre-K to 12, including field trips, summer camps, and other learning opportunities. The funds allocated under this subdivision are a work project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to support the Detroit Opera educational programming as described in this subdivision. The estimated completion date of the work project is September 30, 2028.
$500,000.00 to Special Olympics Michigan, a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, that has a mission statement to provide year-round sports training and athletic competition for children and adults with intellectual disabilities. Funding under this subdivision must be used by the organization to expand the organization’s programming.
$500,000.00 to the Horatio Williams Foundation to support efforts to provide college preparation services, math leagues, sports programming, and literacy services in Detroit.
$500,000.00 to Friends of the Children, a nonprofit organization that employs salaried professional mentors who support youth and their families from grades K to 12. The salaried professional mentorship program in this subdivision must employ a 2-generational approach to supporting youth in and outside of the classroom, particularly in reading and math comprehension; support students and their families by connecting them to concrete supports like education and employment pathways, housing, utility assistance, and food security; and be located in a city with a population greater than 600,000 in a county with a population greater than 1,500,000 according to the most recent federal decennial census.
$500,000.00 to the Detroit Police Athletic League to support operations and programming including, but not limited to, athletic programs and youth enrichment programs.
$500,000.00 to the Detroit Science Center, a nonprofit organization that is tax-exempt under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and located in a city with a population greater than 600,000 in a county with a population greater than 1,700,000 according to the most recent federal decennial census. Funds under this subdivision must be used by the nonprofit organization to expand the nonprofit organization’s mission of providing opportunities for students to discover, explore, and appreciate science, technology, engineering, and mathematics in a creative, dynamic learning environment.
(12) Recipients For 2024-2025 only, recipients of grants under subsection (11) (12) may not apply for funding under subsection (2).
(13) As used in this section:
“An entity that has an active application to be a licensed child care organization” means an entity that has an active application to be a licensed child care organization under 1973 PA 116, MCL 722.111 to 722.128, and will be a licensed child care organization before the entity provides services for which a child care organization is required to be licensed under 1973 PA 116, MCL 722.111 to 722.128.
“Child care organization” means that term as defined in section 1 of 1973 PA 116, MCL 722.111.
“Exempt entity” means an entity described in section 1(1)(i)(i) to (v) of 1973 PA 116, MCL 722.111.
“Licensed child care organization” means a child care organization that has been issued a license under 1973 PA 116, MCL 722.111 to 722.128, to operate a child care organization.
Sec. 32t. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2023- 2024 2025-2026 only an amount not to exceed $18,000,000.00 $25,000,000.00 to Clinton County RESA (CCRESA) for phase 2 of a 3-year-old preschool pilot program to provide services to 3-year-old children. who do not meet the age eligibility criteria for the great start readiness program, but meet all other eligibility criteria for the great start readiness program. Eligible children are those whose age is less than 4 years on September 1 and greater than or equal to 3 years on December 1 of the current school year and whose family income is at or below 250% of the federal poverty level, with priority given to families with lower incomes. Additional factors such as developmental delay, language barriers, or challenging behaviors may also be considered for eligibility. These services must be designed for children who are age 3 and must be similar to the services provided through the great start readiness program. The program described in this section must be administered by CCRESA Strong Beginnings Implementation Team under the direction of the department , office of great start, of lifelong education, advancement, and potential, with assessment, data, and collection analysis for the program being provided by Michigan State University.
The department of lifelong education, advancement, and potential must pay the funding under this section to Clinton County RESA in installments over 3 2 years. The department of lifelong education, advancement, and potential shall determine the amount to be used in each year.
This section is intended to provide funding to serve at least 1,000 children over the next 3 school years, evaluate outcomes, and create a scalable 3-year-old preschool model. Clinton County RESA shall maintain funding at no less than the amount received in 2022-2023 under this section for current participants.planning for and implement phase 2 of the pilot preschool program for 3-year-old children. The second phase of the pilot will examine variations of the current program, such as part-day, 5-day-per-week, multiage grouping with the great start readiness program, and inclusion.
At the end of the pilot, phase 2, Clinton County RESA shall provide a report to the department of lifelong education, advancement, and potential detailing all of the following:
How the phase 2 pilot was conducted.
Demographics of the children served.
Outcomes achieved.
Challenges Scope of expansion, including successes and challenges the pilot faced and how the implementation team responded.
(4) The funds allocated under this section for 2023-2024 2025-2026 are a work project appropriation, and any unexpended funds for 2023-2024 2025-2026 are carried forward into 2024-2025. 2026-2027. The purpose of the work project is to pilot a 3-year-old preschool program as provided under this section. expand phase 1 of the pilot to additional classrooms and initiate phase 2 of the pilot. The estimated completion date of the work project is September 30, 2027.2029.
(5) Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section on a schedule determined by the department of lifelong education, advancement, and potential.
Sec. 33. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $11,000,000.00 for 2023-2024 only for grants to eligible districts for the purposes described in this section.
To receive a grant under this section, a district must apply for the grant in a form and manner prescribed by the department.
A district that meets both of the following is an eligible district under this section:
The district must enroll students in grades K to 5.
The district must, in its application described in subsection (2), pledge to do all of the following:
Provide for all pupils in grades K to 5 at least 60 minutes per week of instruction in music or visual arts, taught by a certificated teacher who has, or is working towards, the appropriate endorsement issued by the department. For teaching music, the appropriate endorsement is a JX or JQ endorsement. For teaching visual arts, the appropriate endorsement is an LQ, LX, or LZ endorsement.
Maintain staffing that includes at least 1 certificated teacher with a JX or JQ music endorsement or an LQ, LX, or LZ visual arts endorsement issued by the department for every 400 pupils enrolled in grades K to 5.
Adopt and implement, or maintain, specific curricula for music or visual arts.
Maintain in each elementary school at least 1 space that is either dedicated to music or visual arts instruction or designated to be used for music or visual arts instruction and that allows for effective implementation of the music or visual arts curriculum, with consideration given to the physical materials and tools needed for music or visual arts instruction.
Establish and maintain a separate dedicated budget for music or visual arts instruction in grades K to 5.
Participate in the collection of data in the fall and spring of the 2024-2025 school year on changes in course offerings, instructor qualifications, student course enrollments, and other aspects of the district’s music or visual arts programs as determined by the department and MI Creative Potential.
Commit to including music and visual arts in district and school continuous improvement planning using the program review tool that accompanies the Michigan Blueprint of a Quality Arts Education, available in the Michigan Integrated Continuous Improvement Process database.
Adopt and implement a plan to satisfy the recommendations listed in the Michigan Blueprint of a Quality Arts Education program.
Grants awarded under this section must be awarded for the coverage of costs for 1 year of additional costs, including 1-time costs, for the district to implement or maintain a music or visual arts program.
In awarding grants under this section, the department shall prioritize as follows:
The department shall first award grants to districts that are first-time applicants and meet 1 of the following:
The district currently has a music or visual arts program that meets the requirements of subsection (3)(b)(i) to (vii) but does not meet the recommendations listed in the Michigan Blueprint of a Quality Arts Education program and the district will use the grant to move toward implementing those recommendations.
The district does not currently have a music program that meets the requirements of subsection (3)(b)(i) to (vii) or does not currently have a visual arts program that meets the requirements of subsection (3)(b)(i) to (vii).
If there is funding remaining after awarding grants to districts described in subdivision (a), the department shall award grants to other eligible districts.
All grants under this section must be awarded by not later than February 1 of the fiscal year in which the grant is approved.
If the total funding allocated under this section is insufficient to fully fund payments to all eligible districts under this section, the department shall prorate payments to all eligible districts on an equal percentage basis.
(8) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
(9) The funds allocated under this section for 2023-2024 are a work project appropriation, and any unexpended funds for 2023-2024 are carried forward into 2024-2025. The purpose of the work project is to provide for music or visual arts education. The estimated completion date of the work project is September 30, 2027.
Sec. 35a. (1) From the appropriations in section 11, there is allocated for 2024-2025 an amount not to exceed $82,900,000.00 and for 2025-2026 for the purposes of this section an amount not to exceed
$82,900,000.00 $52,000,000.00 from the state school aid fund for the purposes of this section. It is the intent of the legislature that, for 2025-2026, 2026-2027, the allocation from the state school aid fund money appropriated in section 11 for the purposes described in this section will be $67,900,000.00. $42,000,000.00. Excluding staff or contracted employees funded under subsection (8), the superintendent shall designate staff or contracted employees funded under this section as critical shortage. By not later than December 31 of each fiscal year in which funding is allocated under this section, the superintendent of public instruction shall do both of the following:
Report in person to the house and senate appropriations subcommittees on school aid regarding progress on early literacy and be available for questioning as prescribed through a process developed by the chairs of the house and senate appropriations subcommittees on school aid.
Submit a written report to the house and senate appropriations subcommittees on school aid regarding progress on early literacy. Beginning in 2025-2026, the report described in this subdivision must include the number of literacy coaches supported by funding provided under subsection (4), including the number of coaches supported in each intermediate district, and the percentage of supported coaches that have received, or are in the process of receiving, professional learning by the approved provider described in subsection (11).
A district that receives funds under subsection (5) may spend up to 5% of those funds for professional development for educators in a department-approved research-based training program related to current state literacy standards for pupils in grades pre-K to 5. The professional development must also include training in the use of screening and diagnostic tools, progress monitoring, and intervention methods used to address barriers to learning and delays in learning that are diagnosed through the use of these tools.
A district that receives funds under subsection (5) may use up to 5% of those funds to administer department-approved screening and diagnostic tools to monitor the development of early literacy and early reading skills, and risk factors for word-level reading difficulties of pupils in grades pre-K to 5 and to support evidence-based professional learning described in subsection (11) for educators in administering and using screening, progress monitoring, and diagnostic assessment data to inform instruction through prevention and intervention in a multi-tiered system of supports framework. A department-approved screening and diagnostic tool administered by a district using funding under this section must include all of the following components: phonemic awareness, phonics, fluency, rapid automatized naming (RAN), and comprehension. Further, all of the following sub-skills must be assessed within each of these components:
Phonemic awareness - segmentation, blending, and sound manipulation (deletion and substitution).
Phonics - decoding (reading) and encoding (spelling).
Fluency.
Comprehension - making meaning of text.
From the allocation under subsection (1), there is allocated an amount not to exceed $42,000,000.00 for 2024-2025 and 2025-2026 for the purpose of providing early literacy coaches at intermediate districts to assist teachers in developing and implementing instructional strategies for pupils in grades pre-K to 5 so that pupils are reading at grade level by the end of grade 3. All of the following apply to funding under this subsection:
The department shall develop an application process consistent with the provisions of this subsection. An application must provide assurances that literacy coaches funded under this subsection are knowledgeable about at least the following:
Current state literacy standards for pupils in grades pre-K to 3.
Implementing an instructional delivery model based on frequent use of formative, screening, and diagnostic tools, known as a multi-tiered system of supports, to determine individual progress for pupils in grades pre-K to 5 so that pupils are reading at grade level by the end of grade 3.
The use of data from diagnostic tools to determine the necessary additional supports and interventions needed by individual pupils in grades pre-K to 5 to read at grade level.
From the allocation under this subsection, the department shall award grants to intermediate districts for the support of early literacy coaches. The department shall provide this funding in the following manner:
The department shall award each intermediate district grant funding to support the cost of 2 early literacy coaches in an equal amount per early literacy coach, not to exceed $125,000.00.
After distribution of the grant funding under subparagraph (i), the department shall distribute the remainder of grant funding for additional early literacy coaches in an amount not to exceed $125,000.00 per early literacy coach. The number of funded early literacy coaches for each intermediate district is based on the percentage of the total statewide number of pupils in grades K to 3 who meet the income eligibility standards for the federal free and reduced-price lunch programs who are enrolled in districts in the intermediate district.
If an intermediate district that receives funding under this subsection uses an assessment tool that screens for characteristics of dyslexia, the intermediate district shall use the assessment results from that assessment tool to identify pupils who demonstrate characteristics of dyslexia.
All literacy coaches funded under this subsection must have already received, or be making progress toward receiving, professional learning by the approved provider described in subsection (11).
To be eligible to receive funding under this subsection, an intermediate district must provide the department with a list by September 1 of the immediately preceding fiscal year containing contact information for all literacy coaches funded under this subsection, in a form and manner determined by the department. An intermediate district shall communicate any personnel changes and changes to contact information for literacy coaches funded under this subsection to the department within 30 days of the personnel change or change in contact information.
From the allocation under subsection (1), there is allocated an amount not to exceed $19,900,000.00 for 2024-2025 to districts that provide additional instructional time to those pupils in grades pre-K to 5 who have been identified by using department-approved screening and diagnostic tools as needing additional supports and interventions to read at grade level by the end of grade 3. Additional instructional time may be provided before, during, and after regular school hours or as part of a year-round balanced school calendar. All of the following apply to funding under this subsection:
To be eligible to receive funding, a district must demonstrate to the satisfaction of the department that the district has done all of the following:
Implemented a multi-tiered system of supports instructional delivery model that is an evidence-based model that uses data-driven problem solving to integrate academic and behavioral instruction and that uses intervention delivered to all pupils in varying intensities based on pupil needs. The multi-tiered system of supports must provide at least all of the following essential components:
Team-based leadership.
A tiered delivery system.
Selection and implementation of instruction, interventions, and supports.
A comprehensive screening and assessment system.
Continuous data-based decision making.
Used department-approved research-based diagnostic tools to identify individual pupils in need of additional instructional time.
Used a reading instruction method that focuses on the 5 fundamental building blocks of reading: phonics, phonemic awareness, fluency, vocabulary, and comprehension and content knowledge.
Provided teachers of pupils in grades pre-K to 5 with research-based professional development in diagnostic data interpretation.
Complied with the requirements under section 1280f of the revised school code, MCL 380.1280f.
The department shall distribute funding allocated under this subsection to eligible districts on an equal per-first-grade-pupil basis.
If the funds allocated under this subsection are insufficient to fully fund the payments under this subsection, payments under this subsection are prorated on an equal per-pupil basis based on grade 1 pupils.
By not later than September 1 of each year, a district that receives funding under subsection (5) in conjunction with the Michigan student data system, if possible, shall provide to the department a report that includes at least both of the following, in a form and manner prescribed by the department:
For pupils in grades pre-K to 5, the teachers, pupils, schools, and grades served with funds under this section and the categories of services provided.
For pupils in grades pre-K to 5, pupil proficiency and growth data that allows analysis both in the aggregate and by each of the following subgroups, as applicable:
School.
Grade level.
Gender.
Race.
Ethnicity.
Economically disadvantaged status.
Disability.
Pupils identified as having reading deficiencies.
From the allocation under subsection (1), there is allocated an amount not to exceed $6,000,000.00 for 2024-2025 to an intermediate district in which the combined total number of pupils in membership of all of its constituent districts is the fewest among all intermediate districts. All of the following apply to the funding under this subsection:
Funding under this subsection must be used by the intermediate district, in partnership with an association that represents intermediate district administrators in this state, to implement all of the following:
Literacy essentials teacher and principal training modules.
Face-to-face and online professional learning of literacy essentials teacher and principal training modules for literacy coaches, principals, and teachers.
The placement of regional lead literacy coaches to facilitate professional learning for early literacy coaches. These regional lead literacy coaches shall provide support for new literacy coaches, building teachers, and administrators and shall facilitate regional data collection to evaluate the effectiveness of statewide literacy coaches funded under this section.
Provide $500,000.00 from this subsection for literacy training, modeling, coaching, and feedback for district principals or chief administrators, as applicable. The training described in this subparagraph must use the pre-K and K to 3 essential instructional practices in literacy created by the general education leadership network as the framework for all training provided under this subparagraph.
Job-embedded professional learning opportunities for mathematics teachers through mathematics instructional coaching. Funding must be used for professional learning for coaches, professional developers, administrators, and teachers; coaching for early mathematics educators; the development of statewide and regional professional learning networks in mathematics instructions; and the development and support of digital professional learning modules.
By not later than September 1 of each year, the intermediate district described in this subsection, in consultation with grant recipients, shall submit a report to the chairs of the senate and house appropriations subcommittees on school aid, the chairs of the senate and house standing committees responsible for education legislation, the house and senate fiscal agencies, and the state budget director. The report described under this subdivision must include student achievement results in English language arts and mathematics and survey results with feedback from parents and teachers regarding the initiatives implemented under this subsection.
Up to 2% of funds allocated under this subsection may be used by the association representing intermediate district administrators that is in partnership with the intermediate district specified in this subsection to administer this subsection.
From the allocation under subsection (1), the department shall allocate the amount of $5,000,000.00 for 2024-2025 only to an intermediate district or a consortium of intermediate districts to partner with the Michigan Education Corps for the PreK Reading Corps, the K3 Reading Corps, and the Math Corps. An intermediate district or a consortium of intermediate districts receiving funding under this subsection must forward the amount received under this subsection to the Michigan Education Corps for statewide services. As conditions of receiving funding from an intermediate district or a consortium of intermediate districts, all of the following apply to funding received by the Michigan Education Corps under this subsection:
By September 1 of the current fiscal year, the Michigan Education Corps shall provide a report concerning its use of the funding to the senate and house appropriations subcommittees on school aid, the senate and house fiscal agencies, and the senate and house caucus policy offices on outcomes and performance measures of the Michigan Education Corps, including, but not limited to, the degree to which the Michigan Education Corps’ replication of the PreK Reading Corps, the K3 Reading Corps, and the Math Corps programs is demonstrating sufficient efficacy and impact. The report must include data pertaining to at least all of the following:
The current impact of the programs on this state in terms of numbers of children and schools receiving support. This portion of the report must specify the number of children tutored, including dosage and completion, and the demographics of those children.
Whether the assessments and interventions are implemented with fidelity. This portion of the report must include details on the total number of assessments and interventions completed and the range, mean, and standard deviation.
Whether the literacy or math improvement of children participating in the programs is consistent with expectations. This portion of the report must detail at least all of the following:
Growth rate by grade or age level, in comparison to targeted growth rate.
Average linear growth rates.
Exit rates.
Percentage of children who exit who also meet or exceed spring benchmarks.
The impact of the programs on organizations and stakeholders, including, but not limited to, school administrators, internal coaches, and AmeriCorps members.
If the department determines that the Michigan Education Corps has misused the funds allocated under this subsection, the Michigan Education Corps shall reimburse this state for the amount of state funding misused.
An intermediate district or a consortium of intermediate districts may not reserve any portion of the allocation provided under this subsection for an evaluation of the Michigan Education Corps, the Michigan Education Corps’ funding, or the Michigan Education Corps’ programming unless agreed to in writing by the Michigan Education Corps. An intermediate district or a consortium of intermediate districts shall award the entire amount allocated under this subsection to the Michigan Education Corps and shall not condition the forwarding of this funding on the implementation of an independent evaluation.
If a district or intermediate district expends any funding received under subsection (4) or (5) for professional development in research-based effective reading instruction, the district or intermediate district shall select a professional development program from the list described under in subdivision (a). All of the following apply to the requirement under this subsection:
The department shall issue a request for proposals for professional development programs in research- based effective reading instruction to develop an initial approved list of professional development programs in research-based effective reading instruction. The department shall make the initial approved list public and shall determine if it will, on a rolling basis, approve any new proposals submitted for addition to its initial approved list.
To be included as an approved professional development program in research-based effective reading instruction under subdivision (a), an applicant must demonstrate to the department in writing the program’s competency in all of the following topics:
Understanding of phonemic awareness, phonics, fluency, vocabulary, and comprehension.
Appropriate use of assessments and differentiated instruction.
Selection of appropriate instructional materials.
Application of research-based instructional practices.
As used in this subsection, “effective reading instruction” means reading instruction scientifically proven to result in improvement in pupil reading skills.
From the allocation under subsection (1), there is allocated an amount not to exceed $10,000,000.00 for 2024-2025 and 2025-2026 only to an intermediate district identified by the department for the provision of professional learning by the approved provider described in subsection (11), first to educators in pre-K, kindergarten, and grade 1 next to educators in grade 2 and grade 3; and then to additional
elementary school educators and pre-K to grade 12 certificated special education personnel with endorsements in learning disabilities, emotional impairments, or speech and language impairments. For purposes of this subsection, the department approved provider must establish and manage professional learning opportunities that are open to all school personnel described in this subsection as follows:
The department approved provider must first open voluntary enrollment for any pre-K through grade 3 teacher on a first-come, first-served basis, with voluntary enrollment prioritized for pre-K, kindergarten, and grade 1 teachers. The department approved provider shall then open voluntary enrollment for the remaining school personnel described in this subsection.
The department approved provider must maintain open enrollment until all funds are expended.
For the provision of professional learning to the school personnel described in subsection (10), the department shall approve LETRS as is the approved provider of professional learning , if as long as LETRS continues to meet all of the following:
Be offered through a system of training that provides educators with the knowledge base to effectively implement any class-wide, supplemental, or intervention reading approach and to determine why some students struggle with reading, writing, spelling, and language.
Provide training activities that direct educators to implement effective reading and spelling instruction supported by scientifically based research and foster a direct explicit instructional sequence that uses techniques to support teachers’ independence in using their newly-learned skills with students in the classroom.
Include integrated components for educators and administrators in pre-K to grade 3 with embedded evaluation or assessment of knowledge. Evaluation or assessment of knowledge under this subdivision must incorporate evaluations of learning throughout each unit and include a summative assessment that must be completed to demonstrate successful course completion.
Build teacher content knowledge and pedagogical knowledge of the critical components of literacy including how the brain learns to read, phonological and phonemic awareness; letter knowledge; phonics; advanced phonics; vocabulary and oral language; fluency; comprehension; spelling and writing; and the organization of language.
Support educators in understanding how to effectively use screening, progress monitoring, and diagnostic assessment data to improve literacy outcomes through prevention and intervention for reading difficulties in a multi-tiered system of supports. The multi-tiered system of supports must include at least all of the following essential components:
Team-based leadership.
A tiered delivery system.
Selection and implementation of instruction, interventions, and supports.
A comprehensive screening and assessment system.
Continuous data-based decision making.
Notwithstanding section 17b, the department shall make payments made under subsections (7) and
(8) on a schedule determined by the department.
As used in this section:
“Dyslexia” means both of the following:
A specific learning disorder that is neurobiological in origin and characterized by difficulties with accurate or fluent word recognition and by poor spelling and decoding abilities that typically result from a deficit in the phonological component of language that is often unexpected in relation to other cognitive abilities and the provision of effective classroom instruction.
A specific learning disorder that may include secondary consequences, such as problems in reading comprehension and a reduced reading experience that can impede the growth of vocabulary and background knowledge and lead to social, emotional, and behavioral difficulties.
“Evidence-based” means an activity, program, process, service, strategy, or intervention that demonstrates statistically significant effects on improving pupil outcomes or other relevant outcomes and that meets at least both of the following:
At least 1 of the following:
Is based on strong evidence from at least 1 well-designed and well-implemented experimental study.
Is based on moderate evidence from at least 1 well-designed and well-implemented quasi-experimental study.
Is based on promising evidence from at least 1 well-designed and well-implemented correlational study with statistical controls for selection bias.
Demonstrates a rationale based on high-quality research findings or positive evaluation that the activity, program, process, service, strategy, or intervention is likely to improve pupil outcomes or other relevant outcomes.
Includes ongoing efforts to examine the effects of the activity, program, process, service, strategy, or intervention.
“Explicit” means direct and deliberate instruction through continuous pupil-teacher interaction that includes teacher modeling, guided practice, and independent practice.
“Fluency” means the ability to read with speed, accuracy, and proper expression.
“Multi-tiered system of supports” means a comprehensive framework that includes 3 distinct tiers of instructional support and is composed of a collection of evidence-based strategies designed to meet the individual needs and assets of a whole pupil at all achievement levels.
“Phonemic awareness” means the conscious awareness of all of the following:
Individual speech sounds, including, but not limited to, consonants and vowels, in spoken syllables.
The ability to consciously manipulate through, including, but not limited to, matching, blending, segmenting, deleting, or substituting, individual speech sounds described in subparagraph (i).
All levels of the speech sound system, including, but not limited to, word boundaries, rhyme recognition, stress patterns, syllables, onset-rime units, and phonemes.
“Phonological” means relating to the system of contrastive relationships among the speech sounds that constitute the fundamental components of a language.
“Progress monitoring” means the assessing of students’ academic performance, quantifying students’ rates of improvement or progress toward goals, and determining how students are responding to instruction.
“Rapid automatized naming (RAN)” means a task that measures how quickly individuals can name objects; pictures; colors; or symbols, including letters and digits, aloud, which can predict later reading abilities for preliterate children.
Sec. 35m. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 only an amount not to exceed $87,000,000.00 $64,400,000.00 for the purposes described in this section, including payments to improve educational outcomes in literacy.
The department shall create continue the committee for literacy achievement that includes representatives of higher education and early childhood literacy educators who have expertise in literacy instruction and research. The committee shall exist until at least September 2029. The department shall appoint the members of the committee for literacy achievement. The department shall develop a process to identify and assemble experts for the committee. The primary focus of the committee is to recommend tools and strategies with the goal of increasing student academic outcomes in the area of literacy. The committee is encouraged to collaborate with the Michigan Education Research Institute or other entities with similar expertise on the subject of literacy. The department shall determine the size , timeline, and benchmarks of the committee. The committee shall do all of the following:
Critically evaluate early literacy series and materials. The committee shall evaluate with research-based outcomes, using the committee’s expertise in the field of literacy. The committee shall assign grade tiers to the series based on the series’ likelihood to increase student literacy outcomes. Priority must be given to series that already have a demonstrated history of increasing student outcomes. The committee may perform an evaluation under this subdivision based on submissions from a vendor, but must independently verify the validity of information provided by the vendor. The committee is also strongly encouraged to evaluate available materials not submitted to the department by a vendor.
Critically evaluate literacy professional development. The committee shall evaluate with research- based outcomes, using the committee’s expertise in the field of literacy. The committee shall assign grade tiers to the professional development based on the professional development’s likelihood to increase student literacy outcomes. Priority must be given to professional development that already has a demonstrated history of increasing student outcomes. The committee may perform an evaluation under this subdivision based on submissions from a vendor, but must independently verify the validity of information provided by the vendor. The committee is also strongly encouraged to evaluate available materials not submitted to the department by a vendor.
Critically evaluate other applicable literacy tools or services the committee determines to have a high likelihood or demonstrated history of increasing student literacy outcomes. The committee may perform an evaluation under this subdivision based on submissions from a vendor, but must independently verify the validity of information provided by the vendor. The committee is also strongly encouraged to evaluate available materials not submitted to the department by a vendor.
Create, and maintain, and post annually on a publicly available website a rankings list of all early literacy series and other items the committee has evaluated. This includes items from each part of the rankings list, items evaluated in the 2024-2025 school year, and any subsequent items evaluated going forward. The committee shall denote on the list whether major changes have been made to an early literacy series or other item on the list since the early literacy series or other item was evaluated by the committee and if the early literacy series or other item has not been evaluated since the last ranking. The rankings list created in this subdivision must align with the list of evidence-based tier 1, classwide elementary reading curricula and materials that are aligned with science of reading methods that research has shown to improve literacy outcomes and help pupils achieve reading proficiency as required under section 1280f of the revised school code, MCL 380.1280f.
An individual on the committee shall recuse themselves from evaluating early literacy series and other items that the individual has helped create, that the individual would benefit from financially, or for which the individual has any other conflict of interest.
From the funds allocated in subsection (1), the department shall make payments to districts and intermediate districts in an amount and on a schedule determined by the department. The department shall not make payments under this subsection until it has critically evaluated as many early literacy series and other items from subsection (2) as possible. Payments under this subsection must be made during the current fiscal year to support district implementation in 2026-2027. The department shall use the
rankings list described in subsection (2) as the basis for how funding is allocated in subsection (1) to districts and intermediate districts. Districts and intermediate districts using higher-ranked literacy tools that are proven to increase student outcomes shall receive more funding than districts and intermediate districts utilizing lower-ranked literacy tools in both the base award and the per-pupil awards described in this subsection. The department may determine that some districts and intermediate districts will not receive funding under this section based on the effectiveness of the early literacy series or other items being utilized by the district or intermediate district. The department shall award funding under this section using the following methodology:
A base award equal to the amount necessary for the district or intermediate district to implement the chosen early literacy series or other item. The department may place a cap on the total award per district, intermediate district, or early literacy series or other item and may choose not to award funding if the early literacy series or other item is determined to be ineffective or is determined to be less effective than other choices.
A tiered per-pupil award based on the number of pupils in membership at the district and intermediate district. The tiered per-pupil amount award must be larger for provide a higher per-pupil payment to districts and intermediate districts using higher-ranked early literacy series or other items as determined under subsection (2). The department may choose not to award funding if the early literacy series or other item is determined to be ineffective or is determined to be less effective than other choices.
From the funding allocated in subsection (1), the department may pay an annual stipend of up to
$8,000.00 for each member of the committee for literacy achievement who is employed by or at a public institution of higher education, a district, or an intermediate district. A stipend must be commensurate with the committee member’s contribution to the committee. during the fiscal year. Funding must be paid to the public institution of higher education, the district, or the intermediate district where the committee member is employed, and the public institution of higher education, the district, or the intermediate district must then use funding received to award the stipend directly to the individual committee member. A committee member who is not employed by or at a public institution of higher education, a district, or an intermediate district is not eligible to receive a stipend under this subsection.
To be eligible for funding under this section, a district or intermediate district must apply in a form and manner determined by the department. As a condition of receiving the funding, the district or intermediate district must agree to provide to the department information twice a year, on or before May 1 and October 1, on the early literacy series and other items used for the previous and current school years, and to provide this information twice a year, on or before March 31 and August 1.and the early literacy series and other items to be used for the next school year. The early literacy series and other items used by districts and intermediate districts must be added to the annual rankings required under subsection (2).
Except as otherwise provided in this section and notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Funds allocated under this section subsection (1) for 2024-2025 2025-2026 are a work project appropriation, and any unexpended funds for 2024-2025 2025-2026 are carried forward into 2025-2026. 2026-2027. The purpose of the work project is to improve literacy instructional practices. The estimated completion date of the work project is September 30, 2028.2029.
Sec. 39. (1) An eligible applicant receiving funds under section 32d shall submit an application, in a form and manner prescribed by the department of lifelong education, advancement, and potential, by a date specified by the department of lifelong education, advancement, and potential in the immediately preceding fiscal year. An eligible applicant is not required to amend the applicant’s current accounting cycle or adopt this state’s fiscal year accounting cycle in accounting for financial transactions under this section. The application must include all of the following:
The estimated total number of children in the community who meet the criteria of section 32d and the total number of age-eligible children in the community, as provided to the applicant by the department of lifelong education, advancement, and potential utilizing the most recent population data available from the American Community Survey conducted by the United States Census Bureau. The department of lifelong education, advancement, and potential shall ensure that it provides updated American Community Survey population data at least once every 3 years.
The estimated number of age-eligible children in the community who meet the criteria of section 32d and are being served exclusively by Head Start programs operating in the community.
The number of children whom the applicant has will have the capacity to serve in each eligible great start readiness program option who meet the age-eligible criteria of section 32d. including a verification of physical facility and staff resources capacity.
(2) After notification of funding allocations, an applicant receiving funds under section 32d shall also submit an implementation plan for approval, in a form and manner prescribed by the department of lifelong education, advancement, and potential, by a date specified by the department of lifelong education, advancement, and potential, that details how the applicant complies with the program components established by the department of lifelong education, advancement, and potential under section 32d.
(3) The Subject to subsection (5), the initial allocation to each eligible applicant under section 32d is the lesser of the following:equal to the sum of the following:
The sum of the number of children served in a school-day program in the preceding school year multiplied by $10,185.00, the number of children served in a GSRP extended program in the preceding school year multiplied by $12,222.00, the number of children served in a GSRP/Head Start school-day blended program or a part-day program in the preceding school year multiplied by $5,093.00, and the number of children served in a GSRP/Head Start extended blended program in the preceding school year multiplied by $6,111.00.
The sum of the number of children the applicant has the capacity to serve in the current school year in a school-day program multiplied by $10,185.00, the number of children served in a GSRP extended program the applicant has the capacity to serve in the current school year multiplied by $12,222.00, the number of children served in a GSRP/Head Start school-day blended program or a part-day program the applicant has
the capacity to serve in the current school year multiplied by $5,093.00, and the number of children served in a GSRP/Head Start extended blended program the applicant has the capacity to serve in the current school year multiplied by $6,111.00.
If funds remain after the allocations under subsection (3), the department of lifelong education, advancement, and potential shall distribute the remaining funds to each intermediate district or consortium of intermediate districts that serves less than the state percentage benchmark determined under subsection
(5). The department of lifelong education, advancement, and potential shall distribute these remaining funds to each eligible applicant based upon each applicant’s proportionate share of the remaining unserved children necessary to meet the statewide percentage benchmark in intermediate districts or consortia of intermediate districts serving less than the statewide percentage benchmark. When all applicants have been given the opportunity to reach the statewide percentage benchmark, the statewide percentage benchmark may be reset, as determined by the department of lifelong education, advancement, and potential, until greater equity of opportunity to serve eligible children across all intermediate school districts has been achieved.
For the purposes of subsection (4), the department of lifelong education, advancement, and potential shall calculate a percentage of children served by each intermediate district or consortium of intermediate districts by adding the number of children served in the immediately preceding year by that intermediate district or consortium with the number of eligible children under section 32d served exclusively by Head Start, as reported in a form and manner prescribed by the department of lifelong education, advancement, and potential, within the intermediate district or consortia service area and dividing that total by the total number of children within the intermediate district or consortium of intermediate districts who meet the criteria of section 32d as determined by the department of lifelong education, advancement, and potential utilizing the most recent population data available from the American Community Survey conducted by the United States Census Bureau. The department of lifelong education, advancement, and potential shall compare the resulting percentage of eligible children served to a statewide percentage benchmark to determine if the intermediate district or consortium is eligible for additional funds under subsection (4). The statewide percentage benchmark is 100%.
(6) If, taking into account the total amount to be allocated to the applicant as calculated under this section, an applicant determines that it is able to include additional eligible children in the great start readiness program without additional funds under section 32d, the applicant may include additional eligible children but does not receive additional funding under section 32d for those children.
(7) The department of lifelong education, advancement, and potential shall review the program components under section 32d and under this section at least biennially. The department of lifelong education, advancement, and potential also shall convene a committee of internal and external stakeholders at least once every 5 years to ensure that the funding structure under this section reflects current system needs under section 32d.
As used in this section, “GSRP/Head Start blended program”, “GSRP extended program”, “part-day program”, and “school-day program” mean those terms as defined in section 32d.
Sec. 39a. (1) From the federal funds appropriated in section 11, there is allocated for 2024-2025 2025- 2026 to districts, intermediate districts, and other eligible entities all available federal funding, estimated at
$754,700,000.00, $824,700,000.00, for the federal programs under the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95. These funds are allocated as follows:
An amount estimated at $1,200,000.00 for 2024-2025 2025-2026 to provide students with drug- and violence-prevention programs and to implement strategies to improve school safety, funded from DED-OESE, drug-free schools and communities funds.
An amount estimated at $100,000,000.00 for 2024-2025 2025-2026 for the purpose of preparing, training, and recruiting high-quality teachers and class size reduction, funded from DED-OESE, improving teacher quality funds.
An amount estimated at $13,000,000.00 for 2024-2025 2025-2026 for programs to teach English to limited English proficient (LEP) children, funded from DED-OESE, language acquisition state grant funds.
An amount estimated at $2,800,000.00 for 2024-2025 2025-2026 for rural and low-income schools, funded from DED-OESE, rural and low income school funds.
An amount estimated at $535,000,000.00 $585,000,000.00 for 2024-2025 2025-2026 to provide supplemental programs to enable educationally disadvantaged children to meet challenging academic standards, funded from DED-OESE, title I, disadvantaged children funds.
An amount estimated at $9,200,000.00 for 2024-2025 2025-2026 for the purpose of identifying and serving migrant children, funded from DED-OESE, title I, migrant education funds.
An amount estimated at $40,400,000.00 for 2024-2025 2025-2026 for the purpose of providing high- quality extended learning opportunities, after school and during the summer, for children in low-performing schools, funded from DED-OESE, twenty-first century community learning center funds.
An amount estimated at $14,000,000.00 for 2024-2025 2025-2026 to help support local school improvement efforts, funded from DED-OESE, title I, local school improvement grants.
An amount estimated at $35,000,000.00 $55,000,000.00 for 2024-2025 2025-2026 to improve the academic achievement of students, funded from DED-OESE, title IV, student support and academic enrichment grants.
An amount estimated at $3,100,000.00 for 2024-2025 2025-2026 for literacy programs that advance literacy skills for students from birth through grade 12, including, but not limited to, English-proficient students and students with disabilities, funded from DED-OESE, striving readers comprehensive literacy program.
An amount estimated at $1,000,000.00 for 2024-2025 2025-2026 for grants to support and demonstrate innovative partnerships to train school-based mental health service providers, funded from DED-OESE, mental health service professional demonstration grant program.
From the federal funds appropriated in section 11, there is allocated to districts, intermediate districts, and other eligible entities all available federal funding, estimated at $60,500,000.00 $66,415,000.00 for 2024-2025 2025-2026 for the following programs that are funded by federal grants:
An amount estimated at $3,000,000.00 for 2024-2025 2025-2026 to provide services to homeless children and youth, funded from DED-OVAE, homeless children and youth funds.
An amount estimated at $24,000,000.00 $30,000,000.00 for 2024-2025 2025-2026 for providing career and technical education services to pupils, funded from DED-OVAE, basic grants to states.
An amount estimated at $14,000,000.00 for 2024-2025 2025-2026 for the Michigan charter school subgrant program, funded from DED–OII, public charter schools program funds.
An amount estimated at $18,000,000.00 $17,700,000.00 for 2024-2025 2025-2026 for the purpose of promoting and expanding high-quality preschool services, funded from HHS–OCC, preschool development funds.
An amount estimated at $1,500,000.00 $1,715,000.00 for 2024-2025 2025-2026 for the purpose of addressing priority substance abuse treatment, prevention, and mental health needs, funded from HHS-SAMHSA.
The department, or, for subsections (1)(g) and (2)(d), the department of lifelong education, advancement, and potential, shall distribute all federal funds allocated under this section in accordance with federal law and with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of 1999, Public Law 106-25. Notwithstanding section 17b, the department or the department of lifelong education, advancement, and potential, as applicable, shall make payments of federal funds to districts, intermediate districts, and other eligible entities under this section on a schedule determined by the department.
For the purposes of applying for federal grants appropriated under this article, the department, or, for subsections (1)(g) and (2)(d), the department of lifelong education, advancement, and potential, shall allow an intermediate district to submit a consortium application on behalf of 2 or more districts with the agreement of those districts as appropriate according to federal rules and guidelines.
For the purposes of funding federal title I grants under this article, in addition to any other federal grants for which the strict discipline academy is eligible, the department, or, for subsections (1)(g) and (2)(d), the department of lifelong education, advancement, and potential, shall allocate to a strict discipline academy out of title I, part A an amount equal to what the strict discipline academy would have received if included and calculated under title I, part D, or what it would receive under the formula allocation under title I, part A, whichever is greater.
As used in this section:
“DED” means the United States Department of Education.
“DED-OESE” means the DED Office of Elementary and Secondary Education.
“DED-OII” means the DED Office of Innovation and Improvement.
“DED-OVAE” means the DED Office of Vocational and Adult Education.
“HHS” means the United States Department of Health and Human Services.
“HHS-OCC” means the HHS Office of Child Care.
“HHS-SAMHSA” means the HHS Substance Abuse and Mental Health Services Project.
Sec. 41. (1) For a district to be eligible to receive funding under this section, the district must administer to English language learners the English language proficiency assessment known as the “WIDA ACCESS for English language learners” or the “WIDA Alternate ACCESS”. From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $50,186,100.00 $62,732,600.00 for 2024-2025 2025-2026 for payments to eligible districts for services for English language learners who have been administered the WIDA ACCESS for English language learners. Services for English language learners under this section may include software used to assist learning.
The department shall distribute funding allocated under subsection (1) to eligible districts based on the number of full-time equivalent English language learners as follows:
$1,863.00 $2,329.00 per full-time equivalent English language learner who has been assessed under the WIDA ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 1.0 and 1.9, or less, as applicable to each assessment. It is the intent of the legislature to increase this amount until it reaches 75% of the target foundation allowance.
$1,286.00 $1,608.00 per full-time equivalent English language learner who has been assessed under the WIDA ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 2.0 and 2.9, or less, as applicable to each assessment. It is the intent of the legislature to increase this amount until it reaches 50% of the target foundation allowance.
$210.00 $263.00 per full-time equivalent English language learner who has been assessed under the WIDA ACCESS for English language learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA Alternate ACCESS composite score between 3.0 and 3.9, or less, as applicable to each assessment. It is the intent of the legislature to increase this amount until it reaches 35% of the target foundation allowance.
If funds allocated under subsection (1) are insufficient to fully fund the payments as prescribed under subsection (2), the department shall prorate payments on an equal percentage basis, with the same percentage proration applied to all funding categories.
By October 15 of the fiscal year following the receipt of funding under subsection (1), each district receiving funds under subsection (1) shall submit to the department a report, not to exceed 10 pages, on the usage by the district of funds under subsection (1) in a form and manner determined by the department, including a brief description of each program conducted or services performed by the district using funds under subsection (1) and the amount of funds under subsection (1) allocated to each of those programs or services. If a district does not comply with this subsection, the department shall withhold an amount equal to the December payment due under this section until the district complies with this subsection. If the district does not comply with this subsection by the end of the fiscal year, the withheld funds are forfeited to the state school aid fund.
To receive funds under subsection (1), a district must allow access for the department or the department’s designee to audit all records related to the program for which it receives those funds. The district shall reimburse this state for all disallowances found in the audit.
Beginning July 1, 2020, and every 3 years thereafter, the department shall review the per-pupil distribution under subsection (2), to ensure that funding levels are appropriate and make recommendations for adjustments to the members of the senate and house subcommittees on K to 12 school aid appropriations.
By not later than March 1, 2025, the The department shall establish English language learner program models that establish a minimum number of minutes per week that districts must provide direct English language development instruction for students according to the student’s proficiency levels. These models must be compliant with federal requirements related to English language learner program services. It is the intent of the legislature that, beginning in 2025-2026, to To be considered an eligible recipient of funding under this section, a district must agree to meet or exceed the minimum number of minutes per week, as determined by the department, that the district provides direct English language development instruction.
Sec. 41b. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 only an amount not to exceed $1,000,000.00 $2,000,000.00 for KEYS Grace Academy to, in partnership with Kalasho Education and Youth Services in Warren, provide English-as-a-second-language services, provide early childhood learning, improve progress toward high school graduation attainment, and provide K to 12 education-support services to legal immigrants.
Sec. 51a. (1) From the state school aid fund money in section 11, there is allocated an amount not to exceed
$1,822,546,100.00 for 2023-2024 and there is allocated an amount not to exceed $2,064,096,100.00
$2,028,696,100.00 for 2024-2025 and there is allocated an amount not to exceed $2,219,596,100.00 for 2025-2026 from state sources and all available federal funding under sections 1411 to 1419 of part B of the individuals with disabilities education act, 20 USC 1411 to 1419, estimated at $390,000,000.00 for 2023- 2024 and $450,000,000.00 for 2024-2025 and $500,000,000.00 for 2025-2026, plus any carryover federal funds from previous year appropriations. In addition, from the state school aid fund money in section 11, there is allocated an amount not to exceed $76,150,000.00 for 2023-2024 only to supplement the allocations in this section. The allocations under this subsection are for the purpose of reimbursing districts and intermediate districts for special education programs, services, and special education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to 380.1761; net tuition payments made by intermediate districts to the Michigan Schools for the Deaf and Blind; and special education programs and services for pupils who are eligible for special education programs and services according to statute or rule. For meeting the costs of special education programs and services not reimbursed under this article, a district or intermediate district may use money in general funds or special education funds, not otherwise restricted, or contributions from districts to intermediate districts, tuition payments, gifts and contributions from individuals or other entities, or federal funds that may be available for this purpose, as determined by the intermediate district plan prepared under article 3 of the revised school code, MCL 380.1701 to 380.1761. Notwithstanding section 17b, the department shall make payments of federal funds to districts, intermediate districts, and other eligible entities under this section on a schedule determined by the department.
From the funds allocated under subsection (1), there is allocated the amount necessary, estimated at
$404,200,000.00 for 2023-2024 and estimated at $456,800,000.00 $441,400,000.00 for 2024-2025 and
If the department determines that the amount allocated for a fiscal year to a district or intermediate district under subsection (2) is insufficient to fulfill the specified percentages in subsection (2), the department shall pay the shortfall to the district or intermediate district during the fiscal year beginning on the October 1 following the determination. If the department determines that the amount allocated for a fiscal year to a district or intermediate district under subsection (2) exceeds the sum of the amount necessary to fulfill the specified percentages in subsection (2), the department shall deduct the amount of the excess from the district’s or intermediate district’s payments under this article for the fiscal year beginning on the October 1 following the determination.
State funds are allocated on a total approved cost basis. Federal funds are allocated under applicable federal requirements.
From the amount allocated in subsection (1), there is allocated an amount not to exceed $3,200,000.00 for 2023-2024 and there is allocated an amount not to exceed $3,200,000.00 for 2024-2025 and 2025-2026 to reimburse 100% of the net increase in necessary costs incurred by a district or intermediate district in implementing the revisions in the administrative rules for special education that became effective on July 1, 1987. As used in this subsection, “net increase in necessary costs” means the necessary additional costs incurred solely because of new or revised requirements in the administrative rules minus cost savings permitted in implementing the revised rules. The department shall determine net increase in necessary costs in a manner specified by the department.
For purposes of this section and sections 51b to 58, all of the following apply:
“Total approved costs of special education” are determined in a manner specified by the department and may include indirect costs, but must not exceed 115% of approved direct costs for section 52 and section 53a programs. The total approved costs include salary and other compensation for all approved special education personnel for the program, including payments for Social Security and Medicare and public school employee retirement system contributions. The total approved costs do not include salaries or other compensation paid to administrative personnel who are not special education personnel as that term is defined in section 6 of the revised school code, MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included in the allocation made under this article, are not included. Special education approved personnel not utilized full time in the evaluation of students or in the delivery of special education programs, ancillary, and other related services are reimbursed under this section only for that portion of time actually spent providing these programs and services, with the exception of special education programs and services provided to youth placed in child caring institutions or juvenile detention programs approved by the department to provide an on-grounds education program.
Reimbursement for ancillary and other related services, as that term is defined by R 340.1701c of the Michigan Administrative Code, is not provided when those services are covered by and available through private group health insurance carriers or federal reimbursed program sources unless the department and district or intermediate district agree otherwise and that agreement is approved by the state budget director. Expenses, other than the incidental expense of filing, must not be borne by the parent. In addition, the filing of claims must not delay the education of a pupil. A district or intermediate district is responsible for payment of a deductible amount and for an advance payment required until the time a claim is paid.
If an intermediate district purchases a special education pupil transportation service from a constituent district that was previously purchased from a private entity; if the purchase from the constituent district is at a lower cost, adjusted for changes in fuel costs; and if the cost shift from the intermediate district to the constituent does not result in any net change in the revenue the constituent district receives from payments under sections 22b and 51c, then upon application by the intermediate district, the department shall direct the intermediate district to continue to report the cost associated with the specific identified special education pupil transportation service and shall adjust the costs reported by the constituent district to remove the cost associated with that specific service.
A pupil who is enrolled in a full-time special education program conducted or administered by an intermediate district or a pupil who is enrolled in the Michigan Schools for the Deaf and Blind is not included in the membership count of a district, but is counted in membership in the intermediate district of residence.
Special education personnel transferred from 1 district to another to implement the revised school code are entitled to the rights, benefits, and tenure to which the individual would otherwise be entitled had that individual been employed by the receiving district originally.
If a district or intermediate district uses money received under this section for a purpose other than the purpose or purposes for which the money is allocated, the department may require the district or intermediate district to refund the amount of money received. The department shall deposit money that is refunded in the state treasury to the credit of the state school aid fund.
From the funds allocated in subsection (1), there is allocated the amount necessary, estimated at
Pupils described in section 53a.
Pupils counted in membership in an intermediate district who are not special education pupils and are served by the intermediate district in a juvenile detention or child caring facility.
Pupils with an emotional impairment counted in membership by an intermediate district and provided educational services by the department of health and human services.
If it is determined that funds allocated under subsection (2) or (10) or under section 51c will not be expended, funds up to the amount necessary and available may be used to supplement the allocations under
subsection (2) or (10) or under section 51c to fully fund those allocations. After payments under subsections (2) and (10) and section 51c, the department shall expend the remaining funds from the allocation in subsection (1) in the following order:
One hundred percent of the reimbursement required under section 53a.
One hundred percent of the reimbursement required under subsection (5).
One hundred percent of the payment required under section 54.
One hundred percent of the payments under section 56.
The allocations under subsections (2) and (10) are allocations to intermediate districts only and are not allocations to districts, but instead are calculations used only to determine the state payments under section 22b.
If a public school academy that is not a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, enrolls under this section a pupil who resides outside of the intermediate district in which the public school academy is located and who is eligible for special education programs and services according to statute or rule, or who is a child with a disability, as that term is defined under the individuals with disabilities education act, Public Law 108-446, the intermediate district in which the public school academy is located and the public school academy shall enter into a written agreement with the intermediate district in which the pupil resides for the purpose of providing the pupil with a free appropriate public education, and the written agreement must include at least an agreement on the responsibility for the payment of the added costs of special education programs and services for the pupil. If the public school academy that enrolls the pupil does not enter into an agreement under this subsection, the public school academy shall not charge the pupil’s resident intermediate district or the intermediate district in which the public school academy is located the added costs of special education programs and services for the pupil, and the public school academy is not eligible for any payouts based on the funding formula outlined in the resident or nonresident intermediate district’s plan. If a pupil is not enrolled in a public school academy under this subsection, the provision of special education programs and services and the payment of the added costs of special education programs and services for a pupil described in this subsection are the responsibility of the district and intermediate district in which the pupil resides.
For the purpose of receiving its federal allocation under part B of the individuals with disabilities education act, Public Law 108-446, a public school academy that is a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a, directly receives the federal allocation under part B of the individuals with disabilities education act, Public Law 108-446, from the intermediate district in which the cyber school is located, as the subrecipient. If the intermediate district does not distribute the funds described in this subsection to the cyber school by the part B application due date of July 1, the department may distribute the funds described in this subsection directly to the cyber school according to the formula prescribed in 34 CFR 300.705 and 34 CFR 300.816. Beginning July 1, 2021, this subsection is subject to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021.
For a public school academy that is a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a, that enrolls a pupil under this section, the intermediate district in which the cyber school is located shall ensure that the cyber school complies with sections 1701a, 1703, 1704, 1751, 1752, 1756, and 1757 of the revised school code, MCL 380.1701a, 380.1703, 380.1704, 380.1751, 380.1752, 380.1756, and
380.1757; applicable rules; and the individuals with disabilities education act, Public Law 108-446. Beginning July 1, 2021, this subsection is subject to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021.
For the purposes of this section, the department or the center shall only require a district or intermediate district to report information that is not already available from the financial information database maintained by the center.
Sec. 51c. As required by the court in the consolidated cases known as Durant v State of Michigan, 456 Mich 175 (1997), from the allocation under section 51a(1), there is allocated for 2023-2024 and for 2024-2025 , and for 2025-2026 the amount necessary, estimated at $903,300,000.00 for 2023-2024 and
$1,016,400,000.00 $993,100,000.00 for 2024-2025 , and $1,107,900,000.00 for 2025-2026, for payments
to reimburse districts for 28.6138% of total approved costs of special education excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Funds allocated under this section that are not expended in the fiscal year for which they were allocated, as determined by the department, may be used to supplement the allocations under sections 22a and 22b to fully fund those allocations for the same fiscal year.
Sec. 51d. (1) From the federal funds appropriated in section 11, there is allocated for 2023-2024 all available federal funding, estimated at $72,000,000.00, and there is allocated for 2024-2025 2025-2026 all
available federal funding, estimated at $83,000,000.00, for special education programs and services that are funded by federal grants. The department shall distribute all federal funds allocated under this section in accordance with federal law. Notwithstanding section 17b, the department shall make payments of federal funds to districts, intermediate districts, and other eligible entities under this section on a schedule determined by the department.
From the federal funds allocated under subsection (1), the following amounts are allocated:
For 2023-2024, an amount estimated at $15,000,000.00 and for 2024-2025, 2025-2026, an amount estimated at $14,000,000.00 for handicapped infants and toddlers, funded from DED-OSERS, handicapped infants and toddlers funds.
For 2023-2024, an amount estimated at $14,000,000.00 and for 2024-2025, 2025-2026, an amount estimated at $14,000,000.00 for preschool grants under Public Law 94-142, funded from DED-OSERS, handicapped preschool incentive funds.
For 2023-2024, an amount estimated at $43,000,000.00 and for 2024-2025, 2025-2026, an amount estimated at $55,000,000.00 for special education programs funded by DED-OSERS, handicapped program, individuals with disabilities act funds.
As used in this section, “DED-OSERS” means the United States Department of Education Office of Special Education and Rehabilitative Services.
Sec. 51e. (1) From the allocation under section 51a(1), there is allocated for the amount necessary, estimated at $499,900,000.00 for 2023-2024 and $499,600,000.00 $503,000,000.00 for 2024-2025 , and
(2) The department shall calculate the amount allocated to a district under this section by multiplying the district’s special education pupil membership, excluding pupils described in section 51a(11), times 100% of the foundation allowance under section 20 of the pupil’s district of residence, plus 100% of the amount of the district’s per-pupil allocation under section 20m, not to exceed 100% of the target foundation allowance for the current fiscal year, or, for a special education pupil in membership in a district that is a public school academy, times an amount equal to 100% of the amount per membership pupil calculated under section 20(6). For an intermediate district, the amount allocated under this subsection is an amount per special education membership pupil, excluding pupils described in section 51a(11), and is calculated in the same manner as for a district, using 100% of the foundation allowance under section 20 of the pupil’s district of residence, not to exceed 100% of the target foundation allowance for the current fiscal year, and 100% of that district’s per-pupil allocation under section 20m.
Sec. 51g. From the general fund money appropriated in section 11, $3,000,000.00 is allocated for 2024- 2025 2025-2026 to an association for administrators of special education services to develop content for use by special education students, teachers, and others. Any content that is developed as described in this section must be accessible throughout this state. Funds received by an association under this section may be used to support the development of assessment tools to measure the needs of students with special education needs in remote learning environments and the effectiveness of various educational methods and tools, in collaboration with the department. Funds under this section may also be utilized to identify any available federal funds for research related to special education in remote learning.
Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2) is 100% of the total approved costs of operating special education programs and services approved by the department and included in the intermediate district plan adopted under article 3 of the revised school code, MCL 380.1701 to 380.1761, minus the district’s foundation allowance calculated under section 20 and minus the district’s per-pupil allocation under section 20m. For intermediate districts, the department shall calculate reimbursement for pupils described in subsection (2) in the same manner as for a district, using the foundation allowance under section 20 of the pupil’s district of residence, not to exceed the target foundation allowance under section 20 for the current fiscal year plus the amount of the district’s per-pupil allocation under section 20m.
Reimbursement under subsection (1) is for the following special education pupils:
Pupils assigned to a district or intermediate district through the community placement program of the courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came under the jurisdiction of the court or a state agency.
Pupils who are residents of institutions operated by the department of health and human services.
Pupils who are former residents of department of community health institutions for the developmentally disabled who are placed in community settings other than the pupil’s home.
Pupils enrolled in a department-approved on-grounds educational program longer than 180 days, but not longer than 233 days, at a residential child care institution, if the child care institution offered in 1991-92 an on-grounds educational program longer than 180 days but not longer than 233 days.
Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not reside in the same intermediate district as the district in which the pupil is placed.
Only those costs that are clearly and directly attributable to educational programs for pupils described in subsection (2), and that would not have been incurred if the pupils were not being educated in a district or intermediate district, are reimbursable under this section.
The costs of transportation are funded under this section and are not reimbursed under section 58.
The department shall not allocate more than $10,500,000.00 of the allocation for 2024-2025 2025- 2026 in section 51a(1) under this section.
Sec. 54. Each intermediate district receives an amount per pupil for each pupil in attendance at the Michigan Schools for the Deaf and Blind. The amount is proportionate to the total instructional cost at each school. The department shall not allocate more than $1,688,000.00 of the allocation for 2024-2025 2025- 2026 in section 51a(1) under this section.
Sec. 54d. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $23,670,700.00 for 2024-2025 2025-2026 to intermediate districts for the purpose of providing state early on services programs for children from birth to 3 years of age with a developmental delay or a disability, or both, and their families, as described in the early on Michigan state plan, as approved by the department of lifelong education, advancement, and potential.
To be eligible to receive grant funding under this section, each intermediate district must apply in a form and manner determined by the department of lifelong education, advancement, and potential.
The grant funding allocated under this section must be used to increase early on services and resources available to children that demonstrate developmental delays to help prepare them for success as they enter school. State early on services include evaluating and providing early intervention services for eligible infants and toddlers and their families to address developmental delays, including those affecting physical, cognitive, communication, adaptive, social, or emotional development. Grant funds must not be used to supplant existing services that are currently being provided.
The department of lifelong education, advancement, and potential shall distribute the funds allocated under subsection (1) to intermediate districts according to the department of lifelong education, advancement, and potential’s early on funding formula utilized to distribute the federal award to Michigan under part C of the individuals with disabilities education act, Public Law 108-446. Funds received under this section must not supplant existing funds or resources allocated for early on early intervention services. An intermediate district receiving funds under this section shall maximize the capture of Medicaid funds to support early on early intervention services to the extent possible.
Each intermediate district that receives funds under this section shall report data and other information to the department of lifelong education, advancement, and potential in a form, manner, and frequency prescribed by the department of lifelong education, advancement, and potential to allow for monitoring and evaluation of the program and to ensure that the children described in subsection (1) received appropriate levels and types of services delivered by qualified personnel, based on the individual needs of the children and their families.
Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section on a schedule determined by the department of lifelong education, advancement, and potential.
Grant funds awarded and allocated to an intermediate district under this section must be expended by the grant recipient before June 30 of the fiscal year immediately following the fiscal year in which the funds were received.
Sec. 55. (1) From the state school aid general fund money appropriated in section 11, there is allocated an amount not to exceed $500,000.00 for 2024-2025 only to Grand Valley State University to collaborate with the Conductive Learning Center operating in cooperation with Grand Valley State University. This funding must be used to support the operational costs of the conductive education model taught at the Conductive Learning Center to maximize the independence and mobility of children and adults with neuromotor disabilities. The conductive education model funded under this section must be based on the concept of neuroplasticity and the ability of people to learn and improve when they are motivated, regardless of the severity of their disability.
(2) Notwithstanding section 17b, the department shall distribute the funding allocated under this section to Grand Valley State University by not later than December 1, 2024.make payments under this section on a schedule determined by the department.
Sec. 56. (1) For the purposes of this section:
“Membership” means for a particular fiscal year the total membership of the intermediate district and the districts constituent to the intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1741, membership of the district is not included in the membership of the intermediate district.
“Millage levied” means the millage levied for special education under part 30 of the revised school code, MCL 380.1711 to 380.1741, including a levy for debt service obligations.
“Taxable value” means the total taxable value of the districts constituent to an intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1741, taxable value of the district is not included in the taxable value of the intermediate district.
From the allocation under section 51a(1), there is allocated an amount not to exceed $40,008,100.00 for 2023-2024 2024-2025 and $40,008,100.00 for 2024-2025 2025-2026 to reimburse intermediate districts levying millages for special education under part 30 of the revised school code, MCL 380.1711 to 380.1741. The purpose, use, and expenditure of the reimbursement are limited as if the funds were generated by these millages and governed by the intermediate district plan adopted under article 3 of the revised school code, MCL 380.1701 to 380.1761. As a condition of receiving funds under this section, an intermediate district distributing any portion of special education millage funds to its constituent districts must submit for departmental approval and implement a distribution plan.
Except as otherwise provided in this subsection, reimbursement for those millages levied in 2022-2023 2023-2024 is made in 2023-2024 2024-2025 at an amount per 2022-2023 2023-2024 membership pupil computed by subtracting from $241,300.00 $260,200.00 the 2022-2023 2023-2024 taxable value behind each membership pupil and multiplying the resulting difference by the 2022-2023 2023-2024 millage levied, and then subtracting from that amount the 2022-2023 2023-2024 local community stabilization share revenue for special education purposes and 2022-2023 2023-2024 tax increment revenues captured by a brownfield redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described in the previous sentence only, for an intermediate district receiving funds under this section and section 62, reimbursements paid under section 26d must be multiplied by the ratio of special education millage levied, as defined in this section, and the sum of special education millage levied and vocational-technical education millage levied, as defined in section 62. Reimbursement in 2023-2024 2024-2025 for an intermediate district whose 2017-2018 allocation was affected by the operation of subsection (5) is an amount equal to 102.5% of the 2017-2018 allocation to that intermediate district.
Except as otherwise provided in this subsection, reimbursement for those millages levied in 2023-2024 2024-2025 is made in 2024-2025 2025-2026 at an amount per 2023-2024 2024-2025 membership pupil computed by subtracting from $260,200.00 $278,500.00 the 2023-2024 2024-2025 taxable value behind each membership pupil and multiplying the resulting difference by the 2023-2024 2024-2025 millage levied, and then subtracting from that amount the 2023-2024 2024-2025 local community stabilization share revenue for special education purposes and 2023-2024 2024-2025 tax increment revenues captured by a brownfield redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described in the previous sentence only, for an intermediate district receiving funds under this section and section 62, reimbursements paid under section 26d must be multiplied by the ratio of special education millage levied, as defined in this section, and the sum of special education millage levied and vocational-technical education millage levied, as defined in section 62. Reimbursement in 2024-2025 2025-2026 for an intermediate district whose 2017-2018 allocation was affected by the operation of subsection (5) is an amount equal to 102.5% of the 2017-2018 allocation to that intermediate district.
The department shall ensure that the amount paid to a single intermediate district under subsection (2) does not exceed 62.9% of the total amount allocated under subsection (2).
The department shall ensure that the amount paid to a single intermediate district under subsection (2) is not less than 75% of the amount allocated to the intermediate district under subsection (2) for the immediately preceding fiscal year.
From the allocation under section 51a(1), there is allocated an amount not to exceed $34,200,000.00 for 2023-2024 and 2024-2025 and 2025-2026 to provide payments to intermediate districts levying millages for special education under part 30 of the revised school code, MCL 380.1711 to 380.1741. The purpose, use, and expenditure of the payments under this subsection are limited as if the funds were generated by these millages and governed by the intermediate district plan adopted under article 3 of the revised school
code, MCL 380.1701 to 380.1761. The department shall provide a payment under this subsection to each intermediate district described in this subsection as follows:
For 2023-2024 and 2024-2025 and 2025-2026, except as otherwise provided in this subsection, for an intermediate district with a 3-year average special education millage revenue per pupil in the immediately preceding fiscal year that is less than $251.00 and that is levying at least 46.2% but less than 60.0% of its maximum millage rate allowed under section 1724a of the revised school code, MCL 380.1724a, an amount computed by subtracting from $251.00 the 3-year average special education millage revenue per pupil in the immediately preceding fiscal year and, only if the millage levied by the intermediate district is less than 1, multiplying that amount by the number of mills levied divided by 1, and then multiplying that amount by the 3-year average membership in the immediately preceding fiscal year, and then subtracting from that amount the amount allocated under subsection (2) for the current fiscal year. If the calculation under this subdivision results in an amount below zero, there is no payment under this subdivision.
For 2023-2024 and 2024-2025 and 2025-2026, except as otherwise provided in this subsection, for an intermediate district with a 3-year average special education millage revenue per pupil in the immediately preceding fiscal year that is less than $296.00 and that is levying at least 60.0% of its maximum millage rate allowed under section 1724a of the revised school code, MCL 380.1724a, an amount computed by subtracting from $296.00 the 3-year average special education millage revenue per pupil in the immediately preceding fiscal year, and, only if the millage levied by the intermediate district is less than 1, multiplying that amount by the number of mills levied divided by 1, and then multiplying that amount by the 3-year average membership in the immediately preceding fiscal year, and then subtracting from that amount the amount allocated under subsection (2) for the current fiscal year. If the calculation under this subdivision results in an amount below zero, there is no payment under this subdivision.
After making allocations to eligible intermediate districts under subsections (3), (4), and (7), if funds remain unallocated from the allocations under subsections (2) and (7), the department must allocate remaining funds to intermediate districts proportional to the amounts allocated to intermediate districts under subsections (3) and (4).
As used in subsection (7):
“3-year average membership” means the 3-year average pupil membership for each of the 3 most recent fiscal years.
“3-year average special education millage revenue per pupil” means the 3-year average taxable value per mill levied behind each membership pupil for each of the 3 most recent fiscal years multiplied by the millage levied in the most recent fiscal year.
Sec. 61a. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $39,899,800.00 $41,733,800.00 for 2024-2025 2025-2026 to reimburse on an added cost basis districts, except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year and that has a foundation allowance as calculated under section 20 greater than the target foundation allowance under that section, and secondary area vocational-technical education centers for secondary-level career and technical education programs according to rules approved by the superintendent. Applications for participation in the programs must be submitted in the form prescribed by the department. The department shall determine the added cost for each career and technical education program area. The department shall prioritize the allocation of added cost funds based on the capital and program expenditures needed to operate the career and technical education programs provided; the number of pupils enrolled; the advancement of pupils through the instructional program; the existence of an articulation agreement with at least 1 postsecondary institution that provides pupils with opportunities to earn postsecondary credit during the pupil’s participation in the career and technical education program and transfers those credits to the postsecondary institution upon completion of the career and technical education program; and the program rank in student placement, job openings, and wages, and shall ensure that the allocation does not exceed 75% of the added cost of any program. Notwithstanding any rule or department determination to the contrary, when determining a district’s allocation or the formula for making allocations under this section, the department shall include the participation of pupils in grade 9 in all of those determinations and in all portions of the formula. With the approval of the department, the board of a district maintaining a secondary career and technical education program may offer the program for the period from the close of the school year until September 1. The program shall use existing facilities and must be operated as prescribed by rules promulgated by the superintendent.
Except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94
school year, the department shall reimburse districts and intermediate districts for local career and technical education administration, shared time career and technical education administration, and career education planning district career and technical education administration. The superintendent shall adopt guidelines for the definition of what constitutes administration and shall make reimbursement pursuant to those guidelines. The department shall not distribute more than $800,000.00 of the allocation in subsection (1) under this subsection.
A career and technical education program funded under this section may provide an opportunity for participants who are eligible to be funded under section 107 to enroll in the career and technical education program funded under this section if the participation does not occur during regular school hours.
Sec. 61b. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $8,000,000.00 $8,368,000.00 for CTE early middle college and CTE dual enrollment programs authorized under this section and for planning grants for the development or expansion of CTE early middle college programs. The purpose of these programs is to increase the number of Michigan residents with high-quality degrees or credentials, and to increase the number of students who are college and career ready upon high school graduation.
From the funds allocated under subsection (1), the department shall allocate an amount as determined under this subsection to each intermediate district serving as a fiscal agent for state-approved CTE early middle college and CTE dual enrollment programs in each of the career education planning districts identified by the department. An intermediate district shall not use more than 5% of the funds allocated under this subsection for administrative costs for serving as the fiscal agent.
To be an eligible fiscal agent, an intermediate district must agree to do all of the following in a form and manner determined by the department:
Distribute funds to eligible CTE early middle college and CTE dual enrollment programs in a career education planning district as described in this section.
Collaborate with the career and educational advisory council in the workforce development board service delivery area to develop 1 regional strategic plan under subsection (4) that aligns CTE programs and services into an efficient and effective delivery system for high school students. The department will align career education planning districts, workforce development board service delivery areas, and intermediate districts for the purpose of creating 1 regional strategic plan for each workforce development board service delivery area.
Implement a regional process to rank career clusters in the workforce development board service delivery area as described under subsection (4). Regional processes must be approved by the department before the ranking of career clusters.
Report CTE early middle college and CTE dual enrollment program and student data and information as prescribed by the department and the center.
The local education agency responsible for student reporting in the Michigan student data system (MSDS) will report the total number of college credits the student earned, at the time of high school graduation, as determined by the department and the center.
The local education agency will report each award outcome in the Michigan student data system (MSDS) that the CTE early middle college student attained. For purposes of this subsection, an on-track CTE early middle college graduate is a graduate who obtained their high school diploma and at least 1 of the following:
An associate degree.
60 transferable college credits.
Professional certification.
A Michigan Early Middle College Association certificate.
Participation in a registered apprenticeship.
A regional strategic plan must be approved by the career and educational advisory council before submission to the department. A regional strategic plan must include, but is not limited to, the following:
An identification of regional employer need based on a ranking of all career clusters in the workforce development board service delivery area ranked by 10-year projections of annual job openings and median wage for each standard occupational code in each career cluster as obtained from the United States Bureau of Labor Statistics. Standard occupational codes within high-ranking clusters also may be further ranked by median wage and annual job openings. The career and educational advisory council located in the workforce development board service delivery area shall review the rankings and modify them if necessary to accurately reflect employer demand for talent in the workforce development board service delivery area. A career and educational advisory council shall document that it has conducted this review and certify that it is accurate. These career cluster rankings must be determined and updated once every 4 years.
An identification of educational entities in the workforce development board service delivery area that will provide eligible CTE early middle college and CTE dual enrollment programs including districts, intermediate districts, postsecondary institutions, and noncredit occupational training programs leading to an industry-recognized credential.
A strategy to inform parents and students of CTE early middle college and CTE dual enrollment programs in the workforce development board service delivery area.
Any other requirements as defined by the department.
An eligible CTE program is a program that meets all of the following:
Has been identified in the highest 5 career cluster rankings in any of the 16 workforce development board service delivery area strategic plans jointly approved by the department of labor and economic opportunity and the department.
Has a coherent sequence of courses in a specific career cluster that will allow a student to earn a high school diploma and achieve at least 1 of the following:
For CTE early middle college, outcomes as defined in subsection (3)(f).
For CTE dual enrollment, 1 of the following:
An associate degree.
An industry-recognized technical certification approved by the department of labor and economic opportunity.
Up to 60 transferable college credits.
Participation in a registered apprenticeship, pre-apprenticeship, or apprentice readiness program.
Is aligned with the Michigan merit curriculum.
Has an articulation or a college credit agreement with at least 1 postsecondary institution that provides students with opportunities to receive postsecondary credits during the student’s participation in the CTE early middle college or CTE dual enrollment program and transfers those credits to the postsecondary institution upon completion of the CTE early middle college or CTE dual enrollment program.
Provides instruction that is supervised, directed, or coordinated by an appropriately certificated CTE teacher or, for concurrent enrollment courses, a postsecondary faculty member.
Provides for highly integrated student support services that include at least the following:
Teachers as academic advisors.
Supervised course selection.
Monitoring of student progress and completion.
Career planning services provided by a local one-stop service center as described in the Michigan works one-stop service center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a high school counselor or advisor.
Has courses that are taught on a college campus, are college courses offered at the high school and taught by college faculty, or are courses taught in combination with online instruction.
The department shall distribute funds to eligible CTE early middle college and CTE dual enrollment programs as follows:
The department shall determine statewide average CTE costs per pupil for each CIP code program by calculating statewide average costs for each CIP code program for the 3 most recent fiscal years.
The distribution to each eligible CTE early middle college or CTE dual enrollment program is the product of 50% of CTE costs per pupil times the pupil enrollment of each eligible CTE early middle college or CTE dual enrollment program in the immediately preceding school year.
To receive funds under this section, a CTE early middle college or CTE dual enrollment program shall furnish to the intermediate district that is the fiscal agent identified in subsection (2), in a form and manner determined by the department, all information needed to administer this program and meet federal reporting requirements; shall allow the department or the department’s designee to review all records related to the program for which it receives funds; and shall reimburse the state for all disallowances found in the review, as determined by the department.
There is allocated for 2024-2025 2025-2026 from the funds under subsection (1) an amount not to exceed $500,000.00 from the state school aid fund allocation for grants to intermediate districts or consortia of intermediate districts for the purpose of planning for new or expanded early middle college programs. Applications for grants must be submitted in a form and manner determined by the department. The amount of a grant under this subsection must not exceed $50,000.00. To be eligible for a grant under this subsection, an intermediate district or consortia of intermediate districts must provide matching funds equal to the grant received under this subsection. Notwithstanding section 17b, the department shall make payments under this subsection in the manner determined by the department.
Funds distributed under this section may be used to fund program expenditures that would otherwise be paid from foundation allowances. A program receiving funding under section 61a may receive funding under this section for allowable costs that exceed the reimbursement the program received under section 61a. The combined payments received by a program under section 61a and this section must not exceed the total allowable costs of the program. A program provider shall not use more than 5% of the funds allocated under this section to the program for administrative costs.
If the allocation under subsection (1) is insufficient to fully fund payments as otherwise calculated under this section, the department shall prorate payments under this section on an equal percentage basis, using for that proration calculation payments made for CTE dual enrollment programs only.
If pupils enrolled in a career cluster in an eligible CTE early middle college or CTE dual enrollment program qualify to be reimbursed under this section, those pupils continue to qualify for reimbursement until graduation, even if the career cluster is no longer identified as being in the highest 5 career cluster rankings.
As used in this section:
“Allowable costs” means those costs directly attributable to the program as jointly determined by the department of labor and economic opportunity and the department.
“Career and educational advisory council” means an advisory council to the local workforce development boards located in a workforce development board service delivery area consisting of educational, employer, labor, and parent representatives.
“CIP” means classification of instructional programs.
“CTE” means career and technical education programs.
“CTE dual enrollment program” means a 4-year high school program of postsecondary courses offered by eligible postsecondary educational institutions that leads to an industry-recognized certification or degree.
“Early middle college program” means a 5-year high school program.
“Eligible postsecondary educational institution” means that term as defined in section 3 of the career and technical preparation act, 2000 PA 258, MCL 388.1903.
Sec. 61d. (1) From the appropriation state school aid fund money in section 11, there is allocated for 2024-2025 2025-2026 only an amount not to exceed $5,304,300.00 from the state school aid fund
The department shall calculate payments to districts under this section in the following manner:
A payment of $35.00 $88.00 multiplied by the number of pupils in grades 9 to 12 who are counted in membership in the district and are enrolled in at least 1 career and technical education program.
An additional payment of $35.00 $88.00 multiplied by the number of pupils in grades 9 to 12 who are counted in membership in the district and are enrolled in at least 1 career and technical education program that provides instruction in critical skills and high-demand career fields.
If the allocation under subsection (1) is insufficient to fully fund payments under subsection (2), the department shall prorate payments under this section on an equal per-pupil basis.
As used in this section:
“Career and technical education program” means a state-approved career and technical education program, as determined by the department.
“Career and technical education program that provides instruction in critical skills and high-demand career field” means a career and technical education program classified under any of the following 2-digit classification of instructional programs (CIP) codes:
01, which refers to “agriculture, agriculture operations, and related sciences”.
03, which refers to “natural resources and conservation”.
10 through 11, which refers to “communications technologies/technicians and support services” and “computer and information sciences and support services”.
14 through 15, which refers to “engineering” and “engineering technologies and engineering-related fields”.
26, which refers to “biological and biomedical sciences”.
46 through 48, which refers to “construction trades”, “mechanic and repair technologies/technicians”, and “precision production”.
51, which refers to “health professions and related programs”.
Sec. 61j. (1) From the state school aid fund money appropriated in section 11, $10,700,000.00
$5,000,000.00 is allocated for 2023-2024 2024-2025 only to Huron School District to support the Downriver Career and Technical Education Consortium.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
(3) Notwithstanding section 18a, funds allocated under this section may be available for expenditure until September 30, 2027. A recipient of funding under this section must return any unexpended funds to the department in the manner prescribed by the department by not later than October 30, 2027.2028.
Sec. 62. (1) For the purposes of this section:
“Membership” means for a particular fiscal year the total membership of the intermediate district and the districts constituent to the intermediate district or the total membership of the area vocational-technical program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the membership of that district are not included in the membership of the intermediate district. However, the membership of a district that has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, is included in the membership of the intermediate district if the district meets both of the following:
The district operates the area vocational-technical education program pursuant to a contract with the intermediate district.
The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.
“Millage levied” means the millage levied for area vocational-technical education under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-technical education.
“Taxable value” means the total taxable value of the districts constituent to an intermediate district or area vocational-technical education program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the taxable value of that district is not included in the taxable value of the intermediate district. However, the taxable value of a district that has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, is included in the taxable value of the intermediate district if the district meets both of the following:
The district operates the area vocational-technical education program pursuant to a contract with the intermediate district.
The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690.
From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $9,190,000.00 each fiscal year for 2023-2024 and 2024-2025 for 2024-2025 and 2025-2026 to reimburse intermediate districts and area vocational-technical education programs established under section 690(3) of the revised school code, MCL 380.690, levying millages for area vocational-technical education under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the reimbursement are limited as if the funds were generated by those millages.
Reimbursement for those millages levied in 2022-2023 2023-2024 is made in 2023-2024 2024-2025
at an amount per 2022-2023 2023-2024 membership pupil computed by subtracting from $251,400.00
$269,800.00 the 2022-2023 2023-2024 taxable value behind each membership pupil and multiplying the resulting difference by the 2022-2023 2023-2024 millage levied, and then subtracting from that amount the 2022-2023 2023-2024 local community stabilization share revenue for area vocational technical education and 2022-2023 2023-2024 tax increment revenues captured by a brownfield redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described in the previous sentence only, for an intermediate district receiving funds under this section and section 56, reimbursements paid under section 26d must be multiplied by the ratio of vocational- technical education millage levied, as defined in this section, and the sum of vocational-technical education millage levied and special education. millage levied, as defined in section 56.
Reimbursement for those millages levied in 2023-2024 2024-2025 is made in 2024-2025 2025-2026
at an amount per 2023-2024 2024-2025 membership pupil computed by subtracting from $269,800.00
$287,400.00 the 2023-2024 2024-2025 taxable value behind each membership pupil and multiplying the resulting difference by the 2023-2024 2024-2025 millage levied, and then subtracting from that amount the 2023-2024 2024-2025 local community stabilization share revenue for area vocational technical education and 2023-2024 2024-2025 tax increment revenues captured by a brownfield redevelopment authority created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, behind each membership pupil for reimbursement of personal property exemption loss under the local community stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362, and reimbursements paid under section 26d for tax increment revenues captured by a brownfield redevelopment authority under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. For the purposes of the calculation described in the previous sentence only, for an intermediate district receiving funds under this section and section 56, reimbursements paid under section 26d must be multiplied by the ratio of vocational- technical education millage levied, as defined in this section, and the sum of vocational-technical education millage levied and special education millage levied, as defined in section 56.
The department shall ensure that the amount paid to a single intermediate district under this section does not exceed 38.4% of the total amount allocated under subsection (2).
The department shall ensure that the amount paid to a single intermediate district under this section is not less than 75% of the amount allocated to the intermediate district under this section for the immediately preceding fiscal year.
Sec. 65. (1) From the appropriation under state school aid pupil support reserve fund money appropriated in section 11, there is allocated an amount not to exceed $900,000.00 for 2024-2025 2025- 2026 only for a pre-college engineering K to 12 educational program that is focused on the development of a diverse future Michigan workforce, that serves multiple communities within southeast Michigan, that enrolls pupils from multiple districts, and that received funds appropriated for this purpose in the appropriations act that provided the Michigan strategic fund budget for 2014-2015. It is the intent of the legislature that the appropriation under this section will be funded with state school aid pupil support reserve fund money through 2027-2028.
(2) To be eligible for funding under this section, a program must have the ability to expose pupils to, and motivate and prepare pupils for, science, technology, engineering, and mathematics careers and postsecondary education with special attention given to groups of pupils who are at-risk and underrepresented in technical professions and careers.
Sec. 67. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed $4,000,000.00 $3,000,000.00 for 2024-2025 2025-2026 for college access programs. It is the intent of the legislature that, for 2025-2026, the allocation from the general fund money appropriated in section 11 for purposes described in this section will be $3,000,000.00. The programs funded under this section are intended to inform students of college and career options, to provide resources intended to increase the number of pupils who are adequately prepared with the information needed to make informed decisions on college and career, support adult learners, support college completion, and support workforce and employer engagement. The funds appropriated under this section are intended to be used to increase the number of Michigan residents with high-quality degrees or credentials. Funds appropriated under this section must not be used to supplant funding for counselors already funded by districts.
The department of lifelong education, advancement, and potential shall administer funds allocated under this section in collaboration with the Michigan college access network. These funds may be used for any of the following purposes:
Michigan college access network operations, programming, and services to local college access networks.
Local college access networks, which are community-based college access/success partnerships committed to increasing the college participation and completion rates within geographically defined communities through a coordinated strategy.
The Michigan college advising program, a program intended to place trained, recently graduated college advisors in high schools that serve significant numbers of low-income and first-generation college- going pupils. State funds used for this purpose may not exceed 33% of the total funds available under this subsection.
Subgrants of up to $5,000.00 to districts with comprehensive high schools that establish a college access team and implement specific strategies to create a college-going culture in a high school in a form and manner approved by the Michigan college access network and the department of lifelong education, advancement, and potential.
The Michigan college access portal, an online one-stop portal to help pupils and families plan and apply for college.
Public awareness and outreach campaigns to encourage low-income and first-generation college-going pupils to take necessary steps toward college and to assist pupils and families in completing a timely and accurate free application for federal student aid.
Subgrants to postsecondary institutions to recruit, hire, and train college student mentors and college advisors to assist high school pupils in navigating the postsecondary planning and enrollment process.
For the purposes of this section, “college” means any postsecondary educational opportunity that leads to a career, including, but not limited to, a postsecondary degree, industry-recognized technical certification, or registered apprenticeship.
Sec. 67f. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is allocated for 2024-2025 only 2025-2026 only an amount not to exceed $10,000,000.00 for districts to improve FAFSA completion rates. It is the intent of the legislature that the appropriation under this section will be funded with state school aid pupil support reserve fund money through 2027-2028.
To be eligible to receive funding under this section, each district must apply in a form and manner determined by the department of lifelong education, advancement, and potential. The department of lifelong education, advancement, and potential shall make the application available by not later than November 1, 2024. 2025. A district shall apply for funding to the department of lifelong education, advancement, and potential by not later than December 1, 2024. 2025. In the application, the department of lifelong education, advancement, and potential shall only require a district to certify that it will do both of the following:
Except as otherwise provided in subsection (3), require all students to complete the FAFSA to graduate from high school.
Use funds received under this section for participation in and implementation of activities that are known to drive FAFSA completion, as determined by the department of lifelong education, advancement, and potential, in collaboration with the Michigan College Access Network.
A district shall exempt a student from the requirement to complete the FAFSA if any of the following are met:
The student’s parent or legal guardian, or the student if the student is 18 years of age or older, is an emancipated minor, or is an unaccompanied youth, has submitted a parental waiver to the district exempting the student from completing the FAFSA. The parental waiver described in this subdivision must be obtained through a standard form developed by the department of lifelong education, advancement, and potential.
The student is unable to complete the FAFSA because of privacy concerns.
All of the following are met:
After a good-faith effort, the student’s parent or legal guardian refuses to sign the parental waiver, is unresponsive, or cannot sign the parental waiver.
The student is unable to complete the FAFSA as an independent student.
The student agrees to opt out of completing the FAFSA.
Other than the requirements in subsection (2), the student is on track to graduate.
A school administrator of the student’s high school demonstrates to the board that good-faith efforts have been made to assist the student or the student’s parent or legal guardian in completing the FAFSA or obtaining a parental waiver.
The board ensures compliance with 42 USC 11432(g)(6)(A).
By not later than January 31, 2025, 2026, the department of lifelong education, advancement, and potential shall pay each eligible district an equal amount per pupil multiplied by the number of pupils enrolled and attending grade 12 in the district.
Notwithstanding section 17b, the department of lifelong education, advancement, and potential shall make payments under this section on a schedule determined by the department of lifelong education, advancement, and potential.
As used in the section, “FAFSA” means the free application for federal student aid form.
Sec. 74. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $3,842,700.00 for 2023-2024 and $3,913,500.00 $3,949,900.00 for 2024-2025 2025-2026 for
the purposes of this section.
From the allocation in subsection (1), there is allocated for 2023-2024 and 2024-2025 2025-2026 the amount necessary for payments to state supported colleges or universities and intermediate districts providing school bus driver safety instruction under section 51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The department shall make payments in an amount determined by the department not to exceed the actual cost of instruction and driver compensation for each public or nonpublic school bus driver attending a course of instruction. For the purpose of computing compensation, the hourly rate allowed each school bus driver must not exceed the hourly rate received for driving a school bus. The department shall make reimbursement compensating the driver during the course of instruction to the college or university or intermediate district providing the course of instruction.
From the allocation in subsection (1), there is allocated for 2023-2024 and 2024-2025 2025-2026 the amount necessary to pay the reasonable costs of nonspecial education auxiliary services transportation provided under section 1323 of the revised school code, MCL 380.1323. Districts funded under this subsection do not receive funding under any other section of this article for nonspecial education auxiliary services transportation.
From the funds allocated in subsection (1), there is allocated an amount not to exceed $1,817,700.00 for 2023-2024 and an amount not to exceed $1,888,500.00 $1,924,900.00 for 2024-2025 2025-2026 for the inspection of school buses and pupil transportation vehicles by the department of state police as required under section 715a of the Michigan vehicle code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil transportation act, 1990 PA 187, MCL 257.1839. The department of state police shall prepare a statement of costs and submit it to the department and to an intermediate district serving as fiduciary in a time and manner determined jointly by the department and the department of state police. Upon review and approval of the statement of cost, the department shall forward to the designated intermediate district serving as fiduciary the amount detailed on the statement within 45 days after receipt of the statement. The designated intermediate district fiduciary shall make payment in the amount specified on the statement to the department of state police within 45 days after receipt of the statement. The total reimbursement of costs under this subsection must not exceed the amount allocated under this subsection. Notwithstanding section 17b, the department shall make payments to eligible entities under this subsection on a schedule prescribed by the department.
Sec. 81. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024-
2025 2025-2026 to the intermediate districts the sum necessary, but not to exceed $79,424,700.00
The amount allocated under this section for 2024-2025 to each intermediate district is an amount equal to 100% of the amount allocated to the intermediate district under this section for 2023-2024. to each intermediate school district for the current fiscal year is equal to the allocation for the immediately preceding fiscal year plus an equal percentage increase for all intermediate school districts. An intermediate district shall use funding provided under this section to comply with requirements of this article and the revised school code that are applicable to intermediate districts, and for which funding is not provided elsewhere in this article, and to provide technical assistance to districts as authorized by the intermediate school board.
Intermediate districts receiving funds under this section shall collaborate with the department to develop expanded professional development opportunities for teachers to update and expand their knowledge and skills needed to support the Michigan merit curriculum.
From the allocation in subsection (1), there is allocated to an intermediate district, formed by the consolidation or annexation of 2 or more intermediate districts or the attachment of a total intermediate district to another intermediate district or the annexation of all of the constituent K to 12 districts of a previously existing intermediate district which has disorganized, an additional allotment of $3,500.00 each fiscal year for each intermediate district included in the new intermediate district for 3 years following consolidation, annexation, or attachment.
To receive funding under this section, an intermediate district shall do all of the following:
Demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person who is trained in pupil accounting and auditing procedures, rules, and regulations.
Demonstrate to the satisfaction of the department that the intermediate district employs at least 1 person who is trained in rules, regulations, and district reporting procedures for the individual-level student data that serves as the basis for the calculation of the district and high school graduation and dropout rates.
Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 380.1278b.
Furnish data and other information required by state and federal law to the center and the department in the form and manner specified by the center or the department, as applicable.
Comply with section 1230g of the revised school code, MCL 380.1230g.
Sec. 94. (1) From the general fund money appropriated in section 11, there is allocated to the department for 2024-2025 2025-2026 an amount not to exceed $1,200,000.00 $2,600,000.00 for efforts to increase the number of pupils who participate and succeed in advanced placement and international baccalaureate programs, and to support the college-level examination program (CLEP). It is the intent of the legislature that, for 2026-2027, the allocation from the general fund money appropriated in section 11 for purposes described in this section will be $1,200,000.00.
From the funds allocated under this section, the department shall award funds to cover all or part of the costs of advanced placement test fees or international baccalaureate test fees and international baccalaureate registration fees for low-income pupils who take an advanced placement or an international baccalaureate test and CLEP fees for low-income pupils who take a CLEP test.
The department shall only award funds under this section if the department determines that all of the following criteria are met:
Each pupil for whom payment is made meets eligibility requirements of the federal advanced placement test fee program under the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95, as applicable.
The tests are administered by the college board, the international baccalaureate organization, or another test provider approved by the department.
The pupil for whom payment is made pays at least $5.00 toward the cost of each test for which payment is made.
If funds remain after the awards granted in subsection (2), the department shall award funds to reimburse a portion of the costs associated with the provision of advanced placement (AP), international baccalaureate (IB), or college-level examination program (CLEP) exams for students whose family income exceeds low-income status as determined by the department.
The department shall establish procedures for awarding funds under this section.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 94a. (1) There is created within the state budget office in the department of technology, management, and budget the center for educational performance and information. The center shall do all of the following:
Coordinate the collection of all data required by state and federal law from districts, intermediate districts, and postsecondary institutions.
Create, maintain, and enhance this state’s P-20 longitudinal data system and ensure that it meets the requirements of subsection (4).
Collect data in the most efficient manner possible to reduce the administrative burden on reporting entities, including, but not limited to, electronic transcript services.
Create, maintain, and enhance this state’s web-based educational portal to provide information to school leaders, teachers, researchers, and the public in compliance with all federal and state privacy laws. Data must include, but are not limited to, all of the following:
Data sets that link teachers to student information, allowing districts to assess individual teacher impact on student performance and consider student growth factors in teacher and principal evaluation systems.
Data access or, if practical, data sets, provided for regional data hubs that, in combination with local data, can improve teaching and learning in the classroom.
Research-ready data sets for researchers to perform research that advances this state’s educational performance.
Provide data in a useful manner to allow state and local policymakers to make informed policy decisions.
Provide public reports to the residents of this state to allow them to assess allocation of resources and the return on their investment in the education system of this state.
Other functions as assigned by the state budget director.
Each state department, officer, or agency that collects information from districts, intermediate districts, or postsecondary institutions as required under state or federal law shall make arrangements with the center to ensure that the state department, officer, or agency is in compliance with subsection (1). This subsection does not apply to information collected by the department of treasury under the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or section 1351a of the revised school code, MCL 380.1351a.
The center may enter into any interlocal agreements necessary to fulfill its functions.
The center shall ensure that the P-20 longitudinal data system required under subsection (1)(b) meets all of the following:
Includes data at the individual student level from preschool through postsecondary education and into the workforce.
Supports interoperability by using standard data structures, data formats, and data definitions to ensure linkage and connectivity in a manner that facilitates the exchange of data among agencies and institutions within the state and between states.
Enables the matching of individual teacher and student records so that an individual student may be matched with those teachers providing instruction to that student.
Enables the matching of individual teachers with information about their certification and the institutions that prepared and recommended those teachers for state certification.
Enables data to be easily generated for continuous improvement and decision-making, including timely reporting to parents, teachers, and school leaders on student achievement.
Ensures the reasonable quality, validity, and reliability of data contained in the system.
Provides this state with the ability to meet federal and state reporting requirements.
For data elements related to preschool through grade 12 and postsecondary, meets all of the following:
Contains a unique statewide student identifier that does not permit a student to be individually identified by users of the system, except as allowed by federal and state law.
Contains student-level enrollment, demographic, and program participation information, including data associated with students who have been identified as having an affiliation to 1 or more federally recognized Indian tribes and student participation in federal programs funded under 20 USC 7401 to 7546 and participation in federal programs funded under the Johnson-O’Malley Supplemental Indian Education Program Modernization Act, Public Law 115-404. Any reports or data access related specifically to tribal affiliation must be done through ongoing consultation with the federally recognized tribes in the state with the expectation that the center, the department, and the tribes will work iteratively toward meaningful reports, access, and use of these records to improve shared education interests and outcomes.
Contains student-level information about the points at which students exit, transfer in, transfer out, drop out, or complete education programs.
Has the capacity to communicate with higher education data systems.
For data elements related to preschool through grade 12 only, meets all of the following:
Contains yearly test records of individual students for assessments approved by DED-OESE for accountability purposes under section 1111(b) of the elementary and secondary education act of 1965, 20 USC 6311, including information on individual students not tested, by grade and subject.
Contains student-level transcript information, including information on courses completed and grades earned.
Contains student-level college readiness test scores.
For data elements related to postsecondary education only:
Contains data that provide information regarding the extent to which individual students transition successfully from secondary school to postsecondary education, including, but not limited to, all of the following:
Enrollment in remedial coursework.
Completion of 1 year’s worth of college credit applicable to a degree within 2 years of enrollment.
Contains data that provide other information determined necessary to address alignment and adequate preparation for success in postsecondary education.
From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$19,219,200.00 $19,364,700.00 for 2024-2025 2025-2026 to the department of technology, management, and budget to support the operations of the center. In addition, from the federal funds appropriated in section 11, there is allocated for 2024-2025 2025-2026 the amount necessary, estimated at $193,500.00,
From the funds allocated in subsection (5), the center may use an amount determined by the center for competitive grants for 2024-2025 2025-2026 to support collaborative efforts on the P-20 longitudinal data system. All of the following apply to grants awarded under this subsection:
The center shall award competitive grants to eligible intermediate districts or a consortium of intermediate districts based on criteria established by the center.
Activities funded under the grant must support the P-20 longitudinal data system portal and may include portal hosting, hardware and software acquisition, maintenance, enhancements, user support and related materials, and professional learning tools and activities aimed at improving the utility of the P-20 longitudinal data system.
An applicant that received a grant under this subsection for the immediately preceding fiscal year has priority for funding under this section. However, after 3 fiscal years of continuous funding, an applicant is required to compete openly with new applicants.
Funds allocated under this section that are not expended in the fiscal year in which they were allocated may be carried forward to a subsequent fiscal year and are appropriated for the purposes for which the funds were originally allocated.
The center may bill departments as necessary to fulfill reporting requirements of state and federal law. The center may also enter into agreements to supply custom data, analysis, and reporting to other principal executive departments, state agencies, local units of government, and other individuals and organizations. The center may receive and expend funds in addition to those authorized in subsection (5) to cover the costs associated with salaries, benefits, supplies, materials, and equipment necessary to provide such data, analysis, and reporting services.
As used in this section, “DED-OESE” means the United States Department of Education Office of Elementary and Secondary Education.
Sec. 94e. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2024-2025 2025-2026 only an amount not to exceed $1,000,000.00 for support of the Michigan Education Research Institute.
Funding allocated under this section must be distributed to the University of Michigan’s Michigan Education Data Center and Michigan State University’s Education Policy Innovation Center for the purpose of working collaboratively with the department, the department of lifelong education, advancement, and potential, and the center to build and maintain a research ready dataset, and to conduct research of critical importance to the state’s education goals.
The Michigan Education Research Institute shall use funds received under this section for the purpose of expanding on research that includes, but is not limited to, all the following:
Educator shortage.
Early literacy initiative outcomes.
Early childhood development programming outcomes.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 97g. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2023- 2024 only, $9,000,000.00 to an intermediate district with K to 12 pupil membership between 37,500 and 42,500, as reported in the 2021-2022 MI School Data Student Enrollment Counts Report school year final student count, to establish and operate a statewide Security Operations Center (SOC) in partnership with a statewide educational organization. The SOC will provide a Managed Detection and Response (MDR) solution, including SOC staff, to monitor and assist in responding to threats and attacks on critical technology infrastructure for districts and intermediate districts.
The intermediate district receiving funds under this section shall contract with a nonprofit educational organization that maintains a statewide educational technology collaborative to establish the statewide SOC. This statewide SOC will operate under the guidance of an advisory board, comprising educational technology leaders, with regional statewide representation. Other K to 12 stakeholders may be invited to participate in the advisory.
The nonprofit educational organization that the intermediate district contracted with in subsection (2) shall use the funds to do all of the following:
Establish a statewide advisory.
Establish a statewide SOC security team.
Establish statewide MDR service.
Train district technology staff in the deployment and use of MDR software and services.
Purchase and distribute MDR licensing to districts and intermediate districts for installation on critical technology infrastructure.
Train, monitor, and track district utilization of a toolkit to be identified by the SOC such as MISecure Quick Self-Assessment.
Not later than January 1, 2025 and each subsequent fiscal year, prepare a summary report that includes measurable outcomes including participation, detection, prevention, and response to cybersecurity incidents in order to evaluate the effectiveness of the project. The report must be submitted to the house and senate appropriations subcommittees on school aid and to the house and senate fiscal agencies.
After the nonprofit educational organization that the intermediate district contracted with in subsection (2) uses funds as required under subsection (3), the nonprofit educational organization may use any remaining funds to do any of the following:
Supply additional cybersecurity services as technologies evolve and budget allows.
Partner with K to 12 statewide connectivity partners to install and monitor intrusion detection systems.
Districts receiving software and service under this project shall do both of the following:
Complete the assessment identified in subsection (3)(f) annually.
Install and maintain statewide SOC MDR software on critical infrastructure as described in this section, provide access to the software to the statewide SOC, and coordinate responses with the statewide SOC and the district’s intermediate district.
For districts that have MDR solutions in place as of October 1, 2023, a licensing cost allocation equal to the cost of the statewide SOC provided license may be provided until the end of the local contract or the end of the funding period, whichever comes first. Funds allocated under this subsection must be used to offset local MDR costs, cybersecurity assessment, or further cybersecurity investment.
The funds allocated under this section for 2023-2024 are a work project appropriation, and any unexpended funds for 2023-2024 are carried forward and may be expended in subsequent years until the end of the 2027-2028 state fiscal year. The purpose of the work project is to increase stable and reliable cybersecurity in districts and intermediate districts. The estimated completion date of the work project is September 30, 2028.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 97k. (1) From the state school aid fund money appropriated in section 11, there is allocated
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 98. (1) From the general fund money appropriated in section 11, there is allocated an amount not to exceed $9,800,000.00 for 2024-2025 2025-2026 for the purposes described in this section. It is the intent of the legislature that, for 2025-2026, the allocation from the general fund money appropriated in section 11 for purposes described in this section will be $8,000,000.00. The Michigan Virtual University shall provide a report to the legislature not later than November 1 of each fiscal year for which funding is allocated under this section that includes its mission, its plans, and proposed benchmarks it must meet, including a plan to achieve the organizational priorities identified in this section, to receive full funding for the next fiscal year for which funding is allocated under this section. By not later than March 1 of each fiscal year for which funding is allocated under this section, the Michigan Virtual University shall provide an update to the house and senate appropriations subcommittees on school aid to show the progress being made to meet the benchmarks identified.
The Michigan Virtual University shall operate the Michigan Virtual Learning Research Institute. The Michigan Virtual Learning Research Institute shall do all of the following:
Support and accelerate innovation in education through the following activities:
Test, evaluate, and recommend as appropriate new technology-based instructional tools and resources.
Research, design, and recommend virtual education delivery models for use by pupils and teachers that include age-appropriate multimedia instructional content.
Research, develop, and recommend annually to the department criteria by which cyber schools and virtual course providers should be monitored and evaluated to ensure a quality education for their pupils.
Based on pupil completion and performance data reported to the department or the center from cyber schools and other virtual course providers operating in this state, analyze the effectiveness of virtual learning delivery models in preparing pupils to be college- and career-ready and publish a report that highlights enrollment totals, completion rates, and the overall impact on pupils. The Michigan Virtual Learning Research Institute shall submit the report to the house and senate appropriations subcommittees on school aid, the state budget director, the house and senate fiscal agencies, the department, districts, and intermediate districts by not later than March 31 of each fiscal year for which funding is allocated under this section.
Provide an extensive professional development program to at least 30,000 educational personnel, including teachers, school administrators, and school board members, that focuses on the effective integration of virtual learning into curricula and instruction. The Michigan Virtual Learning Research Institute is encouraged to work with the MiSTEM council described in section 99s to coordinate professional development of teachers in applicable fields. In addition, the Michigan Virtual Learning Research Institute and external stakeholders are encouraged to coordinate with the department for professional development in this state, including professional development for employees in child care facilities, early childhood facilities, and after-school programs. By not later than December 1 of each fiscal year for which funding is allocated under this section, the Michigan Virtual Learning Research Institute shall submit a report to the house and senate appropriations subcommittees on school aid, the state budget director, the house and senate fiscal agencies, and the department on the number of teachers, school administrators, and school board members who have received professional development services from the Michigan Virtual University. The report must also include both of the following:
The identification of barriers and other opportunities to encourage the adoption of virtual learning in the public education system.
A link to, and explanation of, the Michigan Virtual University’s online course standards for professional development programming. The standards described in this sub-subparagraph must inform learners how to file a complaint about course content and detail the steps that will be taken for the review and resolution of complaints.
Identify and share best practices for planning, implementing, and evaluating virtual and blended education delivery models with intermediate districts, districts, and public school academies to accelerate the adoption of innovative education delivery models statewide.
Provide leadership for this state’s system of virtual learning education by doing the following activities:
Develop and report policy recommendations to the governor and the legislature that accelerate the expansion of effective virtual learning in this state’s schools.
Provide a clearinghouse for research reports, academic studies, evaluations, and other information related to virtual learning.
Promote and distribute the most current instructional design standards and guidelines for virtual teaching.
In collaboration with the department and interested colleges and universities in this state, support implementation and improvements related to effective virtual learning instruction.
Pursue public/private partnerships that include districts to study and implement competency-based technology-rich virtual learning models.
Create a statewide network of school-based mentors serving as liaisons between pupils, virtual instructors, parents, and school staff, as provided by the department or the center, and provide mentors with research-based training and technical assistance designed to help more pupils be successful virtual learners.
Convene focus groups and conduct annual surveys of teachers, administrators, pupils, parents, and others to identify barriers and opportunities related to virtual learning.
Produce an annual consumer awareness report for schools and parents about effective virtual education providers and education delivery models, performance data, cost structures, and research trends.
Provide an internet-based platform that educators can use to create student-centric learning tools and resources for sharing in the state’s open educational resource repository and facilitate a user network that assists educators in using the content creation platform and state repository for open educational resources. As part of this initiative, the Michigan Virtual University shall work collaboratively with districts and intermediate districts to establish a plan to make available virtual resources that align to Michigan’s K to 12 curriculum standards for use by students, educators, and parents.
Create and maintain a public statewide catalog of virtual learning courses being offered by all public schools and community colleges in this state. The Michigan Virtual Learning Research Institute shall identify and develop a list of nationally recognized best practices for virtual learning and use this list to support reviews of virtual course vendors, courses, and instructional practices. The Michigan Virtual Learning Research Institute shall also provide a mechanism for intermediate districts to use the identified best practices to review content offered by constituent districts. The Michigan Virtual Learning Research Institute shall review the virtual course offerings of the Michigan Virtual University, and make the results from these reviews available to the public as part of the statewide catalog. The Michigan Virtual Learning Research Institute shall ensure that the statewide catalog is made available to the public on the Michigan Virtual University website and shall allow the ability to link it to each district’s website as provided for in section 21f. The statewide catalog must also contain all of the following:
The number of enrollments in each virtual course in the immediately preceding school year.
The number of enrollments that earned 60% or more of the total course points for each virtual course in the immediately preceding school year.
The pass rate for each virtual course.
Support registration, payment services, and transcript functionality for the statewide catalog and train key stakeholders on how to use new features.
Collaborate with key stakeholders to examine district level accountability and teacher effectiveness issues related to virtual learning under section 21f and make findings and recommendations publicly available.
Provide a report on the activities of the Michigan Virtual Learning Research Institute.
To further enhance its expertise and leadership in virtual learning, the Michigan Virtual University shall continue to operate the Michigan Virtual School as a statewide laboratory and quality model of instruction by implementing virtual and blended learning solutions for Michigan schools in accordance with the following parameters:
The Michigan Virtual School must maintain its accreditation status from recognized national and international accrediting entities.
The Michigan Virtual University shall use no more than $1,000,000.00 of the amount allocated under this section to subsidize the cost paid by districts for virtual courses.
In providing educators responsible for the teaching of virtual courses as provided for in this section, the Michigan Virtual School shall follow the requirements to request and assess, and the department of state police shall provide, a criminal history check and criminal records check under sections 1230 and 1230a of the revised school code, MCL 380.1230 and 380.1230a, in the same manner as if the Michigan Virtual School were a school district under those sections.
From the funds allocated under subsection (1), the Michigan Virtual University shall allocate up to
$500,000.00 to support the expansion of new online and blended educator professional development programs.
From the funds allocated under subsection (1), the Michigan Virtual University shall allocate up to
$500,000.00 to operate a comprehensive statewide laboratory designed to function as a hub for cutting-edge research, the identification and dissemination of best practices, rigorous experimentation, policy formulation, and proactive efforts to enhance awareness about the responsible utilization of artificial intelligence in schools.
If the course offerings are included in the statewide catalog of virtual courses under subsection (2)(b)(x), the Michigan Virtual School operated by the Michigan Virtual University may offer virtual course offerings, including, but not limited to, all of the following:
Information technology courses.
College level equivalent courses, as that term is defined in section 1471 of the revised school code, MCL 380.1471.
Courses and dual enrollment opportunities.
Programs and services for at-risk pupils.
High school equivalency test preparation courses for adjudicated youth.
Special interest courses.
Professional development programs for teachers, school administrators, other school employees, and school board members.
If a home-schooled or nonpublic school student is a resident of a district that subscribes to services provided by the Michigan Virtual School, the student may use the services provided by the Michigan Virtual School to the district without charge to the student beyond what is charged to a district pupil using the same services.
By not later than December 1 of each fiscal year for which funding is allocated under this section, the Michigan Virtual University shall provide a report to the house and senate appropriations subcommittees on school aid, the state budget director, the house and senate fiscal agencies, and the department that includes at least all of the following information related to the Michigan Virtual School for the preceding fiscal year:
A list of the districts served by the Michigan Virtual School.
A list of virtual course titles available to districts.
The total number of virtual course enrollments and information on registrations and completions by course.
The overall course completion rate percentage.
In addition to the information listed in subsection (8), the report under subsection (8) must also include a plan to serve at least 600 schools with courses from the Michigan Virtual School or with content available through the internet-based platform identified in subsection (2)(b)(ix).
The governor may appoint an advisory group for the Michigan Virtual Learning Research Institute established under subsection (2). The members of the advisory group serve at the pleasure of the governor and without compensation. The purpose of the advisory group is to make recommendations to the governor, the legislature, and the president and board of the Michigan Virtual University that will accelerate innovation in this state’s education system in a manner that will prepare elementary and secondary students to be career and college ready and that will promote the goal of increasing the percentage of residents of this state with high-quality degrees and credentials to at least 60% by 2025.2030.
By not later than November 1 of each fiscal year for which funding is allocated under this section, the Michigan Virtual University shall submit to the house and senate appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal agencies a detailed budget for that fiscal year that includes a breakdown on its projected costs to deliver virtual educational services to districts and a summary of the anticipated fees to be paid by districts for those services. By not later than March 1 each fiscal year for which funding is allocated under this section, the Michigan Virtual University shall submit to the house and senate appropriations subcommittees on school aid, the state budget director, and the house and senate fiscal agencies a breakdown on its actual costs to deliver virtual educational services to districts and a summary of the actual fees paid by districts for those services based on audited financial statements for the immediately preceding fiscal year.
As used in this section:
“Blended learning” means a hybrid instructional delivery model where pupils are provided content, instruction, and assessment, in part at a supervised educational facility away from home where the pupil and a teacher with a valid Michigan teaching certificate are in the same physical location and in part through internet-connected learning environments with some degree of pupil control over time, location, and pace of instruction.
“Cyber school” means a full-time instructional program of virtual courses for pupils that may or may not require attendance at a physical school location.
“Virtual course” means a course of study that is capable of generating a credit or a grade and that is provided in an interactive learning environment in which the majority of the curriculum is delivered using the internet and in which pupils are separated from their instructor or teacher of record by time or location, or both.
Sec. 99. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $500,000.00 for 2023-2024 only to Kentwood Public Schools and Oak Park Schools for a plant-based school meals pilot grant program. Grants shall be used for developing and implementing plant- based meal options in school cafeterias, training school food service staff in the preparation of plant-based meals, and purchasing necessary kitchen equipment to facilitate the preparation of plant-based meals. Recipients of grants under this program shall submit a report to the department detailing the use of funds and the impact of the program on student meal choices and environmental sustainability.
From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$500,000.00 for 2024-2025 only for a virtual reality youth peace literacy initiative pilot program.
From the general fund money appropriated in section 11, there is allocated an amount not to exceed
$1,000,000.00 for 2024-2025 only to the American Lightweight Materials Manufacturing Innovation Institute, in partnership with the Michigan Manufacturers Association, Amatrol, and the ATS LAB Midwest. Funds received under this subsection must be used to provide high schools and intermediate districts in this state with competency-based, technology infused talent development programs that provide curricula, e- learning, hands-on e-learning systems, curricula-specific training equipment, installation, orientation, teacher training, industry-recognized skill certifications, and connections to local manufacturers for students in high schools and intermediate districts in this state.
From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $2,500,000.00 for 2024-2025 only to the Dearborn City School District for costs to expand the career and technical education program for the district, including, but not limited to, expansion of a cybersecurity certificate program. Costs in this subsection may include both operational and capital costs.
From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $1,500,000.00 for 2024-2025 only to the Dearborn City School District to support the construction of outdoor classrooms and other green space for Salina Intermediate School in the Dearborn City School District.
From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $2,000,000.00 for 2024-2025 only to the School District of the City of Harper Woods to support the costs for construction and operation of the daily life skills training center, an educational and skills development program with individualized training to improve a child’s abilities to independently perform routine daily activities and effectively use community resources.
From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $2,500,000.00 for 2024-2025 only to the Lansing Public School District for development and infrastructure improvements.
From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $700,000.00 to Clintondale Community Schools for safety and security upgrades.
From the state school aid general fund money appropriated in section 11, there is allocated for 2024- 2025 only an amount not to exceed $500,000.00 to the city of Algonac Community School District in St. Clair County to support asbestos remediation and redevelopment in a former school building.
From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $700,000.00 to South Lyon Community Schools for student mental health services.
From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $200,000.00 to Farmington Public School District for high-intensity tutoring.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $2,100,000.00 to the Marygrove Conservancy for the creation of the Marygrove Film School.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $3,900,000.00, $2,900,000.00, and from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $2,100,000.00 $3,100,000.00 to Rudyard Area Schools for infrastructure.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $250,000.00 to Brookview Montessori School for structural updates, including, but not limited to, electrical and HVAC.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $100,000.00 for Okemos Public Montessori at Central for district lead abatement.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $500,000.00 to Wellspring Detroit to support the academic and youth development program.
From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $500,000.00 to a district or intermediate district to support the implementation of the MI Student Voice Perception Survey.
From the general fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $3,700,000.00 to the recipients identified in this subsection to support capital costs to increase safety of student pedestrians.
A recipient of a grant under this subsection shall use the funds to increase the safety of student pedestrians through capital improvements. A grant recipient may enter into agreements with other units of local government to complete eligible projects. Improvements may include, but are not limited to, all of the following:
Signage and painting for crosswalks.
Installing or repairing sidewalks.
Adding turning lanes.
Installing or repairing traffic signal lights.
From the allocation in this subsection, $3,000,000.00 is allocated to Macomb Township in Macomb County for road, signal, and pedestrian crossing improvements at the intersection of 21 Mile Road and Heydenreich Road. The purpose of the improvements is to increase safety for student pedestrians at nearby schools.
From the allocation in this subsection, $250,000.00 is allocated to the Woodhaven-Brownstown School District to construct sidewalks to connect nearby residential areas to schools in the district.
From the allocation in this subsection, $450,000.00 is allocated to the Village of Brooklyn to partner with the Columbia Charter School District and Columbia Charter Township to improve student pedestrian safety.
The funds allocated under this subsection for 2024-2025 are a work project appropriation, and any unexpended funds for 2024-2025 are carried forward into 2025-2026. The purpose of the work project is to continue to provide support for capital costs to increase safety of student pedestrians. The estimated completion date of the work project is September 30, 2029.
From the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 only an amount not to exceed $7,000,000.00 to Detroit Public Schools Community District to offset the cost of relocating the Davis Aerospace Technical High School to the Coleman A. Young International Airport. Notwithstanding section 18a, funds allocated under this subsection may be available for expenditure until September 30, 2027. A recipient of funding under this subsection must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2027.
(20) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 99h. (1) From the state school aid pupil support reserve fund money appropriated in section 11, there is allocated an amount not to exceed $4,723,200.00 $5,000,000.00 for 2024-2025 2025-2026 only for competitive grants to districts and intermediate districts, and from the general fund money appropriated in section 11, there is allocated $600,000.00 for 2024-2025 for competitive grants to nonpublic schools, and from the general pupil support reserve fund money appropriated in section 11, there is allocated
The department shall do all of the following for purposes of this section:
Both of the following by not later than 60 days after the state school aid appropriations bill for the current fiscal year is enacted into law or October 1 of the current fiscal year, whichever is later:
Open applications for funding under this section to all districts, nonpublic schools, and intermediate districts.
Publish a list of approved programs and vendors for purposes of this section in a manner that is accessible to all applicants. To obtain approval under this subparagraph, a program or vendor must submit to the department registration information, including any fees; pledge that it will post this information on its website; and, by not later than January 1 of the current fiscal year, submit this information to the department for publication on the department’s website.
By not later than 60 days after applications are opened as described in subdivision (a), close applications under this section.
By not later than 60 days after applications are closed as described in subdivision (b), make all determinations concerning funding under this section.
By not later than July 1 of the current fiscal year, publish a document listing the requirements for becoming an approved program or vendor under subdivision (a).
Except as otherwise provided under this subsection, if funding under this section is insufficient to fulfill all funding requests by qualified applicants under this section, the department shall prorate the total funding allocated under this section equally among all qualified applicants. However, for funding under this section toward grants under subsection (5)(b), in its proration under this subsection, the department shall ensure that each district is paid in an amount equal to the percentage the department would have paid the district in grant funding under subsection (5)(b), but for proration under this subsection, with no district receiving a grant under subsection (5)(b) in an amount that is greater than the district’s total accrued costs under subsection (5)(b).
A district, nonpublic school, or intermediate district applying for a grant under this section must submit an application in a form and manner prescribed by the department. To be eligible for a grant, a district, nonpublic school, or intermediate district must demonstrate in its application that the district, nonpublic school, or intermediate district has established a partnership for the purposes of the robotics program with at least 1 sponsor, business entity, higher education institution, technical school, or individual, must submit a budget, and must provide a local in-kind or cash match from other private or local funds of at least 25% of the cost of the robotics program award.
The department shall distribute the grant funding under this section for the following purposes:
Grants to districts, nonpublic schools, or intermediate districts to pay for stipends not to exceed
$1,500.00 per building for coaching.
Grants to districts, nonpublic schools, or intermediate districts for event registrations, materials, travel costs, and other expenses associated with the preparation for and attendance at robotics events and competitions.
Grants to districts, nonpublic schools, or intermediate districts for awards to teams that advance to the next levels of competition as determined by the department. The department shall determine an equal amount per team for those teams that advance.
A nonpublic school that receives a grant under this section may use the funds for either robotics or Science Olympiad programs.
To be eligible to receive funds under this section, a nonpublic school must be a nonpublic school registered with the department and must meet all applicable state reporting requirements for nonpublic schools.
To be eligible to receive a grant under this section, a district, nonpublic school, or intermediate district must do all of the following:
If the district, nonpublic school, or intermediate district is requesting funding for more than 1 team for a building, meet the minimum requirements for team size as determined by the approved program provider.
Participate in at least the minimum number of competitions as determined by the approved program provider.
Participate in at least 1 in-person competition.
For purposes of this section, an approved program or vendor under this section that provides a program under this section shall not work with the department to set prices or policies for the program.
As used in this section, “current fiscal year” means the fiscal year for which an allocation is made under this section.
Sec. 99ee. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $2,000,000.00 $3,000,000.00 for 2024-2025 only to Wayne RESA for the provision of programming, in partnership with a nonprofit organization that is tax-exempt under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and that provides academic and career support programs and services, to help more Hispanic students to graduate from college. A district that receives funds under this section shall contract with a nonprofit organization for purposes of this section that received state funds for purposes described in this section in the immediately preceding fiscal year.
Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.
Sec. 101. (1) To be eligible to receive state aid under this article, not later than the fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each district superintendent shall submit and certify to the center and the intermediate superintendent, in the form and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance, including identification of tuition-paying pupils, in the district as of the pupil membership count day and as of the supplemental count day, as applicable, for the current school year. In addition, a district maintaining school during the entire year shall submit and certify to the center and the intermediate superintendent, in the form and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance in the district for the current school year pursuant to rules promulgated by the superintendent. Not later than the sixth Wednesday after the pupil membership count day and not later than the sixth Wednesday after the supplemental count day, the district shall resolve any pupil membership conflicts with another district, correct any data issues, and recertify the data in a form and manner prescribed by the center and file the certified data with the intermediate superintendent. If a district fails to submit and certify the attendance data,
as required under this subsection, the center shall notify the department and the department shall withhold state aid due to be distributed under this article from the defaulting district immediately, beginning with the next payment after the failure and continuing with each payment until the district complies with this subsection. If a district does not comply with this subsection by the end of the fiscal year, the district forfeits the amount withheld. A person who willfully falsifies a figure or statement in the certified and sworn copy of enrollment is subject to penalty as prescribed by section 161.
To be eligible to receive state aid under this article, not later than the twenty-fourth Wednesday after the pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day, an intermediate district shall submit to the center, in a form and manner prescribed by the center, the audited enrollment and attendance data as described in subsection (1) for the pupils of its constituent districts and of the intermediate district. If an intermediate district fails to submit the audited data as required under this subsection, the department shall withhold state aid due to be distributed under this article from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If an intermediate district does not comply with this subsection by the end of the fiscal year, the intermediate district forfeits the amount withheld.
Except as otherwise provided in subsections (11) and (12) all of the following apply to the provision of pupil instruction:
Except as otherwise provided in this section, each district shall provide at least 1,098 hours and 180 days of pupil instruction. If a collective bargaining agreement that provides a complete school calendar was in effect for employees of a district as of June 24, 2014, and if that school calendar is not in compliance with this subdivision, then this subdivision does not apply to that district until after the expiration of that collective bargaining agreement. A district may apply for a waiver under subsection (9) or subdivision (h) from the requirements of this subdivision.
Except as otherwise provided in this article, a district failing to comply with the required minimum hours and days of pupil instruction under this subsection forfeits from its total state aid allocation an amount determined by applying a ratio of the number of hours or days the district was in noncompliance in relation to the required minimum number of hours and days under this subsection. Not later than the first business day in August, the board of each district shall either certify to the department that the district was in full compliance with this section regarding the number of hours and days of pupil instruction in the previous school year, or report to the department, in a form and manner prescribed by the center, each instance of noncompliance. If the district did not provide at least the required minimum number of hours and days of pupil instruction under this subsection, the department shall make the deduction of state aid in the following fiscal year from the first payment of state school aid. A district is not subject to forfeiture of funds under this subsection for a fiscal year in which a forfeiture was already imposed under subsection (6).
Hours or days lost because of strikes or teachers’ conferences are not counted as hours or days of pupil instruction.
Except as otherwise provided in subdivisions (e) and (f), if a district does not have at least 75% of the district’s membership in attendance on any day of pupil instruction, the department shall pay the district state aid in that proportion of 1/180 that the actual percent of attendance bears to 75%.
If a district adds 1 or more days of pupil instruction to the end of its instructional calendar for a school year to comply with subdivision (a) because the district otherwise would fail to provide the required minimum number of days of pupil instruction even after the operation of subsection (4) due to conditions not within the control of school authorities, then subdivision (d) does not apply for any day of pupil instruction that is added to the end of the instructional calendar. Instead, for any of those days, if the district does not have at least 60% of the district’s membership in attendance on that day, the department shall pay the district state aid in that proportion of 1/180 that the actual percentage of attendance bears to 60%. For any day of pupil instruction added to the instructional calendar as described in this subdivision, the district shall report to the department the percentage of the district’s membership that is in attendance, in the form and manner prescribed by the department.
At the request of a district that operates a department-approved alternative education program and that does not provide instruction for pupils in all of grades K to 12, the superintendent shall grant a waiver from the requirements of subdivision (d). The waiver must provide that an eligible district is subject to the proration provisions of subdivision (d) only if the district does not have at least 50% of the district’s membership in attendance on any day of pupil instruction. In order to be eligible for this waiver, a district must maintain records to substantiate its compliance with the following requirements:
The district offers the minimum hours of pupil instruction as required under this section.
For each enrolled pupil, the district uses appropriate academic assessments to develop an individual education plan that leads to a high school diploma.
The district tests each pupil to determine academic progress at regular intervals and records the results of those tests in that pupil’s individual education plan.
All of the following apply to a waiver granted under subdivision (f):
If the waiver is for a blended model of delivery, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
If the waiver is for a 100% online model of delivery and the educational program for which the waiver is granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year and ensures that each pupil participates in the educational program for at least 1,098 hours during a school year, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
A waiver that is not a waiver described in subparagraph (i) or (ii) is valid for 3 fiscal years, unless it is revoked by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
For the 2024-2025 school year only, a district does not need to meet the minimum number of hours and days of pupil instruction requirement under subdivision (a) if that district meets all of the following requirements:
The district is located wholly or partially in a county that is covered by a state of emergency declared by the governor.
A majority of the district board votes to exempt the district from the minimum number of hours and days of pupil instruction required under subdivision (a).
The vote by the district board under subparagraph (ii) exempts the district from providing only the hours and days of pupil instruction actually missed due to the state of emergency.
The vote by the district board under subparagraph (ii) exempts the district from not more than 15 days of pupil instruction required under subdivision (a). The amount that may be exempted under this subdivision is in addition to any days counted as pupil instruction under subsection (4).
The superintendent shall promulgate rules for the implementation of this subsection.
All of the following apply to the counting of days and hours of pupil instruction under this section:
Except as otherwise provided in this subsection, the first 6 days or the equivalent number of hours for which pupil instruction is not provided because of conditions not within the control of school authorities, such as severe storms, fires, epidemics, utility power unavailability, water or sewer failure, or health conditions as defined by the city, county, or state health authorities, are counted as hours and days of pupil instruction.
With the approval of the superintendent of public instruction, the department shall count as hours and days of pupil instruction for a fiscal year not more than 3 additional days or the equivalent number of additional hours for which pupil instruction is not provided in a district due to unusual and extenuating occurrences resulting from conditions not within the control of school authorities such as those conditions described in this subsection.
A district that counts hours or days of professional development for teachers as hours or days of pupil instruction, as provided under subsection (10), is eligible to have additional hours or days counted as hours and days of pupil instruction as provided under subdivision (b) to the same extent as a district that does not count hours or days of professional development for teachers as hours or days of pupil instruction.
In deciding whether or not to approve the counting of additional hours or days of pupil instruction under subdivision (b) for a district, the superintendent of public instruction shall not take into account whether or not the district counts hours or days of professional development for teachers as hours or days of pupil instruction, as provided under subsection (10).
Subsequent hours or days beyond those described in subdivisions (a) and (b) are not counted as hours or days of pupil instruction.
A district does not forfeit part of its state aid appropriation because it adopts or has in existence an alternative scheduling program for pupils in kindergarten if the program provides at least the number of hours required under subsection (3) for a full-time equated membership for a pupil in kindergarten as provided under section 6(4).
In addition to any other penalty or forfeiture under this section, if at any time the department determines that 1 or more of the following have occurred in a district, the district forfeits in the current fiscal year beginning in the next payment to be calculated by the department a proportion of the funds due to the district under this article that is equal to the proportion below the required minimum number of hours and days of pupil instruction under subsection (3), as specified in the following:
The district fails to operate its schools for at least the required minimum number of hours and days of pupil instruction under subsection (3) in a school year, including hours and days counted under subsection (4).
The board of the district takes formal action not to operate its schools for at least the required minimum number of hours and days of pupil instruction under subsection (3) in a school year, including hours and days counted under subsection (4).
In providing the minimum number of hours and days of pupil instruction required under subsection (3), a district shall use the following guidelines, and a district shall maintain records to substantiate its compliance with the following guidelines:
Except as otherwise provided in this subsection, a pupil must be scheduled for at least the required minimum number of hours of instruction, excluding study halls, or at least the sum of 90 hours plus the required minimum number of hours of instruction, including up to 2 study halls.
The time a pupil is assigned to any tutorial activity in a block schedule may be considered instructional time, unless that time is determined in an audit to be a study hall period.
Except as otherwise provided in this subdivision, a pupil in grades 9 to 12 for whom a reduced schedule is determined to be in the individual pupil’s best educational interest, or a pupil in grades 6 to 8 for whom a reduced schedule is determined to be in the individual pupil’s best educational interest due to the pupil’s participation in an advanced curriculum, must be scheduled for a number of hours equal to at least 80% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil. A pupil in grades 9 6 to 12 who is scheduled in a 4-block schedule may receive a reduced schedule under this subsection if the pupil is scheduled for a number of hours equal to at least 75% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil.
If For a pupil in grades 9 to 12 who is enrolled in a cooperative education program, or for a special education pupil, cannot receive the required minimum number of hours of pupil instruction solely because of travel time between instructional sites during the school day, that travel time, up to a maximum of 3 hours per school week, is considered to be pupil instruction time for the purpose of determining whether the pupil is receiving the required minimum number of hours of pupil instruction. However, if a district demonstrates to the satisfaction of the department that the travel time limitation under this subdivision would create undue costs or hardship to the district, the department may consider more travel time to be pupil instruction time for this purpose.in determining full-time equated membership for that pupil, the pupil is not considered less than a full-time equated pupil solely because of the effect of the pupil’s enrollment in the cooperative education program or special education program, including necessary travel time, on the number of class hours provided by the district to the pupil.
In grades 7 through 12, instructional time that is part of a Junior Reserve Officer Training Corps (JROTC) program is considered to be pupil instruction time regardless of whether the instructor is a certificated teacher if all of the following are met:
The instructor has met all of the requirements established by the United States Department of Defense and the applicable branch of the armed services for serving as an instructor in the Junior Reserve Officer Training Corps program.
The board of the district or intermediate district employing or assigning the instructor complies with the requirements of sections 1230 and 1230a of the revised school code, MCL 380.1230 and 380.1230a, with respect to the instructor to the same extent as if employing the instructor as a regular classroom teacher.
Except as otherwise provided in subsections (11) and (12), the department shall apply the guidelines under subsection (7) in calculating the full-time equivalency of pupils.
Upon application by the district for a particular fiscal year, the superintendent shall waive for a district the minimum number of hours and days of pupil instruction requirement of subsection (3) for a department- approved alternative education program or another innovative program approved by the department, including a 4-day school week. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, the district is not subject to forfeiture under this section for the specific program covered by the waiver. If the district does not comply with the terms of the waiver, the amount of the forfeiture is calculated based upon a comparison of the number of hours and days of pupil instruction actually provided to the minimum number of hours and days of pupil instruction required under subsection (3). A district shall report pupils enrolled in a department-approved alternative education program under this subsection to the center in a form and manner determined by the center. All of the following apply to a waiver granted under this subsection:
If the waiver is for a blended model of delivery, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
If the waiver is for a 100% online model of delivery and the educational program for which the waiver is granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year and ensures that each pupil is on track for course completion at proficiency level, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
A waiver that is not a waiver described in subdivision (a) or (b) is valid for 3 fiscal years, unless it is revoked by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
A district may count up to 38 hours of professional development for teachers as hours of pupil instruction. All of the following apply to the counting of professional development as pupil instruction under this subsection:
If the professional development exceeds 5 hours in a single day, that day may be counted as a day of pupil instruction.
At least 8 hours of the professional development counted as hours of pupil instruction under this subsection must be recommended by a districtwide professional development advisory committee appointed by the district board. The advisory committee must be composed of teachers employed by the district who represent a variety of grades and subject matter specializations, including special education; nonteaching staff; parents; and administrators. The majority membership of the committee must be composed of teaching staff.
Professional development provided online is allowable and encouraged, as long as the instruction has been approved by the district. The department shall issue a list of approved online professional development providers that must include the Michigan Virtual School.
Professional development may only be counted as hours of pupil instruction under this subsection for the pupils of those teachers scheduled to participate in the professional development.
The professional development must meet all of the following to be counted as pupil instruction under this subsection:
Be aligned to the school or district improvement plan for the school or district in which the professional development is being provided.
Be linked to 1 or more criteria in the evaluation tool developed or adopted by the district or intermediate district under section 1249 of the revised school code, MCL 380.1249.
Has been approved by the department as counting for state continuing education clock hours. The number of hours of professional development counted as hours of pupil instruction under this subsection may not exceed the number of state continuing education clock hours for which the professional development was approved.
Not more than a combined total of 10 hours of the professional development takes place before the first scheduled day of school for the school year ending in the fiscal year and after the last scheduled day of school for that school year.
Not more than 10 hours of the professional development takes place in a single month.
At least 75% of teachers scheduled to participate in the professional development are in attendance.
Subsections (3) and (8) do not apply to a school of excellence that is a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a. Beginning July 1, 2021, this subsection is subject to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021.
Subsections (3) and (8) do not apply to eligible pupils enrolled in a dropout recovery program that meets the requirements of section 23a. As used in this subsection, “eligible pupil” means that term as defined in section 23a.
At least every 2 years the superintendent shall review the waiver standards set forth in the pupil accounting and auditing manuals to ensure that the waiver standards and waiver process continue to be appropriate and responsive to changing trends in online learning. The superintendent shall solicit and consider input from stakeholders as part of this review.
Sec. 104. (1) To receive state aid under this article, a district shall comply with sections 1249, 1278a, 1278b, 1279g, and 1280b of the revised school code, MCL 380.1249, 380.1278a, 380.1278b, 380.1279g, and 380.1280b, and 1970 PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 an amount not to exceed
$37,509,400.00 $39,509,400.00, and there is allocated for 2025-2026 $37,509,400.00, for payments on behalf of districts for costs associated with complying with those provisions of law. In addition, from the federal funds appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount estimated at
$8,000,000.00 funded from DED-OESE, title VI, state assessment funds, and from DED-OSERS, part B of the individuals with disabilities education act, 20 USC 1411 to 1419, plus any carryover federal funds from previous year appropriations, for the purposes of complying with the every student succeeds act, Public Law 114-95.
The results of each test administered as part of the Michigan student test of educational progress (M-STEP), including tests administered to high school students, must include an item analysis that lists all items that are counted for individual pupil scores and the percentage of pupils choosing each possible response. The department shall work with the center to identify the number of students enrolled at the time assessments are given by each district. In calculating the percentage of pupils assessed for a district’s scorecard, the department shall use only the number of pupils enrolled in the district at the time the district administers the assessments and shall exclude pupils who enroll in the district after the district administers the assessments.
The department shall distribute federal funds allocated under this section in accordance with federal law and with flexibility provisions outlined in Public Law 107-116, and in the education flexibility partnership act of 1999, Public Law 106-25.
The department may recommend, but may not require, districts to allow pupils to use an external keyboard with tablet devices for online M-STEP testing, including, but not limited to, open-ended test items such as constructed response or equation builder items.
Notwithstanding section 17b, the department shall make payments on behalf of districts, intermediate districts, and other eligible entities under this section on a schedule determined by the department.
From the allocation in subsection (1), there is allocated an amount not to exceed $500,000.00 for 2024- 2025 and 2025-2026 for the operation of an online reporting tool to provide student-level assessment data in a secure environment to educators, parents, and pupils immediately after assessments are scored. The department and the center shall ensure that any data collected by the online reporting tool do not provide individually identifiable student data to the federal government.
As used in this section:
“DED” means the United States Department of Education.
“DED-OESE” means the DED Office of Elementary and Secondary Education.
“DED-OSERS” means the DED Office of Special Education and Rehabilitative Services.
Sec. 104b. (1) In order to receive state aid under this article, a district shall comply with this section and shall administer the Michigan merit examination to pupils in grade 11, and to pupils in grade 12 who did not take the complete Michigan merit examination in grade 11, as provided in this section. The Michigan merit examination consists of a college entrance test, work skills test, and the summative assessment known as the Michigan student test of educational progress (M-STEP).
For the purposes of this section, the department of technology, management, and budget shall contract with 1 or more providers to develop, supply, and score the Michigan merit examination. The Michigan merit examination shall consist of all of the following:
Assessment instruments that measure English language arts, mathematics, reading, and science, and are used by the majority of colleges and universities in this state for entrance purposes. This may include 1 or more writing components. In selecting assessment instruments to fulfill the requirements of this subdivision, the department may consider the degree to which those assessment instruments are aligned to this state’s content standards.
One or more tests from 1 or more test developers that assess a pupil’s ability to apply at least reading and mathematics skills in a manner that is intended to allow employers to use the results in making employment decisions. The department of technology, management, and budget and the superintendent shall ensure that any test or tests selected under this subdivision have all the components necessary to allow a pupil to be eligible to receive the results of a nationally recognized evaluation of workforce readiness if the pupil’s test performance is adequate.
A social studies component.
Any other component that is necessary to obtain the approval of the United States Department of Education to use the Michigan merit examination for the purposes of the no child left behind act of 2001, Public Law 107-110, or the every student succeeds act, Public Law 114-95.
In addition to all other requirements of this section, all of the following apply to the Michigan merit examination:
The department of technology, management, and budget and the superintendent shall ensure that any contractor used for scoring the Michigan merit examination supplies an individual report for each pupil that will identify for the pupil’s parents and teachers whether the pupil met expectations or failed to meet expectations for each standard, to allow the pupil’s parents and teachers to assess and remedy problems before the pupil moves to the next grade.
The department of technology, management, and budget and the superintendent shall ensure that any contractor used for scoring, developing, or processing the Michigan merit examination meets quality management standards commonly used in the assessment industry, including at least meeting level 2 of the capability maturity model developed by the Software Engineering Institute of Carnegie Mellon University for the first year the Michigan merit examination is offered to all grade 11 pupils and at least meeting level 3 of the capability maturity model for subsequent years.
The department of technology, management, and budget and the superintendent shall ensure that any contract for scoring, administering, or developing the Michigan merit examination includes specific deadlines for all steps of the assessment process, including, but not limited to, deadlines for the correct testing materials to be supplied to schools and for the correct results to be returned to schools, and includes penalties for noncompliance with these deadlines.
The superintendent shall ensure that the Michigan merit examination meets all of the following:
Is designed to test pupils on this state’s content standards in all subjects tested.
Complies with requirements of the no child left behind act of 2001, Public Law 107-110 or the every student succeeds act, Public Law 114-95.
Is consistent with the code of fair testing practices in education prepared by the Joint Committee on Testing Practices of the American Psychological Association.
Is factually accurate. If the superintendent determines that a question is not factually accurate and should be excluded from scoring, the state board and the superintendent shall ensure that the question is excluded from scoring.
A district shall include on each pupil’s high school transcript all of the following:
For each high school graduate who has completed the Michigan merit examination under this section, the pupil’s scaled score on each subject area component of the Michigan merit examination.
The number of school days the pupil was in attendance at school each school year during high school and the total number of school days in session for each of those school years.
The superintendent shall work with the provider or providers of the Michigan merit examination to produce Michigan merit examination subject area scores for each pupil participating in the Michigan merit examination. To the extent that the department determines that additional test items beyond those included in the college entrance component of the Michigan merit examination are required in a particular subject area, the department shall ensure that all test items in that subject area are scaled and merged for the purposes of producing a Michigan merit examination subject area score. The superintendent shall design and distribute to districts, intermediate districts, and nonpublic schools a simple and concise document that describes the scoring for each subject area and indicates the scaled score ranges for each subject area.
The Michigan merit examination shall be administered in each district during the last 12 weeks of the district’s school year. The superintendent shall ensure that the Michigan merit examination is scored and the scores are returned to pupils, their parents or legal guardians, and districts not later than the beginning of the pupil’s first semester of grade 12. The returned scores shall indicate at least the pupil’s scaled score for each subject area component and the range of scaled scores for each subject area. In reporting the scores to pupils, parents, and schools, the superintendent shall provide standards-specific, meaningful, and timely feedback on the pupil’s performance on the Michigan merit examination.
A district shall administer the complete Michigan merit examination to a pupil only once and shall not administer the complete Michigan merit examination to the same pupil more than once. If a pupil does not take the complete Michigan merit examination in grade 11, the district shall administer the complete Michigan merit examination to the pupil in grade 12. If a pupil chooses to retake the college entrance examination component of the Michigan merit examination, as described in subsection (2)(a), the pupil may do so through the provider of the college entrance examination component and the cost of the retake is the responsibility of the pupil unless all of the following are met:
The pupil has taken the complete Michigan merit examination.
The pupil meets the income eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch act, 42 USC 1751 to 1769i.
The pupil has applied to the provider of the college entrance examination component for a scholarship or fee waiver to cover the cost of the retake and that application has been denied.
After taking the complete Michigan merit examination, the pupil has not already received a free retake of the college entrance examination component paid for either by this state or through a scholarship or fee waiver by the provider.
The superintendent shall ensure that the length of the Michigan merit examination and the combined total time necessary to administer all of the components of the Michigan merit examination are the shortest possible that will still maintain the degree of reliability and validity of the Michigan merit examination results determined necessary by the superintendent. The superintendent shall ensure that the maximum total combined length of time that schools are required to set aside for pupils to answer all test questions on the Michigan merit examination does not exceed 8 hours if the superintendent determines that sufficient alignment to applicable Michigan merit curriculum content standards can be achieved within that time limit.
A district shall provide accommodations to a pupil with disabilities for the Michigan merit examination, as provided under section 504 of title V of the rehabilitation act of 1973, 29 USC 794; subtitle A of title II of the Americans with disabilities act of 1990, 42 USC 12131 to 12134; the individuals with disabilities education act amendments of 1997, Public Law 105-17; and the implementing regulations for those statutes. The provider or providers of the Michigan merit examination and the superintendent shall mutually agree upon the accommodations to be provided under this subsection.
To the greatest extent possible, the Michigan merit examination shall be based on this state’s content standards, as appropriate. Annually, after each administration of the Michigan merit examination, the department shall provide a report of the points per standard so that teachers will know what content will be covered within the Michigan merit examination. The department may augment the college entrance and work skills components of the Michigan merit examination to develop the assessment, depending on the alignment of those components to this state’s content standards. If these components do not align to these standards, the department shall produce additional components as required by law, while minimizing the amount of time needed for assessments.
A child who is a student in a nonpublic school or home school may take the Michigan merit examination under this section. To take the Michigan merit examination, a child who is a student in a home school shall contact the district in which the child resides, and that district shall administer the Michigan merit examination, or the child may take the Michigan merit examination at a nonpublic school if allowed by the nonpublic school. Upon request from a nonpublic school, the superintendent shall direct the provider or providers to supply the Michigan merit examination to the nonpublic school and the nonpublic school may administer the Michigan merit examination. If a district administers the Michigan merit examination under this subsection to a child who is not enrolled in the district, the scores for that child are not considered for any purpose to be scores of a pupil of the district.
In contracting under subsection (2), the department of technology, management, and budget shall consider a contractor that provides electronically-scored essays with the ability to score constructed response feedback in multiple languages and provide ongoing instruction and feedback.
The purpose of the Michigan merit examination is to assess pupil performance in mathematics, science, social studies, and English language arts for the purpose of improving academic achievement and establishing a statewide standard of competency. The assessment under this section provides a common measure of data that will contribute to the improvement of Michigan schools’ curriculum and instruction by encouraging alignment with Michigan’s curriculum framework standards and promotes pupil participation in higher level mathematics, science, social studies, and English language arts courses. These standards are based upon the expectations of what pupils should learn through high school and are aligned with national standards.
For a pupil enrolled in a middle college program, other than a middle college operated as a shared educational entity or a specialized shared educational entity, if the pupil receives at least 50% of his or her the pupil’s instruction at the high school while in grade 11, the Michigan merit examination shall be administered to the pupil at the high school at which the pupil receives high school instruction, and the department shall include the pupil’s scores on the Michigan merit examination in the scores for that high school for all purposes for which a school’s or district’s results are reported. The department shall allow the middle college program to use a 5-year graduation rate for determining adequate yearly progress. As used in this subsection, “middle college” means a program consisting of a series of courses and other requirements and conditions, including an early college or other program created under a memorandum of understanding, that allows a pupil to graduate from high school with both a high school diploma and a certificate or degree from a community college or state public university.
As used in this section:
“English language arts” means reading and writing.
“Social studies” means United States history, world history, world geography, economics, and American government.
For each report made by the department that includes the statewide assessment results for a school building, the department shall include the scores for the statewide assessment and the graduation rate for consortium pupils with the scores for the school building in the participating district in which the consortium pupil is enrolled or would otherwise attend. The statewide assessment for a consortium pupil may be administered either at the consortium location or at the school building in the participating district in which the consortium pupil is enrolled or would otherwise attend. For the purposes of this subsection, a consortium pupil is a pupil who is enrolled or participating in a participating district in a school or program operated as a consortium or under a cooperative arrangement formed by 2 or more districts or intermediate districts, including, but not limited to, a consortium or cooperative arrangement operated as a program, a shared educational entity, a specialized educational entity, or a special education center program.
Sec. 104h. (1) From the state school aid fund money appropriated under section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $11,500,000.00 to districts to implement benchmark assessments during the 2024-2025 2025-2026 school year. All of the following apply to the benchmark assessment system described in this subsection:
The system must provide for all of the following:
That, within the first 9 weeks of the 2024-2025 2025-2026 school year, the district shall administer 1 or more benchmark assessments provided by a provider approved under subsection (6), benchmark assessments described in subdivision (b), or local benchmark assessments, or any combination thereof, to all pupils in grades K to 8 to measure proficiency in reading and mathematics.
That, in addition to the benchmark assessment or benchmark assessments administered under subparagraph (i), by not later than the last day of the 2024-2025 2025-2026 school year, the district shall administer the benchmark assessment or assessments administered under subparagraph (i) to all pupils in grades K to 8 to measure proficiency in reading and mathematics. To support fall to spring growth calculations, the same benchmark assessment that is administered in the fall must be administered in the spring.
Except as otherwise provided in this section, a district may administer 1 or more of the following benchmark assessments toward meeting the requirements under subdivision (a):
A benchmark assessment in reading for students in grades K to 9 that contains progress monitoring tools and enhanced diagnostic assessments.
A benchmark assessment in math for students in grades K to 8 that contains progress monitoring tools.
The system must provide that, to the extent practicable, if a district administers a benchmark assessment or benchmark assessments under this section, the district shall administer the same benchmark assessment or benchmark assessments provided by a provider approved under subsection (6), benchmark assessment or benchmark assessments described in subdivision (b), or local benchmark assessment or local benchmark assessments that it administered to pupils in previous school years, as applicable.
The system must provide that, if a district administers a benchmark assessment or benchmark assessments under this section, the district shall provide each pupil’s data from the benchmark assessment or benchmark assessments, as available, to the pupil’s parent or legal guardian within 30 days of administering the benchmark assessment or benchmark assessments.
The system must provide that, if a local benchmark assessment or local benchmark assessments are administered under subdivision (a), the district shall report to the department, and the center, in a form and manner prescribed by the center, department, the local benchmark assessment or local benchmark assessments that were administered and how that assessment or those assessments measure changes, including any losses, as applicable, in learning, and the district’s plan for addressing any losses in learning.
The system must provide that, by not later than 30 days after a benchmark assessment or benchmark assessments are administered under subdivision (a)(ii), or within a time frame specified by the department, the district shall send benchmark assessment data, including grade level, student demographics, and mode of instruction, to the department in a form and manner prescribed by the department, from all benchmark assessments administered in the 2024-2025 2025-2026 school year, excluding data from a local benchmark assessment, as applicable. If available, the data described in this subdivision must include information concerning pupil growth from fall 2024 2025 to spring 2025.2026.
To receive funding under this section, a district must do all of the following:
Apply for the funding in a form and manner prescribed by the department.
Administer 1 or more of the benchmark assessments described in subsection (6), excluding the benchmark assessment described in subsection (4).
Administer the same benchmark assessment or assessments in both the fall and spring, as required under this section.
Meet all reporting requirements pertaining to assessment and mode-of-instruction data outlined in this section.
Subject to subsection (2), the department shall pay an equal amount per membership pupil in grades K to 8 in the district to each district that applies for funding under this section.
The department shall make 1 of the benchmark assessments provided by a provider approved under subsection (6) available to districts at no cost to the districts for purposes of meeting the requirements under this section. The benchmark assessment described in this subsection must meet all of the following:
Be aligned to the content standards of this state.
Complement the state’s summative assessment system.
Be internet-delivered and include a standards-based assessment.
Provide information on pupil achievement with regard to learning content required in a given year or grade span.
Provide timely feedback to pupils and teachers.
Be nationally normed.
Provide information to educators about student growth and allow for multiple testing opportunities.
By not later than November 15 , 2025, of each year subsequent to a year in which funding is appropriated under this section, the department shall submit a report to the house and senate appropriations committees, the house and senate appropriations subcommittees on school aid, and the house and senate fiscal agencies regarding the benchmark assessment data received under this section, disaggregated by grade level and demographic subgroup for each district. If information concerning pupil growth is included in the data described in this subsection, it must be incorporated in the report described in this subsection.
The department shall approve at least 4 but not more than 6 providers of benchmark assessments for the purposes of this section. The department shall inform districts of all of the providers approved under this subsection in an equitable manner. The benchmark assessments, with the exclusion of the benchmark assessment described in subsection (4), provided by approved providers under this subsection must meet all of the following:
Be aligned to the content standards of this state.
Complement the state’s summative assessment system.
Be internet-delivered and include a standards-based remote, in-person, or both remote and in-person assessment using a computer-adaptive model to target the instructional level of each pupil.
Provide information on pupil achievement with regard to learning content required in a given year or grade span.
Provide immediate feedback to pupils and teachers.
Be nationally normed.
Provide multiple measures of growth and provide for multiple testing opportunities.
Sec. 107. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $40,500,000.00 $32,913,600.00 for 2024-2025 2025-2026 for adult education programs authorized under this section. Except as otherwise provided under subsections (14) and (15), funds allocated under this section are restricted for adult education programs as authorized under this section only. A recipient of funds under this section shall not use those funds for any other purpose.
To be eligible for funding under this section, an eligible adult education provider shall employ certificated teachers and qualified administrative staff and shall offer continuing education opportunities for teachers to allow them to maintain certification.
To be eligible to be a participant funded under this section, an individual must be enrolled in an adult basic education program, an adult secondary education program, an adult English as a second language program, a high school equivalency test preparation program, or a high school completion program, that meets the requirements of this section, and for which instruction is provided, and the individual must be at least 18 years of age by July 1 of the program year and the individual’s graduating class must have graduated.
By April 1 of each fiscal year for which funding is allocated under this section, the intermediate districts within a prosperity region or subregion shall determine which intermediate district will serve as the prosperity region’s or subregion’s fiscal agent for the next fiscal year and shall notify the department in a form and manner determined by the department. The department shall approve or disapprove of the prosperity region’s or subregion’s selected fiscal agent. From the funds allocated under subsection (1), an amount as determined under this subsection is allocated to each intermediate district serving as a fiscal agent for adult education programs in each of the prosperity regions or subregions identified by the department. An intermediate district shall not use more than 5% of the funds allocated under this subsection for administration costs for serving as the fiscal agent. The allocation provided to each intermediate district serving as a fiscal agent must be calculated as follows:
Sixty percent of this portion of the funding must be distributed based upon the proportion of the state population of individuals between the ages of 18 and 24 that are not high school graduates that resides in each of the prosperity regions or subregions located within the intermediate district, as reported by the most recent 5-year estimates from the American Community Survey (ACS) from the United States Census Bureau.
Thirty-five percent of this portion of the funding must be distributed based upon the proportion of the state population of individuals age 25 or older who are not high school graduates that resides in each of the prosperity regions or subregions located within the intermediate district, as reported by the most recent 5-year estimates from the ACS from the United States Census Bureau.
Five percent of this portion of the funding must be distributed based upon the proportion of the state population of individuals age 18 or older who lack basic English language proficiency that resides in each of the prosperity regions or subregions located within the intermediate district, as reported by the most recent 5-year estimates from the ACS from the United States Census Bureau.
To be an eligible fiscal agent, an intermediate district must agree to do the following in a form and manner determined by the department:
Distribute funds to adult education programs in a prosperity region or subregion as described in this section.
Collaborate with the career and educational advisory council, which is an advisory council of the workforce development boards located in the prosperity region or subregion, or its successor, to develop a regional strategy that aligns adult education programs and services into an efficient and effective delivery system for adult education learners, with special consideration for providing contextualized learning and career pathways and addressing barriers to education and employment.
Collaborate with the career and educational advisory council, which is an advisory council of the workforce development boards located in the prosperity region or subregion, or its successor, to create a local process and criteria that will identify eligible adult education providers to receive funds allocated under this section based on location, demand for services, past performance, quality indicators as identified by the department, and cost to provide instructional services. The fiscal agent shall determine all local processes, criteria, and provider determinations. However, the local processes, criteria, and provider services must be approved by the department before funds may be distributed to the fiscal agent.
Provide oversight to its adult education providers throughout the program year to ensure compliance with the requirements of this section.
Report adult education program and participant data and information as prescribed by the department.
An adult basic education program, an adult secondary education program, or an adult English as a second language program operated on a year-round or school year basis may be funded under this section, subject to all of the following:
The program enrolls adults who are determined by a department-approved assessment, in a form and manner prescribed by the department, to be below twelfth grade level in reading or mathematics, or both, or to lack basic English proficiency.
The program tests individuals for eligibility under subdivision (a) before enrollment and upon completion of the program in compliance with the state-approved assessment policy.
A participant in an adult basic education program is eligible for reimbursement until 1 of the following occurs:
The participant’s reading and mathematics proficiency are assessed at or above the ninth grade level.
The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction.
A participant in an adult secondary education program is eligible for reimbursement until 1 of the following occurs:
The participant’s reading and mathematics proficiency are assessed above the twelfth grade level.
The participant fails to show progress on 2 successive assessments after having at least 450 hours of instruction.
A funding recipient enrolling a participant in an English as a second language program is eligible for funding according to subsection (9) until the participant meets 1 of the following:
The participant is assessed as having attained basic English proficiency as determined by a department- approved assessment.
The participant fails to show progress on 2 successive department-approved assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.
A high school equivalency test preparation program operated on a year-round or school year basis may be funded under this section, subject to all of the following:
The program enrolls adults who do not have a high school diploma or a high school equivalency certificate.
The program administers a pre-test approved by the department before enrolling an individual to determine the individual’s literacy levels, administers a high school equivalency practice test to determine the individual’s potential for success on the high school equivalency test, and administers a post-test upon completion of the program in compliance with the state-approved assessment policy.
A funding recipient receives funding according to subsection (9) for a participant, and a participant may be enrolled in the program until 1 of the following occurs:
The participant achieves a high school equivalency certificate.
The participant fails to show progress on 2 successive department-approved assessments used to determine readiness to take a high school equivalency test after having completed at least 450 hours of instruction.
A high school completion program operated on a year-round or school year basis may be funded under this section, subject to all of the following:
The program enrolls adults who do not have a high school diploma.
The program tests participants described in subdivision (a) before enrollment and upon completion of the program in compliance with the state-approved assessment policy.
A funding recipient receives funding according to subsection (9) for a participant in a course offered under this subsection until 1 of the following occurs:
The participant passes the course and earns a high school diploma.
The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled after having completed at least 900 hours of instruction.
The department shall make payments to a funding recipient under this section in accordance with all of the following:
Statewide allocation criteria, including 3-year average enrollments, census data, and local needs.
Participant completion of the adult basic education objectives by achieving an educational gain as determined by the national reporting system levels; for achieving basic English proficiency, as determined by the department; for achieving a high school equivalency certificate or passage of 1 or more individual high school equivalency tests; for attainment of a high school diploma or passage of a course required for a participant to attain a high school diploma; for enrollment in a postsecondary institution; or for entry into or retention of employment, as applicable.
Participant completion of core indicators as identified in the workforce innovation and opportunity act, Public Law 113-128.
Allowable expenditures.
An individual who is not eligible to be a participant funded under this section may receive adult education services upon the payment of tuition. In addition, an individual who is not eligible to be served in a program under this section due to the program limitations specified in subsection (6), (7), or (8) may continue to receive adult education services in that program upon the payment of tuition. The local or intermediate district conducting the program shall determine the tuition amount.
An individual who is an inmate in a state correctional facility is not counted as a participant under this section.
A funding recipient shall not commingle money received under this section or from another source for adult education purposes with any other funds and shall establish a separate ledger account for funds received under this section. This subsection does not prohibit a district from using general funds of the district to support an adult education or community education program.
A funding recipient receiving funds under this section may establish a sliding scale of tuition rates based upon a participant’s family income. A funding recipient may charge a participant tuition to receive adult education services under this section from that sliding scale of tuition rates on a uniform basis. The amount of tuition charged per participant must not exceed the actual operating cost per participant minus any funds received under this section per participant. A funding recipient may not charge a participant tuition under this section if the participant’s income is at or below 200% of the federal poverty guidelines published by the United States Department of Health and Human Services.
To receive funds under this section, a funding recipient shall furnish to the department, in a form and manner determined by the department, all information needed to administer this program and meet federal reporting requirements; shall allow the department or the department’s designee to review all records related to the program for which it receives funds; and shall reimburse the state for all disallowances found in the review, as determined by the department. In addition, a funding recipient shall agree to pay to a career and technical education program under section 61a the amount of funding received under this section in the proportion of career and technical education coursework used to satisfy adult basic education programming, as billed to the funding recipient by programs operating under section 61a.
From the amount appropriated in subsection (1), an amount not to exceed $4,000,000.00 is allocated for 2024-2025 2025-2026 to approved adult education programs that connect adult education participants with employers as provided under this subsection. The department shall determine regional planning allocations under this subsection to each intermediate district serving as a fiscal agent for adult education programs in each of the prosperity regions or subregions identified by the department in the same proportion as funding calculated and allocated under subsection (4). Funds not fully utilized within a region may be transferred to other regions as appropriate. To be eligible for funding under this subsection, a program must provide a collaboration linking adult education programs within the county, state-approved career and technical education programs, and local employers. To receive funding under this subsection, an eligible program must satisfy all of the following:
Connect adult education participants directly with employers by linking adult education, career and technical skills, and workforce development.
Require adult education staff to work with Michigan Works! agency to identify a cohort of participants who are most prepared to successfully enter the workforce. Except as otherwise provided under this subdivision, participants identified under this subsection must be dually enrolled in adult education programming and in at least 1 state-approved technical course through a career and technical education program. A program that links participants identified under this subsection with adult education programming and commercial driver license courses does not need to enroll the participants in at least 1 state- approved technical course through a career and technical education program to be considered an eligible program under this subsection.
Employ an individual staffed as an adult education navigator who will serve as a caseworker for each participant identified under subdivision (b). The navigator shall work with adult education staff and potential employers to design an educational program best suited to the personal and employment needs of the participant and shall work with human service agencies or other entities to address any barrier in the way of participant access.
By not later than December 1 of each year, a program funded under subsection (15) shall provide a report to the senate and house appropriations subcommittees on school aid, to the senate and house fiscal agencies, and to the state budget director identifying the number of participants, graduation rates, and a measure of transition to employment.
Except as otherwise provided in this subsection, participants under subsection (15) must be concurrently enrolled and actively working toward obtaining a high school diploma or a high school equivalency certificate. Concurrent enrollment is not required under this subsection for a participant that was enrolled in adult education during the same program year and obtained a high school diploma or a
high school equivalency certificate before enrollment in an eligible career and technical skills program under subsection (15). Up to 10% of adult education participants served under subsection (15) may already have a high school diploma or a high school equivalency certificate at the time of enrollment in an eligible career and technical skills program under subsection (15) and receive remediation services. It is intended that the cap described in the immediately preceding sentence is continually lowered on an annual basis until it eventually is 0%.
The department shall approve at least 2 high school equivalency tests and determine whether a high school equivalency certificate meets the requisite standards for high school equivalency in this state.
As used in this section:
“Career and educational advisory council” means an advisory council to the local workforce development boards located in a prosperity region consisting of educational, employer, labor, and parent representatives.
“Career pathway” means a combination of rigorous and high-quality education, training, and other services that comply with all of the following:
Aligns with the skill needs of industries in the economy of this state or in the regional economy involved.
Prepares an individual to be successful in any of a full range of secondary or postsecondary education options, including apprenticeships registered under the act of August 16, 1937, commonly referred to as the national apprenticeship act, 29 USC 50 et seq.
Includes counseling to support an individual in achieving the individual’s education and career goals.
Includes, as appropriate, education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster.
Organizes education, training, and other services to meet the particular needs of an individual in a manner that accelerates the educational and career advancement of the individual to the extent practicable.
Enables an individual to attain a secondary school diploma or its recognized equivalent, and at least 1 recognized postsecondary credential.
Helps an individual enter or advance within a specific occupation or occupational cluster.
“Department” means the department of labor and economic opportunity.
“Eligible adult education provider” means a district, intermediate district, a consortium of districts, a consortium of intermediate districts, or a consortium of districts and intermediate districts that is identified as part of the local process described in subsection (5)(c) and approved by the department.
Sec. 111. A district having tuition pupils enrolled on the pupil membership count day of each year may charge the district of residence an amount for tuition that does not exceed the tuition rate computed under section 1401 of the revised school code, MCL 380.1401. The rate charged by a district shall be uniform within each category of tuition pupils enrolled in the district. However, for a tuition pupil who resides in a K-5, K-6, or K-8 district and who is enrolled in a grade not offered by the pupil’s district of residence, the tuition rate charged to the pupil’s district of residence shall not exceed the foundation allowance of the pupil’s district of residence or the foundation allowance of the educating district, whichever is greater. A district receiving funds under this act shall not charge tuition to the parent or legal guardian of a pupil enrolled in the district as a nonresident pupil.
Sec. 147. (1) The allocation for 2024-2025 2025-2026 for the public school employees’ retirement system pursuant to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, is made using the individual projected benefit entry age normal cost method of valuation and risk assumptions adopted by the public school employees retirement board and the department of technology, management, and budget.
The annual level percentage of payroll contribution rates for the 2024-2025 2025-2026 fiscal year, as determined by the retirement system, are estimated as follows:
For public school employees who first worked for a public school reporting unit before July 1, 2010 and who are enrolled in the health premium subsidy, the annual level percentage of payroll contribution rate is estimated at 41.94% 44.93% with 31.36% 29.91% paid directly by the employer.
For public school employees who first worked for a public school reporting unit on or after July 1, 2010 and who are enrolled in the health premium subsidy, the annual level percentage of payroll contribution rate is estimated at 38.10% 40.19% with 27.52% 25.17% paid directly by the employer.
For public school employees who first worked for a public school reporting unit on or after July 1, 2010 and who participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is estimated at 36.85% 36.36% with 26.27% 21.34% paid directly by the employer.
For public school employees who first worked for a public school reporting unit on or after September 4, 2012, who elect defined contribution, and who participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is estimated at 31.54% 30.23% with 20.96% 15.21% paid directly by the employer.
For public school employees who first worked for a public school reporting unit before July 1, 2010, who elect defined contribution, and who are enrolled in the health premium subsidy, the annual level percentage of payroll contribution rate is estimated at 32.79% 34.06% with 22.21% 19.04% paid directly by the employer.
For public school employees who first worked for a public school reporting unit before July 1, 2010, who elect defined contribution, and who participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is estimated at 31.54% 30.23% with 20.96% 15.21% paid directly by the employer.
For public school employees who first worked for a public school reporting unit before July 1, 2010 and who participate in the personal healthcare fund, the annual level percentage of payroll contribution rate is estimated at 40.69% 41.10% with 30.11% 26.08% paid directly by the employer.
For public school employees who first worked for a public school reporting unit after January 31, 2018 and who elect to become members of the MPSERS plan, the annual level percentage of payroll contribution rate is estimated at 37.74% 36.43% with 27.16% 21.41% paid directly by the employer.
In addition to the employer payments described in subsection (2), the employer shall pay the applicable contributions to the Tier 2 plan, as determined by the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.
The contribution rates in subsection (2) reflect an amortization period of 14 13 years for 2024-2025. The public school employees’ retirement system board shall notify each district and intermediate district by February 28 of each fiscal year of the estimated contribution rate for the next fiscal year.
Sec. 147a. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2023- 2024 an amount not to exceed $100,000,000.00 and for 2024-2025 an amount not to exceed $100,000,000.00 for payments to participating districts. A participating district that receives money under this subsection shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the district for the fiscal year in which it is received. The amount allocated to each participating district under this subsection is based on each participating district’s percentage of the total statewide payroll for all participating districts for the immediately preceding fiscal year. As used in this subsection, “participating district” means a district that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
In addition to the allocation under subsection (1), from the state school aid fund money appropriated under section 11, there is allocated an amount not to exceed $384,642,000.00 for 2023-2024 and an amount not to exceed $365,100,000.00 $414,900,000.00 for 2024-2025 and an amount not to exceed
$336,200,000.00 for 2024-2025, and from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated an amount not to exceed $24,850,000.00 for 2023-2024 only, 2025-2026 for payments to participating districts and intermediate districts and from the general fund money appropriated under section 11, there is allocated an amount not to exceed $108,000.00 for 2023-2024 and an amount not to exceed $100,000.00 for 2024-2025 and 2025-2026 for payments to participating district libraries. The amount allocated to each participating entity under this subsection is based on each participating entity’s reported quarterly payroll for members that became tier 1 before February 1, 2018 for the current fiscal year. A participating entity that receives money under this subsection shall use that money solely for the purpose of offsetting a portion of the normal cost contribution rate. As used in this subsection:
“District library” means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.
“Participating entity” means a district, intermediate district, or district library that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
In addition to the allocations under subsections (1) and (2), from the state school aid fund money appropriated in section 11, there is allocated for 2023-2024 and 2024-2025 only an amount not to exceed
$11,939,000.00 for payments to participating intermediate districts and participating district libraries. A participating intermediate district or participating district library shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the participating intermediate district or participating district library for the fiscal year in which it is received. The amount allocated to each participating intermediate district or participating district library under this subsection is calculated as follows:
For each participating intermediate district, $11,912,000.00 multiplied by each participating intermediate district’s percentage of the total statewide payroll for all participating intermediate districts for the immediately preceding fiscal year.
For each participating district library, $27,000.00 multiplied by each participating district library’s percentage of the total statewide payroll for all participating district libraries for the immediately preceding fiscal year.
As used in this subsection:
“Participating district library” means a district library that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
“Participating intermediate district” means an intermediate district that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
In addition to the allocations under subsections (1), (2), and (3), from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 an amount not to exceed $598,000,000.00 for payments to participating entities. The amount allocated to each participating entity under this subsection is based on each participating entity’s percentage of the total statewide payroll for all participating entities for the immediately preceding fiscal year. The amount allocated in this subsection represents an amount to effectively reduce each participating entity’s unfunded actuarial accrued liability from 20.96% to an estimated 15.21% of covered payroll. It is the intent of the legislature that the allocation under this subsection be used to support student mental health, school safety, the educator workforce, and academic interventions.
As used in this subsection:
“District library” means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.
“Participating entity” means a district, intermediate district, district library, or community college that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
Sec. 147c. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2024- 2025 2025-2026 an amount not to exceed $955,000,000.00 and from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated for 2024-2025 only an amount needed, estimated at $84,100,000.00 $1,536,500,000.00 for payments to districts and intermediate districts that are participating entities of the Michigan public school employees’ retirement system. In addition, from the general fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $300,000.00 for payments to district libraries that are participating entities of the Michigan public school employees’ retirement system. It is the intent of the legislature that money allocated from the MPSERS retirement obligation reform reserve fund under this subsection for 2024-2025 represents the amount necessary to reduce the payroll growth assumption to 0.25%. All of the following apply to funding under this subsection:
Except as otherwise provided in this subdivision, for 2024-2025, 2025-2026, the amounts allocated under this subsection are estimated to provide an average MPSERS rate cap per pupil amount of $740.00 and are estimated to provide a rate cap per pupil for districts ranging between $2.00 and $2,650.00.for districts of $1,100.00, which represents an average increase of $362.00 per pupil compared to the immediately preceding state fiscal year.
Payments made under this subsection are equal to the difference between the unfunded actuarial accrued liability contribution rate as calculated under section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of 20.96% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341.
The amount allocated to each participating entity under this subsection is based on each participating entity’s proportion of the total covered payroll for the immediately preceding fiscal year for the same type of participating entities. A participating entity that receives funds under this subsection shall use the funds solely for the purpose of retirement contributions as specified in subdivision (d).
Each participating entity receiving funds under this subsection shall forward an amount equal to the amount allocated under subdivision (c) to the retirement system in a form, manner, and time frame determined by the retirement system.
Funds allocated under this subsection should be considered when comparing a district’s growth in total state aid funding from 1 fiscal year to the next.
By not later than December 20 of each fiscal year for which funding is allocated under this subsection, the department shall publish and post on its website an estimated MPSERS rate cap per pupil for each district.
(2) In addition to the funds allocated under subsection (1), from the MPSERS retirement obligation reform reserve fund money appropriated in section 11, there is allocated for 2024-2025 only $250,000,000.00 for payments to participating entities of the Michigan public school employees’ retirement system. The amount allocated to each participating entity under this subsection must be based on each participating entity’s proportion of the total covered payroll for the immediately preceding fiscal year. A participating entity that receives funds under this subsection shall use the funds solely for purposes of this subsection. Each participating entity receiving funds under this subsection shall forward an amount equal to the amount allocated under this subsection to the retirement system in a form, manner, and time frame determined by the retirement system. The retirement system shall recognize funds received under this subsection as additional assets being contributed to the system and shall not categorize them as unfunded actuarial liability contributions or normal cost contributions.
(a) “Community college” means a community college created under the community college act of 1966, 1966 PA 331, MCL 389.1 to 389.195.
(b) “District library” means a district library established under the district library establishment act, 1989 PA 24, MCL 397.171 to 397.196.
(c) “MPSERS rate cap per pupil” means an amount equal to the quotient of the district’s payment under this section divided by the district’s pupils in membership.
(d) “Participating entity” means, except as otherwise provided in this subdivision, a district, intermediate district, or district library that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year. As used in subsection (2) only, “participating entity” also means a community college that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
(e) “Retirement system” means the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.
Sec. 147e. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2023- 2024 an amount not to exceed $64,400,000.00, and there is allocated for 2024-2025 an amount not to exceed $71,600,000.00, and there is allocated for 2025-2026 an amount not to exceed $104,700,000.00
The payment to each participating entity under this section is the sum of the amounts under this subsection as follows:
An amount equal to the contributions made by a participating entity for the additional contribution made to a qualified participant’s Tier 2 account in an amount equal to the contribution made by the qualified participant not to exceed 3% of the qualified participant’s compensation as provided for under section 131(6) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1431.
Beginning October 1, 2017, an amount equal to the contributions made by a participating entity for a qualified participant who is only a Tier 2 qualified participant under section 81d of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning February 1, 2018, not to exceed 1%, of the qualified participant’s compensation.
An amount equal to the increase in employer normal cost contributions under section 41b(2) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member that was hired after February 1, 2018 and chose to participate in Tier 1, compared to the employer normal cost contribution for a member under section 41b(1) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341b.
As used in this section:
“Member” means that term as defined under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.
“Participating entity” means a district, intermediate district, or community college that is a reporting unit of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to the Michigan public school employees’ retirement system for the applicable fiscal year.
“Qualified participant” means that term as defined under section 124 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1424.
Sec. 152a. (1) As required by the court in the consolidated cases known as Adair v State of Michigan, 486 Mich 468 (2010), from the state school aid fund money appropriated in section 11, there is allocated for 2024-2025 2025-2026 an amount not to exceed $41,000,500.00 to be used solely for the purpose of paying
necessary costs related to the state-mandated collection, maintenance, and reporting of data to this state. From this allocation, $3,000,000.00 is allocated for costs associated with collecting data necessary to provide reporting to tribal governments on the status of students affiliated with their particular tribe and data necessary to determine student participation in federal programs funded under 20 USC 7401 to 7546 and participation in federal programs funded under the Johnson-O’Malley Supplemental Indian Education Program Modernization Act, Public Law 115-404.
(2) From the allocation in subsection (1), the department shall make payments to districts and intermediate districts in an equal amount per pupil based on the total number of pupils in membership in each district and intermediate district. The department shall not make any adjustment to these payments after the final installment payment under section 17b is made.
Sec. 152b. (1) From the general fund money appropriated under section 11, there is allocated an amount not to exceed $1,000,000.00 for 2024-2025 2025-2026 to reimburse actual costs incurred by nonpublic schools in complying with a health, safety, or welfare requirement mandated by a law or administrative rule of this state.
By January 1 of each applicable fiscal year, the department shall publish a form for reporting actual costs incurred by a nonpublic school in complying with a health, safety, or welfare requirement mandated under state law containing each health, safety, or welfare requirement mandated by a law or administrative rule of this state applicable to a nonpublic school and with a reference to each relevant provision of law or administrative rule for the requirement. The form must be posted on the department’s website in electronic form.
By June 30 of each applicable fiscal year, a nonpublic school seeking reimbursement for actual costs incurred in complying with a health, safety, or welfare requirement under a law or administrative rule of this state during each applicable school year must submit a completed form described in subsection (2) to the department. This section does not require a nonpublic school to submit a form described in subsection (2). A nonpublic school is not eligible for reimbursement under this section if the nonpublic school does not submit the form described in subsection (2) in a timely manner.
By August 15 of each applicable fiscal year, the department shall distribute funds to each nonpublic school that submits a completed form described under subsection (2) in a timely manner. The superintendent shall determine the amount of funds to be paid to each nonpublic school in an amount that does not exceed the nonpublic school’s actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule of this state. The superintendent shall calculate a nonpublic school’s actual cost in accordance with this section.
If the funds allocated under this section are insufficient to fully fund payments as otherwise calculated under this section, the department shall distribute funds under this section on a prorated or other equitable basis as determined by the superintendent.
The department may review the records of a nonpublic school submitting a form described in subsection (2) only for the limited purpose of verifying the nonpublic school’s compliance with this section. If a nonpublic school does not allow the department to review records under this subsection, the nonpublic school is not eligible for reimbursement under this section.
The funds appropriated under this section are for purposes that are incidental to teaching and the provision of educational services to nonpublic school students; that are noninstructional in nature; that do not constitute a primary function or element necessary for a nonpublic school’s existence, operation, and survival; that do not involve or result in excessive religious entanglement; and that are intended for the public purpose of ensuring the health, safety, and welfare of the children in nonpublic schools and to reimburse nonpublic schools for costs described in this section.
Funds allocated under this section are not intended to aid or maintain any nonpublic school, support the attendance of any student at a nonpublic school, employ any person at a nonpublic school, support the attendance of any student at any location where instruction is offered to a nonpublic school student, or support the employment of any person at any location where instruction is offered to a nonpublic school student.
For purposes of this section, “actual cost” means the hourly wage for the employee or employees performing a task or tasks required to comply with a health, safety, or welfare requirement under a law or administrative rule of this state identified by the department under subsection (2) and is to be calculated in accordance with the form published by the department under subsection (2), which must include a detailed itemization of costs. The nonpublic school shall not charge more than the hourly wage of its lowest-paid employee capable of performing a specific task regardless of whether that individual is available and regardless of who actually performs a specific task. Labor costs under this subsection must be estimated and charged in increments of 15 minutes or more, with all partial time increments rounded down. When calculating costs under subsection (4), fee components must be itemized in a manner that expresses both the hourly wage and the number of hours charged. The nonpublic school may not charge any applicable labor charge amount to cover or partially cover the cost of health or fringe benefits. A nonpublic school shall not charge any overtime wages in the calculation of labor costs.
Training fees, inspection fees, and criminal background check fees are considered actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule of this state.
The funds allocated under this section for 2024-2025 2025-2026 are a work project appropriation, and any unexpended funds for 2024-2025 2025-2026 are carried forward into 2025-2026. 2026-2027. The purpose of the work project is to continue to reimburse nonpublic schools for actual costs incurred in complying with a health, safety, or welfare requirement mandated by a law or administrative rule of this state. The estimated completion date of the work project is September 30, 2026.2027.
The department shall reimburse nonpublic schools for actual costs incurred in complying with health, safety, or welfare requirements under a law or administrative rule of this state from 2017-2018 through 2022- 2023 using work project funds or, if those funds are insufficient to fund reimbursements under this subsection, from the allocation under subsection (1).
Sec. 161a. If a court determines that a person intentionally violated section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, by making a false report of the commission of a crime described in section 6(6)(f) 6(6)(e) knowing the report to be false for the purpose of having a pupil counted in membership in a district under section 6(6)(f), 6(6)(e), as part of the restitution ordered under section 30 of chapter XIIA of 1939 PA 288, MCL 712A.30, section 16, 44, or 76 of the crime victim’s rights act, 1985 PA 87, MCL 780.766, 780.794, and 780.826, or section 1a of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.1a, the court may order the person to pay the pupil’s district of residence an amount that is not more than the state school aid that district would have received attributable to the pupil if the pupil had been counted in membership in his or her the pupil’s district of residence.
Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for community colleges for the fiscal year ending September 30, 2025, 2026, from the funds indicated in this section. The following is a summary of the appropriations in this section and section 201f:
The gross appropriation is $462,220,800.00. $493,032,100.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is
$462,220,800.00.$493,032,100.00.
The sources of the adjusted gross appropriation described in subdivision (a) are as follows:
Total federal revenues, $0.00.
Total local revenues, $0.00.
Total private revenues, $0.00.
Total other state restricted revenues, $461,720,800.00.$493,032,100.00.
State general fund/general purpose money, $500,000.00.$0.00.
Subject to subsection (3), the amount appropriated for community college operations is
$363,363,500.00, $363,570,600.00, allocated as follows:
The appropriation for Alpena Community College is $6,425,100.00, $6,300,600.00 for operations,
$102,700.00 for performance funding, and $21,800.00 for costs incurred under the North American Indian tuition waiver.$6,416,800.00, $6,403,300.00 for operations, $0.00 for performance funding, and
The appropriation for Bay de Noc Community College is $6,398,000.00, $6,185,300.00 for operations,
$112,700.00 for performance funding, and $100,000.00 for costs incurred under the North American Indian tuition waiver.$6,390,000.00, $6,298,000.00 for operations, $0.00 for performance funding, and
The appropriation for Delta College is $16,907,200.00, $16,642,300.00 for operations, $240,100.00 for performance funding, and $24,800.00 for costs incurred under the North American Indian tuition waiver.$16,934,200.00, $16,882,400.00 for operations, $0.00 for performance funding, and $51,800.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Glen Oaks Community College is $2,985,900.00, $2,939,000.00 for operations,
$45,100.00 for performance funding, and $1,800.00 for costs incurred under the North American Indian tuition waiver.$2,987,000.00, $2,984,100.00 for operations, $0.00 for performance funding, and
The appropriation for Gogebic Community College is $5,447,400.00, $5,329,700.00 for operations,
$69,300.00 for performance funding, and $48,400.00 for costs incurred under the North American Indian tuition waiver.$5,439,100.00, $5,399,000.00 for operations, $0.00 for performance funding, and
The appropriation for Grand Rapids Community College is $21,295,300.00, $20,844,400.00 for operations, $339,800.00 for performance funding, and $111,100.00 for costs incurred under the North American Indian tuition waiver.$21,337,300.00, $21,184,200.00 for operations, $0.00 for performance funding, and $153,100.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Henry Ford College is $25,307,100.00, $24,929,800.00 for operations,
$370,900.00 for performance funding, and $6,400.00 for costs incurred under the North American Indian tuition waiver.$25,305,200.00, $25,300,700.00 for operations, $0.00 for performance funding, and
The appropriation for Jackson College is $14,074,900.00, $13,854,100.00 for operations, $178,500.00 for performance funding, and $42,300.00 for costs incurred under the North American Indian tuition waiver.$14,059,700.00, $14,032,600.00 for operations, $0.00 for performance funding, and $27,100.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Kalamazoo Valley Community College is $14,741,600.00, $14,481,900.00 for operations, $222,500.00 for performance funding, and $37,200.00 for costs incurred under the North American Indian tuition waiver.$14,751,300.00, $14,704,400.00 for operations, $0.00 for performance funding, and $46,900.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Kellogg Community College is $11,462,100.00, $11,269,200.00 for operations,
$157,500.00 for performance funding, and $35,400.00 for costs incurred under the North American Indian tuition waiver.$11,453,400.00, $11,426,700.00 for operations, $0.00 for performance funding, and
The appropriation for Kirtland Community College is $3,860,900.00, $3,773,100.00 for operations,
$62,000.00 for performance funding, and $25,800.00 for costs incurred under the North American Indian tuition waiver.$3,881,400.00, $3,835,100.00 for operations, $0.00 for performance funding, and
The appropriation for Lake Michigan College is $6,414,200.00, $6,318,000.00 for operations,
$90,200.00 for performance funding, and $6,000.00 for costs incurred under the North American Indian tuition waiver.$6,427,600.00, $6,408,200.00 for operations, $0.00 for performance funding, and
The appropriation for Lansing Community College is $36,215,600.00, $35,689,200.00 for operations,
$445,200.00 for performance funding, and $81,200.00 for costs incurred under the North American Indian tuition waiver.$36,216,500.00, $36,134,400.00 for operations, $0.00 for performance funding, and
The appropriation for Macomb Community College is $38,184,300.00, $37,635,400.00 for operations,
$525,200.00 for performance funding, and $23,700.00 for costs incurred under the North American Indian tuition waiver.$38,251,500.00, $38,160,600.00 for operations, $0.00 for performance funding, and
The appropriation for Mid Michigan Community College is $5,912,500.00, $5,742,900.00 for operations, $94,100.00 for performance funding, and $75,500.00 for costs incurred under the North American Indian tuition waiver.$5,919,500.00, $5,837,000.00 for operations, $0.00 for performance funding, and $82,500.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Monroe County Community College is $5,370,300.00, $5,284,700.00 for operations, $83,800.00 for performance funding, and $1,800.00 for costs incurred under the North American Indian tuition waiver.$5,368,900.00, $5,368,500.00 for operations, $0.00 for performance funding, and
The appropriation for Montcalm Community College is $4,035,200.00, $3,957,200.00 for operations,
$76,100.00 for performance funding, and $1,900.00 for costs incurred under the North American Indian tuition waiver.$4,035,000.00, $4,033,300.00 for operations, $0.00 for performance funding, and
The appropriation for C.S. Mott Community College is $18,023,600.00, $17,791,700.00 for operations,
$226,100.00 for performance funding, and $5,800.00 for costs incurred under the North American Indian tuition waiver.$18,028,100.00, $18,017,800.00 for operations, $0.00 for performance funding, and
The appropriation for Muskegon Community College is $10,381,200.00, $10,210,900.00 for operations, $149,000.00 for performance funding, and $21,300.00 for costs incurred under the North American Indian tuition waiver.$10,403,400.00, $10,359,900.00 for operations, $0.00 for performance funding, and $43,500.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for North Central Michigan College is $4,110,200.00, $3,868,800.00 for operations,
$78,900.00 for performance funding, and $162,500.00 for costs incurred under the North American Indian tuition waiver.$4,110,100.00, $3,947,700.00 for operations, $0.00 for performance funding, and
The appropriation for Northwestern Michigan College is $10,816,600.00, $10,473,300.00 for operations, $146,500.00 for performance funding, and $196,800.00 for costs incurred under the North American Indian tuition waiver.$10,874,500.00, $10,619,800.00 for operations, $0.00 for performance funding, and $254,700.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Oakland Community College is $25,163,800.00, $24,733,600.00 for operations,
$396,400.00 for performance funding, and $33,800.00 for costs incurred under the North American Indian tuition waiver.$25,168,400.00, $25,130,000.00 for operations, $0.00 for performance funding, and
The appropriation for Schoolcraft College is $14,993,000.00, $14,711,800.00 for operations,
$260,200.00 for performance funding, and $21,000.00 for costs incurred under the North American Indian tuition waiver.$14,997,300.00, $14,972,000.00 for operations, $0.00 for performance funding, and
The appropriation for Southwestern Michigan College is $7,816,100.00, $7,682,800.00 for operations,
$103,800.00 for performance funding, and $29,500.00 for costs incurred under the North American Indian tuition waiver.$7,805,700.00, $7,786,600.00 for operations, $0.00 for performance funding, and
The appropriation for St. Clair County Community College is $8,366,100.00, $8,210,400.00 for operations, $131,600.00 for performance funding, and $24,100.00 for costs incurred under the North American Indian tuition waiver.$8,355,300.00, $8,342,000.00 for operations, $0.00 for performance funding, and $13,300.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Washtenaw Community College is $16,281,900.00, $15,925,500.00 for operations, $331,800.00 for performance funding, and $24,600.00 for costs incurred under the North American Indian tuition waiver.$16,276,300.00, $16,257,300.00 for operations, $0.00 for performance funding, and $19,000.00 for costs incurred under the North American Indian tuition waiver.
(aa) The appropriation for Wayne County Community College is $19,464,700.00, $19,193,300.00 for operations, $267,000.00 for performance funding, and $4,400.00 for costs incurred under the North American Indian tuition waiver.$19,462,800.00, $19,460,300.00 for operations, $0.00 for performance funding, and $2,500.00 for costs incurred under the North American Indian tuition waiver.
(bb) The appropriation for West Shore Community College is $2,908,700.00, $2,851,200.00 for operations, $45,500.00 for performance funding, and $12,000.00 for costs incurred under the North American Indian tuition waiver.$2,914,300.00, $2,896,700.00 for operations, $0.00 for performance funding, and $17,600.00 for costs incurred under the North American Indian tuition waiver.
The amount appropriated in subsection (2) for community college operations is $363,363,500.00
From the appropriations described in subsection (1), both of the following apply:
Subject to section 207a, the amount appropriated for fiscal year 2024-2025 2025-2026 to offset certain fiscal year 2024-2025 2025-2026 retirement contributions is $7,189,000.00, appropriated from the state school aid fund.
For fiscal year 2024-2025, 2025-2026, there is allocated an amount not to exceed $21,800,000.00
From the appropriations described in subsection (1), subject to section 207b, the amount appropriated for payments to community colleges that are participating entities of the retirement system is $62,100,000.00,
From the appropriations described in subsection (1), subject to section 207c, the amount appropriated for renaissance zone tax reimbursements is $2,200,000.00, appropriated from the state school aid fund. Each community college receiving funds in this subsection shall accrue these payments to its institutional fiscal year ending June 30, 2025.2026.
For fiscal year 2024-2025 only, from the appropriations described in subsection (1), the amount appropriated for career and education navigators for adult learners is $1,150,000.00, appropriated from the state school aid fund. Community colleges, partnering with 1 or more county governments, where practicable, may apply for grant funding through the department of lifelong education, advancement, and potential to supplement or create navigation efforts of adult learners. The department shall issue a report including, but not limited to, the number of grants awarded, a list of community colleges awarded grants and the amounts, and the amount of unexpended funds remaining at the end of the fiscal year. The report must be issued to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director by September 30, 2025.
For fiscal year 2024-2025 only, from the appropriations described in subsection (1), $500,000.00 is appropriated from state general fund/general purpose money to the Michigan Community Colleges Association to support a program intended to encourage high school students and young adults to pursue public-service-focused careers, including those in public safety, education, and health care.
For fiscal year 2024-2025 only, from the appropriations described in subsection (1), $350,000.00 is appropriated from the state school aid fund to Kalamazoo Valley Community College for internet accessibility improvements.
Sec. 201f. For fiscal year 2024-2025 2025-2026 only, from the appropriations described in section 201(1),
$3,568,300.00 $10,972,500.00 is appropriated from the state school aid fund for a 1-time performance funding payment. Funds appropriated under this section, subject to conditions described in sections 216e, 217b , and 230, must be distributed as follows:
Alpena Community College, $68,400.00.$271,100.00.
Bay de Noc Community College, $75,100.00.$178,200.00.
Delta College, $160,100.00.$493,300.00.
Glen Oaks Community College, $30,100.00.$91,200.00.
Gogebic Community College, $46,200.00.$139,500.00.
Grand Rapids Community College, $226,500.00.$685,500.00.
Henry Ford College, $247,300.00.$750,900.00.
Jackson College, $119,000.00.$364,800.00.
Kalamazoo Valley Community College, $148,300.00.$433,700.00.
Kellogg Community College, $105,000.00.$324,400.00.
Kirtland Community College, $41,300.00.$146,500.00.
Lake Michigan College, $60,100.00.$192,200.00.
Lansing Community College, $296,800.00.$924,700.00.
Macomb Community College, $350,100.00.$1,090,600.00.
Mid Michigan Community College, $62,700.00.$193,900.00.
Monroe County Community College, $55,900.00.$206,600.00.
Montcalm Community College, $50,800.00.$122,300.00.
C.S. Mott Community College, $150,700.00.$491,700.00.
Muskegon Community College, $99,300.00.$298,600.00.
North Central Michigan College, $52,600.00.$144,300.00.
Northwestern Michigan College, $97,700.00.$289,400.00.
Oakland Community College, $264,300.00.$816,500.00.
Schoolcraft College, $173,400.00.$503,200.00.
Southwestern Michigan College, $69,200.00.$210,400.00.
St. Clair County Community College, $87,800.00.$258,200.00.
Washtenaw Community College, $221,200.00.$664,900.00. (aa) Wayne County Community College, $178,000.00.$600,900.00. (bb) West Shore Community College, $30,400.00.$85,000.00.
Sec. 206. (1) Except for the funds appropriated in section 201(4)(b), the funds appropriated in section 201 are appropriated for community colleges with fiscal years ending June 30, 2025 2026 and must be paid out of the state treasury and distributed by the state treasurer to the respective community colleges in 11 monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2024. 2025. Each community college shall accrue its July and August 2025 2026 payments to its institutional fiscal year ending June 30, 2025.2026.
(2) The funds appropriated in section 201(4)(b) are appropriated for community colleges with fiscal years ending June 30, 2025 2026 and must be distributed to the respective community colleges in quarterly installments on the sixteenth of each November, February, May, and August. Each community college shall accrue its August 2025 2026 payments to its institutional fiscal year ending June 30, 2025.2026.
Sec. 207a. The following apply to the allocation of the fiscal year 2024-2025 appropriations described in section 201(4):
A community college that receives money under section 201(4) shall use that money solely for the purpose of offsetting a portion of the retirement contributions owed by the college for that fiscal year.
The amount allocated to each participating community college under section 201(4)(a) must be based on each college’s percentage of the total covered payroll for all community colleges that are participating colleges in the immediately preceding fiscal year.
The amount allocated to each participating community college under section 201(4)(b) must be based on each college’s reported quarterly payroll for members for the current fiscal year.
Sec. 207b. All of the following apply to the allocation of the fiscal year 2024-2025 appropriations appropriation described in section 201(5) for payments to community colleges that are participating entities of the retirement system:
The amount of a payment under section 201(5) must be the difference between the unfunded actuarial accrued liability contribution rate as calculated under section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the maximum employer rate of 20.96% 15.21% included in section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of 20.96% 15.21% under section 41 of the
public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341.
The amount allocated to each community college under section 201(5) must be based on each community college’s percentage of the total covered payroll for all community colleges that are participating colleges in the immediately preceding fiscal year. A community college that receives funds under this subdivision shall use the funds solely for the purpose of retirement contributions under section 201(5).
Each participating college that receives funds under section 201(5) shall forward an amount equal to the amount allocated under subdivision (b) to the retirement system in a form and manner determined by the retirement system.
Sec. 207c. All of the following apply to the allocation of the appropriations described in section 201(6) to community colleges described in section 12(3) of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692:
The amount allocated to each community college under section 201(6) for fiscal year 2024-2025 2025- 2026 must be based on that community college’s proportion of total revenue lost by community colleges as a result of the exemption of property taxes levied in 2024 2025 under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.
The appropriations described in section 201(6) must be made to each eligible community college within 60 days after the department of treasury certifies to the state budget director that it has received all necessary information to properly determine the amounts payable to each eligible community college under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.
Sec. 210. (1) Recognizing the critical importance of education in strengthening Michigan’s workforce, each community college is encouraged to shall explore ways of increasing collaboration and cooperation with 4-year universities, particularly in the areas related to training, instruction, and program articulation.
Recognizing the central role of community colleges in responding to local employment needs and challenges, community colleges shall develop and continue efforts to collaborate with local employers and students to identify local employment needs and strategies to meet them.
Community colleges are encouraged to shall collaborate with each other on innovations to identify and meet local employment needs.
Community colleges are encouraged to shall work with universities to develop equivalency standards of core college courses and identify equivalent courses offered by postsecondary institutions.
Sec. 210b. By March 1 of each year, the Michigan Community College Association and the Michigan Association of State Universities shall submit a report to the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the department of lifelong education, advancement, and potential, and the state budget director on the activities and programs focused on improving transfer student outcomes since March 1 of the previous year, including all of the following:
The direct transferability of mathematics gateway courses between and among community colleges and universities.
The implementation of MiTransfer pathways.
The progress on increasing participation in MiTransfer pathways among community colleges and public universities.
The implementation of the Michigan Transfer Network at mitransfer.org.
A progress report on the implementation of the Michigan transfer agreement.
Sec. 210d. (1) Community colleges are encouraged to shall work with public universities in the this state to implement statewide reverse transfer agreements to increase the number of students that are awarded credentials of value upon completion of the necessary credits. These statewide agreements shall must enable students who have earned a significant number of credits at a community college and transferred to a baccalaureate-granting institution before completing a degree to transfer the credits earned at the baccalaureate institution back to the community college in order to be awarded a credential of value.
Sec. 212. Community college districts are encouraged to evaluate and pursue efficiency and cost- containment measures that maximize state funding. Community colleges shall identify practices that increase efficiencies, including, but not limited to, establishing joint ventures, consolidating services, utilizing program collaborations, maximizing educational benefits through optimal class sizes and frequency of course offerings, increasing web-based instruction, eliminating low-enrollment and high-cost instructional programs, using self-insurance, practicing energy conservation, and utilizing group purchasing. Community colleges shall also review proposed capital outlay projects to increase coordination and utilization of new facilities, renovation projects, and technology improvements.
Sec. 216e. (1) Payments under section 201 for performance funding and under section 201f for 1-time performance funding payments must be made only to a community college that certifies to the state budget director by the last business day of August each year that it complies with the following:
The institutional best practice described in subdivision (c).
One or more of the institutional best practices described in subdivisions (d) to (g).
The community college accepts the Michigan Transfer Agreement, partners with the Michigan Transfer Network, and promotes clear transfer pathways for interested students by doing all of the following:
Has a policy to help transfer or accept associate degrees from other accredited Michigan postsecondary education institutions.
Publishes the policy described in subparagraph (i) on the institution’s website in an easily accessible way and in admissions materials.
Provides publicly available information on the Michigan Transfer Network, applicable transfer pathways, and financial aid available to transfer students, at no cost to the student.
Begins negotiations to increase the number of reverse transfer agreements or articulation agreements and reports on the progress toward completing the agreements to the state budget director by the last business day in February.
The community college requires all students to receive an academic degree or certificate map that outlines required course sequencing, program and institution requirements, declared minor program academic requirements, and a recommended timeline within which courses should be taken and in which specific semester or term in order to satisfy all program requirements to allow the student to graduate on time.
The community college provides non-credit-bearing developmental or remedial courses at a reduced cost to students.
The community college provides each degree- or certificate-seeking student with a designated, trained academic advisor to support student retention, persistence, and completion. The community college shall require students to meet with their academic advisor at least once per semester or term.
The community college provides employees during business hours to assist prospective and current students in completing the Free Application for Federal Student Aid.
The state budget director shall implement uniform reporting requirements to ensure that a community college receiving a payment under section 201 for performance funding and under section 201f for 1-time performance funding payments has satisfied the institutional best practices requirements of this section. The state budget director has the sole authority to determine if a community college has met the requirements of this section. Information reported by a community college to the state budget director under this subsection must also be reported to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies.
If a community college fails to comply with the certification requirements of this section, the state treasurer may withhold the monthly installments under section 206 to the community college until the certification is completed. If a community college does not comply with the certification requirements described in this section by the end of the fiscal year, the community college forfeits the amount withheld. Forfeited funds must lapse to the state school aid fund. The state budget director shall notify the chairs of the house and senate appropriations subcommittees on higher education at least 10 days before withholding funds from any community college.
Sec. 217a. (1) Each community college that receives an appropriation in section 201 shall submit all of the following information in the form and manner specified by the center:
The Michigan community colleges verified data inventory data for the preceding academic year to the center by the first business day of November of each year as specified in section 217.
Tuition and mandatory fees information as specified in section 217b.
The longitudinal data set to the center as specified in section 219.
The number and type of associate degrees, baccalaureate degrees, and other certificates awarded as specified in section 219.
The annual independent audit as specified in section 222.
If the state budget director determines that a community college failed to submit any of the information described in subsection (1) in the form and manner specified by the center, the state treasurer may withhold the monthly state operations installments described in section 206 201 from that community college until those data are submitted. If a community college does not submit any of the information described in subsection (1) by the end of the fiscal year, the community college forfeits any withheld amount. The state budget director shall notify the chairs of the house and senate appropriations subcommittees on community colleges at least 10 days before withholding funds from any community college.
It is intended that accountability reporting for community colleges will be streamlined through the center. The state budget director and the center shall work to combine the reporting requirements outlined in this subsection with the existing Michigan community colleges verified data inventory collection cycle. All of the following must be reported to the house and senate fiscal agencies and the state budget director:
Each community college’s certification of its compliance with the requirements described in subsections (4) and (5).
The reporting and certification requirements of subsections (6) and (7) and section 217b.
No later than the first last business day of November of each year, each community college that receives an appropriation in section 201 shall make all of the information described in subdivisions (a) to (g) available through a link on its website homepage, subject to subdivision (h), as follows:
The annual operating budget and subsequent budget revisions.
A link to the most recent “Michigan Community College Data Inventory Report”.
General fund revenue and expenditure projections for the current fiscal year and the next fiscal year.
A listing of all debt service obligations, detailed by project, anticipated payment of each project, and total outstanding debt for the current fiscal year.
Links to all of the following for the community college:
The current collective bargaining agreement for each bargaining unit.
Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long- term care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or employee of the community college.
Audits and financial reports for the most recent fiscal year for which they are available.
A copy of the board of trustees resolution regarding compliance with best practices for the local strategic value component described in section 230(2).
A map that includes the boundaries of the community college district.
A prominent link to the financial aid website created under section 260.
For statewide consistency and public visibility, community colleges shall use the icon badge provided by the department of technology, management, and budget consistent with the icon badge developed by the department of education for K-12 school districts. It must appear on the front of each community college’s homepage. The size of the icon may be reduced to 150 x 150 pixels.
No later than the first last business day of November of each year, each community college that receives an appropriation in section 201 shall develop, maintain, and update a “campus safety information and resources” link, prominently displayed on the homepage of its website, that links to a section of the community college’s website containing, at a minimum, all of the following information:
Emergency contact numbers for police, fire, health, and other services.
Hours, locations, telephone numbers, and email contacts for campus public safety offices and title IX offices.
A list of safety and security services provided by the community college, including transportation, escort services, building surveillance, anonymous tip lines, and other available security services.
The community college’s policies applicable to minors on community college property.
A directory of resources available at the community college or in the surrounding community for students or employees who are survivors of sexual assault or sexual abuse.
An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family”, published in 2018.
Campus security policies and crime statistics pursuant to the student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381. Information must include all material prepared pursuant to the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381.
No later than the first last business day of November of each year, each community college that receives an appropriation in section 201 shall report to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director its annual title IX report, also known as the student sexual misconduct report, issued by the title IX coordinator, as required under the federal campus SaVE act of 2013, Public Law 113-4, section 304, 127 Stat 54, 89-92 (2013).
No later than the first last business day of November of each year, each community college that receives an appropriation in section 201 shall certify that the community college complies with federal regulations under title IX, as required by the United States Department of Education, including, but not limited to, the following:
Use of medical experts that do not have an actual or apparent conflict of interest.
Issuance of title IX reports to complainants and respondents that are not divergent.
Notification of resources to each individual who reports having experienced sexual assault by a member of the community college.
Sec. 217b. (1) Each community college that receives an appropriation in section 201 shall report to the center by the last business day of August of each year the tuition and mandatory fees paid by a full-time in- district student and a full-time out-of-district student as established by the community college governing board for the current academic year. This report should also include the annual cost of tuition and fees based on a full-time course load of 30 credits. This report must also specify the amount that tuition and fees have increased for the community college from the prior academic year. Each community college shall also report any revisions to the reported current academic year tuition and mandatory fees adopted by the community college governing board to the center within 15 days of being adopted. The center shall provide this information and any revisions to the house and senate fiscal agencies and the state budget director.
Each community college that receives an appropriation in section 201 shall certify to the state budget director by the last first business day of August November of each year that its board will not adopt an increase in tuition and fee rates for in-district students for the academic year that is greater than the tuition restraint described in this subsection. For the academic year 2024-2025, 2025-2026, the tuition restraint level is equal to the greater of 4.5% or $217.00. $227.00. For the academic year 2025-2026, 2026-2027, the tuition restraint level is equal to the greater of 4.5% 4.0% or $227.00. $199.00. It is intended that in the next fiscal year, the tuition restraint rate will be adjusted only for the subsequent academic year. As used in this subsection:
“Fee” means any board-authorized fee that will be paid by more than 1/2 of all in-district students at least once during their enrollment at a community college. A community college increasing a fee that applies to a specific subset of students or courses shall provide sufficient information to prove that the increase applied to that subset will not cause the increase in the average amount of board-authorized total tuition and fees paid by in-district students in the 2024-2025 academic year to exceed the limit established in this section.
“Tuition and fee rate” means the average of full-time rates paid by a majority of students in each class, based on an unweighted average of the rates authorized by the community college board and actually charged to students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the highest levels of full-time equated in-district enrollment during the academic year.
Community colleges that exceed the tuition and fee rate cap described in subsection (2) are not eligible to receive payments under section 201 for performance funding or payments under section 201f for 1-time performance funding payments for fiscal year 2024-2025.2025-2026. The state budget director shall implement uniform reporting requirements to ensure that a community college receiving a payment under section 201f for 1-time performance funding has satisfied the tuition restraint requirements of this section. The state budget director has the sole authority to determine if a community college has met the requirements of this section. Information reported by a community college to the state budget director under this subsection must also be reported to the house and senate appropriations subcommittees on community colleges and the house and senate fiscal agencies.
Notwithstanding any other provision of this act, the legislature may at any time adjust appropriations for a community college that adopts an increase in tuition and fee rates for in-district students that exceeds the rate cap established in subsection (2).
Sec. 217c. (1) Not later than December 1 of each year, each community college or federally recognized tribal college that, in the current or previous academic year, serves or has served as an authorizing body shall submit a report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, the state budget director, and the department of education containing, at a minimum, all of the following information, as applicable:
A list of all of the schools currently authorized, and the following information for each school:
The year in which the school was authorized.
The location of each school.
The owner of the property at which each school is located and the physical buildings utilized by the school, as applicable.
A list identifying any schools that were closed or lost their authorization in the current or previous academic year.
A description of any new contracts for the operation of a public school academy that will operate as the successor to a public school academy that is currently being operated under a contract issued by another authorizing body that is currently performing in the bottom 5% of schools.
The academic performance of each school currently authorized, including whether a school is identified by the department of education as a partnership school. If a school is identified as a partnership school under this subdivision, the authorizing body must shall include a description of corrective actions in the school’s partnership agreement, the duration of the partnership agreement, and an assessment of progress toward improvement.
The total enrollment of each school at the time of submission, the grades served, and student turnover rate compared to the previous academic year, as applicable.
Aggregated student enrollment data for students with an individualized education program as well as the total amount of special education cost reimbursements received by each school during the school’s most recently completed fiscal year.
The total number of fees, reimbursements, contributions, or charges permitted under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502, that are assigned to each school currently authorized in a single academic year.
The names of the members of the board of directors of each school currently authorized, the date that each member of each board was appointed, and a description of the methodology used by the authorizing body to select members for the boards of directors for each school currently authorized by the authorizing body.
The name of the applicant who applied and received approval to organize each currently authorized school.
The list of contracts and length of their terms, with education service providers associated with each school currently authorized pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable. The contracts described in this subdivision include, but are not limited to, those described in section 502(2)(d) of the revised school code, 1 1976 PA 451, MCL 380.502.
Activities undertaken by each authorizing body to ensure that the board of directors of each school complies with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and laws prohibiting conflicts of interest.
A description of the activities undertaken by the authorizing body to meet the functions of an authorizing body under section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
A financial report of the authorizing body’s use of fees, reimbursements, contributions, or charges collected or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must include all of the following, at a minimum:
The total amount of fees collected or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502, by the authorizing body for the authorizing body’s most recent fiscal year.
The amount of funds reported under subparagraph (i) that were spent on compensation for faculty and staff employed primarily to meet the functions of an authorizing body. For the purpose of this subparagraph, an employee is presumed to be primarily employed to meet the functions of an authorizing body if that employee spends more than 50% of the employee’s time on those activities.
The number of positions, organized by job title, associated with expenditures reported under subparagraph (ii).
The amount of funds reported under subparagraph (i) that were spent on contractual services to meet the functions of an authorizing body.
The amount of funds reported under subparagraph (i) that were spent on other overhead costs to meet the functions of an authorizing body.
The amount of funds reported under subparagraph (i) that were transferred to another operating unit within the community college or federally recognized tribal college.
The amount of funds reported under subparagraph (i) that were spent on activities other than functioning as an authorizing body, including a list of those activities and the amount associated with each activity.
An executive summary section that provides relevant summary data for reporting requirements under subdivisions (a) to (m).
A report submitted under this section must be in a format that meets accessibility standards for viewing on the internet under the Americans with disabilities act of 1990, Public Law 101-336.
A report submitted under this section must be published and updated through a link on the homepage of the institution’s website.
(4) As used in this section, “authorizing body” means that term as defined in section 501 of the revised school code, 1976 PA 451, MCL 380.501.
Sec. 222. Each community college shall have an annual audit of all income and expenditures performed by an independent auditor and shall furnish the independent auditor’s management letter and an annual audited accounting of all general and current funds income and expenditures including audits of college foundations to the center before November 15 of each year. The center shall provide this information to members of the senate and house appropriations subcommittees on community colleges, the senate and house fiscal agencies, the auditor general, the department of labor and economic opportunity, the department of lifelong education, advancement, and potential, and the state budget director. If a community college fails to furnish the audit materials, the monthly state aid operations installments must be withheld from that college until the information is submitted. All reporting must conform to the requirements set forth in the “2001 Manual for Uniform Financial Reporting, Michigan Public Community Colleges”. A community college shall make the information the community college is required to provide under this section available to the public on its website.
Sec. 229a. Included in the fiscal year 2024-2025 2025-2026 appropriations for the department of technology, management, and budget are appropriations totaling $33,481,600.00 $38,032,600.00 to provide funding for the state share of costs for previously constructed capital projects for community colleges. Those appropriations for state building authority rent represent additional state general fund support for community colleges, and the following is an estimate of the amount of that support to each community college:
Alpena Community College, $858,200.00.$855,000.00.
Bay de Noc Community College, $516,900.00.$515,000.00.
Delta College, $2,696,900.00.$2,881,100.00.
Glen Oaks Community College, $381,400.00.$380,000.00.
Gogebic Community College, $56,200.00.$56,000.00.
Grand Rapids Community College, $1,090,000.00.$2,346,000.00.
Henry Ford College, $1,570,600.00.$1,505,000.00.
Jackson College, $2,051,500.00.$2,044,000.00.
Kalamazoo Valley Community College, $1,949,100.00.$1,942,000.00.
Kellogg Community College, $681,500.00.$679,000.00.
Kirtland Community College, $225,800.00.$225,000.00.
Lake Michigan College, $969,600.00.$966,000.00.
Lansing Community College, $759,800.00.$757,000.00.
Macomb Community College, $2,847,000.00.$4,682,200.00.
Mid Michigan Community College, $1,620,900.00.$1,615,000.00.
Monroe County Community College, $1,545,700.00.$1,540,000.00.
Montcalm Community College, $447,600.00.$446,000.00.
C.S. Mott Community College, $2,110,700.00.$3,103,000.00.
Muskegon Community College, $985,600.00.$982,000.00.
North Central Michigan College, $648,400.00.$646,000.00.
Northwestern Michigan College, $1,793,600.00.$1,787,000.00.
Oakland Community College, $0.00.
Schoolcraft College, $2,240,200.00.$2,232,000.00.
Southwestern Michigan College, $825,500.00.$822,500.00.
St. Clair County Community College, $720,600.00.$718,000.00.
Washtenaw Community College, $1,682,300.00.$1,676,000.00. (aa) Wayne County Community College, $1,467,500.00.$1,895,800.00. (bb) West Shore Community College, $738,500.00.$736,000.00.
Sec. 230. (1) Subject to subsection (4), money included in the appropriations for community college operations under section 201(2) 201 for performance funding and allocated under section 201f for 1-time performance funding payments is distributed based on the following formula:
Allocated proportionate to fiscal year 2023-2024 2024-2025 base appropriations, 30%.
Based on a weighted student contact hour formula as provided for in the 2016 recommendations of the performance indicators task force, 30%.
Based on the performance improvement as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.
Based on the performance completion number as provided for in the 2016 recommendations of the performance indicators task force, 10%.
Based on the performance completion rate as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.
Based on administrative costs, 5%.
Based on the local strategic value component, as developed in cooperation with the Michigan Community College Association and described in subsection (2), 5%.
Money included in the appropriations for community college operations under section 201(2) for local strategic value is allocated only to each community college that certifies to the state budget director, through a board of trustees resolution on or before October 15, 2024, 2025, that the college has met 4 out of 5 best practices listed in each category described in subsection (3). The resolution must provide specifics as to how the community college meets each best practice measure within each category. One-third of funding available under the strategic value component is allocated to each category described in subsection (3). Amounts distributed under local strategic value must be on a proportionate basis to each college’s fiscal year 2023-2024 2024-2025 operations funding. Payments to community colleges that qualify for local strategic value funding must be distributed with the November installment payment described in section 206.
For purposes of subsection (2), the following categories of best practices reflect functional activities of community colleges that have strategic value to the local communities and regional economies:
For Category A, economic development and business or industry partnerships, the following:
The community college has active partnerships with local employers including hospitals and health care providers.
The community college provides customized on-site training for area companies, employees, or both.
The community college supports entrepreneurship through a small business assistance center or other training or consulting activities targeted toward small businesses.
The community college supports technological advancement through industry partnerships, incubation activities, or operation of a Michigan technical education center or other advanced technology center.
The community college has active partnerships with local or regional workforce and economic development agencies.
For Category B, educational partnerships, the following:
The community college has active partnerships with regional high schools, intermediate school districts, and career-tech centers to provide instruction through dual enrollment, concurrent enrollment, direct credit, middle college, or academy programs.
The community college hosts, sponsors, or participates in enrichment programs for area K-12 students, such as college days, summer or after-school programming, or Science Olympiad.
The community college provides, supports, or participates in programming to promote successful transitions to college for traditional age students, including grant programs such as talent search, upward bound, or other activities to promote college readiness in area high schools and community centers.
The community college provides, supports, or participates in programming to promote successful transitions to college for new or reentering adult students, such as adult basic education, a high school equivalency test preparation program and testing, or recruiting, advising, or orientation activities specific to adults. As used in this subparagraph, “high school equivalency test preparation program” means that term as defined in section 4.
The community college has active partnerships with regional 4-year colleges and universities to promote successful transfer, such as articulation, 2+2, or reverse transfer agreements or operation of a university center.
For Category C, community services, the following:
The community college provides continuing education programming for leisure, wellness, personal enrichment, or professional development.
The community college operates or sponsors opportunities for community members to engage in activities that promote leisure, wellness, cultural or personal enrichment such as community sports teams, theater or musical ensembles, or artist guilds.
The community college operates public facilities to promote cultural, educational, or personal enrichment for community members, such as libraries, computer labs, performing arts centers, museums, art galleries, or television or radio stations.
The community college operates public facilities to promote leisure or wellness activities for community members, including gymnasiums, athletic fields, tennis courts, fitness centers, hiking or biking trails, or natural areas.
The community college promotes, sponsors, or hosts community service activities for students, staff, or community members.
Payments for performance funding under section 201(2) 201 and for 1-time performance funding payments under section 201f must be made to a community college only if that community college actively participates in the Michigan Transfer Network sponsored by the Michigan Association of Collegiate Registrars and Admissions Officers and submits timely updates, including updated course equivalencies at least every 6 months, to the Michigan Transfer Network. The state budget director shall determine if a community college has not satisfied this requirement. The state budget director may withhold payments for performance funding under section 201 and 1-time performance funding under section 201f until a community college is in compliance with this subsection.
Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for higher education for the fiscal year ending September 30, 2025, 2026, from the funds indicated in this section. The following is a summary of the appropriations in this section and sections 236d, 236e, and 236j:
The gross appropriation is $2,324,292,600.00. $2,336,912,000.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,324,292,600.00.$2,336,912,000.00.
The sources of the adjusted gross appropriation described in subdivision (a) are as follows:
Total federal revenues, $3,200,000.00.
Total local revenues, $0.00.
Total private revenues, $0.00.
Total other state restricted revenues, $461,668,300.00.$850,768,300.00.
State general fund/general purpose money, $1,859,424,300.00.$1,482,943,700.00.
The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under subsection (7)(f) (7)(d) or (8)(b) to avoid duplicating totals of amounts appropriated in this section and section 236j.
Amounts appropriated for public universities are as follows:
The appropriation for Central Michigan University is $96,833,700.00, $93,819,600.00 for operations,
$1,407,300.00 for operations increase, and $1,606,800.00 for costs incurred under the North American Indian tuition waiver.$99,466,100.00, $95,226,900.00 for operations, $0.00 for operations increase,
The appropriation for Eastern Michigan University is $84,381,000.00, $82,738,700.00 for operations,
$1,241,100.00 for operations increase, and $401,200.00 for costs incurred under the North American Indian tuition waiver.$86,649,200.00, $83,979,800.00 for operations, $0.00 for operations increase,
The appropriation for Ferris State University is $60,548,400.00, $58,932,300.00 for operations,
$884,000.00 for operations increase, and $732,100.00 for costs incurred under the North American Indian tuition waiver.$62,221,900.00, $59,816,300.00 for operations, $0.00 for operations increase,
The appropriation for Grand Valley State University is $98,876,100.00, $96,111,200.00 for operations,
$1,441,700.00 for operations increase, and $1,323,200.00 for costs incurred under the North American Indian tuition waiver.$98,772,000.00, $97,552,900.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $1,219,100.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Lake Superior State University is $15,838,800.00, $14,251,800.00 for operations, $213,800.00 for operations increase, and $1,373,200.00 for costs incurred under the North American Indian tuition waiver.$16,301,400.00, $14,465,600.00 for operations, $0.00 for operations increase, $388,700.00 for MPSERS support payment, and $1,447,100.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Michigan State University is $396,479,600.00, $316,765,400.00 for operations,
$4,751,500.00 for operations increase, $2,143,100.00 for costs incurred under the North American Indian tuition waiver, $39,096,200.00 for MSU AgBioResearch, and $33,723,400.00 for MSU Extension.
The appropriation for Michigan Technological University is $55,245,300.00, $53,658,800.00 for operations, $804,900.00 for operations increase, and $781,600.00 for costs incurred under the North American Indian tuition waiver.$56,659,000.00, $54,463,700.00 for operations, $0.00 for operations increase, $1,463,400.00 for MPSERS support payment, and $731,900.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Northern Michigan University is $54,263,000.00, $52,069,300.00 for operations,
$781,000.00 for operations increase, and $1,412,700.00 for costs incurred under the North American Indian tuition waiver.$55,688,200.00, $52,850,300.00 for operations, $0.00 for operations increase,
The appropriation for Oakland University is $73,327,600.00, $71,957,000.00 for operations,
$1,079,400.00 for operations increase, and $291,200.00 for costs incurred under the North American Indian tuition waiver.$73,361,600.00, $73,036,400.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $325,200.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Saginaw Valley State University is $34,394,500.00, $33,690,600.00 for operations, $505,400.00 for operations increase, and $198,500.00 for costs incurred under the North American Indian tuition waiver.$34,379,000.00, $34,196,000.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $183,000.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for University of Michigan – Ann Arbor is $362,128,600.00, $355,278,300.00 for operations, $5,329,000.00 for operations increase, and $1,521,300.00 for costs incurred under the North American Indian tuition waiver.$362,507,900.00, $360,607,300.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $1,900,600.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for University of Michigan – Dearborn is $31,722,500.00, $31,048,000.00 for operations, $465,700.00 for operations increase, and $208,800.00 for costs incurred under the North American Indian tuition waiver.$31,708,000.00, $31,513,700.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $194,300.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for University of Michigan – Flint is $26,695,600.00, $26,013,500.00 for operations, $390,200.00 for operations increase, and $291,900.00 for costs incurred under the North American Indian tuition waiver.$26,884,600.00, $26,403,700.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $480,900.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Wayne State University is $227,735,900.00, $223,950,900.00 for operations,
$3,359,300.00 for operations increase, and $425,700.00 for costs incurred under the North American Indian tuition waiver.$227,787,300.00, $227,310,200.00 for operations, $0.00 for operations increase, $0.00 for MPSERS support payment, and $477,100.00 for costs incurred under the North American Indian tuition waiver.
The appropriation for Western Michigan University is $121,845,400.00, $119,440,200.00 for operations, $1,791,600.00 for operations increase, and $613,600.00 for costs incurred under the North American Indian tuition waiver.$125,246,700.00, $121,231,800.00 for operations, $0.00 for operations increase, $3,257,500.00 for MPSERS support payment, and $757,400.00 for costs incurred under the North American Indian tuition waiver.
The amount appropriated in subsection (2) for public universities is $1,740,316,000.00,
State school aid fund, $443,168,300.00.$643,168,300.00.
State general fund/general purpose money, $1,297,147,700.00.$1,111,309,900.00.
The amount appropriated for Michigan public school employees’ retirement system reimbursement is $0.00.
The amount appropriated for state and regional programs is $316,800.00, $322,100.00, appropriated from general fund/general purpose money and allocated as follows:
Higher education database modernization and conversion, $200,000.00.
Midwestern Higher Education Compact, $116,800.00.$122,100.00.
The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is
$2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:
Select student support services, $1,956,100.00.
Michigan college/university partnership program, $586,800.00.
Morris Hood, Jr. educator development program, $148,600.00.
Subject to subsection (8), the amount appropriated for grants and financial aid is $542,453,600.00,
State competitive scholarships, $19,930,900.00.
Tuition grants, $41,522,700.00.
(c) Tuition incentive program, $93,800,000.00.$122,300,000.00.
(d) Children of veterans and officer’s survivor tuition grant programs, $2,000,000.00.
(e) Project GEAR-UP, $3,200,000.00.
(f) Michigan achievement scholarships, $330,000,000.00. $300,000,000.00. From this amount, up to
$10,000,000.00 may be used to award skills scholarships under section 248a.
(g) Michigan reconnect, $52,000,000.00.$42,000,000.00.
The money appropriated in subsection (7) for grants and financial aid is appropriated from the following:
Federal revenues under the United States Department of Education, Office of Elementary and Secondary Education, GEAR-UP program, $3,200,000.00.
Postsecondary scholarship fund, $330,000,000.00.$300,000,000.00.
State general fund/general purpose money, $209,253,600.00.$166,300,000.00.
At the close of the fiscal year, state general fund/general purpose money appropriated in subsection (7) for grants and scholarships that is unspent must be deposited into the postsecondary scholarship fund created in section 236j.
For fiscal year 2024-2025 2025-2026 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $8,500,000.00
For fiscal year 2024-2025 only, from the appropriation described in subsection (1), $1,000,000.00 is appropriated from the state general fund/general purpose money for Michigan Transfer Pathways. The department of lifelong education, advancement, and potential shall use funds appropriated under this subsection to work with the Michigan Transfer Network, community colleges, public universities, and other institutions of higher education in this state to facilitate the transfer of students and acceptance of credits among these institutions. The department may hire limited time FTEs or external consultants with the funds. The funds allocated under this subsection for fiscal year 2024-2025 are a work project appropriation, and any unexpended funds remaining at the end of fiscal year 2024-2025 are carried forward into fiscal year 2025-2026, and any unexpended funds remaining at the end of fiscal year 2025-2026 are carried forward into fiscal year 2026-2027. The purpose of the work project is to support transfer pathways at postsecondary institutions in this state. The estimated completion date of the work project is September 30, 2027.
For fiscal year 2024-2025 only, from the appropriation described in subsection (1), $980,000.00 is appropriated from the state general fund/general purpose money for the FAFSA completion incentive. The department of lifelong education, advancement, and potential shall use funds appropriated under this subsection to run a promotional activity to promote completing the Free Application for Federal Student Aid (FAFSA) for the first time consistent with the promotional-activity exception provided for in section 372(2) of the Michigan penal code, 1931 PA 328, MCL 750.372. The promotional activity must offer prize funds that are available to a number, chosen by the department, of randomly selected Michigan residents who satisfactorily demonstrate to the department that they have completed the FAFSA for the first time.
For fiscal year 2024-2025 only, from the appropriation described in subsection (1), $750,000.00 is appropriated from state general fund/general purpose money to Western Michigan University to support the Project Clean program.
For fiscal year 2024-2025 only, from the appropriation described in subsection (1), $70,000.00 is appropriated from state general fund/general purpose money to a city with a population between 70,000 and 80,000 in a county with a population between 225,000 and 275,000 according to the most recent federal decennial census for investments to improve safety on the campus of a public university based in that city.
For fiscal year 2024-2025 only, subject to section 236r, from the appropriation described in subsection (1), $200,000.00 is appropriated from state general fund/general purpose money for an education performance study.
All of the following apply for fiscal year 2024-2025 only:
In addition to the allocations under subsections (4) and (9), there is allocated an amount not to exceed
$10,000,000.00 for payments to participating public universities, appropriated from the state school aid fund. A public university that receives money under this subsection shall use that money solely for the purpose of payments toward the pension and other postemployment benefit unfunded actuarial accrued liabilities associated with members and pension recipients of those participating public universities.
The amount allocated in subdivision (a) must be allocated to each participating public university based on each participating public university’s percentage of the total combined payrolls of the universities’ employees who are members of the retirement system and who were hired before January 1, 1996 and the universities’ employees who would have been members of the retirement system on or after January 1, 1996, but for the enactment of 1995 PA 272 for all public universities that are participating public universities for the immediately preceding state fiscal year.
Participating public universities receiving funds under this subsection shall forward an amount equal to the amount allocated under subdivision (a) to the retirement system in a form, manner, and time frame determined by the retirement system.
Amounts allocated in subdivision (a) must be paid to participating public universities in 1 lump-sum installment no later than October 31, 2024.
As used in this subsection, “participating public universities” means public universities that are reporting units of the Michigan public school employees’ retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that pay contributions to the Michigan public school employees’ retirement system for the state fiscal year.
Sec. 236c. In addition to the funds appropriated for fiscal year 2024-2025 2025-2026 in section 236, appropriations to the department of technology, management, and budget in the act providing general appropriations for fiscal year 2024-2025 2025-2026 for state building authority rent, totaling an estimated
$140,195,300.00, $142,153,900.00, provide funding for the state share of costs for previously constructed capital projects for state universities. These appropriations for state building authority rent represent additional state general fund support provided to public universities, and the following is an estimate of the amount of that support to each public university:
Central Michigan University, $12,927,300.00.$12,914,000.00.
Eastern Michigan University, $6,028,200.00.$6,022,000.00.
Ferris State University, $9,555,800.00.$9,546,000.00.
Grand Valley State University, $8,622,800.00.$8,614,000.00.
Lake Superior State University, $2,231,300.00.$2,229,000.00.
Michigan State University, $16,615,000.00.$16,598,000.00.
Michigan Technological University, $5,787,900.00.$5,521,000.00.
Northern Michigan University, $8,917,700.00.$9,735,900.00.
Oakland University, $11,256,500.00.$11,245,000.00.
Saginaw Valley State University, $7,828,000.00.$7,820,000.00.
University of Michigan - Ann Arbor, $12,280,600.00.$14,068,000.00.
University of Michigan - Dearborn, $10,736,000.00.$10,725,000.00.
University of Michigan - Flint, $6,063,200.00.$6,057,000.00.
Wayne State University, $10,082,300.00.$10,072,000.00.
Western Michigan University, $11,262,700.00.$10,987,000.00.
Sec. 236d. (1) In addition to the funds appropriated under section 232(2) for university operations, for fiscal year 2024-2025 2025-2026 only, there is appropriated an amount not to exceed $16,297,300.00
From the amount appropriated under subsection (1), each university is allocated the following:
Central Michigan University, $938,200.00.$2,885,000.00.
Eastern Michigan University, $827,400.00.$2,544,200.00.
Ferris State University, $589,300.00.$1,812,200.00.
Grand Valley State University, $961,100.00.$2,955,400.00.
Lake Superior State University, $142,500.00.$438,300.00.
Michigan State University, $3,167,700.00.$9,740,500.00.
Michigan Technological University, $536,600.00.$1,650,000.00.
Northern Michigan University, $520,700.00.$1,601,100.00.
Oakland University, $719,600.00.$2,212,700.00.
Saginaw Valley State University, $336,900.00.$1,036,000.00.
University of Michigan – Ann Arbor, $3,552,800.00.$10,924,800.00.
University of Michigan – Dearborn, $310,500.00.$954,700.00.
University of Michigan – Flint, $260,100.00.$799,900.00.
Wayne State University, $2,239,500.00.$6,886,500.00.
Western Michigan University, $1,194,400.00.$3,672,800.00.
In addition to the funds appropriated in section 236(2) for MSU AgBioResearch, for fiscal year 2024- 2025 2025-2026 only, there is appropriated an amount not to exceed $385,200.00 $1,184,400.00 from the state general fund/general purpose money for MSU AgBioResearch.
In addition to the funds appropriated in section 236(2) for MSU Extension, for fiscal year 2024-2025 2025-2026 only, there is appropriated an amount not to exceed $332,200.00 $1,021,700.00 from the state general fund/general purpose money for MSU Extension.
Sec. 236j. (1) The postsecondary scholarship fund is created in the department of treasury for the purpose of providing scholarship awards to eligible students who attend eligible postsecondary educational institutions in this state, as provided in subsection (5).
The state treasurer may receive money or other assets from any source for deposit into the postsecondary scholarship fund. The state treasurer shall direct the investment of the postsecondary scholarship fund. The state treasurer shall credit to the postsecondary scholarship fund interest and earnings from postsecondary scholarship fund investments.
Money in the postsecondary scholarship fund at the close of the fiscal year must remain in the postsecondary scholarship fund and not lapse to the general fund.
The department of treasury shall be is the administrator of the postsecondary scholarship fund for auditing purposes.
Money must be expended from the postsecondary scholarship fund only for the purpose of providing Michigan achievement scholarship awards to eligible students who attend eligible postsecondary educational institutions in this state and for other purposes described in this section. Not more than $10,000,000.00 may be used by the department of lifelong education, advancement, and potential annually for the purposes of outreach and marketing programs as specified in section 248.From the funds appropriated in section 236(7) for the Michigan achievement scholarship, the department of lifelong education, advancement, and potential may use up to $10,000,000.00 annually for the purposes of outreach programs to raise awareness of the Michigan achievement scholarship and other state scholarship programs allocated in section 236(7). The department of lifelong education, advancement, and potential shall ensure that state scholarships are well publicized and that high school students are provided information on the availability of financial aid. The department of lifelong education, advancement, and potential may receive and expend funds received from outside sources for scholarships, marketing, or other purposes related to Michigan state scholarships. The department of lifelong education, advancement, and potential shall provide the necessary funding and staff to fully operate the programs.
For the fiscal year ending September 30, 2025, 2026 $300,000,000.00 of ongoing funding and
$30,000,000.00 of 1-time funding is deposited into the postsecondary scholarship fund from the state
It is the intent of the legislature that the postsecondary scholarship fund serves as the primary funding source of the Michigan achievement scholarship. To ensure the Michigan achievement scholarship provides ongoing supports for students, it is the intent of the legislature to increase annual deposits into the postsecondary scholarship fund until the fully implemented costs of the Michigan achievement scholarship are deposited annually into the postsecondary scholarship fund.
In addition to the appropriations in section 236, if the amount of general fund money allocated in section 236(7) 236(7)(a), (b), (d), or (e) is not sufficient to fully fund the 1 or more of those awards, under section 236(7), there is appropriated from the postsecondary scholarship fund the amount necessary to fully fund those awards. The state budget director shall provide written notification to the house and senate appropriations subcommittee on higher education and the house and senate fiscal agencies prior to any additional appropriation described in this subsection.
Sec. 241. Subject to sections 241a, 241b, 241c, 241e, 241h, and 244, the funds appropriated in sections 236 and 236d to public universities must be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2024. 2025. Except for Wayne State University, each institution shall accrue its July and August 2025 2026 payments to its institutional fiscal year ending June 30, 2025.2026.
Sec. 241a. (1) All public universities shall submit higher education institutional data inventory (HEIDI) data and associated financial aid program information requested by and in a manner prescribed by the state budget director. For public universities with fiscal years ending June 30, these data must be submitted to the state budget director by October 15 of each fiscal year. Public universities with a fiscal year ending September 30 shall submit preliminary HEIDI data by November 15 and final data by December 15.
(2) It is intended that accountability reporting for public universities will be streamlined through HEIDI. The state budget director and the center will work to combine the reporting requirements outlined in this subsection with the existing HEIDI collection cycle. All of the following must be reported to the house and senate fiscal agencies and the state budget director:
Each public university’s certification of its compliance with the requirements described in subsections (4) and (5).
The reporting requirements described in sections 241b and 241c.
(3) If a public university fails to submit HEIDI data and associated financial aid program information in accordance with the required reporting schedule, the state treasurer may withhold the monthly operations installments under section 241 236 to the public university until those data are submitted. If a public university does not comply with all of the requirements described in subsections (4) and (5) by the end of the fiscal year, the public university forfeits the amount withheld. The state budget director shall notify the chairs of the house and senate appropriations subcommittees on higher education at least 10 days before withholding funds from any public university.
No later than October 15 November 1 each year, a public university shall maintain a public transparency website available through a link on its website homepage. The website must include all of the following concerning the public university:
The annual operating budget and subsequent budget revisions.
A summary of current expenditures for the most recent fiscal year for which they are available, expressed as pie charts in the following 2 categories:
A chart of personnel expenditures, broken into the following subcategories:
Earnings and wages.
Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long- term care benefits.
Retirement benefit costs.
All other personnel costs.
A chart of all current expenditures the public university reported as part of its higher education institutional data inventory data under subsection (1), broken into the same subcategories in which it reported those data.
Links to all of the following for the public university:
The current collective bargaining agreement for each bargaining unit.
Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long- term care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or employee of the public university.
Audits and financial reports for the most recent fiscal year for which they are available.
General fund revenue and expenditure projections for the current fiscal year and the next fiscal year.
A listing of all debt service obligations, detailed by project, anticipated fiscal year payment for each project, and total outstanding debt for the current fiscal year.
The institution’s policy regarding the transferability of core college courses between community colleges and the public university.
A listing of all community colleges that have entered into reverse transfer agreements with the public university.
A dashboard or report card demonstrating the public university’s performance in several “best practice” measures. The dashboard or report card must include at least all of the following for the 3 most recent academic years for which the data are available:
Enrollment.
Student retention rate.
Six-year graduation rates.
Number of Pell grant recipients and graduating Pell grant recipients.
Geographic origination of students, categorized as in-state, out-of-state, and international.
Faculty to student ratios and total public university employee to student ratios.
Teaching load by faculty classification.
Graduation outcome rates, including employment and continuing education.
An icon badge that provides statewide consistency and public visibility. For this purpose, public universities shall use the icon badge provided by the department of technology, management, and budget consistent with the icon badge developed by the department of education for K-12 school districts. It must appear on the front of each public university’s homepage. The size of the icon may be reduced to 150 x 150 pixels. The font size and style for this reporting must be consistent with other documents on each public university’s website.
A collection and report of the number and percentage of all enrolled students who complete the Free Application for Federal Student Aid, broken out by undergraduate and graduate/professional classifications, reported to the center and posted on its website under the budget transparency icon badge.
No later than October 15 November 1 each year, a public university shall develop, maintain, and update a “campus safety information and resources” link, prominently displayed on the homepage of its website, to a section of its website containing, at a minimum, all of the following information:
Emergency contact numbers for police, fire, health, and other services.
Hours, locations, telephone numbers, and email contacts for campus public safety offices and title IX offices.
A list of safety and security services provided by the public university, including transportation, escort services, building surveillance, anonymous tip lines, and other available security services.
The public university’s policies applicable to minors on university property.
A directory of resources available at the public university or surrounding community for students or employees who are survivors of sexual assault or sexual abuse.
An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family”, published in 2018.
Campus security policies and crime statistics pursuant to the student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381. Information must include all material prepared pursuant to the public information reporting requirements under the crime awareness and campus security act of 1990, title II of the student right-to-know and campus security act, Public Law 101-542, 104 Stat 2381.
Sec. 241b. (1) No later than October 15 November 1 each year, each public university that receives an appropriation in section 236 shall report its annual security report, also known as the Clery Act Report, as required under 20 USC 1092(f). Each public university shall include a title IX summary report that includes all of the following information:
The amounts and descriptions of all fees incurred in title IX-related civil and criminal litigation.
The number of title IX complaints.
The average length of time for investigation and resolution of title IX complaints.
The aggregate number of title IX cases, investigations, and complaints for each of the categories described in subparagraphs (i) to (v), subject to subparagraph (vi), as follows:
Cases investigated for less than 15 days.
Cases investigated for at least 15 days and less than 30 days.
Cases investigated for at least 30 days and less than 60 days.
Cases investigated for at least 60 days and less than 90 days.
Cases investigated for 90 days or more.
If, for any category of cases under subparagraphs (i) to (v), there is an aggregate of fewer than 5 cases investigated, the public university shall not report the aggregate number of cases and instead shall report that fewer than 5 cases were investigated.
The number of title IX appeals and the resolutions of those appeals.
The number of title IX-related complaints filed by the public university with law enforcement agencies.
No later than October 15 November 1 each year, each public university that receives an appropriation in section 236 shall certify all of the following:
The public university complies with federal regulations under title IX, as required by the United States Department of Education, including, but not limited to, the following:
Use of medical experts that do not have an actual or apparent conflict of interest.
Issuance of title IX reports to complainants and respondents that are not divergent.
Notification of resources to each individual who reports having experienced sexual assault by a public university member.
Consistent annual training for title IX staff and law enforcement.
The public university provides both of the following:
An in-person sexual misconduct prevention presentation or course for all freshman and incoming transfer students, which must include contact information for the title IX office of the public university. For a student who does not have any in-person credit hours on campus, the university may provide the presentation or course electronically.
An online or electronic sexual misconduct prevention presentation or course for all students not considered freshmen or incoming transfer students.
The public university had a third party review its title IX compliance office and related policies and procedures by the end of the 2018-2019 academic year. A copy of the third-party review must be transmitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies. Each public university shall have a third-party review once every 4 years and a copy of the third-party review must be transmitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies.
The public university requires that the governing board and the president or chancellor of the public university receive quarterly reports from their title IX coordinator or title IX office. The report must contain aggregated data of the number of sexual misconduct reports that the office received for the academic year, the types of reports received, including reports received against employees, and a summary of the general outcomes of the reports and investigations. A member of the governing board may request to review a title IX investigation report involving a complaint against an employee, and the public university shall provide the report in a manner it considers appropriate. The public university shall protect the complainant’s anonymity, and the report must not contain specific identifying information.
If allegations against an employee are made in more than 1 title IX complaint that resulted in the public university finding that no misconduct occurred, the public university requires that the title IX officer promptly notify the president or chancellor and a member of the public university’s governing board in writing and take all appropriate steps to ensure that the matter is being investigated thoroughly, including hiring an outside investigator for future cases involving that employee. A third-party title IX investigation under this subdivision does not prohibit the public university from simultaneously conducting its own title IX investigation through its own title IX coordinator.
The public university’s president or chancellor and a member of its governing board has reviewed all title IX reports involving the alleged sexual misconduct of an employee of the public university.
As used in this section, “sexual misconduct” includes, but is not limited to, intimate partner violence, nonconsensual sexual conduct, sexual assault, sexual exploitation, sexual harassment, and stalking.
Sec. 241c. (1) No later than the last first business day of August November each year, each public university that receives an appropriation in section 236 shall submit the amount of tuition and fees actually charged to a full-time resident undergraduate student for academic year 2024-2025 2025-2026 as part of the public university’s higher education institutional data inventory (HEIDI) data. A public university shall report any revisions for any semester of the reported academic year to HEIDI within 15 days of being adopted.
Payments under section 236 for operations increase and under section 236d must be made only to a public university that certifies to the state budget director by the last first business day of August November each year that its board did not adopt an increase in tuition and fee rates for resident undergraduate students after September 1, 2023 2024 for the 2023-2024 2024-2025 academic year and that its board will not adopt an increase in tuition and fee rates for resident undergraduate students for the 2024-2025 2025-2026 academic year that is greater than 4.5% or $703.00, $735.00, whichever is greater. For the academic year 2025-2026, 2026-2027, the tuition and fee restraint rate for resident undergraduate students is an increase of not greater than 4.5% 4.0% or $735.00, $651.00, whichever is greater. It is the intent of the legislature that in the next fiscal year, the tuition and fee restraint rate will be adjusted only for the subsequent academic year. As used in this subsection:
“Fee” means any board-authorized fee that will be paid by more than 1/2 of all resident undergraduate students at least once during their enrollment at a public university, as described in the higher education institutional data inventory (HEIDI) user manual. A public university increasing a fee that applies to a specific subset of students or courses shall provide sufficient information to prove that the increase applied to that subset will not cause the increase in the average amount of board-authorized total tuition and fees paid by resident undergraduate students in the 2024-2025 academic year to exceed the limit established in this subsection.
“Tuition and fee rate” means the average of full-time rates paid by a majority of students in each undergraduate class, based on an unweighted average of the rates authorized by the public university board and actually charged to students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the highest levels of full-time equated resident undergraduate enrollment during the academic year, as described in the higher education institutional data inventory (HEIDI) user manual.
Each public university must shall certify to the state budget director by the last first business day of August November each year that it complies with all of the following requirements:
The public university participates in reverse transfer agreements described in section 286 with at least 3 community colleges in this state.
The public university does not and will not apply any of the following criteria when determining whether credits earned outside the public university by a student count toward a degree or certificate program offered by the public university:
Whether the credits were earned in a dual enrollment program that counted the credits toward high school graduation requirements.
Whether the credits were earned in a course that was delivered in a high school classroom, community college classroom or campus, or another location.
Whether the credits were earned in a course that was delivered online, in person, or hybrid.
Whether other students enrolled in the course in which the credits were earned were enrolled in high school or counted the course toward high school graduation requirements.
The public university actively participates in and submits timely updates to the Michigan Transfer Network created as part of the Michigan Association of Collegiate Registrars and Admissions Officers transfer agreement.
The state budget director shall implement uniform reporting requirements to ensure that a public university receiving a payment under section 236 for operations increase and under section 236d has satisfied the tuition restraint requirements of this section. The state budget director has the sole authority to determine if a public university has met the requirements of this section. Information reported by a public university to the state budget director under this subsection must also be reported to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies.
Sec. 241e. (1) Payments under section 236 for operations increase and under section 236d must be made only to a public university that certifies to the state budget director by the last business day of August each year that it complies with the following:
The institutional best practice described in subdivision (c).
One or more of the institutional best practices described in subdivisions (d) to (g).
The public university accepts the Michigan Transfer Agreement, partners with the Michigan Transfer Network, and promotes clear transfer pathways for interested students by doing all of the following:
Has a policy to help transfer or accept associate degrees from other accredited Michigan postsecondary education institutions.
Publishes the policy described in subparagraph (i) on the institution’s website in an easily accessible way and in admissions materials.
Provides publicly available information on the Michigan Transfer Network, applicable transfer pathways, and financial aid available to transfer students, at no cost to the student.
Begins negotiations to increase the number of reverse transfer agreements or articulation agreements and reports on the progress toward completing the agreements to the state budget director by the last business day in February.
The public university requires all students to receive an academic degree or certificate map that outlines required course sequencing, program and institution requirements, declared minor program academic requirements, and a recommended timeline within which courses should be taken and in which specific semester or term in order to satisfy all program requirements to allow the student to graduate on time.
The public university provides non-credit-bearing developmental or remedial courses at a reduced cost to students.
The public university provides each degree- or certificate-seeking student with a designated, trained academic advisor to support student retention, persistence, and completion. The public university shall require students to meet with their academic advisor at least once per semester or term.
The public university provides employees during business hours to assist prospective and current students complete the Free Application for Federal Student Aid.
The state budget director shall implement uniform reporting requirements to ensure that a public university receiving a payment under section 236 for operations increase and under section 236d has satisfied the institutional best practices requirements of this section. The state budget director has the sole authority to determine if a public university has met the requirements of this section. Information reported by a public university to the state budget director under this subsection must also be reported to the house and senate appropriations subcommittees on higher education and the house and senate fiscal agencies.
If a public university fails to comply with the certification requirements of this section, the state treasurer may withhold the monthly installments under section 241 to the public university until the report is submitted. If a public university does not comply with the certification requirements described in this section by the end of the fiscal year, the public university forfeits the amount withheld. Forfeited funds must lapse to the fund from which the funds were appropriated. The state budget director shall notify the chairs of the house and senate appropriations subcommittees on higher education at least 10 days before withholding funds from any public university.
Sec. 244. By October 15 of each year, a public university receiving funds in section 236 shall provide its longitudinal data system data set for the preceding academic year to the center for inclusion in the statewide P-20 longitudinal data system described in section 94a. If the state budget director finds that a university has not complied with this section, the state budget director is authorized to withhold the monthly operations installments provided to that university under section 241 until the state budget director finds that the university has complied with this section.
Sec. 247. (1) The funds appropriated in section 236 for Michigan reconnect must be distributed and administered by the department of lifelong education, advancement, and potential pursuant to the Michigan reconnect grant act, 2020 PA 84, MCL 390.1701 to 390.1709, the Michigan reconnect grant recipient act, 2020 PA 68, MCL 390.1711 to 390.1723, and the department’s administrative procedures for Michigan reconnect.
(2) For fiscal year 2024-2025 2025-2026 only, after administering Michigan reconnect pursuant to subsection (1), the department may use any remaining funds appropriated in section 236 for Michigan reconnect for outreach, enrollment support, administration of the program, and grants to institutions of higher education or nonprofit organizations to provide support to reconnect eligible students to increase degree or credential completion.the department of lifelong education, advancement, and potential may use the funds appropriated in section 236 for Michigan reconnect to support students who are receiving awards under the temporary “ARP - Michigan reconnect expansion to 21” program described in 2023 PA 119.
Sec. 248. (1) The funds appropriated in section 236 for Michigan achievement scholarships must be distributed as provided in this section and section 248a, pursuant to the administrative procedures for Michigan achievement scholarships of the department.
As used in this section:
“Cost of attendance” means expenses for a student’s tuition, mandatory fees, and contact hours for the student’s actual program of study; books, supplies, and equipment required for courses of instruction; housing and food costs; transportation expenses; federal student loan fees; miscellaneous expenses, including a reasonable amount for the documented cost of a personal computer, allowance for child care, or allowance for other dependent care; costs related to a disability; costs of obtaining a license, certification, or first professional credential; and reasonable costs for study abroad programs.
“Department” means the department of lifelong education, advancement, and potential.
“Eligible institution” means a public university that receives an appropriation in section 236, a community college that receives an appropriation in section 201, a federally recognized tribal college in this state, or an independent nonprofit college or university in this state as described in section 1 of 1966 PA 313, MCL 390.991.
“Gift aid” includes federal Pell grants under 20 USC 1070a, tuition incentive program benefits under section 256, state tuition grants under section 252, awards received for minimum payments awarded in subsection (4), higher education expenses paid under the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, and all other federal, state, local, or institutional aid in the form of grants, scholarships, or discounts applied toward tuition and mandatory fees. Gift aid does not include student loans, work-study awards, qualified withdrawals made from education savings accounts to pay higher education expenses pursuant to the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486, or higher education expenses paid under the Michigan education trust program pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442.
“High school equivalency certificate” means that term as defined in section 4.
“Last-dollar payment amount” means 1 of the following:
For a student attending a community college or federally recognized tribal college, an amount equal to the student’s tuition, mandatory fees, and contact hours for the student’s actual program of study, minus all gift aid received by the student.
For a student attending a public university or an independent nonprofit college or university, or for a student enrolled in a baccalaureate degree program described in section 121 of the community college act of 1966, 1966 PA 331, MCL 389.121, an amount equal to the student’s individual cost of attendance, minus all gift aid received by the student.
“Minimum payment” means a payment for any eligible cost within the student’s individual cost of attendance. The minimum payment must be awarded as a separate payment not included in the student’s need-based financial aid. The minimum payment must not be reduced.
“SAI eligible student” means a student who has completed the Free Application for Federal Student Aid and meets at least 1 of the following:
For awards made during academic year 2023-2024, has an expected family contribution of $25,000.00 or less. An individual is considered to have met the requirements of subsection (4) if the individual received the Michigan achievement scholarship in academic year 2023-2024, was determined to have an expected family contribution of $25,000.00 or less in academic year 2023-2024, and has completed the Free Application for Federal Student Aid for the subsequent award cycles.
For awards made during academic year 2024-2025 or a subsequent academic year, has completed the Free Application for Federal Student Aid and has a student aid index number of 1 of the following, as applicable:
For a student indicating on the student’s Free Application for Federal Student Aid that the student is the only member of the student’s household or the student’s parents’ household attending a postsecondary institution during that academic year, $30,000.00 or less.
For a student indicating on the student’s Free Application for Federal Student Aid that the student is not the only member of the student’s household or the student’s parents’ household attending a postsecondary institution during that academic year, the greater of the number described in sub-subparagraph
(A) or guidance determined by the department. For the purposes of this sub-subparagraph, the department, in collaboration with the state budget office and the house and senate fiscal agencies, may calculate a student aid index number or may issue administrative guidance for the student aid index eligibility of students with more than 1 member of the student’s household or the student’s parents’ household attending a postsecondary institution during that academic year. It is intended that the utilization of a student aid index instead of expected family contribution does not adversely impact the eligibility of students with multiple members of the student’s household or student’s parents’ household attending postsecondary institutions. It is further intended that the legislature and executive branch work collaboratively to use Michigan achievement scholarship uptake and other relevant data to establish a more permanent measure of financial need for the Michigan achievement scholarship for subsequent academic years.
An individual must meet all of the following criteria each year to be eligible for a Michigan achievement scholarship awarded under this section:
Maintain residency in this state, as determined for purposes of the Free Application for Federal Student Aid.
Have graduated from high school in this state with a diploma or certificate of completion or achieved a high school equivalency certificate in 2023 or after.
Be a full-time undergraduate student at an eligible institution, as defined by that eligible institution, and be a first-time enrollee in an eligible institution during the 2023-2024 academic year, or a subsequent academic year, within 15 months after high school graduation or attainment of a high school equivalency certificate or have received a Michigan achievement scholarship in a previous academic year. For the purposes of this subdivision, participation in a dual enrollment, early college, or other similar program while attending high school does not disqualify a student from being considered a first-time enrollee.
Maintain satisfactory academic progress, as defined by the eligible institution in which the student is enrolled.
Not be in default on a federal student loan.
Apply for all available gift aid for each academic year in which the individual applies for a Michigan achievement scholarship.
For a student who is enrolled at an eligible institution that is a public university or an independent nonprofit college or university, or who is enrolled in a baccalaureate degree program described in section 121 of the community college act of 1966, 1966 PA 331, MCL 389.121, at an eligible institution, be an SAI eligible student.
The amount awarded to an eligible student at an eligible institution must equal 1 of the following, as applicable:
The amount awarded to an eligible student who is enrolled at an eligible institution that is a community college or federally recognized tribal college where the student is eligible for that institution’s in-district tuition rate must be equal to the sum of the last-dollar payment amount. The amount awarded to an eligible student who is eligible for a federal Pell grant under 20 USC 1070a must include an additional amount of
$1,000.00.
The amount awarded to an eligible student who is enrolled at an eligible institution that is a community college or federally recognized tribal college where the student is not eligible for that institution’s in-district tuition rate must be the lesser of the last-dollar payment amount, or the in-district tuition rate. The amount awarded to an eligible student who is eligible for a federal Pell grant under 20 USC 1070a must include an additional amount of $1,000.00.
The amount awarded to an eligible student who is enrolled at an eligible institution that is a public university or is enrolled in a baccalaureate degree program described in section 121 of the community college act of 1966, 1966 PA 331, MCL 389.121, at an eligible institution must equal the sum of following:
A minimum payment of $2,500.00.
The lesser of $3,000.00 or the student’s last-dollar payment amount.
The amount awarded to an eligible student at an eligible institution that is an independent nonprofit college or university must equal the sum of the following:
A minimum payment of $2,500.00.
The lesser of $3,000.00 or the student’s last-dollar payment amount.
Money awarded under this subsection for a Michigan achievement scholarship must be paid to the eligible institution for credit to the student’s account.
Subject to section 248a(3)(f)(i), an eligible student may receive a Michigan achievement scholarship award under this section or section 248a for a maximum of 5 academic years, not more than 3 of which may be for attending eligible institutions that are community colleges or federally recognized tribal colleges unless the student is enrolled in a baccalaureate degree program described in section 121 of the community college act of 1966, 1966 PA 331, MCL 389.121. A student may not receive an award under this section and section 248a(3)(f)(i) during the same academic year.
The department shall work closely with participating institutions to provide the highest level of participation and ensure that all requirements of the program are met.
From the funds appropriated in section 236(7) for the Michigan achievement scholarships, the department may not use more than $10,000,000.00 for the purposes of outreach programs to raise awareness of the Michigan achievement scholarship described in this section and section 248a and shall ensure that Michigan achievement scholarships are well publicized and that high school students are provided information on the program. The department may receive and expend funds received from outside sources for scholarships, marketing, or other purposes related to the Michigan achievement scholarship. The department shall provide the necessary funding and staff to fully operate the program.
The department shall convene a workgroup to consider and advise the department on implementing policies for administering the Michigan achievement scholarship. The workgroup shall include participation from the Michigan Association of State Universities and its institutional members, the Michigan College Access Network, the Michigan Community College Association and its institutional members, the Michigan Independent Colleges and Universities and its institutional members, and any other interested stakeholders and offices as determined by the department. The workgroup shall make recommendations on packaging order, packaging structure, definitions of terms not otherwise defined in statute, and other administrative regulatory requirements as necessary to implement the Michigan achievement scholarship.
The following reporting obligations apply to the Michigan achievement scholarship program:
By February 15 of each year, the department shall provide a written report, organized by eligible institution, to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director that includes the following information for the previous academic year:
The number of students who qualified for a Michigan achievement scholarship.
The number of students who received a Michigan achievement scholarship.
The average number of credits earned by students who received a Michigan achievement scholarship.
The number of Michigan achievement scholarships that were canceled due to failure to maintain satisfactory academic progress as described in subsection (3)(d).
The number of Michigan achievement scholarships that were canceled due to a student ceasing attendance at an eligible institution. The number must not include any known transfers to another eligible institution.
The number of Michigan achievement scholarships that were canceled due to a student’s failure to maintain full-time status.
The average Michigan achievement scholarship award per student, delineated by sector, including community colleges, tribal colleges, public universities, independent colleges and universities, and training institutions. As used in this subparagraph, “training institutions” means training institutions accepted to participate in the Michigan achievement scholarship program under section 248a.
Each eligible institution whose students receive awards under this section shall cooperate with the department in a timely manner to facilitate the creation of the report under subdivision (a).
By April 1 of each year, each eligible institution shall submit a report to the department, the state budget office, and the house and senate fiscal agencies providing information as to the average amount of institutional grant aid awarded to full-time first-time undergraduate students for the immediately preceding 2 institution fiscal years. If the average amount of institutional grant aid awarded to full-time first-time undergraduate students in fiscal year 2023-2024 2024-2025 is less than the average amount of institutional grant aid awarded to full-time first-time undergraduate students in fiscal year 2022-2023, 2023-2024, the institution must shall include in the report a description of any changes to the institutional financial aid during the 2 immediately preceding fiscal years. An institution’s report of the average amount of institutional grant aid awarded to full-time first-time undergraduate students pursuant to this subsection must be consistent with data most recently reported to the Integrated Postsecondary Education Data System.
For each fiscal year, an eligible institution must shall maintain and report its compliance with the following tuition restraint requirements, as applicable:
For an eligible institution that is a community college, the tuition restraint described in section 217b.
For an eligible institution that is a public university or independent nonprofit college or university, the tuition restraint described in section 241c.
The state budget director shall implement reporting requirements to ensure that an eligible institution has satisfied the tuition restraint requirements of this section. The state budget director has the sole authority to determine if an eligible institution has met the requirements of this section.
If an eligible institution exceeds the applicable tuition restraint level for 2 consecutive years, the state budget director may consider the institution ineligible for funding under this section in the subsequent academic year.
If an institution is considered ineligible for funding under this section, the state budget director must
It is the intent of the legislature that an eligible institution will not make reductive changes to scholarship or financial aid programs offered by that eligible institution that have the goal or net effect of shifting the cost burden of those programs to the program described in this section.
Sec. 251. (1) Payments of the amounts included in section 236 236e for the state competitive scholarship program must be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981.
Pursuant to section 6 of 1964 PA 208, MCL 390.976, the department of lifelong education, advancement, and potential shall determine an actual state competitive scholarship award per student, which must be $1,500.00, that ensures that the aggregate payments for the state competitive scholarship program do not exceed the appropriation contained in section 236 236e for the state competitive scholarship program. If the department determines that insufficient funds are available to establish an award amount equal to
$1,500.00, the department shall immediately report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds necessary to establish a $1,500.00 award amount. For the purpose of determining a student’s financial need under section 6 of 1964 PA 208, MCL 390.976, the department of lifelong education, advancement, and potential shall presume that a student who receives a Michigan achievement scholarship under section 248 has no need for a state competitive scholarship under this section. It is the intent of the legislature that 1964 PA 208, MCL 390.971 to 390.981, will be amended to end competitive scholarship eligibility of students enrolling in college for the first time after the fiscal year ending on September 30, 2023, as those students may be eligible for the Michigan achievement scholarship.
The department of lifelong education, advancement, and potential shall implement a proportional competitive scholarship award level for recipients enrolled less than full-time in a given semester or term.
If the department of lifelong education, advancement, and potential increases the award per eligible student from that provided in the previous fiscal year, it must not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the award must be proportional for all eligible students receiving awards.
Veterans Administration benefits must not be considered in determining eligibility for the award of scholarships under 1964 PA 208, MCL 390.971 to 390.981.
Sec. 252. (1) The amounts appropriated in section 236 236e for the state tuition grant program must be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.
Tuition grant awards must be made to all eligible Michigan residents enrolled in undergraduate degree programs who are qualified.
Pursuant to section 5 of 1966 PA 313, MCL 390.995, and subject to subsections (6) and (7), the department of lifelong education, advancement, and potential shall determine an actual tuition grant award per student, which must be $3,000.00, that ensures that the aggregate payments for the tuition grant program do not exceed the appropriation contained in section 236 236e for the state tuition grant program. If the department determines that insufficient funds are available to establish an award amount equal to $3,000.00, the department shall immediately report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the estimated amount of additional funds necessary to establish a $3,000.00 award amount. If the department determines that sufficient funds are available to establish an award amount equal to $3,000.00, the department shall immediately report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director regarding the award amount established and the projected amount of any projected year-end appropriation balance based on that award amount. By February 18 of each fiscal year, the department shall analyze the status of award commitments, shall make any necessary adjustments, and shall confirm that those award commitments will not exceed the appropriation contained in section 236 236e for the tuition grant program. The determination and actions must be reported to the state budget director and the house and senate fiscal agencies no later than the final day of February of each year. If award adjustments are necessary, the students must be notified of the adjustment by March 4 of each year. Subject to subsection (9), for the purposes of determining a student’s financial need under 1966 PA 313, MCL 390.991 to 390.997a, the department of lifelong education, advancement, and potential shall presume that a student who is eligible for the Michigan tuition grant for the first time during academic year 2024-2025 or any subsequent year, has no need for a state tuition grant under this section. It is the intent of the legislature that 1966 PA 313, MCL 390.991 to 390.997a, will be amended to end tuition grant eligibility of students enrolling in college for the first time after the fiscal year ending on September 30, 2024, as those students may be eligible for the Michigan achievement scholarship.
The department of lifelong education, advancement, and potential shall continue a proportional tuition grant award level for recipients enrolled less than full-time in a given semester or term.
If the department of lifelong education, advancement, and potential increases the award per eligible student from that provided in the previous fiscal year, it must not have the effect of reducing the number of eligible students receiving awards in relation to the total number of eligible applicants. Any increase in the grant must be proportional for all eligible students receiving awards for that fiscal year.
The department of lifelong education, advancement, and potential shall not award more than
$5,000,000.00 in tuition grants to eligible students enrolled in the same independent nonprofit college or university in this state. Any decrease in the grant must be proportional for all eligible students enrolled in that college or university, as determined by the department.
The department of lifelong education, advancement, and potential shall not award tuition grants to otherwise eligible students enrolled in an independent college or university that does not report, in a form and manner directed by and satisfactory to the department of lifelong education, advancement, and potential, by October 31 of each year, all of the following:
The number of students in the most recently completed academic year who in any academic year received a state tuition grant at the reporting institution and successfully completed a program or graduated.
The number of students in the most recently completed academic year who in any academic year received a state tuition grant at the reporting institution and took a remedial education class.
The number of students in the most recently completed academic year who in any academic year received a Pell grant at the reporting institution and successfully completed a program or graduated.
By February 1 of each year, each independent college and university participating in the tuition grant program shall report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director on its efforts to develop and implement sexual assault response training for the institution’s title IX coordinator, campus law enforcement personnel, campus public safety personnel, and any other campus personnel charged with responding to on-campus incidents, including information on sexual assault response training materials and the status of implementing sexual assault response training for institutional personnel.
A student who received a scholarship under this section prior to the academic year 2024-2025 may continue to receive a tuition grant award under this section provided that the student meets all other criteria required for the receipt of a tuition grant award.
Sec. 254. The sums appropriated in section sections 236 and 236e for the state competitive scholarship, tuition incentive, tuition grant, Michigan reconnect, and Michigan achievement scholarship programs must be paid out of the state treasury and must be distributed to the respective institutions under a quarterly payment system as follows:
For the state competitive scholarship and tuition grant programs, 50% must be paid at the beginning of the state’s first fiscal quarter, 30% during the state’s second fiscal quarter, 10% during the state’s third fiscal quarter, and 10% during the state’s fourth fiscal quarter.
For the tuition incentive program, Michigan reconnect, and Michigan achievement scholarship, 65% must be paid at the beginning of the state’s first fiscal quarter, and 35% during the state’s second fiscal quarter.
Sec. 256. (1) The funds appropriated in section 236 for the tuition incentive program must be distributed as provided in this section and pursuant to the administrative procedures for the tuition incentive program of the department of lifelong education, advancement, and potential.
As used in this section:
“Phase I” means the first part of the tuition incentive program defined as the academic period of 80 semester or 120 term credits, or less, leading to an associate degree or certificate. Students must be enrolled in a certificate or associate degree program and taking classes within the program of study for a certificate or associate degree. Tuition will not be covered for courses outside of a certificate or associate degree program.
“Phase II” means the second part of the tuition incentive program that provides assistance in the third and fourth year of 4-year degree programs.
“Department” means the department of lifelong education, advancement, and potential.
“High school equivalency certificate” means that term as defined in section 4.
An individual must meet the following basic criteria and financial thresholds to be eligible for tuition incentive program benefits:
To be eligible for phase I, an individual must meet all of the following criteria:
Be less than 20 years of age at the time the individual graduates from high school with a diploma or certificate of completion or achieves a high school equivalency certificate or, for students attending a 5-year middle college approved by the Michigan department of education, be less than 21 years of age when the individual graduates from high school.
Be a United States citizen and maintain residency in this state, as determined for purposes of the Free Application for Federal Student Aid.
Be at least a half-time student, earning less than 80 semester or 120 term credits at a participating educational institution within 4 years of high school graduation or achievement of a high school equivalency certificate. All program eligibility expires 10 years after initial enrollment at a participating educational institution.
Meet the satisfactory academic progress policy of the educational institution attended by the individual.
To be eligible for phase II, an individual must meet either of the following criteria in addition to the criteria in subdivision (a):
Complete at least 56 transferable semester or 84 transferable term credits.
Obtain an associate degree or certificate at a participating institution.
To be eligible for phase I or phase II, an individual must be financially eligible as determined by the department. An individual is financially eligible for the tuition incentive program if the individual was eligible for Medicaid from this state for 24 months within any 36 months prior to completion of high school or achievement of a high school equivalency certificate. The department shall accept certification of Medicaid eligibility only from the department of health and human services for the purposes of verifying if a person is Medicaid eligible for 24 months within any 36 months prior to completion of high school or achievement of a high school equivalency certificate. Certification of eligibility may begin in the sixth grade.
For phase I, the department shall provide payment on behalf of a person eligible under subsection (3). The department shall only accept standard per-credit hour tuition billings and shall reject billings that are excessive or outside the guidelines for the type of educational institution.
For phase I, all of the following apply:
Payments for associate degree or certificate programs must not be made for more than 80 semester or 120 term credits for any individual student at any participating institution. The department shall not do either of the following:
Adopt or apply any total semester-credit or term-credit maximum that is less than the 80 semester-credit or 120 term-credit maximum provided in this subdivision.
Adopt or apply any per-semester or per-term credit maximum for a student whose semester-credit or term-credit load will not result in exceeding the total 80 semester-credit or 120 term-credit maximum provided in this subdivision.
For persons enrolled at a Michigan community college, the department shall pay the current in-district tuition and mandatory fees. For persons residing in an area that is not included in any community college district, the out-of-district tuition rate may be authorized.
For persons enrolled at a Michigan public university, the department shall pay lower division resident tuition and mandatory fees for the current year.
For persons enrolled at a Michigan independent, nonprofit degree-granting college or university , or a Michigan federal tribally controlled community college, or Focus: HOPE, the department shall pay mandatory fees for the current year and a per-credit payment that does not exceed the average community college in-district per-credit tuition rate as reported by the last business day of August for the immediately preceding academic year.
A person participating in phase II may be eligible for additional funds not to exceed $500.00 per semester or $400.00 per term up to a maximum of $2,000.00 subject to the following conditions:
Credits are earned in a 4-year program at a Michigan degree-granting 4-year college or university.
The tuition reimbursement is for coursework completed within 30 months of completion of the phase I requirements.
The department shall work closely with participating institutions to provide the highest level of participation and ensure that all requirements of the program are met.
The department shall notify students in an age-appropriate manner of their financial eligibility for the program any time after the student begins sixth grade.
Except as otherwise provided in sections 13(c) and 17 of the Michigan reconnect grant recipient act, 2020 PA 68, MCL 390.1713 and 390.1717, each institution shall ensure that all known available restricted grants for tuition and fees are used before billing the tuition incentive program for any portion of a student’s tuition and fees.
The department shall ensure that the tuition incentive program is well publicized and that eligible Medicaid clients are provided information on the program. The department shall provide the necessary funding and staff to fully operate the program.
The department shall collaborate with the center to use the P-20 longitudinal data system to report the following information for each qualified postsecondary institution:
The number of phase I students in the most recently completed academic year who in any academic year received a tuition incentive program award and who successfully completed a degree or certificate program. Cohort graduation rates for phase I students must be calculated using the established success rate methodology developed by the center in collaboration with the postsecondary institutions.
The number of students in the most recently completed academic year who in any academic year received a Pell grant at the reporting institution and who successfully completed a degree or certificate program. Cohort graduation rates for students who received Pell grants must be calculated using the established success rate methodology developed by the center in collaboration with the postsecondary institutions.
If a qualified postsecondary institution does not report the data necessary to complete the reporting in subsection (11) to the P-20 longitudinal data system by October 15 for the prior academic year, the department shall not award phase I tuition incentive program funding to otherwise eligible students enrolled in that institution until the data are submitted.
Sec. 260. (1) The department of lifelong education, advancement, and potential shall work with student and postsecondary education groups, including the Michigan College Access Network, the Michigan Association of School Counselors, the Michigan Association of State Universities, the Michigan Community College Association, and the Michigan Independent Colleges and Universities, to provide and update an online informational resource for students in grades 9 through 12 and prospective and current students and families. The online informational resource must be a website or a portion of an existing website titled “Paying for College in Michigan” and designed and maintained by the department of lifelong education, advancement, and potential that, to the extent practicable, contains information, including, but not limited to, all of the following:
A list of public and private community support centers, student debt clinics, and other organizations and their contact information submitted by Michigan College Access Network that provides free information and services for student loan borrowers to help educate them about repayment options and to help them access student loan programs or benefits for which they may be eligible.
Links to state and federal financial aid programs, including FAFSA and College Scorecard.
Links to each promise zone website and the financial aid website to each community college, public university, and independent college and university in this state.
Benefits of federal student loans that may no longer be available if a borrower refinances a loan.
Direct links to net price calculators for each community college receiving an appropriation in section 201 and each public university receiving an appropriation in section 236.
Definitions that clearly delineate the differences between scholarships, grants, and loans.
A description of net price calculators and how to use them to create a personalized estimate of a student’s out-of-pocket cost for the coming year based on basic family and financial information and likely financial aid eligibility.
Information on the fundamentals of borrowing and repayment, including, but not limited to, all of the following:
A link to the federal Public Service Loan Forgiveness Program or other state or federal loan forgiveness programs.
Deciding how much to borrow.
Creating a plan for borrowing and repayment.
Estimating how much borrowing is needed for a given school year.
Factors that affect total student loan costs.
Tips for graduating with less student loan debt.
A loan payment calculator or a link to a loan payment calculator that can be used for different types of loans.
Links to federal student loan entrance and exit counseling services and the FACT tool.
Student loan debt relief scams.
Loan amortization information.
A public university receiving an appropriation in section 236 shall place a prominent link to the website created under this section on its website homepage.
Independent colleges and universities in this state are encouraged to place a link to the website created under this section on their website homepages.
By November 1 of each year, the department of lifelong education, advancement, and potential shall inform each high school in this state about the website described in this section and encourage them to distribute the information to all students in grades 9 through 12.
The department shall audit the website not less than once per year every 6 months to ensure links continue to be accurate, active, and up-to-date for students and families.
Sec. 263. (1) Included in the appropriation in section 236 for fiscal year 2024-2025 2025-2026 for MSU AgBioResearch is $2,982,900.00 and included in the appropriation in section 236 for MSU Extension is $2,645,200.00 for Project GREEEN. Project GREEEN is intended to address critical regulatory, food safety, economic, and environmental problems faced by this state’s plant-based agriculture, forestry, and processing industries. “GREEEN” is an acronym for Generating Research and Extension to Meet Environmental and Economic Needs.
(2) The department of agriculture and rural development and Michigan State University, in consultation with agricultural commodity groups and other interested parties, shall develop Project GREEEN and its program priorities.
Sec. 263b. Included in the appropriation in section 236 for fiscal year 2024-2025 2025-2026 for MSU AgBioResearch and MSU Extension is funding for the Agricultural Climate Resiliency Program. The Agricultural Climate Resiliency Program is intended to address environmental sustainability of Michigan agriculture and promote the protection and efficient use of Michigan’s water resources.
Sec. 264. Included in the appropriation in section 236 for fiscal year 2024-2025 2025-2026 for Michigan State University is $80,000.00 for the Michigan Future Farmers of America Association. This
$80,000.00 allocation must not supplant any existing support that Michigan State University provides to the Michigan Future Farmers of America Association.
Sec. 268. (1) For the fiscal year ending September 30, 2025, 2026, it is the intent of the legislature that funds be allocated for unfunded North American Indian tuition waiver costs incurred by public universities under 1976 PA 174, MCL 390.1251 to 390.1253, from the general fund.
By January 15 of each year, the department of lifelong education, advancement, and potential shall annually submit to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies a report on North American Indian tuition waivers for the preceding academic year that includes, but is not limited to, all of the following information:
The number of waiver applications received and the number of waiver applications approved.
For each public university submitting information under subsection (3), all of the following:
The number of graduate and undergraduate North American Indian students enrolled each term for the previous academic year.
The number of North American Indian waivers granted each term, including to continuing education students, and the monetary value of the waivers for the previous academic year.
The number of North American Indian students who receive a granted waiver for the previous academic year.
The number of graduate and undergraduate students attending under a North American Indian tuition waiver who withdrew from the public university each term during the previous academic year. For purposes of this subparagraph, a withdrawal occurs when a student who has been awarded the waiver withdraws from the institution at any point during the term, regardless of enrollment in subsequent terms.
The number of graduate and undergraduate students attending under a North American Indian tuition waiver who successfully transfer to a 4-year public or private university, or complete a degree or certificate program, separated by degree or certificate level, and the graduation rate for graduate and undergraduate students attending under a North American Indian tuition waiver who complete a degree or certificate within 150% of the normal time to complete, separated by the level of the degree or certificate.
By January 1 of each year, a public university that receives an appropriation in section 236, or a tribal college receiving pass-through funds under section 269, 270, or 270c, shall provide to the department of lifelong education, advancement, and potential any information necessary for preparing the report detailed in subsection (2), using guidelines and procedures developed by the department of lifelong education, advancement, and potential.
The department of lifelong education, advancement, and potential may consolidate the report required under this section with the report required under section 223, but a consolidated report must separately identify data for public universities and data for community colleges.
Sec. 269. For fiscal year 2024-2025, 2025-2026, from the amount appropriated in section 236 to Central Michigan University for costs incurred under the North American Indian tuition waiver, $76,300.00
Sec. 270. For fiscal year 2024-2025, 2025-2026, from the amount appropriated in section 236 to Lake Superior State University for costs incurred under the North American Indian tuition waiver,
$498,800.00 must be paid to Bay Mills Community College for the costs of waiving tuition for North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253. It is the intent of the legislature that Bay Mills Community College provide the department of lifelong education, advancement, and potential the necessary information for the college to be included in the report required under section 268.
Sec. 270c. For fiscal year 2024-2025, 2025-2026, from the amount appropriated in section 236 to Northern Michigan University for costs incurred under the North American Indian tuition waiver,
$155,200.00 $105,700.00 is to be paid to Keweenaw Bay Ojibwa Community College for the costs of waiving tuition for North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253. It is the intent of the legislature that Keweenaw Bay Ojibwa Community College provide the department of lifelong education, advancement, and potential the necessary information for the community college to be included in the report required under section 268.
Sec. 275k. (1) Not later than December 1 of each year, each university that receives an appropriation in section 236 that, in the current or previous academic year, serves or has served as an authorizing body shall submit a report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, the state budget director, and the department of education containing, at a minimum, all of the following information, as applicable:
A list of all of the schools currently authorized, and the following information for each school:
The year in which the school was authorized.
The location of each school.
The owner of the property at which each school is located and the physical buildings utilized by the school, as applicable.
A list identifying any schools that were closed or lost their authorization in the current or previous academic year.
A description of any new contracts for the operation of a public school academy that will operate as the successor to a public school academy that is currently being operated under a contract issued by another authorizing body that is currently performing in the bottom 5% of schools.
The academic performance of each school currently authorized, including whether a school is identified by the department of education as a partnership school. If a school is identified as a partnership school under this subdivision, the authorizing body must shall include a description of corrective actions in the school’s partnership agreement, the duration of the partnership agreement, and an assessment of progress toward improvement.
The total enrollment of each school at the time of submission, the grades served, and student turnover rate compared to the previous academic year, as applicable.
Aggregated student enrollment data for students with an individualized education program as well as the total amount of special education cost reimbursements received by each school during the school’s most recently completed fiscal year.
The total number of fees, reimbursements, contributions, or charges permitted under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502, that are assigned to each school currently authorized in a single academic year.
The names of the members of the board of directors of each school currently authorized and the date that each member of each board was appointed, and a description of the methodology used by the authorizing body to select members for the boards of directors for each school currently authorized by the authorizing body.
The name of the applicant who applied and received approval to organize each currently authorized school.
The list of contracts and length of their terms, with education service providers associated with each school currently authorized pursuant to section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable. The contracts described in this subdivision include, but are not limited to, those described in section 502(2)(d) of the revised school code, 1976 PA 451, MCL 380.502.
Activities undertaken by each university to ensure that the board of directors of each school complies with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and laws prohibiting conflicts of interest.
A description of the activities undertaken by the university to meet the functions of an authorizing body under section 502 of the revised school code, 1976 PA 451, MCL 380.502, as applicable.
A financial report of the authorizing body’s use of fees, reimbursements, contributions, or charges collected or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502. This report must include all of the following, at a minimum:
The total amount of fees collected or retained under section 502(6) of the revised school code, 1976 PA 451, MCL 380.502, by the authorizing body for the authorizing body’s most recent fiscal year.
The amount of funds reported under subparagraph (i) that were spent on compensation for faculty and staff employed primarily to meet the functions of an authorizing body. For the purpose of this subparagraph, an employee is presumed to be primarily employed to meet the functions of an authorizing body if that employee spends more than 50% of the employee’s time on those activities.
The number of positions, organized by job title, associated with expenditures reported under subparagraph (ii).
The amount of funds reported under subparagraph (i) that were spent on contractual services to meet the functions of an authorizing body.
The amount of funds reported under subparagraph (i) that were spent on other overhead costs to meet the functions of an authorizing body.
The amount of funds reported under subparagraph (i) that were transferred to another operating unit within the university.
The amount of funds reported under subparagraph (i) that were spent on activities other than functioning as an authorizing body, including a list of those activities and the amount associated with each activity.
An executive summary section that provides relevant summary data for reporting requirements under subdivisions (a) to (m).
A report submitted under this section must be in a format that meets accessibility standards for viewing on the internet under the Americans with disabilities act of 1990, Public Law 101-336.
A report submitted under this section must be published and updated through a link on the homepage of the public university’s website.
(4) As used in this section, “authorizing body” means that term as defined in section 501 of the revised school code, 1976 PA 451, MCL 380.501.
Sec. 276. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future faculty fellowship program that is intended to increase the pool of academically or economically disadvantaged candidates pursuing faculty or administration careers in postsecondary education in this state. Preference may not be given to applicants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage applications from applicants who would otherwise not adequately be represented in the graduate student, faculty, or administration populations. Each public university shall apply the percentage change applicable to every public university in the calculation of appropriations in section 236 to the amount of funds allocated to the future faculty fellowship program.
(2) Each public university shall administer the program in a manner prescribed by the department of labor and economic opportunity. The department of labor and economic opportunity shall use a good-faith effort standard to evaluate whether a fellowship is in default. All of the following apply to the program:
By June 15 of each year, public universities shall report any anticipated unexpended or unencumbered program funds to the department of labor and economic opportunity. Encumbered funds are those funds that were committed by a fellowship agreement that is signed during the current fiscal year or administrative expenses that have been approved by the department of labor and economic opportunity.
Before September 1 of each year, unexpended or unencumbered funds may be transferred, under the direction of the department of labor and economic opportunity, to a future faculty fellowship program at another public university to be awarded to an eligible candidate at that public university.
Program allocations not expended or encumbered by September 30, 2026 2027 must be returned to the department of labor and economic opportunity so that those funds may lapse to the state general fund.
Not more than 5% of each public university’s allocation for the program may be used for administration of the program.
In addition to the appropriation for fiscal year 2024-2025, 2025-2026, any revenue received during prior fiscal years by the department of labor and economic opportunity from defaulted fellowship agreements is appropriated for the purposes originally intended.
Sec. 277. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day program that is intended to introduce academically or economically disadvantaged schoolchildren to the potential of a college education in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Public universities should encourage participation from those who would otherwise not adequately be represented in the student population.
Individual program plans of each public university must include a budget of equal contributions from this program, the participating public university, the participating school district, and the participating independent degree-granting college. College day funds must not be expended to cover indirect costs. Not more than 20% of the university match may be attributable to indirect costs. Each public university shall apply the percentage change applicable to every public university in the calculation of appropriations in section 236 to the amount of funds allocated to the college day program.
Each public university shall administer the program described in this section in a manner prescribed by the department of labor and economic opportunity.
Sec. 278. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services program for developing academically or economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the student population.
An award made under this program to any 1 institution must not be greater than $150,000.00, must have an award period of no more than 2 years, and must be matched on a 70% state, 30% college or university basis.
The department of labor and economic opportunity shall administer the program described in this section.
Sec. 279. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership program between 4-year public and independent colleges and universities and public community colleges, which is intended to increase the number of academically or economically disadvantaged students who transfer from community colleges into baccalaureate programs in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the transfer student population.
The grants must be made under the program described in this section to Michigan public and independent colleges and universities. An award to any 1 institution must not be greater than $150,000.00, must have an award period of no more than 2 years, and must be matched on a 70% state, 30% college or university basis.
The department of labor and economic opportunity shall administer the program described in this section.
Sec. 280. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting professors program, which is intended to increase the number of instructors in the classroom to provide role models for academically or economically disadvantaged students. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Public universities should encourage participation from those who would otherwise not adequately be represented in the student population.
(2) The department of labor and economic opportunity shall administer the program described in this section.
(3) The amount allocated to each public university is $11,184.00 and is subject to an award period of no more than 2 years. Each public university receiving funds for fiscal year 2024-2025 2025-2026 under this section shall report to the department of labor and economic opportunity by April 15, 2025 2026 the amount of its unobligated and unexpended funds as of March 31, 2025 2026 and a plan to expend the remaining funds by the end of the fiscal year. The amount of funding reported as not being expended may be transferred, under the direction of the department, to another public university for use under this section.
Sec. 281. (1) Included in the appropriation for fiscal year 2024-2025 2025-2026 for each public university in section 236 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr. educator development program, which is intended to increase the number of academically or economically disadvantaged students who enroll in and complete K-12 teacher education programs at the baccalaureate level and teach in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the teacher education student population.
(2) The program described in this section must be administered by each state-approved teacher education institution in a manner prescribed by the department of labor and economic opportunity.
(3) Approved teacher education institutions may and are encouraged to use select student support services funding in coordination with the Morris Hood, Jr. funding to achieve the goals of the program described in this section.
Sec. 282. (1) Each institution receiving funds for fiscal year 2024-2025 2025-2026 under section 278, 279, or 281 shall provide to the department of labor and economic opportunity by April 15, 2025 2026 the unobligated and unexpended funds as of March 31, 2025 2026 and a plan to expend the remaining funds by the end of the fiscal year. Notwithstanding the award limitations in sections 278 and 279, the amount of funding reported as not being expended will be reallocated to the institutions that intend to expend all funding received under section 278, 279, or 281.
(2) Funds received for the purpose of administering programs under sections 278, 279, and 281 must not be used for direct financial aid or indirect financial aid. However, a public university may provide academic incentives to motivate participating students as approved by the department. As used in this subsection:
“Direct financial aid” includes, but is not limited to, scholarships, payment of tuition, stipends, and work-studies.
“Indirect financial aid” includes, but is not limited to, transportation, textbook allowances, child care support, and assistance with medical premiums or expenses.
Sec. 283. (1) Using the data provided to the center as required by section 244 of this act, the center shall use the P-20 longitudinal data system to inform interested Michigan high schools and the public regarding the aggregate academic status of its students. The center shall work with the public universities and the Michigan Association of State Universities and in cooperation with the Michigan Association of Secondary School Principals.
Michigan high schools shall systematically inform the public universities about the use of information received under this section in a manner prescribed by the Michigan Association of Secondary School Principals in cooperation with the Michigan Association of State Universities.
The center shall conduct a review of the statewide longitudinal data system and associated data collection processes to identify strategies that would allow for the legal dissemination of student directory information for all students in grades 11 and 12 to Michigan public and independent nonprofit postsecondary institutions. The center shall collaborate with relevant stakeholders to recommend a process to share this data by June 30, 2024.
Sec. 284. Using data provided to the center as required by section 244 of this act, the center shall use the P-20 longitudinal data system to inform Michigan community colleges regarding the academic status of community college transfer students. The center shall work with the department of lifelong education, advancement, and potential, the universities, and the Michigan Association of State Universities in cooperation with the Michigan Community College Association.
Sec. 285. From the funds appropriated in section 236(2), public universities shall work with the state community colleges to encourage the transfer of students from the community colleges to the public universities and to facilitate the transfer of credits from the community colleges to those public universities. Each public university that receives an appropriation under section 236 shall consult with the department of lifelong education, advancement, and potential at least once an academic year on the policies and services the institution implements regarding transfer credits and transfer students.
Sec. 286. From the funds appropriated in section 236(2), public universities shall work with community colleges in this state to implement statewide reverse transfer agreements to increase the number of students that are awarded credentials of value upon completion of the necessary credits. These statewide agreements shall enable students who have earned a significant number of credits at a community college and transfer to a baccalaureate granting institution before completing a degree to transfer the credits earned at the baccalaureate institution back to the community college in order to be awarded a credential of value. Each public university that receives an appropriation under section 236 shall consult with the department of lifelong education, advancement, and potential at least once an academic year on the policies and services the institution implements regarding reverse transfer agreements.
Enacting section 1. (1) In accordance with section 30 of article IX of the state constitution of 1963, total state spending on school aid under article I of the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2024 PA 120, 2024 PA 148, and by this amendatory act, from state sources for fiscal year 2024-2025 is estimated at $18,811,776,900.00 and state appropriations for school aid to be paid to local units of government for fiscal year 2024-2025 are estimated at $17,366,388,900.00. In accordance with section 30 of article IX of the state constitution of 1963, total state spending on school aid under article I of the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by this amendatory act, from state sources for fiscal year 2025-2026 is estimated at $18,881,123,200.00 and state appropriations for school aid to be paid to local units of government for fiscal year 2025-2026 are estimated at
$17,433,304,100.00.
In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for community colleges for fiscal year 2025-2026 under article II of the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to 388.1830, as amended by this amendatory act, is estimated at
$493,032,100.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2025-2026 is estimated at $493,032,100.00.
In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for higher education for fiscal year 2025-2026 under article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, as amended by this amendatory act, is estimated at
$2,333,712,000.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2025-2026 is estimated at $0.00.
Enacting section 2. Sections 12c, 19b, 20f, 22c, 22e, 23h, 27f, 27g, 27n, 27o, 27s, 31j, 32p, 35d, 35j, 51h, 54b, 61s, 67a, 67b, 67d, 97a, 97h, 97j, 97m, 98d, 99c, 99d, 99g, 99i, 99s, 99t, 99u, 99x, 99ff, 99hh, 99ii,
99jj, 104f, 201g, 201h, 236f, 236n, 236r, and 287 of the state school aid act of 1979, 1979 PA 94, MCL 388.1612c, 388.1619b, 388.1620f, 388.1622c, 388.1622e, 388.1623h, 388.1627f, 388.1627g, 388.1627n, 388.1627o, 388.1627s, 388.1631j, 388.1632p, 388.1635d, 388.1635j, 388.1651h, 388.1654b,
388.1661s, 388.1667a, 388.1667b, 388.1667d, 388.1697a, 388.1697h, 388.1697j, 388.1697m, 388.1698d,
388.1699c, 388.1699d, 388.1699g, 388.1699i, 388.1699s, 388.1699t, 388.1699u, 388.1699x, 388.1699ff,
388.1699hh, 388.1699ii, 388.1699jj, 388.1704f, 388.1801g, 388.1801h, 388.1836f, 388.1836n, 388.1836r,
and 388.1887 are repealed.
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to amend 1979 PA 94, entitled “An act to make appropriations to aid in the support of the public schools, the intermediate school districts, community colleges, and public universities of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts,” by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 12d, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27b, 27c,
27h, 27l, 27p, 27r, 28, 29, 30d, 31a, 31d, 31f, 31n, 31aa, 32d, 32n, 32t, 33, 35a, 35m, 39, 39a, 41, 41b, 51a,
51c, 51d, 51e, 51g, 53a, 54, 54d, 55, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 97g, 97k,
98, 99, 99h, 99ee, 101, 104, 104b, 104h, 107, 111, 147, 147a, 147c, 147e, 152a, 152b, 161a, 201, 201f, 206,
207a, 207b, 207c, 210, 210b, 210d, 212, 216e, 217a, 217b, 217c, 222, 229a, 230, 236, 236c, 236d, 236j, 241,
241a, 241b, 241c, 241e, 244, 247, 248, 251, 252, 254, 256, 260, 263, 263b, 264, 268, 269, 270, 270c, 275k,
276, 277, 278, 279, 280, 281, 282, 283, 284, 285, and 286 (MCL 388.1603, 388.1606, 388.1611, 388.1611a,
388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1611x, 388.1612d, 388.1615, 388.1618, 388.1619,
388.1620, 388.1620d, 388.1621f, 388.1621h, 388.1622a, 388.1622b, 388.1622d, 388.1622k, 388.1622l,
388.1622m, 388.1622p, 388.1624, 388.1624a, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c,
388.1626d, 388.1627a, 388.1627b, 388.1627c, 388.1627h, 388.1627l, 388.1627p, 388.1627r, 388.1628,
388.1629, 388.1630d, 388.1631a, 388.1631d, 388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n,
388.1632t, 388.1633, 388.1635a, 388.1635m, 388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a,
388.1651c, 388.1651d, 388.1651e, 388.1651g, 388.1653a, 388.1654, 388.1654d, 388.1655, 388.1656,
388.1661a, 388.1661b, 388.1661d, 388.1661j, 388.1662, 388.1665, 388.1667, 388.1667f, 388.1674,
388.1681, 388.1694, 388.1694a, 388.1694e, 388.1697g, 388.1697k, 388.1698, 388.1699, 388.1699h,
388.1699ee, 388.1701, 388.1704, 388.1704b, 388.1704h, 388.1707, 388.1711, 388.1747, 388.1747a,
388.1747c, 388.1747e, 388.1752a, 388.1752b, 388.1761a, 388.1801, 388.1801f, 388.1806, 388.1807a,
388.1807b, 388.1807c, 388.1810, 388.1810b, 388.1810d, 388.1812, 388.1816e, 388.1817a, 388.1817b,
388.1817c, 388.1822, 388.1829a, 388.1830, 388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1841,
388.1841a, 388.1841b, 388.1841c, 388.1841e, 388.1844, 388.1847, 388.1848, 388.1851, 388.1852,
388.1854, 388.1856, 388.1860, 388.1863, 388.1863b, 388.1864, 388.1868, 388.1869, 388.1870, 388.1870c,
388.1875k, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884,
388.1885, and 388.1886), sections 3, 11x, 19, 21f, 27b, 32t, and 283 as amended and sections 22k, 27h, 217a, and 241b as added by 2023 PA 103, sections 6 and 97g as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148, sections 11a, 11j, 11k, 11m, 11s, 15, 20, 20d, 21h, 22a, 22b, 22d, 22l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27c, 27l, 27p, 28, 29, 30d, 31a, 31d, 31f, 31n, 32d, 32n, 33,
35a, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81,
94, 94a, 97k, 98, 99h, 99ee, 104, 104h, 107, 147, 147a, 147c, 147e, 152a, 152b, 201, 206, 207a, 207b, 207c,
217b, 222, 229a, 230, 236, 236c, 236j, 241, 241a, 241c, 244, 248, 251, 252, 254, 256, 260, 263, 263b, 264,
268, 269, 270c, 275k, 276, 277, 278, 279, 280, 281, and 282 as amended and sections 12d, 27r, 35m, 55, 94e, 99, 201f, 216e, 217c, 236d, 241e, 247, and 270 as added by 2024 PA 120, section 18 as amended by 2022 PA 144, section 101 as amended by 2025 PA 5, section 104b as amended by 2018 PA 265, section 111 as amended by 1997 PA 93, section 161a as amended by 2006 PA 342, section 210 as amended and section 210d as added by 2015 PA 85, sections 210b, 285, and 286 as amended by 2021 PA 86, section 212 as amended by 2016 PA 249, and section 284 as amended by 2017 PA 108, and by adding sections 12e, 18d, 22r, 22s, 31c, 32y, 35e, 61v, 97n, 99mm, 164k, 164l, 201i, 217f, 236e, 236s, and 241h; and to repeal acts and parts of acts.
Darrin Camilleri Ann Bollin
Sarah E. Anthony Tim Kelly
Jon Bumstead Carol Glanville
Conferees for the Senate Conferees for the House The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 257 | Yeas—31 | |||
Anthony | Daley | Johnson | Santana | |
Bayer | Damoose | Klinefelt | Shink | |
Brinks | Geiss | Lauwers | Singh | |
Bumstead | Hauck | McBroom | Theis | |
Camilleri | Hertel | McCann | Victory | |
Cavanagh Chang Cherry | Hoitenga Huizenga Irwin | McMorrow Moss Polehanki | Webber Wojno |
Nays—5 | |||
Albert Bellino | Lindsey | Nesbitt | Runestad |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal years ending September 30, 2025 and September 30, 2026; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.
The House of Representatives has adopted the report of the Committee of Conference. The Conference Report was read as follows:
FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal year ending September 30, 2026; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.
Recommends:
First: That the Senate recede from the Substitute of the Senate as passed by the Senate.
Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:
A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal years ending September 30, 2025 and September 30, 2026; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.
ARTICLE 1
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of agriculture and rural development for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 546.0 | |
GROSS APPROPRIATION | $ | 145,885,000 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | $ | 336,600 | |
ADJUSTED GROSS APPROPRIATION | $ | 145,548,400 | |
Federal revenues: | |||
Total federal revenues | 20,079,600 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 0 | ||
Total other state restricted revenues | 47,972,400 | ||
State general fund/general purpose | $ | 77,496,400 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 31.0 | ||
Unclassified salaries—FTEs | 6.0 | $ | 1,064,200 |
Accounting service center | 1,190,900 | ||
Commissions and boards | 23,800 | ||
Emergency management—FTEs | 8.0 | 2,774,100 | |
Emerging contaminants in food and agriculture—FTEs | 6.0 | 1,362,200 | |
Executive direction—FTEs | 17.0 | 2,532,200 | |
Property management | 876,300 | ||
GROSS APPROPRIATION | $ | 9,823,700 | |
Appropriated from: | |||
Federal revenues: | |||
Deferred federal revenue funding | 15,000 | ||
HHS, multiple grants | 444,800 | ||
USDA, multiple grants | 600,000 | ||
Special revenue funds: | |||
Agriculture licensing and inspection fees | 170,100 | ||
Dairy and food safety fund | 160,000 | ||
Feed control fund | 9,000 | ||
Fertilizer control fund | 10,700 | ||
Freshwater protection fund | 165,400 | ||
Industry support funds | 58,300 | ||
Michigan craft beverage council fund | 8,800 | ||
Private forestland enhancement fund | 18,100 | ||
Refined petroleum fund | 21,300 | ||
Weights and measures regulation fees | 5,000 | ||
State general fund/general purpose | $ | 8,137,200 | |
Sec. 103. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 2,386,400 | |
GROSS APPROPRIATION | $ | 2,386,400 | |
Appropriated from: | |||
Special revenue funds: | |||
Agriculture licensing and inspection fees | 93,800 | ||
Dairy and food safety fund | 77,000 | ||
Feed control fund | 15,200 | ||
Fertilizer control fund | 15,200 | ||
Freshwater protection fund | 15,200 | ||
Gasoline inspection and testing fund | 32,600 | ||
State general fund/general purpose | $ | 2,137,400 | |
Sec. 104. FOOD SAFETY AND ANIMAL HEALTH | |||
Full-time equated classified positions | 212.0 | ||
Animal disease prevention and response—FTEs | 63.0 | $ | 11,208,400 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Animal feed safety—FTEs | 10.0 | $ | 2,127,200 |
Food safety and quality assurance—FTEs | 103.0 | 18,407,500 | |
Indemnification - livestock depredation | 15,000 | ||
Milk safety and quality assurance—FTEs | 36.0 | 6,057,500 | |
GROSS APPROPRIATION | $ | 37,815,600 | |
Appropriated from: | |||
Federal revenues: | |||
HHS, multiple grants | 2,929,800 | ||
USDA, multiple grants | 1,211,100 | ||
Special revenue funds: | |||
Agriculture licensing and inspection fees | 73,300 | ||
Animal welfare fund | 150,000 | ||
Consumer and industry food safety education fund | 242,500 | ||
Dairy and food safety fund | 6,545,400 | ||
Feed control fund | 1,451,500 | ||
Industry food safety education fund | 114,100 | ||
Marihuana regulatory fund | 50,600 | ||
State general fund/general purpose | $ | 25,047,300 | |
Sec. 105. ENVIRONMENT AND SUSTAINABILITY | |||
Full-time equated classified positions | 117.5 | ||
Environmental stewardship - MAEAP—FTEs | 27.0 | $ | 11,024,600 |
Local conservation districts | 3,000,000 | ||
Pesticide and plant pest management—FTEs | 79.0 | 14,032,300 | |
Right-to-farm—FTEs | 6.5 | 1,060,100 | |
Soil health/Regenerative agriculture—FTEs | 5.0 | 2,035,500 | |
GROSS APPROPRIATION | $ | 31,152,500 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDEGLE, biosolids | 97,800 | ||
Federal revenues: | |||
Department of Interior | 96,300 | ||
EPA, multiple grants | 1,142,700 | ||
USDA, multiple grants | 2,048,100 | ||
Special revenue funds: | |||
Agriculture licensing and inspection fees | 4,228,600 | ||
Fertilizer control fund | 1,396,000 | ||
Freshwater protection fund | 8,560,100 | ||
Horticulture fund | 70,000 | ||
Industrial hemp fund | 688,900 | ||
Industry support funds | 228,100 | ||
State general fund/general purpose | $ | 12,595,900 | |
Sec. 106. AGRICULTURE DEVELOPMENT | |||
Full-time equated classified positions | 72.0 | ||
Agricultural preservation easement grants | $ | 1,900,000 | |
Agricultural support—FTEs | 5.0 | 1,005,000 | |
Agriculture development—FTEs | 16.0 | 4,882,500 | |
Fair food network - double up food bucks | 4,000,000 | ||
Farm to family—FTEs | 6.0 | 3,014,300 | |
Farmland and open space preservation—FTEs | 10.0 | 1,613,800 | |
Food and agriculture investment program | 2,449,300 | ||
Food and agriculture supply chain—FTE | 1.0 | 305,100 | |
Fruit and vegetable inspections—FTEs | 8.0 | 1,313,300 | |
Intercounty drain—FTEs | 5.0 | 897,800 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Michigan craft beverage council—FTE | 1.0 | $ | 1,346,600 |
Migrant labor housing—FTEs | 9.0 | 1,410,000 | |
Producer security/grain dealers—FTEs | 6.0 | 1,044,500 | |
Qualified forest program—FTEs | 4.0 | 7,826,500 | |
Rural development fund grant program—FTE | 1.0 | 2,009,500 | |
GROSS APPROPRIATION | $ | 35,018,200 | |
Appropriated from: | |||
Federal revenues: | |||
USDA, multiple grants | 8,089,900 | ||
Special revenue funds: | |||
Agricultural preservation fund | 3,513,800 | ||
Agriculture licensing and inspection fees | 5,100 | ||
Commodity inspection fees | 705,500 | ||
Grain dealers fee fund | 885,700 | ||
Industry support funds | 223,600 | ||
Michigan craft beverage council fund | 1,316,600 | ||
Migratory labor housing fund | 145,100 | ||
Private forestland enhancement fund | 1,080,100 | ||
Rural development fund | 2,009,500 | ||
State general fund/general purpose | $ | 17,043,300 | |
Sec. 107. LABORATORY AND CONSUMER PROTECTION | |||
Full-time equated classified positions | 113.5 | ||
Consumer protection program—FTEs | 39.0 | $ | 6,988,800 |
Integrated solutions—FTEs | 25.0 | 3,724,100 | |
Laboratory services—FTEs | 40.5 | 8,467,700 | |
USDA monitoring—FTEs | 9.0 | 1,743,800 | |
GROSS APPROPRIATION | $ | 20,924,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from LARA (LCC), liquor quality testing fees | 238,800 | ||
Federal revenues: | |||
EPA, multiple grants | $ | 180,600 | |
HHS, multiple grants | 1,576,300 | ||
USDA, multiple grants | 1,745,000 | ||
Special revenue funds: | |||
Agricultural preservation fund | 44,600 | ||
Agriculture licensing and inspection fees | 835,500 | ||
Dairy and food safety fund | 709,600 | ||
Feed control fund | 193,000 | ||
Fertilizer control fund | 23,500 | ||
Freshwater protection fund | 78,900 | ||
Gasoline inspection and testing fund | 1,964,300 | ||
Grain dealers fee fund | 8,400 | ||
Industrial hemp fund | 322,200 | ||
Migratory labor housing fund | 29,900 | ||
Refined petroleum fund | 3,563,700 | ||
Testing fees | 361,700 | ||
Weights and measures regulation fees | 763,100 | ||
State general fund/general purpose | $ | 8,285,300 | |
Sec. 108. FAIRS AND EXPOSITIONS | |||
County fairs, shows, and expositions | $ | 250,000 | |
Fairs and racing | 258,600 | ||
Horse racing advisory commission | 125,000 | ||
Purses and supplements - fairs/licensed tracks | 2,073,600 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Standardbred breeders’ awards | $ | 345,900 |
Standardbred purses and supplements - licensed tracks | 991,100 | |
Standardbred sire stakes | 720,000 | |
GROSS APPROPRIATION | $ | 4,764,200 |
Appropriated from: | ||
Special revenue funds: | ||
Agriculture equine industry development fund | 4,514,200 | |
State general fund/general purpose | $ | 250,000 |
Sec. 109. ONE-TIME APPROPRIATIONS | ||
Michigan animal agriculture alliance | $ | 1,500,000 |
County fairs, shows, and expositions | 250,000 | |
Emerging contaminants in food and agriculture | 250,000 | |
Fair food network - double up food bucks | 1,000,000 | |
Food and agriculture supply chain | 500,000 | |
Food safety/ quality assurance | 500,000 | |
GROSS APPROPRIATION | $ | 4,000,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 4,000,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $125,468,800.00 and total state spending under part 1 from state sources to be paid to local units of government is $11,800,000.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT | ||
Agriculture preservation easement grants | $ | 1,900,000 |
Environmental stewardship/MAEAP | 4,100,000 | |
Local conservation districts | 3,000,000 | |
Qualified forest program | 1,400,000 | |
Rural development fund grant program | 1,400,000 | |
TOTAL | $ | 11,800,000 |
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 part 1 and this part:
“Department” means the department of agriculture and rural development.
“Director” means the director of the department.
“Fiscal agencies” means the Michigan house fiscal agency and the Michigan senate fiscal agency.
“FTE” means full-time equated.
“IDG” means interdepartmental grant.
“MAEAP” means the Michigan agriculture environmental assurance program.
“MDEGLE” means the Michigan department of environment, Great Lakes, and energy.
“Standard report recipients” means the senate and house appropriations subcommittees on agriculture and rural development the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“Subcommittees” means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.
“TB” means tuberculosis.
“USDA” means the United States Department of Agriculture.
Sec. 204. The department 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:
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.
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.
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.
Sec. 206. The department shall not take disciplinary action against an employee of the department because the employee communicates 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, each department and agency receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel outside the state by classified and unclassified employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’s budget. The department shall submit the report to the standard report recipients and to the house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 of representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$3,000,000.00 for federal contingency authorization. Amounts appropriated 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$2,000,000.00 for state restricted contingency authorization. Amounts appropriated 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 for local contingency authorization. Amounts appropriated 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 for private contingency authorization. Amounts appropriated 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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) 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. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1, 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. 215. On a quarterly basis, the department or agency receiving appropriations in part 1, 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 law and 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. 221. 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. 222. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 223. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 224. 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 report must include reference to the public act number. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules. Sec. 226. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be
monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed upon business hours.
Sec. 228. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients by March 1 of each year that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 229. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 234. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $8,872,800.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $8,002,700.00. Total appropriations for retiree health care legacy costs for the department are estimated at $870,100.00.
Sec. 235. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 236. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 237. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 238. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 239. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. (1) The department may establish a fee schedule and collect fees for the following work activities and services:
Pesticide and plant pest management propagation and certification of virus-free foundation stock.
Fruit and vegetable inspection and grading services at shipping and termination points and processing plants.
Laboratory support analyses of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards.
Laboratory support test samples for other state and local agencies and public or private organizations.
The department may receive and expend revenue from the fees authorized under subsection (1), subject to appropriation, to recover expenses associated with the work activities and services described in subsection (1). Fee revenue collected by the department under subsection (1) does not lapse to the state general fund at the end of the fiscal year but carries forward for appropriation by the legislature in the subsequent fiscal year.
The department shall notify the subcommittees, the fiscal agencies, and the state budget office 30 days before proposing changes in fees authorized under this section or under section 5 of 1915 PA 91, MCL 285.35.
On or before February 1 of each year, the department shall provide a report to the subcommittees, the fiscal agencies, and the state budget office detailing all the fees charged by the department under the authorization provided in this section, including, but not limited to, rates, number of individuals paying each fee, and the revenue generated by each fee in the previous fiscal year.
Sec. 302. (1) The department may contract with or provide grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1.
The department shall notify members of the legislature of grants or contracts awarded to recipients located within a member’s legislative district.
As used in this section:
“Contracts” includes, but is not limited to, contracts for delivery of groundwater/freshwater programs, MAEAP technical assistance, forest management, invasive species monitoring, and wildlife risk mitigation.
“Grants” includes, but is not limited to, grants promoting proper pesticide disposal and research grants for the purpose of enhancing the agricultural industries in this state.
Sec. 303. (1) From the funds appropriated in part 1 for emerging contaminants in food and agriculture the department shall support efforts to identify and respond to the impacts of emerging contaminants to the food and agriculture sector, help address and mitigate current issues caused by emerging contaminants, and work to prevent and minimize future impacts. The department shall coordinate these efforts with other state agencies, federal agencies, tribal governments, local governments, institutions of higher learning, and the food and agriculture sector. Emerging contaminants include but are not limited to pesticides, dioxins, and per- and polyfluoroalkyl substances.
(2) The unexpended funds appropriated in part 1 for emerging contaminants in food and agriculture are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support efforts to identify and respond to the impacts of emerging contaminants to the food and agriculture sector, help address and mitigate current issues caused by emerging contaminants, and work to prevent and minimize future impacts.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The estimated cost of this project is $1,612,200.00.
The tentative completion date for the work project is September 30, 2030.
BUREAU OF FOOD SAFETY AND ANIMAL HEALTH
Sec. 401. (1) The department shall report on the previous calendar year’s activities of the bureau of food safety and animal health. The report must include information on activities and outcomes of the dairy safety and inspection program, the food safety inspection program, the foodborne illness and emergency response program, and the food service program.
The report must include information on significant foodborne outbreaks and emergencies, including any significant enforcement actions taken related to food safety during the prior calendar year.
The department shall include in the report all indemnification payments for livestock depredation made in the previous calendar year and shall include all of the following:
The reason for the indemnification.
The amount of the indemnification.
The person for whom the indemnification was paid.
The report must be transmitted on or before April 1 of each year.
Sec. 402. From the funds appropriated in part 1, the department shall pay for all whole herd bovine TB testing costs and individual animal testing costs in the modified accredited zone and buffer counties as referenced in the current memorandum of understanding between the department and the USDA to maintain split-state status requirements. These costs include indemnity and compensation for injury causing death or downer to animals.
Sec. 403. The department shall use its resources to collaborate with the USDA to monitor bovine TB, consistent with the current required memorandum of understanding between the department and the USDA. Sec. 404. From the funds appropriated in part 1 for animal disease prevention and response, the department shall use $200,000.00 to cover costs associated with testing of registered privately owned cervid facilities as
follows:
Required surveillance testing for chronic wasting disease.
Infected herd bovine TB testing.
Sec. 405. (1) On or before October 15 of each year, the department shall provide to the standard report recipients a report on bovine TB status and department activities.
(2) For each fiscal quarter following the report required in subsection (1), the department shall provide an update. The quarterly update reports must identify significant impacts to the program, including new incidence of bovine TB in this state, department activity associated with specific new incidence of bovine TB, any changes in USDA requirements or movement orders, and information and data on wildlife risk mitigation plan implementation in the modified accredited zone; implementation of a movement certificate process; progress toward annual surveillance test requirements; efforts to work with slaughter facilities in this state, as well as those that slaughter a significant number of animals from this state; and educational programs and information for this state’s livestock community.
Sec. 406. From the funds appropriated in part 1 for Michigan animal agriculture alliance, the department shall work with animal industry representatives and state research universities to continue an animal research grant program.
BUREAU OF ENVIRONMENT AND SUSTAINABILITY
Sec. 501. The department shall report on the previous calendar year’s activities of the bureau of environment and sustainability on or before April 1 of each year.
Sec. 502. (1) The purpose of the part 1 appropriation for soil health/regenerative agriculture is to promote the usage and implementation of best regenerative agricultural farming practices and new technologies related to environmental sustainability.
The purpose of the part 1 appropriation for soil health/regenerative agriculture is advancing the adoption of soil health and regenerative agriculture principles in agriculture in this state.
From the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall do both of the following:
Promote the principles of soil health and regenerative agriculture through at least the following:
The maintenance of soil cover.
The minimization of soil disturbance.
The maximization of plant and crop diversity.
The maximization of the presence of living roots.
The integration of livestock into the cropping systems.
Ensure that program outcomes include at least the following:
The increase of soil organic matter content.
The improvement of soil water infiltration capacity.
The increase in soil water holding capacity.
The improvement of soil biological capacity to break down plant residue and other substances and to maintain soil aggregation.
The improvement of soil nutrient sequestration and cycling capacity.
The reduction of nutrient losses.
The increase of carbon sequestration capacity of soil.
From the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall promote practices of soil health and regenerative agriculture, including the use of no-till farming, intercropping, cover crops, multispecies cover crops, roller crimping, managed rotational grazing, and other practices identified that utilize natural biological processes to advance the goals of soil health and regenerative agriculture.
No funds appropriated in part 1 for soil health/regenerative agriculture may be used for applied research into the precision application of fertilizer, pesticides, or herbicides.
It is the intention of the legislature that the department engage with program partners to achieve the purposes of the soil health/regenerative agriculture programs through research, education, and outreach. Program partners include, but are not limited to, farmer-to-farmer networks, Michigan State University Extension, Michigan State University AgBioResearch, the USDA Natural Resources Conservation Service, local conservation districts, and other nongovernmental organizations. Agreements with program partners receiving funds through soil health/regenerative agriculture appropriations must describe intended outcomes and how intended outcomes will be measured and require the provision of a report to the department on uses of funding received and a progress report on outcomes.
The department may use state employees or contract service providers, or both, to achieve the purposes of the soil health/regenerative agriculture programs.
In the report required under section 501 of this part, the department shall provide information on the program described in this section, including department activities, uses of program funds by activity or project, contractors, grantees, and a summary of projects and project results.
Of the funds appropriated in part 1 for soil health/regenerative agriculture, not less than $1,000,000.00 must be used by the department to partner with the state land grant university through MSU Extension and AgBioResearch to develop, implement, and evaluate a soil health/regenerative agriculture program. The partnership described in this subsection must be focused on researching and assisting the agricultural industry in implementing soil health/regenerative agricultural principles and techniques. Partnership goals must include, but are not limited to, establishing program priorities, developing metrics, implementing goals, evaluating outcomes, and engaging with stakeholders.
Sec. 503. Not later than April 1, the department shall prepare a report to be posted on the department’s website and provided to the relevant house and senate standing committees and appropriations subcommittees as well as to the fiscal agencies and state budget office. The report must contain the following information for agriculture nutrient best management voluntary practices program:
The number and location of acres enrolled in nutrient management or other best management practices.
The number of acres enrolled that were not previously verified under the MAEAP.
A summary of practices implemented and available incentive programs.
The starting and ending balances of the program.
A summary of outreach and training efforts.
Testing results.
Sec. 505. The funds appropriated in part 1 for environmental stewardship/MAEAP must be used to support department agriculture pollution prevention programs, including groundwater and freshwater protection programs under part 87 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.8701 to 324.8717, and technical assistance in implementing conservation grants available under the federal farm bill.
Sec. 506. The department may receive and expend federal revenues up to a total of $1,000,000.00 in excess of the federal revenue appropriated in part 1 for environmental stewardship and MAEAP activities. The department shall notify the subcommittees, the fiscal agencies, and the state budget office prior to expending federal revenues authorized under this section.
Sec. 507. (1) From the appropriations in part 1 for local conservation districts, $3,000,000.00 must be distributed through a grant program to local conservation districts in this state that were in operation in the previous fiscal year based upon criteria established by the department.
(2) On or before April 1, the department shall report on the previous calendar year’s activities of local conservation districts. The report must include descriptions of local conservation district activities and the use of funding. In preparing this report, the department shall coordinate with representatives of local conservation districts.
LABORATORY AND CONSUMER PROTECTION BUREAU
Sec. 601. The department shall report by April 1 on the previous calendar year’s activities of the laboratory bureau.
Sec. 602. No funds from the appropriations in part 1 may be used for the purpose of consolidating state- run laboratories.
AGRICULTURE DEVELOPMENT BUREAU
Sec. 701. (1) From the funds appropriated in part 1 for the food and agriculture investment program, the department shall operate a food and agriculture investment program.
The food and agriculture investment program shall do all of the following:
Expand the Michigan food and agriculture sector.
Promote food security.
Develop local and regional food systems.
Grow Michigan exports.
Promote the development of value-added agricultural production.
Support urban farms, food hubs, food incubators, and community-based processing facilities with a focus on new and expanding protein processors.
Promote the expansion of farm markets, flower markets, and urban agriculture, including hoop houses.
Increase food processing activities within this state by accelerating investment projects and infrastructure development that support growth in production agriculture and food and agriculture processing, expand opportunity to new agricultural producers and processors, promote agriculture tourism and agricultural heritage, and develop agricultural education and interpretation activities.
In addition to the funds appropriated in part 1, the department may receive and expend funds received from outside sources for the food and agriculture investment program.
Before the allocation of funding, all projects must receive approval from the Michigan commission of agriculture and rural development, except for projects selected through a competitive process by a joint evaluation committee selected by the director and consisting of representatives that have agriculture, food
security, local and regional food systems, business, and economic development expertise. Projects funded through the food and agriculture investment program will be required to have a grant agreement that outlines milestones and activities that must be met in order to receive a disbursement of funds. Projects must also identify measurable project outcomes.
The department shall include, in the agriculture development annual report, a report on the food and agriculture investment program for the previous fiscal year that includes a listing of the grantees, award amounts, match funding, project locations, and project outcomes.
The unexpended funds appropriated in part 1 for the food and agriculture investment program are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to promote and expand the Michigan food and agriculture sector, grow Michigan exports, and increase food processing activities within the state.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The estimated cost of this project is identified in the appropriation line item.
The tentative completion date for the work project is September 30, 2028.
The department may expend money from the funds appropriated in part 1 for the food and agriculture investment program, including all of the following activities:
Grants.
Loans or loan guarantees.
Infrastructure development.
Other economic assistance.
Program administration.
Export assistance.
The department shall expend no more than 5% from the funds appropriated in part 1 for the food and agriculture investment program for administrative purposes.
In awarding grants under the food and agriculture investment program, the department shall identify and encourage applications from members of socially disadvantaged groups, women, veterans, and beginning farmers and ranchers. In awarding grants under the food and agriculture investment program, the department must also prioritize Michigan-based small businesses, nonprofits, and organizations promoting agriculture and food security activities.
Sec. 703. (1) From the funds appropriated in part 1 for fair food network – double up food bucks, the department shall work with the fair food network to ensure that at least 80% of the funds allocated to the double up food bucks program are directly used for the payments to participating vendors.
The department shall work with the department of health and human services to do all of the following:
Notify recipients of food assistance program benefits that food assistance program benefits can be accessed at many farmer’s markets in this state with bridge cards.
Notify recipients of food assistance program benefits about the double up food bucks program and that it is administered by the fair food network. Food assistance program recipients shall receive information about the double up food bucks program.
The department shall work with the fair food network to expand access to the double up food bucks program in each of the state’s counties with grocery stores or farmer’s markets that meet the program’s eligibility requirements.
On or before June 1, the department shall submit a report on activities and outcomes of the double up food bucks program. The report must contain all of the following:
Counties in this state with participating double up food bucks vendors, the number of vendors by county, and the name and location of vendors, as of May 1, 2024.
Counties in this state with participating double up food bucks vendors, the number of vendors by county, and the name of location of vendors, as of May 1, 2025. The report must highlight counties and vendors added to the program since May 1, 2024.
Number of individuals participating in the program, by county.
Sec. 706. (1) By not later than April 1, the department shall report on the previous calendar year’s activities of the agriculture development bureau.
The report described in subsection (1) must include the following information on any grants awarded during the prior fiscal year:
The name of the grantee.
The amount of the grant.
The purpose of the grant, including measurable outcomes.
Additional state, federal, private, or local funds contributed to the grant project.
The completion date of grant-funded activities.
The report must include the following information on the Michigan craft beverage council established under section 303 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303:
Council activities and accomplishments for the previous fiscal year.
Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education.
Grants awarded during the previous fiscal year and the results of research grant projects completed during the previous fiscal year.
The report must identify grant recipients who are members of socially disadvantaged groups, women, veterans, and beginning farmers and ranchers.
Sec. 707. Unexpended industry support fund revenues at the end of the fiscal year may be carried forward into the industry support fund in the succeeding fiscal year and do not lapse to the general fund.
Sec. 708. (1) The appropriations in part 1 for the qualified forest program are for the purpose of increasing the knowledge of nonindustrial private forestland owners regarding sound forest management practices and increasing the amount of commercial timber production from those lands.
(2) The department shall work in partnership with stakeholder groups and other state and federal agencies to increase the active management of nonindustrial private forestland to foster the growth of this state’s timber product industry.
Sec. 709. From the funds appropriated in part 1, the department shall maintain coordination with the department of treasury to improve the timely processing and issuance of tax credits under section 36109 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36109, for the Michigan’s farmland and open space preservation program under parts 361 and 362 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.36116 and 324.36201 to 324.36207. The improvement of timely processing and issuance, as described in this section, includes, but is not limited to:
Timely review of mailed applications and paperwork.
Timely and proactive communications to applicants on the status of their application.
The provision of a clear and understood timeline for the issuance of any tax credits.
Sec. 710. The department shall collaborate with the department of labor and economic opportunity’s office of rural prosperity on the rural development fund grant program as part of the state’s coordinated strategy for achieving rural prosperity across the state.
FAIRS AND EXPOSITIONS
Sec. 801. All appropriations from the agriculture equine industry development fund must be spent on equine-related purposes. No funds from the agriculture equine industry development fund may be expended for non-equine-related purposes without prior approval of the legislature.
Sec. 802. From the funds appropriated in part 1 from agriculture equine industry development funds, available revenue must be allocated in the following priority order:
To support all administrative, contractual, and regulatory costs incurred by the department and the Michigan gaming control board.
Any remaining funds collected through September 30, 2025, after the obligations in subdivision (a) have been met, must be prorated among the county fairs, supplements, breeders’ awards, and sire stakes awards to eligible race meeting licensees in accordance with section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.
Sec. 803. From the funds appropriated in part 1 from purses and supplements – fairs/licensed tracks,
$720,000.00 may be spent only if there is no standardbred race meeting in this state that is licensed under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336, by January 1, 2026.
Sec. 805. (1) From the funds appropriated in part 1 for county fairs, shows, and expositions, the department shall establish and administer a county fairs, shows, and expositions grant program. The program must have the following objectives:
Assist in the financing of building improvements or other capital improvements at county fairgrounds of this state.
Provide financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in this state.
The department shall award grants on a competitive basis to county fairs or other organizations from the funds appropriated in part 1 for county fairs, shows, and expositions grants. Grantees will be required to provide a 50% cash match with grant awards and identify measurable project outcomes. A county fair organization that received a county fair capital improvement grant in the prior fiscal year must not receive a grant from the appropriation in part 1.
From the amount appropriated in part 1 for county fairs, shows, and expositions, up to $25,000.00 must be expended for the purpose of financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions and festivals in this state.
All fairs receiving grants under this section must provide a report to the department on the financial impact resulting from the capital improvement project on both fair and nonfair events. These reports are due for 3 years immediately following the completion of the capital improvement project.
The department shall identify criteria, evaluate applications, and provide recommendations to the director for final approval of grant awards.
The department may expend money from the funds appropriated in part 1 for the county fairs, shows, and expositions for administering the program.
The unexpended portion of the appropriation in part 1 for county fairs, shows, and expositions grants are designated as a work project appropriation and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support building improvements or other capital improvements at county fairgrounds of this state.
All grants will be distributed in accordance with this section and the grant guidelines published prior to the request for proposals.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The estimated cost of the project is $500,000.00.
The tentative completion date for the work project is September 30, 2028.
The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2026 that includes a listing of the grantees, award amounts, match funding, project outcomes, and department costs of grant administration.
ARTICLE 2 DEPARTMENT OF CORRECTIONS
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of corrections for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF CORRECTIONS | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 16.0 | ||
Full-time equated classified positions | 12,758. 0 | ||
GROSS APPROPRIATION | $ | 2,163,994,500 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 0 | ||
ADJUSTED GROSS APPROPRIATION | $ | 2,163,994,500 | |
Federal revenues: | |||
Total federal revenues | 5,203,700 | ||
Special revenue funds: | |||
Total local revenues | 275,000 | ||
Total private revenues | 0 | ||
Total other state restricted revenues | 30,304,100 | ||
State general fund/general purpose | $ | 2,128,211,700 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 16.0 | ||
Full-time equated classified positions | 412.0 | ||
Unclassified salaries—FTEs | 16.0 | $ | 2,362,900 |
Administrative hearings officers | 4,070,200 | ||
Budget and operations administration—FTEs | 316.0 | 45,097,300 | |
Compensatory buyout and union leave bank | 100 | ||
County jail reimbursement program | 14,564,600 | ||
Employee wellness programming—FTEs | 8.0 | 2,395,600 | |
Equipment and special maintenance | 1,559,700 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Executive direction—FTEs | 28.0 | $ | 5,515,200 |
Judicial data warehouse user fees | 50,600 | ||
New custody staff training | 23,815,400 | ||
Prison industries operations—FTEs | 60.0 | 10,309,100 | |
Property management | 2,638,000 | ||
Prosecutorial and detainer expenses | 2,551,000 | ||
Worker’s compensation | 8,770,900 | ||
GROSS APPROPRIATION | $ | 123,700,600 | |
Appropriated from: | |||
Federal revenues: | |||
DOJ, prison rape elimination act grant | 674,700 | ||
Special revenue funds: | |||
Correctional industries revolving fund | 10,309,100 | ||
Correctional industries revolving fund 110 | 721,600 | ||
Jail reimbursement program fund | 5,900,000 | ||
State general fund/general purpose | $ | 106,095,200 | |
Sec. 103. OFFENDER SUCCESS ADMINISTRATION | |||
Full-time equated classified positions | 330.9 | ||
Community corrections comprehensive plans and services | $ | 14,198,100 | |
Criminal justice reinvestment | 1,448,400 | ||
Education/skilled trades/career readiness programs—FTEs | 249.9 | 39,336,400 | |
Enhanced food technology program—FTEs | 11.0 | 1,586,200 | |
Higher education in prison | 1,250,000 | ||
Offender success community partners | 18,925,000 | ||
Offender success federal grants | 751,000 | ||
Offender success programming | 15,742,200 | ||
Offender success services—FTEs | 70.0 | 15,905,400 | |
Probation residential services | 13,575,500 | ||
GROSS APPROPRIATION | $ | 122,718,200 | |
Appropriated from: | |||
Federal revenues: | |||
DOJ, prisoner reintegration | 751,000 | ||
Federal education revenues | 1,632,800 | ||
State general fund/general purpose | $ | 120,334,400 | |
Sec. 104. FIELD OPERATIONS ADMINISTRATION | |||
Full-time equated classified positions | 1,703.5 | ||
Field operations—FTEs | 1,672.5 | $ | 229,599,100 |
Parole board operations—FTEs | 31.0 | 3,936,100 | |
Parole/probation services | 940,000 | ||
GROSS APPROPRIATION | $ | 234,475,200 | |
Appropriated from: | |||
Special revenue funds: | |||
Community tether program reimbursement | 275,000 | ||
Reentry center offender reimbursements | 10,000 | ||
Supervision fees | 6,630,500 | ||
Supervision fees set-aside | 940,000 | ||
State general fund/general purpose | $ | 226,619,700 | |
Sec. 105. CORRECTIONAL FACILITIES ADMINISTRATION | |||
Full-time equated classified positions | 678.0 | ||
Body-worn cameras—FTEs | 8.0 | $ | 3,821,800 |
Central records—FTEs | 43.0 | 4,911,100 | |
Contraband prevention | 2,750,000 | ||
Correctional facilities administration—FTEs | 37.0 | 6,980,900 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Housing inmates in federal institutions | $ | 511,000 | |
Inmate housing fund | 100 | ||
Inmate legal services | 290,900 | ||
Intelligence unit—FTEs | 30.0 | 4,068,700 | |
Leased beds and alternatives to leased beds | 100 | ||
Prison food service—FTEs | 324.0 | 77,370,600 | |
Prison store operations—FTEs | 32.0 | 3,645,400 | |
Transportation—FTEs | 204.0 | 35,932,600 | |
GROSS APPROPRIATION | $ | 140,283,200 | |
Appropriated from: | |||
Federal revenues: | |||
DOJ-BOP, federal prisoner reimbursement | 411,000 | ||
SSA-SSI, incentive payment | 272,000 | ||
Special revenue funds: | |||
Correctional industries revolving fund 110 | 886,400 | ||
Resident stores | 3,645,400 | ||
State general fund/general purpose | $ | 135,068,400 | |
Sec. 106. HEALTH CARE | |||
Full-time equated classified positions | 1,475.3 | ||
Clinical complexes—FTEs | 984.3 | $ | 177,805,900 |
Health care administration—FTEs | 18.0 | 3,765,900 | |
Healthy Michigan plan administration—FTEs | 12.0 | 1,069,200 | |
Hepatitis C treatment | 7,499,100 | ||
Interdepartmental grant to health and human services, eligibility specialists | 120,200 | ||
Mental health and substance use disorder treatment services—FTEs | 461.0 | 67,780,200 | |
Prisoner health care services | 117,540,700 | ||
Vaccination program | 691,200 | ||
GROSS APPROPRIATION | $ | 376,272,400 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues and reimbursements | 427,400 | ||
Special revenue funds: | |||
Prisoner health care co-payments | 257,200 | ||
State general fund/general purpose | $ | 375,587,800 | |
Sec. 107. CORRECTIONAL FACILITIES | |||
Full-time equated classified positions | 8,158.3 | ||
Alger Correctional Facility - Munising—FTEs | 259.0 | $ | 32,805,000 |
Baraga Correctional Facility - Baraga—FTEs | 279.8 | 37,589,000 | |
Bellamy Creek Correctional Facility - Ionia—FTEs | 414.1 | 54,570,100 | |
Carson City Correctional Facility - Carson City—FTEs | 422.4 | 55,294,600 | |
Central Michigan Correctional Facility - St. Louis—FTEs | 385.0 | 53,477,300 | |
Charles E. Egeler Correctional Facility - Jackson—FTEs | 374.6 | 52,918,000 | |
Chippewa Correctional Facility - Kincheloe—FTEs | 443.6 | 58,868,600 | |
Cooper Street Correctional Facility - Jackson—FTEs | 254.6 | 31,111,800 | |
Earnest C. Brooks Correctional Facility - Muskegon—FTEs | 248.2 | 35,196,300 | |
G. Robert Cotton Correctional Facility - Jackson—FTEs | 375.0 | 47,549,700 | |
Gus Harrison Correctional Facility - Adrian—FTEs | 285.4 | 41,677,200 | |
Ionia Correctional Facility - Ionia—FTEs | 286.3 | 39,964,900 | |
Kinross Correctional Facility - Kincheloe—FTEs | 222.0 | 33,852,800 | |
Lakeland Correctional Facility - Coldwater—FTEs | 272.4 | 38,226,700 | |
Macomb Correctional Facility - New Haven—FTEs | 313.3 | 43,326,900 | |
Marquette Branch Prison - Marquette—FTEs | 319.7 | 39,729,700 | |
Muskegon Correctional Facility - Muskegon—FTEs | 217.3 | 31,806,000 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Newberry Correctional Facility - Newberry—FTEs | 200.1 | $ | 28,319,600 |
Oaks Correctional Facility - Eastlake—FTEs | 289.4 | 40,701,900 | |
Parnall Correctional Facility - Jackson—FTEs | 262.5 | 33,877,400 | |
Richard A. Handlon Correctional Facility - Ionia—FTEs | 268.3 | 37,046,700 | |
Saginaw Correctional Facility - Freeland—FTEs | 268.6 | 38,521,700 | |
Special Alternative Incarceration Program - Jackson—FTEs | 26.2 | 3,639,000 | |
St. Louis Correctional Facility - St. Louis—FTEs | 302.9 | 43,821,100 | |
Thumb Correctional Facility - Lapeer—FTEs | 295.6 | 41,526,300 | |
Women’s Huron Valley Correctional Complex - Ypsilanti—FTEs | 494.8 | 67,125,200 | |
Woodland Correctional Facility - Whitmore Lake—FTEs | 287.2 | 42,564,300 | |
Northern region administration and support—FTEs | 42.0 | 4,594,100 | |
Southern region administration and support—FTEs | 48.0 | 18,469,800 | |
GROSS APPROPRIATION | $ | 1,128,171,700 | |
Appropriated from: | |||
Federal revenues: | |||
DOJ, state criminal assistance program | 1,034,800 | ||
Special revenue funds: | |||
State restricted fees, revenues, and reimbursements | 102,100 | ||
State general fund/general purpose | $ | 1,127,034,800 | |
Sec. 108. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 31,623,200 | |
GROSS APPROPRIATION | $ | 31,623,200 | |
Appropriated from: | |||
Special revenue funds: | |||
Correctional industries revolving fund 110 | 183,000 | ||
Supervision fees set-aside | 718,800 | ||
State general fund/general purpose | $ | 30,721,400 | |
Sec. 109. ONE-TIME APPROPRIATIONS | |||
Correctional facility count and callout process automation | $ | 1,500,000 | |
Financial support for correctional facilities | 3,216,600 | ||
Higher education in prison | 850,000 | ||
Peer recovery coaches | 650,000 | ||
Women’s Huron Valley Correctional Complex - Ypsilanti | 533,400 | ||
GROSS APPROPRIATION | $ | 6,750,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 6,750,000 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $2,158,515,800.00 and total state spending under part 1 from state sources to be paid to local units of government is
$118,042,500.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF CORRECTIONS | ||
Community corrections comprehensive plans and services | $ | 14,198,100 |
County jail reimbursement program | 14,564,600 | |
Field Operations | 73,153,200 | |
Leased beds and alternatives to leased beds | 100 | |
Probation residential services | 13,575,500 | |
Prosecutorial and detainer expenses | 2,551,000 | |
TOTAL | $ | 118,042,500 |
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:
“Administrative segregation” means confinement for maintenance of order or discipline to a cell or room apart from accommodations provided for inmates who are participating in programs of the facility.
“Department” means the department of corrections.
“Director” means the director of the department.
“DOJ” means the United States Department of Justice.
“DOJ-BOP” means the DOJ Bureau of Prisons.
“Evidence-based” means a decision-making process that integrates the best available research, clinician expertise, and client characteristics.
“FTE” means full-time equated position in the classified service of this state.
“Goal” means the intended or projected result of a comprehensive corrections plan or community corrections program to reduce repeat offending, criminogenic and high-risk behaviors, prison commitment rates, the length of stay in a jail, or to improve the utilization of a jail.
“Jail” means a facility operated by a local unit of government for the physical detention and correction of individuals charged with or convicted of criminal offenses.
“OCC” means the office of community corrections.
“Offender success” means that an offender has, with the support of the community, intervention of the field agent, and benefit of any participation in programs and treatment, made an adjustment while at liberty in the community such that the offender has not been sentenced to or returned to prison for the conviction of a new crime or the revocation of probation or parole.
“Recidivism” means that term as defined in section 1 of 2017 PA 5, MCL 798.31.
“Serious emotional disturbance” means that term as defined in section 100d(3) of the mental health code, 1974 PA 258, MCL 330.1100d.
“Serious mental illness” means that term as defined in section 100d(4) of the mental health code, 1974 PA 258, MCL 330.1100d.
“SSA” means the United States Social Security Administration.
“SSA-SSI” means SSA supplemental security income.
“Standard report recipients” means the senate and house appropriations subcommittees on corrections and judiciary, the senate and house fiscal agencies, the senate and house policy offices, the legislative corrections ombudsman, and the state budget office.
Sec. 204. The department 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:
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.
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.
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.
Sec. 206. The department shall not take disciplinary action against an employee of the department or a prisoner because the employee or prisoner communicates 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 outside this state by classified and unclassified employees 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 the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 208. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on timesheets were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed upon business hours.
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
$2,500,000.00 for federal contingency authorization. Amounts appropriated 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$2,000,000.00 for local contingency authorization. Amounts appropriated 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
The number of active department employees by job classification.
Job specifications and wage rates.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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) 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. 214. 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. 215. 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 standard report recipients and to the senate and house appropriations committees.
Sec. 216. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 217. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 218. 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 report must include reference to the public act that necessitates the policy change. The department shall submit the report to the standard report recipients and to the senate and house appropriations committees, the joint committee on administrative rules, the senate standing committee on civil rights, judiciary, and public safety, and the house standing committee on criminal justice.
Sec. 219. 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. 220. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 221. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 222. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 223. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $165,581,500.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $149,344,200.00. Total appropriations for retiree health care legacy costs for the department are estimated at $16,237,300.00.
Sec. 224. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 225. The department shall make each report required under this act readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s website, the department shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 226. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 227. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 228. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. For 3 years after a felony offender is released from the department’s jurisdiction, the department shall maintain the offender’s file on the offender tracking information system and make it publicly accessible in the same manner as the file of the current offender. The department shall immediately remove the offender’s file from the offender tracking information system upon determination that the offender was wrongfully convicted and the offender’s file is not otherwise required to be maintained on the offender tracking information system.
Sec. 302. From the funds appropriated in part 1, the department shall submit a report not later than March 1 on the department’s staff retention strategies. The report must include, but not be limited to, all of the following:
The department’s strategies on how to improve employee engagement, how to improve employee wellness, and how to offer additional training and professional development for employees, including metrics the department is using to measure success of employee wellness programming.
Mechanisms by which the department receives employee feedback in areas under subdivision (a) and how the department considers suggestions made by employees.
Steps the department has taken, and future plans and goals the department has for retention and improving employee wellness.
Sec. 303. (1) From the funds appropriated in part 1, the department shall submit a report not later than March 1 on the number of employee departures. The report must include all of the following:
The number of corrections officers that departed from employment at a state correctional facility in the previous fiscal year and the number of years they worked for the department.
A chart that shows the normal distribution of employee departures in the positions described under subdivision (a) based on years of service. Years of service must be grouped into the following ranges: 1 to 3 years, 3 to 5 years, 5 to 10 years, 10 to 15 years, 15 to 20 years, and 20 and more years.
A section that shows the distinction between all of the following:
Recruits who are in training at the academy that depart employment.
Recruits who are in training at a facility that depart employment.
Employees who have been on the job that depart employment.
(2) The department shall review all reasons for employee departures and summarize in the report required under this section the primary reasons for departure for each of the ranges of years of service described under subdivision (1)(b) based on the available responses.
Sec. 304. Funds appropriated in part 1 for prosecutorial and detainer expenses must be used to reimburse counties for housing and custody of parole violators and offenders being returned by the department from community placement who are available for return to institutional status and for prisoners who volunteer for placement in a county jail.
Sec. 305. The department shall provide fiduciary oversight of funds received under the local corrections officers training act, 2003 PA 125, MCL 791.531 to 791.546.
Sec. 306. From the funds appropriated in part 1, the department shall issue a report not later than March 1 for all vendor contracts. The report must cover service contracts with a value of $500,000.00 or more and include all of the following:
The original start date and the current expiration date of each contract.
The number of available option years.
The number, if any, of contract compliance monitoring site visits completed by the department for each vendor in the previous fiscal year.
The number and amount of fines in the previous fiscal year for service-level agreement noncompliance for each vendor broken down by area of noncompliance.
Sec. 307. The department must ensure that a prisoner telephone system is maintained. The prisoner telephone system must meet ongoing operational needs of the department while maintaining the lowest per-minute rate possible. The department must provide notice at least 45 days in advance of each of the following taking effect:
Changes to telephone rates.
Extending the telephone contract, including the department exercising the option to extend the contract.
Rebidding the telephone contract.
Sec. 308. From the funds appropriated in part 1, the department shall provide for the training of all custody staff in effective and safe ways of handling prisoners with mental illness and referring prisoners to mental health treatment programs. Mental health awareness training must be incorporated into the training of new custody staff.
Sec. 309. From the funds appropriated in part 1, the department shall issue a report for all correctional facilities not later than January 1 that includes all of the following information for each facility:
The name, street address, and date of construction.
The current maintenance costs.
Any maintenance planned.
The current utility costs.
The expected future capital improvement costs.
The current unspent balance of any authorized capital outlay projects, including the original authorized amount.
The expected future useful life.
Sec. 310. From the funds appropriated in part 1, the department shall provide a report on the Michigan state industries program not later than December 1. The report must include, but is not limited to, all of the following information:
The locations of the programs.
The total number of participants at each location.
A description of job duties and typical inmate schedules, and the products that are produced.
How the program provides marketable skills that lead to employable outcomes after release from a department facility.
Sec. 311. (1) Funds appropriated in part 1 for employee wellness programming must be used for post- traumatic stress outreach, treating mental health issues, peer support programs, and providing mental health programming for all department staff, including former employees.
Not later than December 15, the department shall submit a report on programs the department has established, the level of employee involvement, and expenditures made by the department for employee wellness programming.
Sec. 312. (1) From the funds appropriated in part 1 for new custody staff, the department shall work to hire and train new corrections officers to address attrition of corrections officers and to decrease overtime costs. The department shall submit quarterly reports on new employee schools. The reports must include all of the following information for the immediately preceding fiscal quarter, and as much of the information as possible for the current and next fiscal year:
The number of new employee schools that took place and the location of each.
The number of recruits that started in each employee school.
The number of recruits that graduated from each employee school and continued employment with the department.
Third quarter reports must outline steps the department has taken to obtain the highest number of recruits possible for each new employee school. A report prepared under this subsection must include, but is not limited to, all of the following information:
Internal sources of recruitment, including transfers and promotions.
External sources of recruitment, including advertisements.
Job portals, social networking platforms, placement agencies, job fairs, campus placements, or professional entities used for recruitment.
Whether the department’s website was used to advertise vacancies.
Sec. 313. From the funds appropriated in part 1, the department shall submit a quarterly report on the number of overtime hours worked by all custody staff, by facility. The report must include, for each facility, the reasons for overtime hours worked and the average number of overtime hours worked by active employees.
Sec. 314. From the funds appropriated in part 1, the department may establish agreements and exchange offender data with local, state, and federal agencies, law enforcement, community service and treatment providers, and research partners in order to improve offender success, reduce recidivism risk, and enhance public safety. This data sharing may include, but is not limited to, efforts to support all of the following:
Providing continuing access to behavioral health, physical health, and medication needs through community-based providers.
Establishing assistance program eligibility and participation.
Collaborating with community service providers for continued care and access to services for offenders.
Providing ongoing cognitive and behavioral treatment programming in the community.
Providing substance abuse testing and referrals for counseling services and treatment.
Providing vocational skill training, job placement support, and monitoring employment attainment.
Determining educational attainment and needs.
Establishing accurate offender identification, criminal histories, and monitoring new criminal activity.
Measuring and evaluating treatment programs and services in support of evidence-based practices.
Sec. 315. From the funds appropriated in part 1, the department shall submit 3-year and 5-year prison population projection updates not later than April 1, including explanations of the methodology and assumptions used in developing the projection updates.
Sec. 316. From the funds appropriated in part 1, the department shall provide an annual statistical report for the preceding calendar year on the department’s website not later than June 30. The statistical report must include, but not be limited to, the types of information as provided in the 2022 statistical report.
Sec. 317. From the funds appropriated in part 1, the department shall report the reincarceration recidivism rates of offenders based on available data.
Sec. 318. (1) The department shall administer a county jail reimbursement program from the funds appropriated in part 1 for the purpose of reimbursing counties for housing in jails certain felons who otherwise would have been sentenced to prison.
The county jail reimbursement program must be used to reimburse counties for convicted felons in the custody of the sheriff if the conviction was for a crime committed on or after January 1, 1999 and 1 of the following applies:
The felon’s sentencing guidelines recommended range upper limit is more than 18 months, the felon’s sentencing guidelines recommended range lower limit is 12 months or less, the felon’s prior record variable score is 35 or more points, and the felon’s sentence is not for commission of a crime in crime class G or crime class H or a nonperson crime in crime class F under chapter XVII of the code of criminal procedure, 1927 PA 175, MCL 777.1 to 777.69.
The felon’s minimum sentencing guidelines range minimum is more than 12 months under the sentencing guidelines described in subdivision (a).
The felon was sentenced to jail for a felony committed while the felon was on parole and under the jurisdiction of the parole board and for which the sentencing guidelines recommended range for the minimum sentence has an upper limit of more than 18 months.
State reimbursement under this section must be $70.00 per diem per diverted offender for offenders with a presumptive prison guideline score, $60.00 per diem per diverted offender for offenders with a straddle cell guideline for a group 1 crime, and $45.00 per diem per diverted offender for offenders with a straddle cell guideline for a group 2 crime. Reimbursements must be paid for sentences up to a 1-year total.
County jail reimbursement program expenditures must not exceed the amount appropriated in part 1 for the county jail reimbursement program. Payments to counties under the county jail reimbursement program must be made in the order in which properly documented requests for reimbursements are received. A request is properly documented if it meets departmental requirements for documentation. Not later than October 15, the department shall distribute the documentation requirements to all counties.
Any county that receives funding under this section for the purpose of housing in jails certain felons who otherwise would have been sentenced to prison shall, as a condition of receiving the funding, report not later than September 30 an annual average jail capacity and annual average jail occupancy for the previous fiscal year.
Not later than February 1, the department shall report all of the following information:
The number of inmates sentenced to the custody of the sheriff and eligible for the county jail reimbursement program.
The total amount paid to counties under the county jail reimbursement program.
The total number of days inmates were in the custody of the sheriff and eligible for the county jail reimbursement program.
The number of inmates sentenced to the custody of the sheriff under each of the 3 categories: presumptive prison, group 1 crime, and group 2 crime in subsection (3).
The total amount paid to counties under each of the 3 categories: presumptive prison, group 1 crime, and group 2 crime in subsection (3).
The total number of days inmates were in the custody of the sheriff under each of the 3 categories: presumptive prison, group 1 crime, and group 2 crime in subsection (3).
The estimated cost of housing inmates sentenced to the custody of the sheriff and eligible for the county jail reimbursement program as inmates of a state prison.
As used in this section:
“Group 1 crime” means a crime in 1 or more of the following offense categories: arson, assault, assaultive other, burglary, criminal sexual conduct, homicide or resulting in death, other sex offenses, robbery, and weapon possession as determined by the department based on specific crimes for which counties received reimbursement under the county jail reimbursement program in fiscal year 2007 and fiscal year 2008, and listed in the county jail reimbursement program document titled “FY 2007 and FY 2008 Group One Crimes Reimbursed”, dated March 31, 2009.
“Group 2 crime” means a crime that is not a group 1 crime, including larceny, fraud, forgery, embezzlement, motor vehicle offenses, malicious destruction of property, controlled substance offense, felony drunk driving, and other nonassaultive offenses.
“In the custody of the sheriff” means that the convicted felon has been sentenced to the county jail and either is housed in a county jail, is in custody but is being housed at a hospital or medical facility for a medical or mental health purpose, or has been released from jail and is being monitored through the use of the sheriff’s electronic monitoring system.
Sec. 319. (1) From the funds appropriated in part 1, the department shall provide all of the following information on the offender population in a monthly report:
Prison population by facility and security level, including the population of prisoners under the department’s jurisdiction housed in county jails.
Net operating capacity according to the most recent certification report.
Electronic monitoring populations.
Parole populations.
Probation populations, with identification of the number of offenders in special alternative incarceration.
From the funds appropriated in part 1, the department shall provide all of the following information on the offender population in a quarterly report:
The number of closed housing units and beds in those units, including the security level of closed beds.
The number of prisoners serving life sentences.
The number of prisoners classified as past their earliest release date.
The number of prisoner intakes during the previous quarter.
The number of prisoner exits, including paroles, maximum discharges, and other exits during the previous quarter.
If the department knows it will not meet the reporting requirements under this section, the department shall immediately issue a report that states that fact and that lists the reasons for not meeting the reporting requirements.
Sec. 320. On a quarterly basis, the department shall report on all of the following:
A detailed accounting of all correction officer positions at each correctional facility, including positions that are filled and positions that are vacant by facility.
A detailed accounting of all vacant positions that are health care related.
Sec. 321. The department may charge fees and collect revenues in excess of appropriations in part 1 not to exceed the cost of offender services and programming, employee meals, parolee loans, academic/vocational services, custody escorts, compassionate visits, union steward activities, and public works programs and services provided to local units of government or private nonprofit organizations. The revenues and fees collected are appropriated for all expenses associated with these services and activities.
Sec. 322. The department shall provide the state court administrative office data sufficient to administer the swift and sure sanctions program.
Sec. 323. From the unexpended and unencumbered funds lapsed by the department of corrections into the general fund at the end of the fiscal year ending September 30, 2025, an amount not to exceed $30,000,000.00 is appropriated and available for expenditure by the department to support prisoner health care costs.
OFFENDER SUCCESS ADMINISTRATION
Sec. 401. (1) From the funds appropriated in part 1, the department shall provide a report not later than March 1 on offender success expenditures, allocations, and performance. The report must include, but not be limited to, details on prior-year expenditures, including amounts spent on each project funded, itemized by service provided and service provider. Reported performance factors must be reported by region and must include, but not be limited to, all of the following:
The number of individuals who received transitional housing services.
The average length of stay in transitional housing.
The number of individuals who received a referral for economic stability assistance and the number of referred individuals who secured employment or enrolled in education/training to increase economic stability.
The number of referred individuals who maintained employment for 12 months or more.
The total amount of leveraged services secured by the contractor.
As used in this section, “leveraged services” means services that benefit clients that are not directly paid for by the department, such as educational scholarships or grants, workforce training grants, or housing choice vouchers.
The department may accept cash or in-kind donations to supplement funds for prison education training, supplies, and materials necessary to complete the academic and jobs skills related programs. All funds received are appropriated and may be expended by the department. Any unexpended or unencumbered donations at the end of the fiscal year shall not lapse to the general fund but shall be carried forward to the subsequent fiscal year.
Sec. 402. From the funds appropriated in part 1 for offender success services, the department, when reasonably possible, shall ensure that inmates have potential employer matches in the communities to which they will return prior to each inmate’s initial parole hearing.
Sec. 403. (1) From the funds appropriated in part 1, the department shall design services for offender success and vocational education programs, collaborating with the department of labor and economic opportunity and local entities to the extent deemed necessary by the director. The department shall ensure the program provides relevant professional development opportunities to prisoners that are high quality, demand driven, locally receptive, and responsive to the needs of communities where the prisoners are expected to reside after their release from correctional facilities.
(2) Not later than March 1, the department shall provide a report detailing the results of the workforce development program.
Sec. 404. Funds awarded for probation residential services in part 1 must provide for all of the following:
An initial client assessment reimbursement of $200.00.
A per diem reimbursement of not more than $70.00.
Sec. 405. Allowable uses of community corrections comprehensive plans and services funds must include reimbursing counties for transportation, treatment costs, and housing drunk drivers during a period of assessment for treatment and case planning, in accordance with an approved comprehensive plan. Reimbursements for housing during the assessment process must be at the rate of $43.50 per day per offender, up to a maximum of 5 days per offender.
Sec. 406. (1) From the funds appropriated in part 1, the department shall submit the following information for each county and counties consolidated for community corrections comprehensive plans:
Approved technical assistance grants and community corrections comprehensive plans including each program and level of funding, the utilization level of each program, and profile information of enrolled offenders.
If federal funds are made available, the number of participants funded, the number served, the number successfully completing the program, and a summary of the program activity.
Status of the community corrections information system and the jail population information system.
Data on residential services, including participant data, participant sentencing guideline scores, program expenditures, average length of stay, and bed utilization data.
Offender disposition data by sentencing guideline range, by disposition type, by prior record variable score, by number and percent statewide and by county, current year, and comparisons to the previous 3 years.
Data on the use of funding made available under the drunk driver jail reduction and community treatment program.
(2) The report required under subsection (1) must include the total funding allocated, program expenditures, required program data, and year-to-date totals.
Sec. 407. From the funds appropriated in part 1, the department shall establish and maintain policies and procedures that assist prisoners with obtaining a birth certificate, duplicate Social Security card, if eligible, DD Form 214 or other military documentation, state identification card, and operator’s license before parole or discharge.
Sec. 408. (1) Funds appropriated in part 1 for higher education in prison must be used by the department in collaboration with accredited universities or colleges to provide incarcerated individuals the opportunity to participate in comprehensive bachelor’s degree programs at no cost to the incarcerated individual. The funds must be used for eligible expenses including staffing, supplies, and tuition.
(2) Universities and colleges that receive funding under this section must report not later than July 1 on all of the following, by correctional facility:
Expenditure of funds.
Number of participants served.
Enrollments, by race and gender.
Number of participants who completed the program.
Sec. 409. From the funds appropriated in part 1 for enhanced food technology program, the department shall maintain a program that provides on-the-job training in prison kitchens that provides prisoners the opportunity to earn food service training credentials recognized by the restaurant industry. The department shall use the funds appropriated in part 1 for enhanced food technology program to collaborate with the Michigan Restaurant and Lodging Association and other restaurant industry stakeholders to provide job placement assistance to individuals on probation or parole.
Sec. 410. From the funds appropriated in part 1, the department shall ensure that any inmate with a diagnosed mental illness is referred to a local mental health care provider that is able and willing to treat the inmate upon parole or discharge. Upon referral, the department shall ensure that the provider is informed of the inmate’s current treatment plan including any medications that are currently prescribed to the inmate.
Sec. 411. From the funds appropriated in part 1, the department shall report not later than March 1 on academic and vocational programs, including, but not limited to, all of the following:
The number of instructors and the number of instructor vacancies, by program and facility.
The number of prisoners enrolled in each program, the number of prisoners completing each program, the number of prisoners who do not complete each program, and the number of prisoners on waiting lists for each program.
The racial demographics of prisoners enrolled in each program.
The steps the department has undertaken to improve programs, track records, accommodate transfers and prisoners with health care needs, and reduce waiting lists.
The number of prisoners paroled without a high school diploma or a high school equivalency.
The number of prisoners not paroled at their earliest release date because of a lack of a high school equivalency and the reason those prisoners have not obtained a high school equivalency.
Sec. 412. From the funds appropriated in part 1, priority may be given to funding reentry or rehabilitation programs, including faith-based initiatives, that have been demonstrated to reduce prison violence and recidivism.
Sec. 413. (1) Funds appropriated in part 1 for criminal justice reinvestment must be used only to fund data collection and evidence-based programs designed to reduce recidivism among probationers, parolees, and prisoners.
(2) The department shall report on programs described under this section not later than March 30. The report must include all of the following:
The reincarceration recidivism rate of program participants.
The employment rate of participants who complete the program.
The cost of the program per participant.
Sec. 414. Revenues appropriated and collected for program and special equipment funds must be considered state restricted revenue. Funding must be used for prisoner programming, special equipment, and security projects. Not less than 75% of funding must be used for prisoner programming. Unexpended funds remaining at the close of the fiscal year must not lapse to the general fund but must be carried forward and made available for appropriation in subsequent fiscal years.
Sec. 415. From the funds appropriated in part 1, the department shall report on the department’s plans to eliminate programming for prisoners. The report must be provided not less than 30 days before program elimination. As used in this section, “programming for prisoners” means a department core program or career and technical education program funded in part 1.
FIELD OPERATIONS ADMINISTRATION
Sec. 501. (1) From the funds appropriated in part 1, the department shall review and revise as necessary policy proposals that provide alternatives to prison for offenders being sentenced to prison as a result of technical probation violations and technical parole violations. To the extent the department has insufficient policies or resources to affect the continued increase in prison commitments among these offender populations, from the funds appropriated in part 1, the department shall explore other policy options to allow for program alternatives, including department or OCC-funded programs, local level programs, and programs available through private agencies that may be used as prison alternatives for these offenders.
(2) Not later than April 1, the department shall provide a report on the number of all parolees returned to prison and probationers sentenced to prison for either a technical violation or new sentence during the previous fiscal year. The report must include the following information for probationers, for parolees after their first parole, and for parolees who have been paroled more than once:
The numbers of parole and probation violators returned to or sent to prison for a new crime with a comparison of original versus new offenses by major offense type: assaultive, nonassaultive, drug, and sex.
The numbers of parole and probation violators returned to or sent to prison for a technical violation and the type of violation, including, but not limited to, zero gun tolerance and substance use disorder violations. For parole technical rule violators, the report must list violations by type, by length of time since release from prison, by the most recent violation, and by the number of violations occurring since release from prison.
The educational history of those offenders, including the number of offenders who had a high school equivalency or high school diploma before incarceration in prison, the number of offenders who received a high school equivalency while in prison, and the number of offenders who received a vocational certificate while in prison.
The number of offenders who participated in the reentry program versus the number of those who did not.
The unduplicated number of offenders who participated in substance use disorder treatment programs, mental health treatment programs, or both, while in prison, itemized by diagnosis.
Sec. 502. From the funds appropriated in part 1, the department shall issue quarterly reports for the previous 4 quarters detailing outcomes of prisoners who have been reviewed for parole. The report must include all of the following:
The number of prisoners in each quarter who were reviewed.
The number of prisoners who were granted parole.
The number of prisoners who were denied parole.
The number of parole decisions that were deferred.
The distribution of the total number of prisoners reviewed during that quarter grouped by whether the prisoner had been interviewed for the first, second, third, fourth, fifth, sixth, or more than sixth time.
The number of paroles granted, denied, or deferred for each of the parole guideline scores of low, average, and high.
The reason for denying or deferring parole.
Sec. 503. From the funds appropriated in part 1, the department shall submit a report not later than March 1 on the medically frail parole process for the previous fiscal year. The report must include, but not be limited to, the following:
A de-identified list of incarcerated individuals who were considered for medically frail parole the previous year, including the following:
Demographic data, including race or ethnicity, gender, and age.
The controlling offense of the individual.
A categorization of the medical condition that resulted in the individual being considered for medically frail parole.
If the individual was granted medically frail parole or not, and if not, the reason why medically frail parole was denied.
The number of individuals who were previously granted medically frail parole that were returned to prison for a new offense or technical violation of parole.
The number of individuals who were previously granted medically frail parole that were discharged from further parole supervision.
HEALTH CARE
Sec. 601. Not later than April 1, the department shall provide a report on all of the following:
Physical and mental health care, pharmaceutical services, and durable medical equipment for prisoners. A report under this section must detail previous fiscal year expenditures itemized by vendor, allocations, status of payments from contractors to vendors, and projected year-end expenditures from accounts. A report under this section must include a breakdown of all payments to the integrated care provider and to other providers itemized by physical health care, mental health care, pharmaceutical services, and durable medical equipment expenditures.
Pharmaceutical prescribing practices, including a detailed accounting of expenditures on antipsychotic medications, and any changes that have been made to the prescription drug formularies.
A status report on efforts to develop measurable data and outcomes for physical and mental health care within the prisoner population.
Sec. 602. (1) From the funds appropriated in part 1, the department shall provide prisoners with a brochure that explains the purpose and importance of signing a medical release of information form. The department shall ensure that all prisoners, upon any health care treatment funded from appropriations in part 1, are given the opportunity to sign a medical release of information form designating a family member or other individual to whom the department shall release records and information regarding the prisoner upon the request of the prisoner. The prisoner may elect to withdraw or amend the medical release of information form at any time.
The department shall ensure that a signed medical release of information form follows a prisoner upon transfer to another department facility or to the supervision of a parole officer.
The medical release of information form must be placed online, on a public website managed by the department.
Sec. 603. From the funds appropriated in part 1, the department shall provide a report not later than April 1 on prisoner health care utilization in the previous fiscal year, by facility, that includes all of the following:
The number of inpatient hospital days.
The number of outpatient visits.
The number of emergency room visits.
The number of prisoners receiving off-site inpatient medical care.
The top 10 most common chronic care conditions.
Sec. 604. Funds appropriated in part 1 for Hepatitis C treatment must be used only to purchase specialty medication for Hepatitis C treatment in the prison population. In addition to the above appropriation, any rebates received from the medications used must be used only to purchase specialty medication for Hepatitis C treatment. Not later than February 15, the department shall issue a report for the previous fiscal year that includes all of the following:
The total amount spent on specialty medication for the treatment of Hepatitis C.
The number of prisoners who were treated for Hepatitis C.
The amount of any rebates that were received from the purchase of specialty medication, and what, if any, outstanding rebates are expected to be received.
The Hepatitis C status of all incoming prisoners and the number of prisoners who are reinfected while incarcerated and require retreatment for Hepatitis C.
The number of those treated and released and then retreated upon reincarceration.
Sec. 605. Not later than March 1, the department shall provide an annual report on the utilization of Medicaid benefits for prisoners.
Sec. 606. (1) From the funds appropriated in part 1, the department shall support medication-assisted treatment clinics at designated correctional facilities that allow the department to treat prisoners with opioid and alcohol use disorder while incarcerated. The department shall collaborate with substance use disorder treatment providers and community-based clinics to provide postrelease assessment and treatment. Funding must be used by the department to support costs of staff, including nurses, qualified mental health professionals, recovery coaches, and corrections officers, and costs of medication and supplies. Participating prisoners must be encouraged to receive 1 injection of nonaddictive medication, if clinically appropriate, before being released from prison into the community.
(2) The department shall submit quarterly reports on the operation of medication-assisted treatment clinics. A report under this subsection must include, but not be limited to, all of the following:
Clinic site locations.
A listing of medications used in medication-assisted therapies at each clinic site.
The number of prisoners prescribed each medication under subdivision (b), including if the medication is an oral or injectable treatment.
Total expenditures on clinic medications, including oral and injectable medications.
The number of prisoners who received treatment in the community for a duration of at least 3 months. Sec. 607. From the funds appropriated in part 1, the department shall submit a report not later than March 1 that includes for the previous fiscal year the total amount of all medical co-payments collected by prisoners
under section 67a of the corrections code of 1953, 1953 PA 232, MCL 791.267a.
Sec. 608. From the funds appropriated in part 1, the department shall submit a biannual report, by not later than March 1 and September 1 of each year, that contains a de-identified list of prisoner deaths that occurred in the previous 6 months within correctional facilities. This report must include, but not be limited to, all of the following:
The date of death.
The correctional facility or other location at which the death occurred.
The official cause of death, as documented on the death certificate.
In cases where the cause of death is determined to be a drug overdose, the type of drug used, if known.
CORRECTIONAL FACILITIES AND ADMINISTRATION
Sec. 701. From the funds appropriated in part 1 for prison food service, the department shall report not later than January 15 on the following:
Average per-meal cost for prisoner food service. Per-meal cost includes all costs directly related to the provision of food for the prisoner population, including, but not limited to, actual food costs, total compensation for all food service workers, including benefits and legacy costs, and inspection and compliance costs for food service.
Food service-related contracts, including goods or services to be provided and the vendor.
Major sanitation violations.
Sec. 702. From the funds appropriated in part 1, the department shall calculate the cost per prisoner per day for each security custody level. This calculation must include all actual direct and indirect costs for the previous fiscal year. To calculate the cost per prisoner per day, the department shall divide the prisoner- related costs by the total number of prisoner days for each custody level and correctional facility. For multilevel facilities, costs that cannot be accurately allocated to each custody level may be included in the calculation on a per-prisoner basis for each facility. A report summarizing these calculations must be submitted not later than January 15. Prisoner-related costs included in the cost per prisoner per day calculation must include all expenditures for the following, from all fund sources:
New custody staff training.
Prison industries operations.
Education/skilled trades/career readiness programs.
Enhanced food technology program.
Higher education in prison.
Offender success programming.
Central records.
Correctional facilities administration.
Housing inmates in federal institutions.
Inmate legal services.
Leased beds and alternatives to leased beds.
Prison food service.
Prison store operations.
Transportation.
Health care.
Correctional facilities.
Northern and southern region administration and support.
Sec. 703. Any local unit of government or private nonprofit organization that contracts with the department for public works services is responsible for financing the entire cost of such an agreement.
Sec. 704. The department shall allow the Michigan Braille transcribing fund program to operate at designated locations. The department shall continue to encourage the Michigan Braille transcribing fund program to produce high-quality materials for use by the visually impaired.
Sec. 705. (1) From the funds appropriated in part 1, the department shall report all of the following regarding critical incidents by facility:
Within 72 hours of occurrence, any critical incident occurring at a correctional facility. The report must identify the facility at which the incident occurred.
Not later than March 1, the number of critical incidents occurring each month at each facility during the previous calendar year, categorized by type and severity of each incident.
(2) As used in this section, “critical incident” includes a prisoner assault on staff that results in a serious physical injury to staff, an escape or attempted escape, a prisoner disturbance that causes facility operation concerns, the implementation of a phase plan or similar significant restriction on activity within a facility, a drug overdose or suspected overdose that results in inpatient hospitalization, and an unexpected death of a prisoner.
Sec. 706. From the funds appropriated in part 1, the department shall report not later than March 1 on all of the following ratios for each correctional facility:
Corrections officers to prisoners.
Shift command staff to line custody staff.
Noncustody institutional staff to prisoners.
Sec. 707. (1) From the funds appropriated in part 1, the department shall focus on providing required programming to prisoners as early as possible during the prisoner’s sentence to impact the prisoner’s behavior while incarcerated, and prioritize individuals who are past their earliest release date and have not been paroled because of not having received the required programming. Programming includes, but is not limited to, violence prevention programming, sexual abuse prevention programming, substance use disorder programming, thinking for a change programming, and any other programming that is required as a condition of parole. Nothing in this section makes parole denial appealable in court.
The department shall submit a quarterly report detailing enrollment in sex abuse prevention programming, violence prevention programming, and thinking for a change programming. At a minimum, the report must include all of the following:
A full accounting, from the date of entrance to prison, of the number of individuals who are required to complete the programming, but have not yet done so.
The number of individuals who have reached their earliest release date, but who have not completed required programming.
A plan of action for addressing any waiting lists or backlogs for programming that may exist.
Sec. 708. If a pregnant prisoner in a facility funded from appropriations in part 1 consents to a visitor being present, the department shall allow that 1 person to be present during the prisoner’s labor and delivery, in addition to a doula being present if the pregnant prisoner wants to work with a doula. The person allowed to accompany the prisoner must be an immediate family member, legal guardian, spouse, or domestic partner. The department is authorized to deny access to a visitor if the department has a safety concern with that visitor’s access. The department is authorized to conduct a criminal background check on the visitor.
Sec. 709. From the funds appropriated in part 1, the department shall evaluate all prisoners at intake for substance use disorders, serious developmental disorders, serious mental illness, and other mental health disorders. Prisoners with serious mental illness or serious developmental disorders must not be removed
from the general population as a punitive response to behavior caused by their serious mental illness or serious developmental disorder. A prisoner with serious mental illness or serious developmental disorder that is unresponsive to treatment who presents a persistent high violence risk or engages in severe disruptive behavior may be placed in secure residential housing programs that facilitate access to institutional programming and ongoing mental health services funded from appropriations in part 1. A prisoner with serious mental illness or serious developmental disorder who is confined in these specialized housing programs must be evaluated or monitored by a medical professional at a frequency of not less than every 12 hours.
Sec. 710. (1) From the funds appropriated in part 1, the department shall report not later than March 1 on the number of prisoners during the previous fiscal year in administrative segregation and, of those, the number who at any time during the current or previous prison term were diagnosed with serious mental illness or have a developmental disorder and the number of days each of the prisoners with serious mental illness or a developmental disorder have been confined to administrative segregation.
The report required in subsection (1) must include a chart listing the number of prisoners housed in administrative segregation for each of the following time periods:
A continuous period exceeding 3 months but less than 6 months.
A continuous period exceeding 6 months but less than 12 months.
A continuous period exceeding 12 months or longer.
For any prisoner housed in administrative segregation for 12 months or longer, an explanation of the circumstances surrounding the prisoner’s placement in administrative segregation.
Sec. 711. From the funds appropriated in part 1, the department shall do all of the following:
Ensure that any inmate care and control staff in contact with prisoners less than 18 years of age are adequately trained with regard to the developmental and mental health needs of prisoners less than 18 years of age. Not later than April 1, the department shall report on the training curriculum used and the number and types of staff receiving annual training under that curriculum.
Provide appropriate placement for prisoners less than 18 years of age who have serious mental illness, serious emotional disturbance, or a serious developmental disorder and need to be housed separately from the general population. Prisoners less than 18 years of age who have serious mental illness, serious emotional disturbance, or a serious developmental disorder must not be removed from an existing placement as a punitive response to behavior caused by their serious mental illness, serious emotional disturbance, or a serious developmental disorder. A prisoner who is less than 18 years of age with serious mental illness or a serious developmental disorder that is unresponsive to treatment who presents a persistent high violence risk or engages in severe disruptive behavior may be placed in secure residential housing programs that facilitate access to institutional programming and ongoing mental health services. A prisoner less than 18 years of age with serious mental illness, serious emotional disturbance, or a serious developmental disorder who is confined in these specialized housing programs must be evaluated or monitored by a medical professional at a frequency of not less than every 12 hours.
Implement a specialized offender success program that recognizes the needs of prisoners less than 18 years of age for supervised offender success.
Sec. 712. From the funds appropriated in part 1, the department shall submit quarterly reports on the number of youth in prison. The report must include, but not be limited to, all of the following information:
The total number of inmates less than 18 years of age who are not on Holmes youthful trainee act status.
The total number of inmates less than 18 years of age who are on Holmes youthful trainee act status.
The total number of inmates between the ages of 18 and 23 who are on Holmes youthful trainee act status. Sec. 713. From the funds appropriated in part 1, the department must submit a report on the number of prisoners who lost visiting privileges. The report required under this section must be submitted not later than November 15 and include data for the previous fiscal year. The report must include all of the following
information:
The number of prisoners who lost visiting privileges by race and by violation type.
The number of prisoners who applied to have visiting privileges restored.
The number of prisoners who had visiting privileges restored.
The number of prisoners who had visiting restrictions extended.
Sec. 714. Funds appropriated in part 1 for intelligence unit must be used by the department to maintain an intelligence unit to conduct investigatory and intelligence operations for the department. Intelligence operations must include, but not be limited to, intelligence operations for prisoner phone services. Savings that result from transferring responsibility for intelligence operations from the contractor to the department must be passed on to prisoners and prisoners’ families as the department continues to negotiate lower phone call rates in all future contracts. The department must continue to pursue all opportunities for reducing further the cost of phone calls for prisoners and prisoners’ families.
Sec. 715. (1) From the funds appropriated in part 1, the department must submit a preliminary report on the department’s plans to close, consolidate, or relocate any correctional facility in the state. The preliminary report must be provided not less than 30 days before the effective date of the closure, consolidation, or relocation. The preliminary report must include the projected savings to the state from closure, consolidation, or relocation of the facility and must include a projection of the potential impact on staff positions.
(2) After a prison closure, consolidation, or relocation, the department must submit a report on the actual savings achieved by the department and the impact on staff positions. Savings amounts and impact on staff positions must be itemized by facility. The report required under this subsection must be submitted 6 months after the prison closure, consolidation, or relocation.
Sec. 716. From the funds appropriated in part 1, the department shall consult with the legislature and other appropriate state agencies to develop a framework to provide investment in communities that have formerly operational state correctional facilities that have been closed. This framework must include plans to ensure that vacant state correctional facilities do not become a nuisance or danger to the community.
Sec. 717. From the funds appropriated in part 1, the department shall make an information packet for the families of incoming prisoners available on the department’s website. The information packet must be reviewed not later than February 1 and updated as necessary. The department may partner with external advocacy groups and actual families of prisoners in the packet-writing process to ensure that the information is useful and complete. The packet must provide information on topics including, but not limited to, all of the following:
How to put money into prisoner accounts.
How to make telephone calls or create Jpay email accounts.
How to visit in person.
Proper procedures for filing complaints or grievances.
The rights of prisoners to physical and mental health care.
The purpose and importance of prisoners signing a medical release of information form.
How to utilize the offender tracking information system (OTIS).
Truth in sentencing and how it applies to minimum sentences.
The parole process.
Guidance on the importance of the role of families in the reentry process.
Sec. 718. From the funds appropriated in part 1, the department must pursue all opportunities to reduce costs for prisoners and prisoners’ families for financial deposit fees and commissary fees when the department negotiates or renews any contract to provide these services.
Sec. 719. (1) Funds appropriated in part 1 for contraband prevention must be used by the department to enhance a multifaceted approach to contraband prevention that combines technology, rigorous policies, vigilant staff, intelligence gathering, and a commitment to addressing the root causes of contraband, all of which are necessary for preventing contraband introductions and maintaining safe and secure correctional facilities.
Funds appropriated in part 1 for contraband prevention must be used by the department to support the prevention of contraband in correctional facilities, including increasing the frequency and enhancing the methods of screening all individuals, including all department employees, and all items entering into correctional facilities.
From the funds appropriated in part 1 for contraband prevention, the department must submit a report not later than March 1 on contraband and prevention efforts in correctional facilities. The report must include, but not be limited to, all of the following:
Prevention efforts and strategies utilized by the department.
Challenges faced by correctional staff and other staff in addressing contraband.
Ideas and recommendations on how the legislature can better assist the department with contraband prevention efforts and strategies.
Sec. 720. The department shall ensure that Policy Directive 04.01.110 “Access to Correctional Facilities” does not require active legislative members in good standing to provide prior notice before being granted access to a department facility when conducting official legislative business.
Sec. 721. It is the intent of the legislature that the department reform the strip search protocol so that it results in fewer and less intrusive strip searches of prisoners to maintain the safety and security of correctional facilities. If the department undertakes any efforts to perform fewer and less intrusive strip searches under this section, it must provide a report by April 1 on the efforts undertaken.
ARTICLE 3 DEPARTMENT OF EDUCATION
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of education for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF EDUCATION | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 562.5 | ||
GROSS APPROPRIATION | $ | 164,746,700 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 0 | ||
ADJUSTED GROSS APPROPRIATION | $ | 164,746,700 | |
Federal revenues: | |||
Total federal revenues | 83,575,100 | ||
Special revenue funds: | |||
Total local revenues | 5,884,200 | ||
Total private revenues | 2,547,500 | ||
Total other state restricted revenues | 10,193,800 | ||
State general fund/general purpose | $ | 62,546,100 | |
Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE SUPERINTENDENT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 11.0 | ||
Unclassified salaries—FTE positions | 6.0 | $ | 1,190,300 |
Education commission of the states | 120,800 | ||
State board of education, per diem payments | 24,400 | ||
State board/superintendent operations—FTEs | 11.0 | 2,534,100 | |
GROSS APPROPRIATION | $ | 3,869,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 313,400 | ||
Special revenue funds: | |||
Private foundations | 80,000 | ||
Certification fees | 842,200 | ||
State general fund/general purpose | $ | 2,634,000 | |
Sec. 103. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated classified positions | 44.6 | ||
Central support operations—FTEs | 41.6 | $ | 6,823,100 |
Federal and private grants | 3,005,300 | ||
Grant and contract operations—FTEs | 3.0 | 1,902,400 | |
Property management | 4,165,000 | ||
Terminal leave payments | 353,300 | ||
Training and orientation workshops | 150,000 | ||
Worker’s compensation | 7,500 | ||
GROSS APPROPRIATION | $ | 16,406,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal indirect revenues | 2,329,300 | ||
Federal revenues | 5,470,400 | ||
Special revenue funds: | |||
Private foundations | 1,005,300 | ||
Certification fees | 630,200 | ||
Teacher testing fees | 84,200 | ||
Training and orientation workshop fees | 150,000 | ||
State general fund/general purpose | $ | 6,737,200 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 104. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 4,933,200 | |
GROSS APPROPRIATION | $ | 4,933,200 | |
Appropriated from: | |||
Federal revenues: | |||
Federal indirect revenues | 2,498,500 | ||
Federal revenues | 70,600 | ||
Special revenue funds: | |||
Certification fees | 1,008,400 | ||
State general fund/general purpose | $ | 1,355,700 | |
Sec. 105. SPECIAL EDUCATION SERVICES | |||
Full-time equated classified positions | 47.0 | ||
Special education operations—FTEs | 47.0 | $ | 9,831,500 |
GROSS APPROPRIATION | $ | 9,831,500 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 9,026,500 | ||
Special revenue funds: | |||
Private foundations | 111,800 | ||
Certification fees | 50,000 | ||
State general fund/general purpose | $ | 643,200 | |
Sec. 106. MICHIGAN SCHOOLS FOR THE DEAF AND BLIND | |||
Full-time equated classified positions | 82.0 | ||
ASL literacy resource | $ | 500,000 | |
Camp Tuhsmeheta—FTE | 1.0 | 1,000,400 | |
Low incidence outreach program | 1,000,000 | ||
Michigan Schools for the Deaf and Blind operations—FTEs | 81.0 | 16,562,900 | |
Private gifts - blind | 200,000 | ||
Private gifts - deaf | 150,000 | ||
GROSS APPROPRIATION | $ | 19,413,300 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 7,672,200 | ||
Special revenue funds: | |||
Local cost sharing (schools for deaf/blind) | 5,884,200 | ||
Gifts, bequests, and donations | 1,350,400 | ||
Low incidence outreach fund | 1,000,000 | ||
Student insurance revenue | 206,100 | ||
State general fund/general purpose | $ | 3,300,400 | |
Sec. 107. EDUCATOR EXCELLENCE | |||
Full-time equated classified positions | 48.0 | ||
Educator excellence operations—FTEs | 47.0 | $ | 10,535,800 |
Educator recruitment and preparation programs—FTE | 1.0 | 1,682,200 | |
GROSS APPROPRIATION | $ | 12,218,000 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 3,173,000 | ||
Special revenue funds: | |||
Certification fees | 4,207,700 | ||
Teacher testing fees | 203,700 | ||
State general fund/general purpose | $ | 4,633,600 | |
Sec. 108. SYSTEMS, EVALUATION, AND TECHNOLOGY | |||
Full-time equated classified positions | 18.0 | ||
Office of systems, evaluation, and technology operations—FTEs | 18.0 | $ | 3,670,100 |
GROSS APPROPRIATION | $ | 3,670,100 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Federal revenues: | |||
Federal indirect revenues | $ | 148,400 | |
Federal revenues | 2,169,700 | ||
Special revenue funds: | |||
Certification fees | 11,200 | ||
State general fund/general purpose | $ | 1,340,800 | |
Sec. 109. STRATEGIC PLANNING AND IMPLEMENTATION | |||
Full-time equated classified positions | 6.0 | ||
Strategic planning and implementation operations—FTEs | 6.0 | $ | 1,208,400 |
GROSS APPROPRIATION | $ | 1,208,400 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 647,100 | ||
State general fund/general purpose | $ | 561,300 | |
Sec. 110. ADMINISTRATIVE LAW SERVICES | |||
Full-time equated classified positions | 2.0 | ||
Administrative law operations—FTEs | 2.0 | $ | 1,426,800 |
GROSS APPROPRIATION | $ | 1,426,800 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 573,300 | ||
Special revenue funds: | |||
Certification fees | 747,700 | ||
State general fund/general purpose | $ | 105,800 | |
Sec. 111. ACCOUNTABILITY SERVICES | |||
Full-time equated classified positions | 58.6 | ||
Accountability services operations—FTEs | 58.6 | $ | 15,023,800 |
GROSS APPROPRIATION | $ | 15,023,800 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 13,066,500 | ||
State general fund/general purpose | $ | 1,957,300 | |
Sec. 112. SCHOOL SUPPORT SERVICES | |||
Full-time equated classified positions | 86.6 | ||
Adolescent and school health | $ | 334,400 | |
Office of health and safety—FTEs | 20.0 | 1,465,300 | |
Office of nutrition services—FTEs | 66.6 | 14,517,100 | |
GROSS APPROPRIATION | $ | 16,316,800 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 13,265,200 | ||
Special revenue funds: | |||
Commodity distribution fees | 150,000 | ||
State general fund/general purpose | $ | 2,901,600 | |
Sec. 113. EDUCATIONAL SUPPORTS | |||
Full-time equated classified positions | 86.7 | ||
Educational supports operations—FTEs | 86.7 | $ | 18,248,600 |
School board member training | 150,000 | ||
GROSS APPROPRIATION | $ | 18,398,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 13,285,600 | ||
Special revenue funds: | |||
Certification fees | 602,400 | ||
State general fund/general purpose | $ | 4,510,600 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 114. CAREER AND TECHNICAL EDUCATION | |||
Full-time equated classified positions | 26.0 | ||
Career and technical education operations—FTEs | 26.0 | $ | 5,863,300 |
GROSS APPROPRIATION | $ | 5,863,300 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 4,120,300 | ||
State general fund/general purpose | $ | 1,743,000 | |
Sec. 115. LIBRARY OF MICHIGAN | |||
Full-time equated classified positions | 33.0 | ||
Library of Michigan operations—FTEs | 31.0 | $ | 5,122,200 |
Library services and technology program—FTE | 1.0 | 5,630,600 | |
Michigan eLibrary—FTE | 1.0 | 1,849,600 | |
Renaissance zone reimbursements | 1,830,000 | ||
State aid to libraries | 16,567,700 | ||
GROSS APPROPRIATION | $ | 31,000,100 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 5,630,600 | ||
Special revenue funds: | |||
Library fees | 300,000 | ||
State general fund/general purpose | $ | 25,069,500 | |
Sec. 116. PARTNERSHIP DISTRICT SUPPORT | |||
Full-time equated classified positions | 13.0 | ||
Partnership district support operations—FTEs | 13.0 | $ | 3,666,600 |
GROSS APPROPRIATION | $ | 3,666,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 114,500 | ||
State general fund/general purpose | $ | 3,552,100 | |
Sec. 117. ONE-TIME APPROPRIATIONS | |||
Foster care oversight | $ | 150,000 | |
Media literacy | 300,000 | ||
Mental health training | 150,000 | ||
Michigan elibrary | 900,000 | ||
GROSS APPROPRIATION | $ | 1,500,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 1,500,000 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $72,739,900.00 and state spending under part 1 from state sources to be paid to local units of government is $18,547,700.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF EDUCATION | ||
Renaissance zone reimbursements | $ | 1,830,000 |
School board member training | 150,000 | |
State aid to libraries | 16,567,700 | |
TOTAL | $ | 18,547,700 |
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:
“Department” means the department of education.
“DHHS” means the department of health and human services.
“District” means a local school district as that term is defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6, or a public school academy as that term is defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
“FTE” means full-time equated.
“HHS” means the United States Department of Health and Human Services.
“Standard report recipients” means the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 204. The department 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 a website.
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:
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.
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.
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.
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 of representatives appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
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, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 transmit the report to the standard report recipients and to the chairpersons of the senate and house of representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$5,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$400,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$250,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,500,000.00 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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. 214. (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. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the state superintendent of public instruction shall take all reasonable steps to ensure that geographically disadvantaged business enterprises compete for and perform contracts to provide services, supplies, or both. The state superintendent of public instruction 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. 217. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
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 law and 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 report must include reference to the public act that necessitates the policy change. 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. 220. By April 1, the department shall provide to the standard report recipients a copy of the department’s annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The strategic plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 221. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
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. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 224. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $7,741,200.00. From this amount, total department appropriations for pension-related legacy costs are estimated at $6,982,100.00. Total department appropriations for retiree health care legacy costs are estimated at $759,100.00.
Sec. 225. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 226. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 227. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 228. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients by not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 229. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is
not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 230. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount and source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
DEPARTMENT-SPECIFIC GENERAL SECTIONS
Sec. 301. From the funds appropriated in part 1, the department shall provide through the internet the state board of education agenda and all supporting documents, and shall notify the state budget director and the senate and house fiscal agencies that the agenda and supporting documents are available on the internet, at the time the agenda and supporting documents are provided to state board of education members.
Sec. 302. From the funds appropriated in part 1, the department may assist DHHS, other departments, intermediate school districts, and local school districts to secure reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department may submit reports of direct expenses related to this effort to DHHS for reimbursement.
Sec. 303. From the funds appropriated in part 1, the department shall do both of the following:
Post on its website a link to the federal Institute of Education Sciences’ What Works Clearinghouse.
Disseminate knowledge about the What Works Clearinghouse to districts and intermediate school districts so that it may be used to improve reading proficiency for pupils in grades K to 3.
Sec. 304. From the funds appropriated in part 1, the department shall coordinate with the other departments to streamline state services and resources, reduce duplication, and increase efficiency, including, but not limited to, all of the following:
Working with the department of treasury to coordinate with the financial independence team and overseeing deficit districts.
Working with DHHS and the department of lifelong education, advancement, and potential to coordinate with early childhood programs and overseeing child care providers.
Sec. 305. (1) As a condition of receiving appropriations in part 1, the department shall, in collaboration with DHHS, promote and support initiatives in schools and other educational organizations that include, but are not limited to, training for educators, teachers, and other personnel in school settings for all of the following:
Using trauma-informed practices.
Age-appropriate education and information on human trafficking.
Age-appropriate education and information on sexual abuse prevention.
(2) If requested by the department, the department of state police and the department of attorney general shall consult with the department in the promotion and support of initiatives in schools and other educational organizations under subsection (1).
Sec. 306. From the funds appropriated in part 1, the department shall ensure that the most recently issued report of regional in-demand occupations issued by the department of technology, management, and budget is distributed in electronic or paper form to all high schools in each school district, intermediate school district, and public school academy.
STATE BOARD OF EDUCATION/OFFICE OF THE SUPERINTENDENT
Sec. 351. (1) The department may use the appropriations from the state board of education, per diem payments in part 1 for per diem payments to the state board members for meetings at which a quorum is present or for performing official business authorized by the state board. The per diem payments are set at the following rates:
State board of education - president - $110.00 per day.
State board of education - member other than president - $100.00 per day.
(2) The department shall not pay a state board of education member a per diem for more than 30 days per year.
SPECIAL EDUCATION SERVICES
Sec. 401. From the funds appropriated in part 1 for special education operations, the department shall use
$100,000.00 to design and distribute to all parents and legal guardians of a student with a disability the following information:
Federal and state mandates regarding the rights and protections of students with disabilities, including, but not limited to, individualized education programs to ensure that parents and legal guardians are fully informed about laws, rules, procedural safeguards, and problem-solving options.
Any other information the department determines is necessary to allow parents and legal guardians to provide meaningful input in collaboration with districts to develop and implement an individualized education program.
MICHIGAN SCHOOLS FOR THE DEAF AND BLIND
Sec. 451. From the funds appropriated in part 1, the employees at the Michigan Schools for the Deaf and Blind who work on a school-year basis are considered annual employees for purposes of service credits, retirement, and insurance benefits.
Sec. 452. For each student enrolled at the Michigan Schools for the Deaf and Blind, the department shall assess the intermediate school district of residence 100% of the cost of operating the student’s instructional program, excluding room and board related costs and the cost of weekend transportation between the school and the student’s home.
Sec. 456. (1) From the funds appropriated in part 1, the Michigan Schools for the Deaf and Blind may promote its residential program as a possible appropriate option for children who are deaf or hard of hearing or who are blind or visually impaired. From the funds appropriated in part 1, the Michigan Schools for the Deaf and Blind shall distribute information detailing its services to all intermediate school districts in this state.
(2) If an intermediate school district knows that a child in the district is deaf or hard of hearing or blind or visually impaired, the intermediate school district shall provide to the parents of the child the literature distributed by the Michigan Schools for the Deaf and Blind to intermediate school districts under subsection (1).
(3) Parents will continue to have a choice regarding the educational placement of their deaf or hard-of- hearing children.
Sec. 457. Revenue received by the Michigan Schools for the Deaf and Blind from gifts, bequests, and donations that is unexpended at the end of the state fiscal year may be carried over to the succeeding fiscal year and does not revert to the general fund.
Sec. 458. (1) The funds appropriated in part 1 for the low incidence outreach fund are appropriated from money collected by the Michigan Schools for the Deaf and Blind and the low incidence outreach program for providing qualified services and may be used for any expenses necessary to provide the qualified services. Any money that is unexpended at the end of the current fiscal year does not revert to the general fund and may be carried forward into the succeeding fiscal year.
(2) As used in this section, “qualified services” means any of the following:
Document reproduction and services.
Conducting conferences, workshops, and training classes.
Providing specialized equipment, facilities, and software.
Sec. 459. When conducting a due process hearing resulting from a parent’s appeal of that parent’s child’s individualized education program team’s decision on the child’s educational placement, a state administrative law judge shall consider designating the Michigan School for the Deaf as 1 of the options for the least restrictive environment under federal law for the parent’s child who is deaf, deafblind, or hard of hearing.
Sec. 460. From the funds appropriated in part 1 for ASL literacy resources, the department shall expend the funds to comply with all requirements in section 1705 of the revised school code, 1976 PA 451, MCL 380.1705. EDUCATOR EXCELLENCE
Sec. 501. From the funds appropriated in part 1 for educator excellence, the department shall maintain certificate revocation and felony conviction files of educational personnel.
Sec. 503. From the funds appropriated in part 1, the department shall, if requested by the Michigan Virtual Learning Research Institute, consult with the Michigan Virtual Learning Research Institute and external stakeholders in connection with the department’s implementation and administration of professional development training described in section 35a of the state school aid act of 1979, 1979 PA 94, MCL 388.1635a, including, but not limited to, the online training of educators of pupils in grades K to 3 described in that section.
Sec. 504. From the funds appropriated in part 1 for educator recruitment and preparation programs, the department shall award $1,000,000.00 to districts for both of the following:
Educator preparation program tuition, program fees, testing fees, and substitute permit costs for any individual employed in grades pre-K to 12 working toward certification or an additional endorsement.
Program costs associated with hands-on learning experiences for students in grades 6 to 12 interested in the field of education, with supervision and mentoring from educators who are champions of, and committed to, the success of the profession.
Sec. 505. From the funds appropriated in part 1 for educator recruitment and preparation programs, not less than $190,000.00 and not fewer than 1.0 FTE position is allocated for educator recruitment and preparation programs.
Sec. 506. Revenue received from teacher testing fees that is unexpended at the end of the current fiscal year may be carried over to the succeeding fiscal year and does not revert to the general fund.
Sec. 507. From the funds appropriated in part 1, the department shall adopt a teacher certification test that ensures that all newly certified elementary teachers have the skills to deliver evidence-based literacy instruction grounded in the science of reading. The department may use teacher certification or teacher testing fee revenue to the extent allowable under law to implement this section, or may pass along increased testing fees to teachers as allowable and appropriate.
SCHOOL SUPPORT SERVICES
Sec. 601. From the funds appropriated in part 1 for adolescent and school health, the department shall use the funds to replace federal funding reductions from the HHS - Centers for Disease Control and Prevention to the department and section 39a(2)(a) of the state school aid act of 1979, 1979 PA 94, MCL 388.1639a.
Sec. 602. (1) From the funds appropriated in part 1 for school board member training, there is appropriated
$150,000.00 for school board member training. The department shall approve 1 or more training programs for school board members that include courses of instruction for school board members in 1 or more of the following topic areas:
Conflicts of interest, including, but not limited to, the application of section 1203 of the revised school code, 1976 PA 451, MCL 380.1203.
Labor relations, including, but not limited to, a school board’s role in collective bargaining agreements in 1947 PA 336, MCL 423.201 to 423.217, and in other laws related to employment.
Education law, including, but not limited to, the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1896, the open meetings act,
1976 PA 267, MCL 15.261 to 15.275, and 1937 (Ex Sess) PA 4, MCL 38.71 to 38.191, dealing with teacher tenure.
School finance, including, but not limited to, the creation and management of school district budgets.
Board governance, including, but not limited to, roles and responsibilities, parliamentary procedure, and best practices.
Implicit bias training.
Rater reliability training.
On completion of an eligible training program, a school board member may apply for reimbursement for the cost of the eligible training program through the board member’s local district, up to $100.00 per course. The department may determine the form and manner of the application to reimburse the district for the cost.
The department shall create a process for the provider of a course in a topic listed in subsection (1) to apply to the department to have the course approved and be eligible for a school board member to be reimbursed for completing that course as provided under subsection (2).
As used in this section:
“Eligible training program” means a training program that is approved under subsection (1).
“School board member” means a member of the board of a school district or intermediate school district or a member of the board of directors of a public school academy in this state.
Sec. 604. (1) From the funds appropriated in part 1, not less than $159,500.00 and not fewer than 1.0 FTE position shall provide technical assistance to all eligible districts to make them effective at using Medicaid dollars for mental health.
(2) As used in this section, “eligible district” means a school district or intermediate school district that receives funding under section 31n of the state school aid act of 1979, 1979 PA 94, MCL 388.1631n. EDUCATIONAL SUPPORTS
Sec. 701. (1) From the funds appropriated in part 1 for educational supports, the department shall produce a report detailing the progress made by districts with grades K to 12 receiving at-risk funding under section 31a of the state school aid act of 1979, 1979 PA 94, MCL 388.1631a, in doing both of the following:
Implementing multi-tiered systems of supports in the previous school fiscal year for grades K to 12.
Providing reading intervention services described in section 1280f of the revised school code, 1976 PA 451, MCL 380.1280f, for pupils in grades K to 12.
The department shall include, at a minimum, all of the following in the report described in subsection (1):
A description of the training, coaching, and technical assistance offered by the department to districts to support the implementation of effective multi-tiered systems of supports and reading intervention programs.
A list of districts determined by the department to have successfully implemented multi-tiered systems of supports and reading intervention programs.
A list of districts determined by the department that have the need to implement multi-tiered systems of supports and reading intervention programs.
A list of best practices that the department has identified that may be used by districts to implement multi-tiered systems of supports and reading intervention programs.
Other information the department determines would be useful to understanding the status of districts’ implementation of effective multi-tiered systems of supports and reading intervention programs.
The department shall provide the report described in subsection (1) to the state budget director, the house and senate subcommittees that oversee the department and school aid budgets, and the house and senate fiscal agencies by September 30 of the current fiscal year.
Sec. 702. From the funds appropriated in part 1, there is appropriated an amount not less than
$1,000,000.00 for implementation costs associated with programs for early childhood literacy funded under section 35a of the state school aid act of 1979, 1979 PA 94, MCL 388.1635a.
CAREER AND TECHNICAL EDUCATION
Sec. 750. From the funds appropriated in part 1 for career and technical education operations, the department shall develop and implement a reporting mechanism for school districts to report on career and technical education participation and workforce development participation. The department shall prepare and submit a report to the standard report recipients detailing all of the following:
The number of students participating in career and technical education programs.
The number of students in the graduating class of the current school year that took at least 1 career and technical education course while in high school.
The number of students in the graduating class of the previous school year that enrolled in a postsecondary workforce development program in the current school year.
LIBRARY OF MICHIGAN
Sec. 801. (1) The funds appropriated in part 1 for library fees are appropriated from money collected by the library of Michigan for providing qualified services and may be used for any expenses necessary to provide the qualified services. Any money that is unexpended at the end of the current fiscal year does not lapse to the general fund and may be carried forward into the succeeding fiscal year.
(2) As used in this section, “qualified services” means any of the following:
Document reproduction and services.
Conducting conferences, workshops, and training classes.
Providing specialized equipment, facilities, and software.
Sec. 804. (1) The department shall use the funds appropriated in part 1 for renaissance zone reimbursements to reimburse public libraries under section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2025. The department shall allocate the funds not later than 60 days after the department of treasury certifies to the department and to the state budget director that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient.
(2) If the amount appropriated under this section is not sufficient to fully pay obligations under this section, the department shall prorate payments on an equal basis among all eligible recipients.
ONE-TIME APPROPRIATIONS
Sec. 1000. From the funds appropriated in part 1 for foster care support, there is appropriated an amount not less than $150,000.00 for implementation costs associated with section 1281c of the revised school code, 1976 PA 451, MCL 380.1281c.
Sec. 1001. From the funds appropriated in part 1 for media literacy training, the department shall design, implement, and evaluate professional learning and optional curriculum modules for the purpose of teaching artificial intelligence and media literacy in this state.
Sec. 1002. (1) From the funds appropriated in part 1 for mental health training, the department shall provide technical assistance to all eligible districts to make them effective at using Medicaid dollars for mental health.
(2) As used in this section, “eligible district” means a school district or intermediate school district that receives funding under section 31n of the state school aid act of 1979, 1979 PA 94, MCL 388.1631n.
ARTICLE 4
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of environment, Great Lakes, and energy for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 1,631.0 | |
GROSS APPROPRIATION | $ | 967,719,600 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 4,129,100 | |
ADJUSTED GROSS APPROPRIATION | $ | 963,590,500 |
Federal revenues: | ||
Total federal revenues | 464,268,500 | |
Special revenue funds: | ||
Total local revenues | 0 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Total private revenues | $ | 1,404,200 | |
Total other state restricted revenues | 327,853,700 | ||
State general fund/general purpose | $ | 170,064,100 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 106.0 | ||
Unclassified salaries—FTE positions | 6.0 | $ | 993,100 |
Accounting service center | 1,576,900 | ||
Administrative hearings officers | 906,600 | ||
Environmental investigations—FTEs | 12.0 | 2,459,400 | |
Environmental support—FTEs | 56.0 | 9,465,700 | |
Executive direction—FTEs | 20.0 | 4,480,800 | |
Facilities management | 1,000,000 | ||
Financial support—FTEs | 18.0 | 10,890,700 | |
Michigan geological survey | 400,000 | ||
Property management | 8,098,900 | ||
GROSS APPROPRIATION | $ | 40,272,100 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from Michigan department of state police | 82,800 | ||
IDG from state transportation department | 108,400 | ||
Federal revenues: | |||
Federal funds | 766,700 | ||
Special revenue funds: | |||
Private funds | 711,600 | ||
Air emissions fees | 1,054,500 | ||
Aquatic nuisance control fund | 79,500 | ||
Campground fund | 25,900 | ||
Cleanup and redevelopment fund | 2,808,900 | ||
Coal ash care fund | 17,100 | ||
Electronic waste recycling fund | 36,200 | ||
Environmental education fund | 237,400 | ||
Environmental pollution prevention fund | 558,100 | ||
Fees and collections | 19,800 | ||
Financial instruments | 8,561,500 | ||
Great Lakes protection fund | 548,100 | ||
Groundwater discharge permit fees | 123,800 | ||
Infrastructure construction fund | 2,700 | ||
Laboratory services fees | 673,700 | ||
Land and water permit fees | 198,500 | ||
Medical waste emergency response fund | 36,200 | ||
Metallic mining surveillance fee revenue | 5,800 | ||
Mineral well regulatory fee revenue | 17,100 | ||
Nonferrous metallic mineral surveillance | 16,200 | ||
NPDES fees | 359,700 | ||
Oil and gas regulatory fund | 466,300 | ||
Orphan well fund | 71,200 | ||
Public swimming pool fund | 50,300 | ||
Public utility assessments | 750,500 | ||
Public water supply fees | 385,000 | ||
Refined petroleum fund | 3,371,100 | ||
Renew Michigan fund | 4,734,000 | ||
Sand extraction fee revenue | 2,700 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Scrap tire regulatory fund | $ | 186,000 | |
Septage waste program fund | 48,500 | ||
Settlement funds | 2,000,400 | ||
Sewage sludge land application fees | 74,400 | ||
Soil erosion and sedimentation control training fund | 11,700 | ||
Solid waste management fund - staff account | 769,200 | ||
Stormwater permit fees | 185,600 | ||
Technologically enhanced naturally occurring radioactive material | 34,500 | ||
Underground storage tank cleanup fund | 255,500 | ||
Wastewater operator training fees | 44,900 | ||
Water quality protection fund | 8,700 | ||
Water use reporting fees | 19,900 | ||
State general fund/general purpose | $ | 9,751,500 | |
Sec. 103. WATER RESOURCES DIVISION | |||
Full-time equated classified positions | 403.0 | ||
Aquatic nuisance control program—FTEs | 6.0 | $ | 1,000,700 |
Federal - Great Lakes remedial action plan grants | 583,800 | ||
Fish contaminant monitoring | 316,100 | ||
Great Lakes restoration initiative—FTEs | 9.0 | 11,288,300 | |
Nonpoint source pollution prevention and control project program | 4,083,300 | ||
Technology advancements for water monitoring | 500,000 | ||
Water quality programs—FTEs | 223.0 | 36,580,800 | |
Water quality protection grants | 100,000 | ||
Water resource programs—FTEs | 165.0 | 28,239,600 | |
Watershed council grants | 600,000 | ||
GROSS APPROPRIATION | $ | 83,292,600 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from state transportation department | 2,056,400 | ||
Federal revenues: | |||
Federal funds | 35,144,300 | ||
Special revenue funds: | |||
Aquatic nuisance control fund | 1,000,700 | ||
Environmental response fund | 590,000 | ||
Groundwater discharge permit fees | 2,246,900 | ||
Infrastructure construction fund | 52,000 | ||
Land and water permit fees | 2,487,300 | ||
NPDES fees | 4,523,900 | ||
Refined petroleum fund | 456,000 | ||
Sewage sludge land application fees | 918,900 | ||
Soil erosion and sedimentation control training fund | 143,500 | ||
Stormwater permit fees | 2,364,000 | ||
Wastewater operator training fees | 317,400 | ||
Water pollution control revolving fund | 152,500 | ||
Water quality protection fund | 100,000 | ||
Water use reporting fees | 300 | ||
State general fund/general purpose | $ | 30,738,500 | |
Sec. 104. AIR QUALITY DIVISION | |||
Full-time equated classified positions | 225.0 | ||
Air quality programs—FTEs | 225.0 | $ | 38,730,000 |
GROSS APPROPRIATION | $ | 38,730,000 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 7,762,700 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Special revenue funds: | |||
Air emissions fees | $ | 11,290,100 | |
Asbestos inspection fund | 2,000,000 | ||
Fees and collections | 214,300 | ||
Oil and gas regulatory fund | 148,700 | ||
Public utility assessments | 150,000 | ||
Refined petroleum fund | 2,138,500 | ||
State general fund/general purpose | $ | 15,025,700 | |
Sec. 105. REMEDIATION AND REDEVELOPMENT DIVISION | |||
Full-time equated classified positions | 324.0 | ||
Contaminated site remediation and redevelopment programs—FTEs | 324.0 | $ | 83,030,300 |
Emergency cleanup actions | 2,000,000 | ||
Environmental cleanup and redevelopment program | 27,600,000 | ||
Superfund cleanup | 9,000,000 | ||
GROSS APPROPRIATION | $ | 121,630,300 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 16,759,200 | ||
Special revenue funds: | |||
Cleanup and redevelopment fund | 55,444,200 | ||
Environmental response fund | 1,442,100 | ||
Laboratory services fees | 11,392,000 | ||
Public water supply fees | 330,700 | ||
Refined petroleum fund | 33,867,500 | ||
State brownfield redevelopment fund | 2,100,000 | ||
State general fund/general purpose | $ | 294,600 | |
Sec. 106. UNDERGROUND STORAGE TANK AUTHORITY | |||
Full-time equated classified positions | 12.0 | ||
Underground storage tank cleanup program—FTEs | 12.0 | $ | 32,139,200 |
GROSS APPROPRIATION | $ | 32,139,200 | |
Appropriated from: | |||
Special revenue funds: | |||
Underground storage tank cleanup fund | 32,139,200 | ||
State general fund/general purpose | $ | 0 | |
Sec. 107. RENEWING MICHIGAN’S ENVIRONMENT | |||
Full-time equated classified positions | 168.0 | ||
Information Management—FTEs | 22.0 | $ | 6,836,600 |
Renew Michigan program—FTEs | 146.0 | 70,737,200 | |
GROSS APPROPRIATION | $ | 77,573,800 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from Michigan department of state police | 6,800 | ||
IDG from state transportation department | 6,300 | ||
Federal revenues: | |||
Federal funds | 5,800 | ||
Special revenue funds: | |||
Air emissions fees | 67,900 | ||
Aquatic nuisance control fund | 4,600 | ||
Campground fund | 1,200 | ||
Cleanup and redevelopment fund | 184,700 | ||
Coal ash care fund | 1,000 | ||
Electronic waste recycling fund | 1,100 | ||
Environmental pollution prevention fund | 39,800 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Fees and collections | $ | 120,200 |
Financial instruments | 281,600 | |
Great Lakes protection fund | 1,200 | |
Groundwater discharge permit fees | 10,700 | |
Laboratory services fees | 45,500 | |
Land and water permit fees | 14,400 | |
Medical waste emergency response fund | 1,100 | |
Mineral well regulatory fee revenue | 500 | |
Nonferrous metallic mineral surveillance | 1,300 | |
NPDES fees | 24,900 | |
Oil and gas regulatory fund | 33,300 | |
Orphan well fund | 5,500 | |
Public swimming pool fund | 1,400 | |
Public water supply fees | 26,900 | |
Refined petroleum fund | 229,600 | |
Renew Michigan fund | 71,052,600 | |
Scrap tire regulatory fund | 13,200 | |
Septage waste program fund | 1,600 | |
Sewage sludge land application fees | 4,600 | |
Soil erosion and sedimentation control training fund | 200 | |
Solid waste management fund - staff account | 59,100 | |
Stormwater permit fees | 12,300 | |
Technologically enhanced naturally occurring radioactive material | 2,000 | |
Underground storage tank cleanup fund | 17,000 | |
Wastewater operator training fees | 2,800 | |
Water quality protection fund | 500 | |
Water use reporting fees | 1,100 | |
State general fund/general purpose | $ | 5,289,500 |
Sec. 108. INFORMATION TECHNOLOGY | ||
Information technology services and projects | $ | 10,439,700 |
GROSS APPROPRIATION | $ | 10,439,700 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG from Michigan department of state police | 23,700 | |
IDG from state transportation department | 31,100 | |
Federal revenues: | ||
Federal funds | 2,062,300 | |
Special revenue funds: | ||
Air emissions fees | 246,800 | |
Aquatic nuisance control fund | 22,900 | |
Campground fund | 7,300 | |
Cleanup and redevelopment fund | 807,100 | |
Coal ash care fund | 5,000 | |
Electronic waste recycling fund | 10,600 | |
Environmental pollution prevention fund | 158,500 | |
Fees and collections | 5,700 | |
Financial instruments | 1,084,000 | |
Great Lakes protection fund | 11,400 | |
Groundwater discharge permit fees | 35,200 | |
Infrastructure construction fund | 800 | |
Laboratory services fees | 189,600 | |
Land and water permit fees | 56,400 | |
Medical waste emergency response fund | 10,600 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Metallic mining surveillance fee revenue | $ | 1,700 | |
Mineral well regulatory fee revenue | 5,000 | ||
Nonferrous metallic mineral surveillance | 5,000 | ||
NPDES fees | 101,400 | ||
Oil and gas regulatory fund | 131,600 | ||
Orphan well fund | 20,400 | ||
Public swimming pool fund | 14,800 | ||
Public utility assessments | 19,600 | ||
Public water supply fees | 108,600 | ||
Refined petroleum fund | 961,200 | ||
Renew Michigan fund | 1,459,000 | ||
Sand extraction fee revenue | 800 | ||
Scrap tire regulatory fund | 53,100 | ||
Septage waste program fund | 13,900 | ||
Sewage sludge land application fees | 21,200 | ||
Soil erosion and sedimentation control training fund | 3,300 | ||
Solid waste management fund - staff account | 211,700 | ||
Stormwater permit fees | 53,100 | ||
Technologically enhanced naturally occurring radioactive material | 9,800 | ||
Underground storage tank cleanup fund | 73,600 | ||
Wastewater operator training fees | 13,100 | ||
Water pollution control revolving fund | 33,200 | ||
Water quality protection fund | 2,400 | ||
Water use reporting fees | 5,700 | ||
State general fund/general purpose | $ | 2,347,500 | |
Sec. 109. DRINKING WATER AND ENVIRONMENTAL HEALTH | |||
Full-time equated classified positions | 160.0 | ||
Drinking water and environmental health—FTEs | 160.0 | $ | 40,273,800 |
GROSS APPROPRIATION | $ | 40,273,800 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 13,755,900 | ||
Special revenue funds: | |||
Campground fund | 388,200 | ||
Fees and collections | 34,700 | ||
Public swimming pool fund | 762,200 | ||
Public water supply fees | 5,074,500 | ||
Refined petroleum fund | 761,100 | ||
Septage waste program fund | 628,900 | ||
Wastewater operator training fees | 267,700 | ||
State general fund/general purpose | $ | 18,600,600 | |
Sec. 110. MATERIALS MANAGEMENT DIVISION | |||
Full-time equated classified positions | 133.0 | ||
Energy programs— FTEs | 13.0 | $ | 6,307,200 |
Material management programs— FTEs | 120.0 | 25,184,200 | |
GROSS APPROPRIATION | $ | 31,491,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from Michigan department of state police | 1,590,500 | ||
Federal revenues: | |||
Federal funds | 7,353,300 | ||
Special revenue funds: | |||
Private funds | 652,600 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Cleanup and redevelopment fund | 1,090,500 | ||
Coal ash care fund | 268,100 | ||
Community pollution prevention fund | 250,000 | ||
Electronic waste recycling fund | 333,700 | ||
Energy efficiency and renewable energy revolving loan fund | 250,100 | ||
Environmental pollution prevention fund | 4,167,300 | ||
Medical waste emergency response fund | 454,500 | ||
Public utility assessments | 1,806,200 | ||
Retired engineers technical assistance program fund | 491,200 | ||
Scrap tire regulatory fund | 5,147,300 | ||
Small business pollution prevention revolving loan fund | 134,400 | ||
Solid waste management fund - staff account | 6,204,200 | ||
Technologically enhanced naturally occurring radioactive material | 465,500 | ||
State general fund/general purpose | $ | 832,000 | |
Sec. 111. GEOLOGIC RESOURCES MANAGEMENT DIVISION | |||
Full-time equated classified positions | 73.0 | ||
Geologic resources management—FTEs | 73.0 | $ | 21,531,100 |
GROSS APPROPRIATION | $ | 21,531,100 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of licensing and regulatory affairs | 223,100 | ||
Federal revenues: | |||
Federal funds | 153,100 | ||
Infrastructure investment and jobs act fund | 5,155,400 | ||
Special revenue funds: | |||
Private funds | 40,000 | ||
Aquifer protection revolving fund | 520,000 | ||
Metallic mining surveillance fee revenue | 92,500 | ||
Mineral well regulatory fee revenue | 216,000 | ||
Native copper mine fund | 50,000 | ||
Nonferrous metallic mineral surveillance | 385,800 | ||
Oil and gas regulatory fund | 3,938,900 | ||
Orphan well fund | 2,351,500 | ||
Sand extraction fee revenue | 91,100 | ||
Water use reporting fees | 351,000 | ||
State general fund/general purpose | $ | 7,962,700 | |
Sec. 112. WATER INFRASTRUCTURE | |||
Full-time equated classified positions | 27.0 | ||
Municipal assistance—FTEs | 27.0 | $ | 6,744,300 |
Lead service line replacement | 9,601,300 | ||
Water state revolving funds | 390,000,000 | ||
GROSS APPROPRIATION | $ | 406,345,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 105,349,800 | ||
Infrastructure investment and jobs act fund | 270,000,000 | ||
Special revenue funds: | |||
Revolving loan revenue bonds | 15,000,000 | ||
Water pollution control revolving fund | 774,300 | ||
State general fund/general purpose | $ | 15,221,500 | |
Sec. 113. ONE-TIME APPROPRIATIONS | |||
Michigan geological survey – one-time | 2,300,000 | ||
Water state revolving funds – one-time | 34,000,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Geologic resources management – one-time | $ | 5,000,000 |
Document digitization, transparency, and modernization | 5,000,000 | |
Lead service line replacement - one-time | 17,400,000 | |
Permitting guidebooks | 300,000 | |
GROSS APPROPRIATION | $ | 64,000,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 64,000,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 resources is $497,917,800.00 and state spending under part 1 from state sources to be paid to local units of government is $59,133,300.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY | ||
Brownfield grants | $ | 1,000,000 |
Drinking water and environmental health | 8,786,000 | |
Emergency cleanup actions | 116,000 | |
Energy programs | 460,000 | |
Lead service line replacement | 9,601,300 | |
Lead service line replacement – one-time | 17,400,000 | |
Material management programs | 1,270,000 | |
Renew Michigan program | 20,000,000 | |
Technology advancements for water monitoring | 500,000 | |
TOTAL | $ | 59,133,300 |
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:
“Department” means the department of environment, Great Lakes, and energy.
“Director” means the director of the department.
“FTE” means full-time equated.
“IDG” means interdepartmental grant.
“NPDES” means the national pollutant discharge elimination system.
“Standard report recipients” means the senate appropriations subcommittee on environment, Great Lakes, and energy; the house appropriations subcommittee on environment, Great Lakes, and energy; the senate and house fiscal agencies; the senate and house policy offices; and the state budget office.
Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the 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:
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.
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.
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.
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, each department and agency receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1. The report must list travel outside of this state by classified and unclassified employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’s budget. The department shall submit the report to the standard report recipients and to the house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
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, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 of representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$3,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$10,000,000.00 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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. 214. (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 a local health officer.
Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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 2023-1.
Sec. 216. On a quarterly basis, the department or agency receiving appropriations in part 1 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. 217. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set by the office of state employer to meet the in- person and vacancy rate objectives outlined by the office of state employer.
The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 218. The department shall make each report required to be submitted under this part readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s website, the department shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 219. 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 law and guidelines.
Sec. 220. 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 report must include reference to the public act that necessitates the policy change. 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. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 222. To the extent possible, the department shall not expend appropriations in part 1 until all existing authorized work project funds available for the same purposes are exhausted.
Sec. 225. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 226. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 227. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services, in partnership with the Social Security Administration.
Sec. 228. (1) The department may expend amounts remaining from the current and prior fiscal year appropriations to meet funding needs of the environmental cleanup and redevelopment program, environmental cleanup support, contaminated site remediation and redevelopment programs, contaminated site cleanup, contaminated site cleanup contingency reserve, premcor remediation activities, PFAS remediation grant program, the renew Michigan program, the refined petroleum product cleanup program, brownfield grants and loans, waterfront grants, and the environmental bond site reclamation program.
Unexpended and unencumbered amounts remaining from appropriations from the clean Michigan initiative fund - response activities contained in 2011 PA 63, 2013 PA 59, 2014 PA 252, 2015 PA 84,
2016 PA 268, and 2017 PA 107, are appropriated for expenditure.
Unexpended and unencumbered amounts remaining from appropriations from the refined petroleum fund activities contained in 2013 PA 59, 2014 PA 252, 2015 PA 84, 2016 PA 268, 2017 PA 107,
2018 PA 207, 2019 PA 57, 2020 PA 166, 2021 PA 87, 2022 PA 166, 2023 PA 119, and 2024 PA 121 are
appropriated for expenditure.
Unexpended and unencumbered amounts remaining from the appropriations from the strategic water quality initiatives fund contained in 2011 PA 50, 2011 PA 63, 2012 PA 200, 2013 PA 59, 2014 PA 252,
2015 PA 84, 2016 PA 268, 2017 PA 107, and 2018 PA 207, are appropriated for expenditure.
For the strategic water quality initiatives fund, funds not yet disbursed are appropriated for expenditure for the same program under sections 5201, 5202, and 5204e of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5201, 324.5202, and 324.5204e.
Unexpended and unencumbered amounts remaining from the appropriations from the renew Michigan fund contained in 2018 PA 207, 2019 PA 57, 2020 PA 166, 2021 PA 87, 2022 PA 166, 2023 PA 119, and
2024 PA 121 are appropriated for expenditure.
Unexpended and unencumbered amounts remaining from the appropriations from the contaminated site cleanup contingency fund contained in 2021 PA 87 and 2022 PA 166, are appropriated for expenditure.
Unexpended and unencumbered amounts remaining from the appropriations from the cleanup and redevelopment fund contained in 2022 PA 166 and 2023 PA 119 are appropriated for expenditure.
Sec. 229. Revenues that remain in the settlements fund at the end of the fiscal year carry forward into the succeeding fiscal year.
Sec. 235. (1) Semiannually, the department shall prepare a report that contains information regarding all remediation and redevelopment efforts funded from part 1.
The report must contain the following information:
List of sites where work is planned to occur, including the county for each site.
The type of site, whether refined petroleum cleanup, nonrefined petroleum cleanup, brownfield, or a combination of types.
A brief description of how the issue will be addressed, including whether contractors will be utilized.
The estimated date for project completion.
The amount and funding source or sources allocated to the site.
The report must be submitted to the senate and house subcommittees on the environment, Great Lakes, and energy and the state budget director.
Sec. 238. The department shall submit a report to the senate and house standing committees and appropriations subcommittees with primary responsibility for issues under the jurisdiction of the department that details departmental activities of the most recent fiscal year in administering permitting programs. The report must include, at a minimum, all of the following:
The number of FTEs assigned to each permitting program and the number of unfilled positions at the beginning and end of the most recent fiscal year.
The number of permit applications received by the department in the preceding year, including applications for new and increased uses and reissuances.
The number of permits for each program approved.
The number of permits for each program denied.
The percentage and number of permit applications that were reviewed for administrative completeness within statutory time frames.
The percentage and number of permit applications for which a final action was taken by the department within statutory time frames for new and increased uses and reissuances.
Activities to reduce any backlog of permits that exceed the statutory time frames and the average time frame for permit approvals for each program.
Activities to reduce the percentage of permit applications submitted as incomplete, in need of modification, or additional information before final determination.
Under conditions in which the department states a permit is incomplete or denied, the department shall provide an explanation as to the reason or reasons the permit is insufficient and how the permit can be strengthened or made complete.
Sec. 239. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 240. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 242. If the department responds to a significant incident to protect life or property, as soon as possible and within 24 hours after the department responds to the significant incident, the department shall notify, in writing, the senate and house members whose district includes the site.
Sec. 246. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 247. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $25,310,000.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $22,828,000.00. Total appropriations for retiree health care legacy costs for the department are estimated at $2,482,000.00.
Sec. 248. (1) Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include all of the following information:
The amount of funding received.
The specific source of funding received.
The purpose for which funding was expended.
The amount of any remaining funds.
(2) The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 249. (1) Funds appropriated in part 1 must not be used by the department to promulgate a rule that will apply to small businesses and have a disproportionate economic impact on small businesses because of the size of those businesses if the department fails to reduce the disproportionate economic impact of the rule on small businesses as provided under section 40 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.240.
(2) As used in this section:
“Rule” means that term as defined under section 7 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207.
“Small business” means that term as defined under section 7a of the administrative procedures act of 1969, 1969 PA 306, MCL 24.207a.
Sec. 250. The department must provide a report to the standard report recipients that details the number and percentage of each permit the department issued during the prior fiscal year that were issued outside the relevant statutory deadline.
REMEDIATION AND REDEVELOPMENT DIVISION
Sec. 301. Revenues remaining in the laboratory services fees fund at the end of the fiscal year carry forward into the succeeding fiscal year.
Sec. 302. The unexpended funds appropriated in part 1 for contaminated site remediation and redevelopment programs, emergency cleanup actions, and environmental cleanup and redevelopment program are designated as work project appropriations, and any unencumbered or unallotted funds shall not
lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the projects is to provide contaminated site cleanup.
The projects will be accomplished by utilizing contracts with service providers.
The total estimated cost of all projects is identified in each line-item appropriation.
The tentative completion date is September 30, 2030.
Sec. 304. (1) In addition to the money appropriated in part 1, the department may receive and expend money from the subaccounts of the cleanup and redevelopment fund as described under section 20108 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20108, including the environmental response fund or the natural resource damages fund, to provide funding for actions by the department that are authorized by a court of competent jurisdiction and set forth in a final court order or judgment in an action to which the department is a party.
(2) By January 30, the department shall submit a report to the appropriations subcommittees, the fiscal agencies, and the state budget office that provides a summary of the expenditures incurred under this section during the preceding fiscal year.
Sec. 305. It is the intent of the legislature to repay the refined petroleum fund for the $70,000,000.00 that was transferred to the environmental protection fund created in section 503a of the natural resources and environmental protection act, 1994 PA 451, MCL 324.503a, as part of the resolution for the fiscal year 2006- 2007 budget.
WATER RESOURCES DIVISION
Sec. 402. The department shall report the following to the standard report recipients:
The number of permit application decision appeals filed in the previous fiscal year.
The number of permit applications approved within 30 days, 60 days, 90 days, 6 months, and 1 year after an application is determined to be administratively complete.
Sec. 405. If a certified health department does not exist in a city, county, or district or does not fulfill its responsibilities under part 117 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11701 to 324.11721, then the department may spend funds appropriated in part 1 for drinking water and environmental health in accordance with section 11716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11716.
Sec. 410. From the funds appropriated in part 1, the department shall compile a report by November 1 of every fiscal year ending in an odd number on the status of the implementation plan for the western Lake Erie basin collaborative agreement. In an effort to learn more about the presence and timing of harmful algal blooms, the report shall contain all of the following:
An estimated cost of removal of total phosphorus per pound at the 4 major wastewater treatment plants.
A description of the grants that have been awarded.
A description of the work that has commenced on the issue of dissolved reactive phosphorus, the expected objectives and outcomes of that work, and a list of the parties involved in that effort.
A description of the efforts and outcomes aimed at the total phosphorus reduction for the River Raisin watershed.
UNDERGROUND STORAGE TANK AUTHORITY
Sec. 701. The unexpended funds appropriated in part 1 for the underground storage tank cleanup program are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide underground storage tank cleanup.
The project will be accomplished by utilizing contracts with service providers.
The total estimated cost of the project is $20,000,000.00.
The tentative completion date is September 30, 2030.
RENEWING MICHIGAN’S ENVIRONMENT
Sec. 801. The unexpended funds appropriated in part 1 for the renewing Michigan’s environment program are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for environmental cleanup and redevelopment, waste management, and recycling.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $70,495,800.00.
The tentative completion date is September 30, 2030.
MATERIALS MANAGEMENT DIVISION
Sec. 901. In addition to the money appropriated in part 1, the department may receive and expend money from the Volkswagen Environmental Mitigation Trust Agreement to provide funding for activities as outlined within the State’s Mitigation Plan. The department shall prepare a report to the appropriations subcommittees, the fiscal agencies, and the state budget office by February 1, 2026 of the expenditures incurred under this section during the fiscal year ending September 30, 2025.
GEOLOGIC RESOURCES MANAGEMENT DIVISION
Sec. 925. As a condition on the funds appropriated in part 1, the department shall coordinate and convene with relevant stakeholders to discuss methods to improve program funding with a goal of aligning fee revenue with program costs for geologic resources management in future fiscal years.
WATER INFRASTRUCTURE
Sec. 951. The funds appropriated in part 1 for lead service line replacement must be used to support water infrastructure projects, including, but not limited to, lead service line replacement and associated activities, drinking water projects, wastewater management, or stormwater management to promote coordinated water infrastructure work.
ONE-TIME APPROPRIATIONS
Sec. 1001. The unexpended funds appropriated in part 1 for document digitization, transparency, and modernization are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support the digitization and indexing of department records.
The project will be accomplished by utilizing state resources or contracts with service providers, or both.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2029.
Sec. 1002. The unexpended funds appropriated in part 1 for geologic resources management –one-time are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support geologic resources management.
The project will be accomplished by utilizing state resources or contracts with service providers, or both.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2029.
Sec. 1003. (1) The funds appropriated in part 1 for lead service line replacement one-time must be used to support water infrastructure projects, including, but not limited to, lead service line replacement and associated activities, drinking water projects, wastewater management, or stormwater management to promote coordinated water infrastructure work.
(2) The unexpended funds appropriated in part 1 for lead service line replacement one-time are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support the upgrade or replacement of water infrastructure.
The project will be accomplished by utilizing state resources or contracts with service providers, or both.
The total estimated cost of the project is $17,400,000.00.
The tentative completion date is September 30, 2029.
Sec. 1004. The unexpended funds appropriated in part 1 for Michigan geological survey – one-time are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support the Michigan geological survey.
The project will be accomplished by utilizing state resources or contracts with service providers, or both.
The total estimated cost of the project is $2,300,000.00.
The tentative completion date is September 30, 2029.
Sec. 1005. The department shall collaborate with qualified technical experts to develop and distribute permitting guidebooks. Qualified technical experts shall contribute subject-specific guidance relevant to the experts’ respective fields. The guidebooks’ areas of focus must include groundwater discharge permitting for large livestock operations, meat processors, and fruit and vegetable processors.
Sec. 1006. The unexpended funds appropriated in part 1 for water state revolving funds one-time are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support water infrastructure projects.
The project will be accomplished by utilizing state resources or contracts with service providers, or both.
The total estimated cost of the project is $34,000,000.00.
The tentative completion date is September 30, 2029.
ARTICLE 5 GENERAL GOVERNMENT
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the legislature, the executive, the department of attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain other state purposes for the fiscal year ending September 30, 2026, from the following funds:
TOTAL GENERAL GOVERNMENT | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 34.0 | |
Full-time equated classified positions | 7,722.2 | |
GROSS APPROPRIATION | $ | 5,191,776,100 |
Total interdepartmental grants and intradepartmental transfers | 1,231,093,400 | |
ADJUSTED GROSS APPROPRIATION | $ | 3,960,682,700 |
Federal revenues: | ||
Total federal revenues | 44,573,800 | |
Special revenue funds: | ||
Total local revenues | 17,671,700 | |
Total private revenues | 4,763,200 | |
Total other state restricted revenues | 2,718,649,500 | |
State general fund/general purpose | $ | 1,175,024,500 |
Sec. 102. DEPARTMENT OF ATTORNEY GENERAL | ||
(1) APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 679.0 | |
GROSS APPROPRIATION | $ | 126,400,600 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 39,381,700 | |
ADJUSTED GROSS APPROPRIATION | $ | 87,018,900 |
Federal revenues: | ||
Total federal revenues | 10,567,200 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 950,000 | |
Total other state restricted revenues | 30,223,700 | |
State general fund/general purpose | $ | 45,278,000 |
(2) ATTORNEY GENERAL OPERATIONS | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 679.0 | |
Attorney general | $ | 112,500 |
Unclassified salaries—FTEs | 5.0 | 993,100 |
Alcohol and gambling enforcement—FTEs | 17.0 | 2,881,800 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Assistance with convictions and expungements—FTEs | 30.0 | $ | 4,750,000 |
Child elder family financial crimes—FTEs | 20.5 | 5,094,700 | |
Child support enforcement—FTEs | 25.0 | 4,079,100 | |
Children and youth services—FTEs | 28.0 | 5,300,000 | |
Civil rights and elections—FTEs | 12.0 | 2,450,000 | |
Collections—FTEs | 15.5 | 2,775,000 | |
Corporate oversight—FTEs | 48.0 | 9,294,000 | |
Corrections—FTEs | 40.0 | 7,700,000 | |
Criminal appellate and parole appeals—FTEs | 17.0 | 2,383,100 | |
Criminal investigations—FTEs | 46.0 | 2,976,500 | |
Criminal trials—FTEs | 37.0 | 10,700,900 | |
Environment, natural resources, and agriculture —FTEs | 34.0 | 6,774,400 | |
Executive office—FTEs | 7.0 | 1,305,000 | |
Finance—FTEs | 11.0 | 2,392,900 | |
Fiscal management—FTEs | 9.0 | 1,255,000 | |
Health care fraud—FTEs | 35.0 | 6,208,900 | |
Health education and family services—FTEs | 36.0 | 5,785,100 | |
Human resources—FTEs | 7.0 | 1,115,000 | |
Labor—FTEs | 34.0 | 5,233,800 | |
Licensing and regulation—FTEs | 38.0 | 4,950,000 | |
Office of communications—FTEs | 9.0 | 1,180,000 | |
Office of legislative affairs—FTEs | 2.0 | 420,800 | |
Opinions review board—FTE | 1.0 | 330,000 | |
Public administration—FTEs | 3.0 | 423,000 | |
Public service division—FTEs | 14.0 | 2,471,500 | |
Revenue and tax—FTEs | 27.0 | 5,600,000 | |
Sexual assault law enforcement—FTEs | 5.0 | 1,493,700 | |
Solicitor general—FTEs | 4.0 | 1,675,000 | |
Special litigation—FTEs | 5.0 | 2,112,600 | |
State operations—FTEs | 42.0 | 8,578,100 | |
Transportation—FTEs | 10.0 | 2,544,400 | |
Victim rights/victim services—FTEs | 10.0 | 1,355,000 | |
GROSS APPROPRIATION | $ | 124,694,900 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDOC | 737,200 | ||
IDG from MDE | 822,100 | ||
IDG from EGLE | 2,445,500 | ||
IDG from MDHHS, health policy | 330,100 | ||
IDG from MDHHS, human services | 6,938,300 | ||
IDG from MDHHS, medical services administration | 778,100 | ||
IDG from MDHHS, WIC | 373,000 | ||
IDG from MDIFS, financial and insurance services | 1,613,100 | ||
IDG from LEO, Michigan occupational safety and health administration | 211,400 | ||
IDG from LEO, workforce development | 100,700 | ||
IDG from MDLARA, cannabis regulatory agency | 2,528,900 | ||
IDG from MDLARA, fireworks safety fund | 91,100 | ||
IDG from MDLARA, health professions | 3,146,300 | ||
IDG from MDLARA, licensing and regulation fees | 795,000 | ||
IDG from MDLARA, remonumentation fees | 118,100 | ||
IDG from MDLARA, securities fees | 779,700 | ||
IDG from MDLARA, unlicensed builders | 1,198,300 | ||
IDG from MDMVA | 181,700 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
IDG from MDOS, children’s protection registry | $ | 45,000 |
IDG from MDOT, comprehensive transportation fund | 111,500 | |
IDG from MDOT, state aeronautics fund | 196,400 | |
IDG from MDOT, state trunkline fund | 2,236,500 | |
IDG from MDSP | 288,000 | |
IDG from MDTMB | 1,352,200 | |
IDG from MDTMB, civil service commission | 342,300 | |
IDG from MDTMB, risk management revolving fund | 1,410,000 | |
IDG from MILEAP | 1,004,600 | |
IDG from Michigan state housing development authority | 1,287,600 | |
IDG from Michigan strategic fund | 202,800 | |
IDG from treasury | 7,716,200 | |
Federal revenues: | ||
DAG, state administrative match grant/food stamps | 137,000 | |
Federal funds | 3,801,500 | |
HHS, medical assistance, medigrant | 419,800 | |
HHS-OS, state Medicaid fraud control units | 6,208,900 | |
Special revenue funds: | ||
Adjudicated criminal property seizures | 950,000 | |
Antitrust enforcement collections | 854,500 | |
Attorney general’s operations fund | 1,118,600 | |
Attorney general support fund | 8,000,000 | |
Auto repair facilities fees | 372,200 | |
Franchise fees | 429,200 | |
Game and fish protection fund | 687,600 | |
Human trafficking commission fund | 170,000 | |
Lawsuit settlement proceeds fund | 2,697,600 | |
Liquor purchase revolving fund | 1,647,500 | |
Michigan employment security act - administrative fund | 2,521,000 | |
Michigan merit award trust fund | 542,400 | |
Michigan opioid healing and recovery | 199,500 | |
Mobile home code fund | 274,700 | |
Prisoner reimbursement | 790,600 | |
Public utility assessments | 2,221,700 | |
Reinstatement fees | 288,700 | |
Retirement funds | 1,169,500 | |
Second injury fund | 670,400 | |
Self-insurers security fund | 409,600 | |
Silicosis and dust disease fund | 117,900 | |
State building authority revenue | 133,200 | |
State casino gaming fund | 1,987,800 | |
State lottery fund | 393,200 | |
Utility consumer representation fund | 1,962,600 | |
Waterways account | 153,600 | |
Worker’s compensation administrative revolving fund | 410,100 | |
State general fund/general purpose | $ | 43,572,300 |
(3) INFORMATION TECHNOLOGY | ||
Information technology services and projects | $ | 1,705,700 |
GROSS APPROPRIATION | $ | 1,705,700 |
Appropriated from: | ||
State general fund/general purpose | $ | 1,705,700 |
Sec. 103. DEPARTMENT OF CIVIL RIGHTS | ||
(1) APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 168.0 | |
GROSS APPROPRIATION | $ | 28,439,700 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | $ | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 28,439,700 | |
Federal revenues: | |||
Total federal revenues | 2,899,300 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 18,700 | ||
Total other state restricted revenues | 58,500 | ||
State general fund/general purpose | $ | 25,463,200 | |
(2) CIVIL RIGHTS OPERATIONS | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 168.0 | ||
Unclassified salaries—FTEs | 6.0 | $ | 869,800 |
Complaint investigation and enforcement—FTEs | 123.0 | 19,646,700 | |
Division on deaf, deafblind, and hard of hearing—FTEs | 6.0 | 761,400 | |
Executive office—FTEs | 25.0 | 3,290,300 | |
Public affairs—FTEs | 14.0 | 2,322,600 | |
GROSS APPROPRIATION | $ | 26,890,800 | |
Appropriated from: | |||
Federal revenues: | |||
EEOC, state and local antidiscrimination agency contracts | 1,257,700 | ||
HUD, grant | 1,626,600 | ||
Special revenue funds: | |||
Private revenues | 18,700 | ||
State restricted indirect funds | 58,500 | ||
State general fund/general purpose | $ | 23,929,300 | |
(3) INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 1,548,900 | |
GROSS APPROPRIATION | $ | 1,548,900 | |
Appropriated from: | |||
Federal revenues: | |||
EEOC, state and local antidiscrimination agency contracts | 15,000 | ||
State general fund/general purpose | $ | 1,533,900 | |
Sec. 104. EXECUTIVE OFFICE | |||
(1) APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 10.0 | ||
Full-time equated classified positions | 86.2 | ||
GROSS APPROPRIATION | $ | 9,609,200 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 0 | ||
ADJUSTED GROSS APPROPRIATION | $ | 9,609,200 | |
Federal revenues: | |||
Total federal revenues | 0 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 0 | ||
Total other state restricted revenues | 0 | ||
State general fund/general purpose | $ | 9,609,200 | |
(2) EXECUTIVE OFFICE OPERATIONS | |||
Full-time equated unclassified positions | 10.0 | ||
Full-time equated classified positions | 86.2 | ||
Unclassified salaries—FTEs | 8.0 | $ | 1,670,500 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Governor | $ | 159,300 |
Lieutenant governor | 111,600 | |
Executive office—FTEs | 86.2 | 7,667,800 |
GROSS APPROPRIATION | $ | 9,609,200 |
Appropriated from: | ||
State general fund/general purpose | $ | 9,609,200 |
Sec. 105. LEGISLATURE | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 232,522,100 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 7,445,000 | |
ADJUSTED GROSS APPROPRIATION | $ | 225,077,100 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 474,700 | |
Total other state restricted revenues | 8,016,700 | |
State general fund/general purpose | $ | 216,585,700 |
(2) LEGISLATURE | ||
Senate | $ | 51,298,900 |
Senate automated data processing | 3,242,100 | |
Senate fiscal agency | 4,907,300 | |
House of representatives | 75,337,200 | |
House automated data processing | 3,242,100 | |
House fiscal agency | 4,907,300 | |
GROSS APPROPRIATION | $ | 142,934,900 |
Appropriated from: | ||
State general fund/general purpose | $ | 142,934,900 |
(3) LEGISLATIVE COUNCIL | ||
Legislative corrections ombudsman | $ | 1,609,600 |
Legislative council | 16,719,600 | |
Legislative service bureau automated data processing | 3,767,800 | |
Michigan veterans’ facility ombudsman | 374,100 | |
National association dues | 714,300 | |
Office of tribal legislative liasion | 507,500 | |
Sentencing commission | 100 | |
Worker’s compensation | 179,800 | |
GROSS APPROPRIATION | $ | 23,872,800 |
Appropriated from: | ||
State general fund/general purpose | $ | 23,872,800 |
(4) LEGISLATIVE RETIREMENT SYSTEM | ||
Actuarially determined contribution | $ | 100 |
General nonretirement expenses | 6,374,300 | |
GROSS APPROPRIATION | $ | 6,374,400 |
Appropriated from: | ||
Special revenue funds: | ||
Court fees | 1,483,300 | |
State general fund/general purpose | $ | 4,891,100 |
(5) PROPERTY MANAGEMENT | ||
Binsfeld Office Building and other properties | $ | 10,013,000 |
Cora Anderson Building | 6,927,400 | |
GROSS APPROPRIATION | $ | 16,940,400 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
State general fund/general purpose | $ | 16,940,400 |
(6) STATE CAPITOL HISTORIC SITE | ||
Bond/lease obligations | $ | 100 |
General operations | 6,672,700 | |
Restoration, renewal, and maintenance | 4,020,500 | |
GROSS APPROPRIATION | $ | 10,693,300 |
Appropriated from: | ||
Special revenue funds: | ||
Private - gifts and bequests | 474,700 | |
Capitol historic site fund | 4,020,500 | |
State general fund/general purpose | $ | 6,198,100 |
(7) OFFICE OF THE AUDITOR GENERAL | ||
Unclassified positions | $ | 440,000 |
Field operations | 31,266,300 | |
GROSS APPROPRIATION | $ | 31,706,300 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG, commercial mobile radio system emergency telephone fund | 45,600 | |
IDG, contract audit administration fees | 83,500 | |
IDG, deferred compensation funds | 115,000 | |
IDG, emp ben div postemployment life insurance benefit | 23,400 | |
IDG from LEO, self-insurers security fund | 98,500 | |
IDG from MDHHS, human services | 38,700 | |
IDG from MDLARA, liquor purchase revolving fund | 133,700 | |
IDG from MDMVA, Michigan veterans’ facility authority | 106,500 | |
IDG from MDOT, comprehensive transportation fund | 47,800 | |
IDG from MDOT, Michigan transportation fund | 388,200 | |
IDG from MDOT, state aeronautics fund | 37,600 | |
IDG from MDOT, state trunkline fund | 901,600 | |
IDG, legislative retirement system | 31,900 | |
IDG, Michigan economic development corporation | 155,000 | |
IDG, Michigan education trust fund | 74,500 | |
IDG, Michigan finance authority | 314,400 | |
IDG, Michigan justice training commission fund | 60,000 | |
IDG, Michigan strategic fund | 253,800 | |
IDG, office of retirement services | 910,900 | |
IDG, other restricted funding sources | 26,800 | |
IDG, pension schedules of employer allocations funds | 124,000 | |
IDG, single audit act | 3,387,600 | |
IDG, state sponsored group insurance fund | 86,000 | |
Special revenue funds: | ||
21st century jobs trust fund | 118,600 | |
Brownfield redevelopment fund | 34,700 | |
Game and fish protection account | 38,600 | |
MDTMB, civil service commission | 218,700 | |
Michigan state housing development authority fees | 139,700 | |
Michigan veterans’ trust fund | 2,000 | |
Michigan veterans’ trust fund income and assessments | 23,000 | |
Motor transport revolving fund | 9,000 | |
Office services revolving fund | 12,500 | |
State disbursement unit, office of child support | 70,500 | |
State services fee fund | 1,831,700 | |
Waterways account | 13,900 | |
State general fund/general purpose | $ | 21,748,400 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 106. DEPARTMENT OF STATE | |||
(1) APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 1,601.0 | ||
GROSS APPROPRIATION | $ | 294,983,000 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 20,000,000 | ||
ADJUSTED GROSS APPROPRIATION | $ | 274,983,000 | |
Federal revenues: | |||
Total federal revenues | 1,460,000 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 50,100 | ||
Total other state restricted revenues | 261,503,800 | ||
State general fund/general purpose | $ | 11,969,100 | |
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 126.0 | ||
Secretary of state | $ | 112,500 | |
Unclassified salaries—FTEs | 5.0 | 828,300 | |
Executive direction—FTEs | 28.0 | 5,185,900 | |
Operations—FTEs | 98.0 | 27,192,200 | |
Property management | 11,061,800 | ||
Worker’s compensation | 139,200 | ||
GROSS APPROPRIATION | $ | 44,519,900 | |
Appropriated from: | |||
Special revenue funds: | |||
Abandoned vehicle fees | 239,800 | ||
Auto repair facilities fees | 125,800 | ||
Children’s protection registry fund | 272,300 | ||
Driver fees | 2,597,000 | ||
Enhanced driver license and enhanced official state personal identification card fund | 2,181,500 | ||
Parking ticket court fines | 13,600 | ||
Personal identification card fees | 101,900 | ||
Scrap tire fund | 78,600 | ||
Transportation administration collection fund | 37,843,300 | ||
State general fund/general purpose | $ | 1,066,100 | |
(3) LEGAL SERVICES | |||
Full-time equated classified positions | 179.0 | ||
Operations—FTEs | 179.0 | $ | 25,588,500 |
GROSS APPROPRIATION | $ | 25,588,500 | |
Appropriated from: | |||
Special revenue funds: | |||
Auto repair facilities fees | 3,250,600 | ||
Driver education provider and instructor fund | 150,000 | ||
Driver fees | 1,658,500 | ||
Enhanced driver license and enhanced official state personal identification card fund | 2,902,200 | ||
Reinstatement fees - operator licenses | 598,500 | ||
Transportation administration collection fund | 16,077,500 | ||
Vehicle theft prevention fees | 748,600 | ||
State general fund/general purpose | $ | 202,600 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
(4) CUSTOMER DELIVERY SERVICES | |||
Full-time equated classified positions | 1,216.0 | ||
Branch operations—FTEs | 888.0 | $ | 99,863,100 |
Central operations—FTEs | 326.0 | 54,175,500 | |
Digital ID | 100,000 | ||
Motorcycle safety education administration—FTEs | 2.0 | 654,700 | |
Motorcycle safety education grants | 2,100,000 | ||
Organ donor program | 129,100 | ||
GROSS APPROPRIATION | $ | 157,022,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDOT, Michigan transportation fund | 20,000,000 | ||
Federal revenues: | |||
DOT | 860,000 | ||
OHSP | 600,000 | ||
Special revenue funds: | |||
Private funds | 100 | ||
Thomas Daley gift of life fund | 50,000 | ||
Abandoned vehicle fees | 450,900 | ||
Auto repair facilities fees | 763,700 | ||
Child support clearance fees | 100,000 | ||
Driver fees | 22,881,500 | ||
Driver improvement course fund | 800,000 | ||
Enhanced driver license and enhanced official state personal identification card fund | 14,090,200 | ||
Expedient service fees | 2,996,700 | ||
Marine safety fund | 1,579,000 | ||
Michigan state police auto theft fund | 123,000 | ||
Mobile home commission fees | 511,200 | ||
Motorcycle safety and education awareness fund | 350,000 | ||
Motorcycle safety fund | 2,104,700 | ||
Off-road vehicle title fees | 170,700 | ||
Parking ticket court fines | 518,400 | ||
Personal identification card fees | 2,399,500 | ||
Recreation passport fee revenue | 1,000,000 | ||
Reinstatement fees - operator licenses | 1,028,200 | ||
Snowmobile registration fee revenue | 390,000 | ||
Transportation administration collection fund | 81,381,200 | ||
Vehicle theft prevention fees | 786,000 | ||
State general fund/general purpose | $ | 1,087,400 | |
(5) ELECTION REGULATION | |||
Full-time equated classified positions | 80.0 | ||
County clerk education and training fund | $ | 100,000 | |
Election administration and services—FTEs | 80.0 | 28,641,200 | |
Fees to local units | 109,800 | ||
GROSS APPROPRIATION | $ | 28,851,000 | |
Appropriated from: | |||
Special revenue funds: | |||
Election administration support fund | 20,255,500 | ||
Notary education and training fund | 100,000 | ||
Notary fee fund | 200,000 | ||
State general fund/general purpose | $ | 8,295,500 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
(6) INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 39,001,200 | |
GROSS APPROPRIATION | $ | 39,001,200 | |
Appropriated from: | |||
Special revenue funds: | |||
Administrative order processing fee | 11,800 | ||
Auto repair facilities fees | 129,800 | ||
Driver fees | 789,600 | ||
Enhanced driver license and enhanced official state personal identification card fund | 861,900 | ||
Expedient service fees | 803,300 | ||
Personal identification card fees | 174,000 | ||
Transportation administration collection fund | 34,731,600 | ||
Vehicle theft prevention fees | 181,700 | ||
State general fund/general purpose | $ | 1,317,500 | |
Sec. 107. DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET | |||
(1) APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 3,232.5 | ||
GROSS APPROPRIATION | $ | 1,843,476,400 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 1,152,596,000 | ||
ADJUSTED GROSS APPROPRIATION | $ | 690,880,400 | |
Federal revenues: | |||
Total federal revenues | 4,393,300 | ||
Special revenue funds: | |||
Total local revenues | 2,360,100 | ||
Total private revenues | 229,400 | ||
Total other state restricted revenues | 145,578,700 | ||
State general fund/general purpose | $ | 538,318,900 | |
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 921.0 | ||
Unclassified salaries—FTEs | 6.0 | $ | 1,134,600 |
Administrative services—FTEs | 177.5 | 27,726,400 | |
Budget and financial management—FTEs | 199.0 | 42,972,000 | |
Building operation services—FTEs | 266.0 | 110,985,500 | |
Business support services—FTEs | 108.0 | 17,850,900 | |
Design and construction services—FTEs | 54.0 | 9,861,500 | |
Executive operations—FTEs | 11.0 | 2,473,300 | |
Michigan center for data and analytics—FTEs | 42.0 | 7,013,700 | |
Motor vehicle fleet—FTEs | 39.0 | 101,194,600 | |
Office of the state employer—FTEs | 10.0 | 1,923,800 | |
Property management | 11,215,600 | ||
State archives—FTEs | 14.5 | 2,077,100 | |
GROSS APPROPRIATION | $ | 336,429,000 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from accounting service centers user charges | 6,879,800 | ||
IDG from building occupancy and parking charges | 113,660,200 | ||
IDG from MDHHS | 757,700 | ||
IDG from MDLARA | 100,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
IDG from motor transport fund | $ | 101,194,600 | |
IDG from technology user fees | 11,701,400 | ||
IDG from user fees | 9,964,100 | ||
Federal revenues: | |||
Federal funds | 4,393,200 | ||
Special revenue funds: | |||
Local funds | 35,000 | ||
Local - MPSCS subscriber and maintenance fees | 24,600 | ||
Private funds | 229,300 | ||
Health management funds | 438,200 | ||
Other agency charges | 1,307,600 | ||
SIGMA user fees | 2,621,200 | ||
Special revenue, internal service, and pension trust funds | 23,973,200 | ||
State restricted indirect funds | 3,633,000 | ||
State general fund/general purpose | $ | 55,515,900 | |
(3) TECHNOLOGY SERVICES | |||
Full-time equated classified positions | 1,642.5 | ||
Enterprise user experience—FTEs | 14.0 | $ | 4,260,500 |
Homeland security initiative/cybersecurity—FTEs | 58.0 | 29,014,800 | |
Information technology investment fund | 35,000,000 | ||
Information technology services—FTEs | 1,433.5 | 902,505,300 | |
Michigan public safety communication system—FTEs | 137.0 | 49,511,500 | |
GROSS APPROPRIATION | $ | 1,020,292,100 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from technology user fees | 902,505,300 | ||
Special revenue funds: | |||
Local - MPSCS subscriber and maintenance fees | 2,300,400 | ||
State general fund/general purpose | $ | 115,486,400 | |
(4) STATEWIDE APPROPRIATIONS | |||
Professional development fund - AFSCME | $ | 50,000 | |
Professional development fund - MPE, SEIU, scientific and engineering unit | 100,000 | ||
Professional development fund - MPE, SEIU, technical unit | 50,000 | ||
Professional development fund - NEREs | 200,000 | ||
Professional development fund - UAW | 700,000 | ||
GROSS APPROPRIATION | $ | 1,100,000 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from employer contributions | 1,100,000 | ||
State general fund/general purpose | $ | 0 | |
(5) SPECIAL PROGRAMS | |||
Full-time equated classified positions | 199.0 | ||
Capital city services | $ | 1,000,000 | |
Make it in Michigan | 400 | ||
Office of the child advocate—FTEs | 22.0 | 3,878,000 | |
Property management executive/legislative | 1,519,600 | ||
Retirement services—FTEs | 177.0 | 30,340,900 | |
GROSS APPROPRIATION | $ | 36,738,900 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 100 | ||
Special revenue funds: | |||
Local funds | 100 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Private funds | $ | 100 | |
Deferred compensation | 5,246,600 | ||
Make it in Michigan competitiveness fund | 100 | ||
Pension trust funds | 25,001,300 | ||
State general fund/general purpose | $ | 6,490,600 | |
(6) STATE BUILDING AUTHORITY RENT | |||
State building authority rent - community colleges | $ | 38,032,600 | |
State building authority rent - state agencies | 81,465,200 | ||
State building authority rent - universities | 142,153,900 | ||
GROSS APPROPRIATION | $ | 261,651,700 | |
Appropriated from: | |||
State general fund/general purpose | $ | 261,651,700 | |
(7) CIVIL SERVICE COMMISSION | |||
Full-time equated classified positions | 470.0 | ||
Agency services—FTEs | 113.0 | $ | 18,243,700 |
Employee benefits—FTEs | 29.0 | 6,673,000 | |
Executive direction—FTEs | 35.0 | 9,911,500 | |
Human resources operations—FTEs | 293.0 | 39,620,800 | |
Information technology services and projects | 12,199,600 | ||
GROSS APPROPRIATION | $ | 86,648,600 | |
Appropriated from: | |||
Special revenue funds: | |||
State restricted funds 1% | 34,669,100 | ||
State restricted indirect funds | 14,310,600 | ||
State sponsored group insurance | 11,390,400 | ||
State general fund/general purpose | $ | 26,278,500 | |
(8) CAPITAL OUTLAY | |||
Enterprisewide special maintenance for state facilities | $ | 24,000,000 | |
Major special maintenance, remodeling, and addition for state agencies | 3,800,000 | ||
GROSS APPROPRIATION | $ | 27,800,000 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from building occupancy charges | 3,800,000 | ||
State general fund/general purpose | $ | 24,000,000 | |
(9) INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 52,816,100 | |
GROSS APPROPRIATION | $ | 52,816,100 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from building occupancy and parking charges | 723,200 | ||
IDG from user fees | 209,700 | ||
Special revenue funds: | |||
Deferred compensation | 2,600 | ||
Pension trust funds | 15,219,600 | ||
SIGMA user fees | 2,974,800 | ||
Special revenue, internal service, and pension trust funds | 2,706,500 | ||
State restricted indirect funds | 2,083,900 | ||
State general fund/general purpose | $ | 28,895,800 | |
(10) ONE-TIME APPROPRIATIONS | |||
Election equipment reserve fund | $ | 5,000,000 | |
Information technology investment fund | 15,000,000 | ||
GROSS APPROPRIATION | $ | 20,000,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 20,000,000 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 108. DEPARTMENT OF TREASURY | |||
(1) APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 10.0 | ||
Full-time equated classified positions | 1,955.5 | ||
GROSS APPROPRIATION | $ | 2,656,345,100 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 11,670,700 | ||
ADJUSTED GROSS APPROPRIATION | $ | 2,644,674,400 | |
Federal revenues: | |||
Total federal revenues | 25,254,000 | ||
Special revenue funds: | |||
Total local revenues | 15,311,600 | ||
Total private revenues | 3,040,300 | ||
Total other state restricted revenues | 2,273,268,100 | ||
State general fund/general purpose | $ | 327,800,400 | |
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 10.0 | ||
Full-time equated classified positions | 458.5 | ||
Unclassified salaries—FTEs | 10.0 | $ | 1,311,100 |
Bureau of accounting and financial services—FTEs | 72.0 | 9,683,900 | |
Bureau of operational excellence—FTEs | 25.0 | 4,056,900 | |
Collections services bureau—FTEs | 190.0 | 29,067,700 | |
Department services—FTEs | 64.0 | 7,697,000 | |
Executive direction and operations—FTEs | 55.5 | 8,715,100 | |
Office of security and data risk management—FTEs | 20.0 | 3,070,900 | |
Property management | 8,044,600 | ||
Unclaimed property—FTEs | 32.0 | 5,738,100 | |
Worker’s compensation | 44,400 | ||
GROSS APPROPRIATION | $ | 77,429,700 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG, data/collection services fees | 339,100 | ||
IDG from accounting service center user charges | 417,500 | ||
IDG from MDHHS, title IV-D | 838,600 | ||
IDG, levy/warrant cost assessment fees | 3,750,400 | ||
IDG, state agency collection fees | 2,054,500 | ||
Federal revenues: | |||
DED-OPSE, federal lenders allowance | 511,600 | ||
DED-OPSE, higher education act of 1965, insured loans | 548,400 | ||
Special revenue funds: | |||
Delinquent tax collection revenue | 41,880,500 | ||
Escheats revenue | 5,738,100 | ||
Garnishment fees | 2,876,200 | ||
Justice system fund | 458,800 | ||
Marihuana regulation fund | 1,291,800 | ||
Marihuana regulatory fund | 193,900 | ||
MFA, bond and loan program revenue | 677,800 | ||
State lottery fund | 330,300 | ||
State restricted indirect funds | 288,900 | ||
State services fee fund | 376,400 | ||
Treasury fees | 47,200 | ||
State general fund/general purpose | $ | 14,809,700 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
(3) LOCAL GOVERNMENT PROGRAMS | |||
Full-time equated classified positions | 103.0 | ||
Flint settlement payment | $ | 35,000,000 | |
Local finance—FTEs | 18.0 | 2,593,400 | |
Michigan infrastructure council—FTEs | 3.0 | 3,066,000 | |
Property tax assessor training—FTE | 1.0 | 1,051,600 | |
Supervision of the general property tax law—FTEs | 81.0 | 18,586,800 | |
GROSS APPROPRIATION | $ | 60,297,800 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDOT, Michigan transportation fund | 254,700 | ||
Special revenue funds: | |||
Local - assessor training fees | 1,051,600 | ||
Local - audit charges | 623,500 | ||
Local - equalization study chargebacks | 40,000 | ||
Local - revenue from local government | 100,000 | ||
Delinquent tax collection revenue | 1,667,600 | ||
Land reutilization fund | 2,073,800 | ||
Municipal finance fees | 599,100 | ||
State general fund/general purpose | $ | 53,887,500 | |
(4) TAX PROGRAMS | |||
Full-time equated classified positions | 731.0 | ||
Bottle act implementation | $ | 250,000 | |
Home heating assistance | 3,131,400 | ||
Insurance provider assessment program—FTEs | 8.0 | 2,242,600 | |
Living donor tax credit | 750,000 | ||
Office of revenue and tax analysis—FTEs | 25.0 | 4,881,200 | |
Tax and economic policy—FTEs | 73.0 | 14,097,800 | |
Tax compliance—FTEs | 289.0 | 45,116,200 | |
Tax processing—FTEs | 325.0 | 43,736,200 | |
Tobacco tax enforcement—FTEs | 11.0 | 1,632,800 | |
GROSS APPROPRIATION | $ | 115,838,200 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDOT, Michigan transportation fund | 2,894,100 | ||
IDG from MDOT, state aeronautics fund | 72,200 | ||
Federal revenues: | |||
HHS-SSA, low-income energy assistance | 3,131,400 | ||
Special revenue funds: | |||
Bottle deposit fund | 250,000 | ||
Brownfield redevelopment fund | 213,800 | ||
Comprehensive road funding fund | 500,000 | ||
Delinquent tax collection revenue | 76,842,500 | ||
Insurance provider fund | 2,242,600 | ||
Marihuana regulation fund | 2,665,700 | ||
Marihuana regulatory fund | 119,300 | ||
Qualified heavy equipment rental personal property exemption reimbursement fund | 422,900 | ||
Tobacco tax revenue | 4,277,300 | ||
Waterways account | 107,100 | ||
State general fund/general purpose | $ | 22,099,300 | |
(5) FINANCIAL PROGRAMS | |||
Full-time equated classified positions | 135.0 | ||
Investments—FTEs | 81.0 | $ | 22,858,500 |
For Fiscal Year Ending Sept. 30, 2026 | |||
State and authority finance—FTEs | 20.0 | $ | 4,779,500 |
Student financial assistance programs—FTEs | 34.0 | 20,472,400 | |
GROSS APPROPRIATION | $ | 48,110,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG, fiscal agent service fees | 215,200 | ||
Federal revenues: | |||
DED-OPSE, federal lenders allowance | 3,429,300 | ||
DED-OPSE, higher education act of 1965, insured loans | 17,043,100 | ||
Special revenue funds: | |||
Defined contribution administrative fee revenue | 300,000 | ||
Michigan finance authority bond and loan program revenue | 2,848,900 | ||
Retirement funds | 17,516,900 | ||
School bond fees | 938,500 | ||
Treasury fees | 5,271,100 | ||
State general fund/general purpose | $ | 547,400 | |
(6) DEBT SERVICE | |||
Clean Michigan initiative | $ | 24,203,000 | |
Great Lakes water quality bond | 62,560,000 | ||
Quality of life bond | 3,118,000 | ||
GROSS APPROPRIATION | $ | 89,881,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 89,881,000 | |
(7) GRANTS | |||
Convention facility development distribution | $ | 128,730,700 | |
Election administration support fund | 20,255,500 | ||
Emergency 911 payments | 49,118,600 | ||
Health and safety fund grants | 1,220,900 | ||
Qualified heavy equipment rental personal property exemption reimbursement distribution | 4,500,000 | ||
Recreational marihuana grants | 105,600,000 | ||
Senior citizen cooperative housing tax exemption program | 12,125,100 | ||
Wrongful imprisonment compensation fund | 10,000,000 | ||
GROSS APPROPRIATION | $ | 331,550,800 | |
Appropriated from: | |||
Special revenue funds: | |||
Convention facility development fund | 128,730,700 | ||
Emergency 911 fund | 49,118,600 | ||
Health and safety fund | 1,220,900 | ||
Marihuana regulation fund | 105,600,000 | ||
Qualified heavy equipment rental personal property exemption reimbursement fund | 4,500,000 | ||
State general fund/general purpose | $ | 42,380,600 | |
(8) BUREAU OF STATE LOTTERY | |||
Full-time equated classified positions | 210.0 | ||
Lottery information technology services and projects | $ | 3,857,800 | |
Lottery operations—FTEs | 210.0 | 34,271,500 | |
GROSS APPROPRIATION | $ | 38,129,300 | |
Appropriated from: | |||
Special revenue funds: | |||
State lottery fund | 38,129,300 | ||
State general fund/general purpose | $ | 0 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
(9) CASINO GAMING | |||
Full-time equated classified positions | 223.0 | ||
Casino gaming control operations—FTEs | 197.0 | $ | 42,660,500 |
Gaming information technology services and projects | 5,370,000 | ||
Horse racing—FTEs | 6.0 | 2,160,100 | |
Michigan gaming control board | 113,600 | ||
Millionaire party regulation—FTEs | 20.0 | 3,258,500 | |
GROSS APPROPRIATION | $ | 53,562,700 | |
Appropriated from: | |||
Special revenue funds: | |||
Casino gambling agreements | 1,025,300 | ||
Equine development fund | 2,280,900 | ||
Fantasy contest fund | 1,082,600 | ||
Internet gaming fund | 16,007,900 | ||
Internet sports betting fund | 3,011,600 | ||
State services fee fund | 30,154,400 | ||
State general fund/general purpose | $ | 0 | |
(10) PAYMENTS IN LIEU OF TAXES | |||
Commercial forest reserve | $ | 3,603,900 | |
Purchased lands | 12,910,600 | ||
Swamp and tax reverted lands | 21,798,000 | ||
GROSS APPROPRIATION | $ | 38,312,500 | |
Appropriated from: | |||
Special revenue funds: | |||
Private funds | 40,300 | ||
Game and fish protection fund | 4,374,900 | ||
Michigan natural resources trust account | 3,289,700 | ||
Waterways account | 379,700 | ||
State general fund/general purpose | $ | 30,227,900 | |
(11) REVENUE SHARING | |||
City, village, and township revenue sharing | $ | 333,547,300 | |
Constitutional state general revenue sharing grants | 1,010,082,900 | ||
County revenue sharing | 291,111,400 | ||
Financially distressed cities, villages, or townships | 2,500,000 | ||
Public safety revenue sharing grants | 50,000,000 | ||
GROSS APPROPRIATION | $ | 1,687,241,600 | |
Appropriated from: | |||
Special revenue funds: | |||
Sales tax | 1,687,241,600 | ||
State general fund/general purpose | $ | 0 | |
(12) STATE BUILDING AUTHORITY | |||
Full-time equated classified positions | 4.0 | ||
State building authority—FTEs | 4.0 | $ | 1,026,200 |
GROSS APPROPRIATION | $ | 1,026,200 | |
Appropriated from: | |||
Special revenue funds: | |||
State building authority revenue | 1,026,200 | ||
State general fund/general purpose | $ | 0 | |
(13) CITY INCOME TAX ADMINISTRATION PROGRAM | |||
Full-time equated classified positions | 77.0 | ||
City income tax administration program—FTEs | 77.0 | $ | 11,222,000 |
GROSS APPROPRIATION | $ | 11,222,000 | |
Appropriated from: | |||
Special revenue funds: | |||
Local - city income tax fund | 11,222,000 | ||
State general fund/general purpose | $ | 0 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
(14) INFORMATION TECHNOLOGY | ||
Treasury operations information technology services and projects | $ | 50,587,800 |
GROSS APPROPRIATION | $ | 50,587,800 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG from MDOT, Michigan transportation fund | 834,400 | |
Federal revenues: | ||
DED-OPSE, federal lenders allowance | 590,200 | |
Special revenue funds: | ||
Local - city income tax fund | 2,274,500 | |
Delinquent tax collection revenue | 18,379,600 | |
Marihuana regulation fund | 778,200 | |
Retirement funds | 829,700 | |
Tobacco tax revenue | 134,200 | |
State general fund/general purpose | $ | 26,767,000 |
(15) ONE-TIME APPROPRIATIONS | ||
Full-time equated classified positions | 14.0 | |
Comprehensive road funding administration—FTEs | $ | 2,500,000 |
Financial literacy | 3,000,000 | |
Prosecuting attorneys coordinating council—FTEs | 14.0 | 2,655,100 |
Public safety constituency grants | 25,000,000 | |
Public safety revenue sharing grants | 20,000,000 | |
GROSS APPROPRIATION | $ | 53,155,100 |
Appropriated from: | ||
Special revenue funds: | ||
Private funds | 3,000,000 | |
Comprehensive road funding fund | 2,500,000 | |
Prosecuting attorneys training fees | 455,100 | |
State general fund/general purpose | $ | 47,200,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
Sec. 201. (1) 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 $3,893,674,000.00 and state spending under part 1 from state sources to be paid to local units of government is $2,130,765,800.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF STATE | ||
Election administration and services | $ | 10,000,000 |
Fees to local units | 500 | |
Motorcycle safety education grants | 1,415,900 | |
Subtotal | $ | 11,416,400 |
DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET | ||
Capital city services | $ | 1,000,000 |
Election equipment reserve fund | 5,000,000 | |
Subtotal | $ | 6,000,000 |
DEPARTMENT OF TREASURY | ||
Airport parking distribution pursuant to section 909 | $ | 46,000,000 |
City, village, and township revenue sharing | 333,547,300 | |
Commercial forest reserve | 3,603,900 | |
Constitutional state general revenue sharing grants | 1,010,082,900 | |
Convention facility development fund distribution | 128,730,700 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
County revenue sharing | 291,111,400 | |
Emergency 9-1-1 payments | 49,118,600 | |
Financially distressed cities, villages, or townships | 2,500,000 | |
Health and safety fund grants | 1,220,900 | |
Public safety constituency grants | 25,000,000 | |
Public safety revenue sharing grants | 70,000,000 | |
Purchased lands | 12,910,600 | |
Recreational marihuana grants | 105,600,000 | |
Senior citizen cooperative housing tax exemption | 12,125,100 | |
Swamp and tax reverted lands | 21,798,000 | |
Subtotal | $ | 2,113,349,400 |
TOTAL | $ | 2,130,765,800 |
In accordance with section 30 of article IX of the state constitution of 1963, in the appropriations acts for the fiscal year ending September 30, 2026, total state spending from state sources is estimated at
$43,096,307,800.00 and total state spending from state sources to be paid to local units of government is estimated at $25,715,408,000.00. The proportion of total state spending from state sources to be paid to local units is estimated at 59.7%.
If payments to local units of government and state spending from state sources for the fiscal year ending September 30, 2026 are different than the amounts estimated in subsection (2), the state budget director shall report the payments to local units of government and state spending from state sources that were made for the fiscal year ending September 30, 2026 to the standard report recipients and to the senate and house of representatives standing committees on appropriations not later than 30 days after the final book-closing for the fiscal year ending September 30, 2026.
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:
“COBRA” means the consolidated omnibus budget reconciliation act of 1985, Public Law 99-272.
“DAG” means the United States Department of Agriculture.
“DED” means the United States Department of Education.
“DED-OPSE” means the DED Office of Postsecondary Education.
“EEOC” means the United States Equal Employment Opportunity Commission.
“FTE” means full-time equated.
“Geographically disadvantaged business enterprise” means a geographically-disadvantaged business enterprise as that term is defined by Executive Directive No. 2023-1.
“GF/GP” means general fund/general purpose.
“HHS” means the United States Department of Health and Human Services.
“HHS-OS” means the HHS Office of the Secretary.
“HHS-SSA” means the Social Security Administration.
“HUD” means the United States Department of Housing and Urban Development.
“IDG” means interdepartmental grant.
“JCOS” means the joint capital outlay subcommittee.
“MCL” means the Michigan Compiled Laws.
“MDE” means the Michigan department of education.
“MDHHS” means the Michigan department of health and human services.
“MDIFS” means the Michigan department of insurance and financial services.
“MDLARA” means the Michigan department of licensing and regulatory affairs.
“MDLEO” means the Michigan department of labor and economic opportunity.
“MDMVA” means the Michigan department of military and veterans affairs.
“MDOC” means the Michigan department of corrections.
“MDOS” means the Michigan department of state.
“MDOT” means the Michigan department of transportation.
“MDSP” means the Michigan department of state police.
“MDTMB” means the Michigan department of technology, management, and budget.
(aa) “MEDC” means the Michigan economic development corporation, which is the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by contractual interlocal agreement effective April 5, 1999, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan strategic fund.
(bb) “MEGA” means the Michigan economic growth authority. (cc) “MFA” means the Michigan finance authority.
(dd) “MPE” means the Michigan public employees.
(ee) “MPSCS” means the Michigan public safety communications system. (ff) “MSF” means the Michigan strategic fund.
(gg) “NERE” means nonexclusively represented employees. (hh) “PA” means public act.
“RFP” means a request for a proposal.
(jj) “SEIU” means Service Employees International Union.
(kk) “SIGMA” means statewide integrated governmental management applications.
(ll) “Standard report recipients” means the senate and house appropriations subcommittees on general government, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
(mm) “WIC” means women, infants, and children.
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:
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.
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.
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.
Sec. 206. A department or agency shall not take disciplinary action against an employee of a department or an agency within a department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department or agency 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, each department and agency receiving appropriations in part 1 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 or agency’s budget. The department or agency shall submit the report to the standard report recipients and to the house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
The total transportation and related expenses of each travel occurrence and the proportions funded with state GF/GP revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 208. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides for estimates of the total GF/GP appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end GF/GP appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and the chairpersons of the senate and house of representatives appropriations committees.
Sec. 210. (1) In accordance with section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, which provides for a transfer of state general fund revenue into or out of the countercyclical
budget and economic stabilization fund, the calculations required by section 352 of the management and budget act, 1984 PA 431, MCL 18.1352, are determined as follows:
2024 | 2025 | 2026 | |
Michigan personal income (millions) | $641,085 | $664,164 | $688,074 |
Less: transfer payments | 139,341 | 146,082 | 151,986 |
Subtotal | $501,744 | $518,082 | $536,088 |
Divided by: Detroit Consumer Price | |||
Index for 12 months ending December 31 | 2.933 | 2.989 | 3.100 |
Equals: real adjusted Michigan | |||
personal income | $171,095 | $173,309 | $172,952 |
Percentage change | 0.8% | 1.3% | (0.2%) |
Growth rate in excess of 2% | N/A | N/A | N/A |
Equals: calculated transfer to countercyclical budget and | |||
economic stabilization fund | |||
for the fiscal year ending | |||
September 30, 2026 (millions) | N/A | $0.0 | |
Growth rate less than 0% | N/A | N/A | (0.2%) |
Appropriation from countercyclical budget and economic stabilization fund allowed for the fiscal year ending September 30, 2026 | N/A | NO |
(2) Notwithstanding subsection (1), there is appropriated for the fiscal year ending September 30, 2026 from GF/GP revenue for deposit into the countercyclical budget and economic stabilization fund the sum of $0.00. Sec. 211. A department or agency shall cooperate with the MDTMB to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for each department
or agency:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
Sec. 212. Not later than 14 days after the release of the executive budget recommendation, a department or agency receiving appropriations in part 1 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 the chairpersons of the senate and house of representatives appropriations committees.
Sec. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department or agency contracts to subcontract with certified geographically disadvantaged business enterprises for services, supplies, or both.
Sec. 215. On a quarterly basis, a department or agency receiving appropriations in part 1 and the office of the auditor general shall report on the number of FTEs in pay status by type of staff and civil service classification, including comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTE positions employed by the department or agency or the office of the auditor general 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. 216. (1) A department or agency shall maximize utilization of its in-person state workforce. A department or agency shall prioritize occupancy utilization of office space for each division within the department or agency. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
A department or agency shall comply with requirements set forth by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
A department or agency shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. A department or agency shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 217. Not later than 6 months after the state budget office issues work project letters, a department or agency shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 218. A department or agency receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. A department or agency shall follow federal and state law and guidelines for short-term and long-term retention of records. A department or agency may electronically retain copies of reports unless otherwise required by federal and state guidelines.
Sec. 219. Not later than April 1, a department or agency receiving appropriations in part 1 shall report on each specific policy change made to implement a PA affecting the department or agency that took effect during the previous calendar year. The report must include reference to the public act that necessitates the policy change. The department or agency shall submit the report to the standard report recipients, to the senate and house of representatives appropriations committees, and to the joint committee on administrative rules.
Sec. 220. (1) A department or agency shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
A department or agency may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. A department or agency shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
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 a local health officer.
Sec. 222. To the extent possible, a department or agency shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.
Sec. 223. A department or agency must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department or agency, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department or agency.
Create a regulatory gap that could negatively impact the public.
Sec. 224. Not later than April 1, a department or agency shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 225. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 226. A department or agency shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 227. Not later than November 15, a department or agency shall disclose on a publicly accessible website private and other third-party funds received by the department or agency in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 228. (1) Not later than 30 days after enactment of this act, the legislature shall provide to each department and agency and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, a department or agency shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
Establish a process to review, complete, and execute a grant agreement with a grant recipient. A department or agency shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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. A department or agency 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.
Disburse the grant money 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 or agency, to verify that expenditures were made in accordance with the project purpose.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department or agency shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between a department or agency and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department or agency to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. The department or agency 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department or agency policy, a 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.
A requirement for reporting by the grant recipient to the department or agency and the legislative sponsor that provides the status of the project and an accounting of all money expended by the grant recipient, as determined by the department or agency.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
If appropriate to improve the administration or oversight of a grant described in subsection (1), a department or agency may adopt a memorandum of understanding with another department or agency to perform the required duties under this section.
A grant recipient shall respond to all reasonable information requests from a department or agency 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 audit as determined by a department or agency. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, a department or agency shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a department or agency is appropriated in that department or agency for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, a department or agency 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. A department or agency shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. A department or agency shall include in the report the most comprehensive information the department or agency has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ and agencies’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments and agencies, the state budget office may compile that information across all affected departments and agencies and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If a department or agency reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money was misrepresented by the grant recipient, the department or agency shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols, which may include referral for criminal investigation.
Sec. 229. General fund appropriations in part 1 shall not be expended for items in cases where federal funding or private grant funding is available for the same expenditures.
Sec. 230. Funds appropriated in part 1 must not be used by this state or a department, agency, or authority of this state to purchase an ownership interest in a casino enterprise or a gambling operation as those terms are defined in the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
DEPARTMENT OF ATTORNEY GENERAL
Sec. 301. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$750,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$750,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 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. 302. (1) The attorney general shall perform all legal services, including representation before courts and administrative agencies, rendering legal opinions, and providing legal advice to a principal executive department or state agency. A principal executive department or state agency shall not employ or enter into a contract with any other person for services described in this section.
The attorney general shall defend judges of all state courts if a claim is made or a civil action is commenced for injuries to persons or property caused by the judge through the performance of the judge’s duties while acting within the scope of the judge’s authority as a judge.
The attorney general shall perform the duties specified in 1846 RS 12, MCL 14.28 to 14.35, and 1919 PA 232, MCL 14.101 to 14.102, and as otherwise provided by law.
Sec. 303. The attorney general may provide not more than 350 copies of the report required under section 30 of 1846 RS 12, MCL 14.30, on a gratis basis. If the attorney general provides 350 copies of the report on a gratis basis, the attorney general may sell additional copies of the report. The attorney general shall not provide gratis copies of the report to members of the legislature. Electronic copies of biennial reports must be made available on the department of attorney general’s website. The attorney general shall sell copies of the report at not less than the actual cost of the report and deposit the money received from the sales into the general fund.
Sec. 304. The department of attorney general is responsible for the legal representation of the law of this state and the legal representation for state of Michigan state employee worker’s disability compensation cases. The risk management revolving fund revenue appropriation in part 1 must be satisfied by billings from the department of attorney general for the actual costs of legal representation, including salaries and support costs. Sec. 307. (1) In addition to the antitrust enforcement collections revenues in part 1, not more than
$350,000.00 in antitrust revenues, securities fraud revenues, consumer protection or class action enforcement revenues, or attorney fees recovered by the department of attorney general are appropriated to the department of attorney general for antitrust, securities fraud, and consumer protection or class action enforcement cases.
Not more than $1,000,000.00 of the unexpended funds from antitrust revenues, securities fraud revenues, or consumer protection or class action enforcement revenues at the end of the fiscal year, including antitrust funds in part 1, may be carried forward for expenditure in the following fiscal year.
On request, the department of attorney general shall make available information detailing the amount of revenue described in subsection (1) recovered by the attorney general and a description of the source of the revenue and the carryforward amount.
Sec. 308. (1) In addition to the funds appropriated in part 1, not more than $1,000,000.00 is appropriated from litigation expense reimbursements awarded to this state.
The funds described in subsection (1) may be expended for the payment of court judgments, settlements, arbitration awards or other administrative and litigation decisions, attorney fees, and litigation costs, assessed against the office of the governor, the department of attorney general, the governor, or the attorney general when acting in an official capacity as the named party in litigation against this state. The funds described in subsection (1) may also be expended for the payment of state costs incurred under section 16 of chapter X of the code of criminal procedure, 1927 PA 175, MCL 770.16.
Unexpended funds at the end of the fiscal year may be carried forward for expenditure in the following year, but not more than a maximum authorization of $250,000.00.
Sec. 309. (1) From the prisoner reimbursement funds appropriated in part 1, the department of attorney general may expend not more than $790,600.00 on activities related to the state correctional facility reimbursement act, 1935 PA 253, MCL 800.401 to 800.406. In addition to the funds appropriated in part 1, if the department of attorney general collects more than $1,131,000.00 in gross annual prisoner reimbursement receipts provided to the general fund, not more than $1,000,000.00 of the excess is appropriated to the department of attorney general and may be spent on the representation of the MDOC and its officers, employees, and agents, including, but not limited to, the defense of litigation in civil actions filed by prisoners against this state, its departments, officers, employees, or agents.
(2) Not later than March 1, the department of attorney general shall submit a report to the standard report recipients and the house of representatives and senate appropriations subcommittees with jurisdiction over the budget of the MDOC. The report must include all of the following:
The total amount of reimbursements received under section 6 of the state correctional facility reimbursement act, 1935 PA 253, MCL 800.406.
A description of each expenditure made from the reimbursements.
The amount paid to conduct the investigations from the reimbursements.
The amount credited to the general fund from the reimbursements.
Sec. 310. (1) For the purposes of providing title IV-D child support enforcement funding, the attorney general shall maintain a cooperative agreement with the MDHHS, as the state IV-D agency, for federal IV- D funding to support the child support enforcement activities within the department of attorney general.
(2) The attorney general or the attorney general’s designee shall, to the extent allowed under federal law, have access to any information used by this state to locate parents who fail to pay court-ordered child support. Sec. 312. The department of attorney general shall not receive or expend funds, other than those authorized in part 1, for legal services provided specifically to other state departments or agencies except for expert
witness costs, court costs, or other nonsalary litigation costs associated with a pending legal action.
Sec. 313. The department of attorney general shall submit a quarterly report on the lawsuit settlement proceeds fund described in section 33 of 1846 RS 12, MCL 14.33, to the standard report recipients. Each report must include all of the following:
The total amount of revenue deposited in the lawsuit settlement proceeds fund in the current fiscal year delineated by case.
The total amount appropriated from the lawsuit settlement proceeds fund in the current fiscal year delineated by appropriation.
Earned settlement proceeds that are anticipated but not yet deposited in the fund delineated by case.
Any known potential settlement amounts from cases that have not been decided, delineated by case.
Sec. 315. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are $13,154,800.00. From this amount, total department of attorney general appropriations for pension-related legacy costs are estimated at $11,864,800.00. Total department of attorney general appropriations for retiree health care legacy costs are estimated at $1,290,000.00.
Sec. 316. (1) From the funds appropriated in part 1 for sexual assault law enforcement efforts, the department of attorney general shall use the funds to test backlogged sexual assault kits across this state. The funding provided in part 1 must be used for only 1 or more of the following purposes:
To eliminate all county sexual assault kit backlogs across this state.
To assist local prosecutors with investigations and prosecutions of viable sexual assault cases.
To provide victim services.
Not later than February 1, the department of attorney general shall submit a report to the standard report recipients. The report must include all of the following information:
The number of sexual assault kits across this state that remain untested as of January 31, 2026.
A detailed work plan that outlines the department of attorney general’s action plan to eliminate all outstanding sexual assault kits and the time frame for completion of testing of all untested sexual assault kits.
A detailed work and spending plan that outlines anticipated litigation action and expenditures resulting from findings of the sexual assault kit testing.
Any funds remaining after the department of attorney general has met the obligations required under subsection (1) may be used for the purpose of retesting any previously tested sexual assault kits across this state using currently available DNA testing. Funds may be used under this subsection only for DNA testing on previously tested kits that were not tested for DNA. If there are remaining untested sexual assault kits on January 31, 2026, funds appropriated in part 1 must be used only for the testing of those kits.
Sec. 317. (1) The department of attorney general shall submit a report to the standard report recipients and the state budget director. The report must include all legal costs and associated expenses related to the declaration of emergency due to drinking water contamination and the investigations and any resulting prosecutions. The state budget director shall include the report in the Flint water emergency-financial and activities tracking and reporting document that is posted by the state budget director on the public website, https://www.michigan.gov/budget/fiscal-pages/reports/flint. The tracking and reporting documents must include the budget line item source for each expenditure.
(2) At the conclusion of all attorney general investigations related to the declaration of emergency due to drinking water contamination, all materials related to any investigations shall be preserved pursuant to applicable document retention policies.
Sec. 319. From the funds appropriated in part 1, the attorney general shall submit a quarterly report on the wrongful imprisonment compensation fund that includes at least all of the following:
All payments made from the wrongful imprisonment compensation fund in each prior quarter of the fiscal year, and the total of those payments, including if each payment is part of a new settlement or part of an installment plan.
Total payments made from each prior fiscal year and the total of all payments to date.
Any settlements that have been decided but have yet to receive a payment.
The number of known cases seeking a settlement, but do not have a final judgment, and the dollar amount of each potential payment for these known cases, and the total of these payments.
The balance of the wrongful imprisonment compensation fund at the end of the previous quarter.
The percentage of claims received in the immediately preceding fiscal quarter that were awarded compensation.
The percentage of claims received in the immediately preceding fiscal year that were awarded compensation.
For claims that did not receive the full amount of compensation sought, both of the following:
The amount of compensation that was sought.
(ii) The amount of compensation that was received.
Sec. 320. (1) From the funds appropriated in part 1, the department of attorney general shall do all of the following:
Not later than 14 days after the settlement of a lawsuit with a fiscal impact of $200,000.00 or more, submit a report on the settlement to the standard report recipients.
Enforce the laws of this state.
(2) Any proceeds from a lawsuit initiated by or settlement agreement entered into on behalf of this state against a manufacturer of tobacco products or manufacturer or distributor of opioid products by the attorney general are state funds, unless otherwise directed by a court or legal agreement, and are subject to appropriation as provided by law.
Sec. 321. From the funds appropriated in part 1, the department of attorney general shall maintain a publicly accessible website dedicated to opioid settlement distributions. The website must include estimated future amounts payable to local units of government and estimated amounts received by local units of government, delineated by case settlement agreement.
Sec. 322. (1) Not later than February 1, the department of attorney general shall submit a report to the standard report recipients on the cumulative dollar expenditure amount related to each of the following initiatives and activities of the department of attorney general for the immediately preceding fiscal year:
Catholic church investigation.
Elder abuse task force.
Conviction integrity unit.
Opioid litigation.
Hate crimes unit and domestic terrorism unit.
Payroll fraud enforcement unit.
PFAS contamination. As used in this subdivision, “PFAS” means perfluoroalkyl and polyfluoroalkyl substances.
Human trafficking.
Robocall enforcement.
Job court.
Organized retail crime unit.
Reducing utility rate increases.
Boy Scouts of America investigation.
Address confidentiality program.
For each expenditure required to be reported under subsection (1), the report must include the dollar amount spent by fund source.
For each initiative listed under subsection (1), the department of attorney general shall provide a summary of activities, staffing levels, and outcomes as practicable.
Sec. 324. (1) Not later than September 30, the department of attorney general must make available to the public on its website a report on the activities and findings, since April 1, 2019, of the payroll fraud enforcement unit. The report must include all of the following:
A list of each complaint received by the unit.
For each complaint listed under subdivision (a), whether the attorney general took enforcement action on the complaint and, if applicable, a description of the enforcement action.
(2) If the payroll fraud enforcement unit requests that another department or agency investigate the validity of a report received by the unit, or if the unit refers a complaint to another department or agency, the department of attorney general shall request the department or agency to report back on the department’s or agency’s findings to enable the department of attorney general to comply with this section. DEPARTMENT OF CIVIL RIGHTS
Sec. 401. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$375,000.00 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. 402. (1) In addition to the appropriations contained in part 1, the department of civil rights may receive and expend not more than $600,000.00 in funds from local sources, private sources, or both, for all of the following purposes:
Developing and presenting training for employers on equal employment opportunity law and procedures.
Publishing and selling civil rights related informational material.
Providing copies of material made available in response to requests under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Paying other copy fees, subpoena fees, and witness fees.
Developing, presenting, and participating in mediation processes for certain civil rights cases.
Providing workshops, seminars, and recognition or award programs consistent with the programmatic mission of the individual unit sponsoring or coordinating the programs.
Paying staffing costs for all activities included in this subsection.
(2) Not later than November 30, the department of civil rights shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations on the amount of funds received and expended for purposes authorized under this section.
Sec. 403. (1) The department of civil rights may contract with local units of government to review equal employment opportunity compliance of potential and existing contractors and may charge for and expend amounts received from local units of government for the purpose of developing and providing these contractual services.
(2) Not later than November 30, the department of civil rights shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations on the amount of funds received and expended for purposes authorized under this section.
Sec. 404. The department of civil rights shall submit quarterly reports to the standard report recipients that include, but are not limited to, all of the following information for the immediately preceding fiscal quarter:
The number of all complaints received by the department by basis of complaint.
The number of certified complaint cases initiated by basis of complaint.
The number of certified complaint cases completed.
The final disposition of certified complaint case investigations.
The average number of days for a case to be completed after certification.
The number of FTE positions filled from the FTE authorization for complaint investigations and enforcement.
The number of open cases that have been open for more than 1 year.
The quotient of the number of certified cases completed divided by the number of filled FTE positions.
A listing of amounts awarded to claimants.
Sec. 405. On submitting a report or complaint to the United States Commission on Civil Rights or any other federal department, the department of civil rights shall submit a copy of the report or complaint to the standard report recipients not later than the next business day.
Sec. 406. From the funds appropriated in part 1, not later than November 30, the department of civil rights shall submit a report to the standard report recipients on the Native American boarding school study if the final report described in section 421 of article 5 of 2022 PA 166 has not been published before that date. The report must include all of the following:
Information on the activities conducted for the study by the department of civil rights and any contracted university or entity.
Total expenditures to date.
The estimated date for publication of the final report.
Sec. 410. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are $2,656,800.00. From this amount, total department of civil rights appropriations for pension-related legacy costs are estimated at $2,396,300.00. Total department of civil rights appropriations for retiree health care legacy costs are estimated at $260,500.00.
LEGISLATURE
Sec. 600. The senate, the house of representatives, or an entity within the legislative branch may receive, expend, and transfer funds in addition to those authorized in part 1.
Sec. 601. (1) Funds appropriated in part 1 to an entity within the legislative branch must not be expended or transferred to another account without written approval of the authorized agent of the legislative entity. If the authorized agent of the legislative entity notifies the state budget director of its approval of an expenditure or transfer before the year-end book-closing date for that legislative entity, the state budget director shall immediately make the expenditure or transfer. The authorized legislative entity must be designated by the speaker of the house of representatives for house entities, the senate majority leader for senate entities, and the legislative council for legislative council entities.
(2) Funds appropriated within the legislative branch, to a legislative council component, must not be expended by any agency or other subgroup included in that component without the approval of the legislative council. Sec. 602. The senate may charge rent and assess charges for utility costs. The amounts received for rent charges and utility assessments are appropriated to the senate for the renovation, operation, and maintenance
of the Binsfeld Office Building.
Sec. 604. (1) The appropriation in part 1 to the Michigan state capitol historic site includes funds to operate the legislative parking facilities in the capitol area. The Michigan state capitol commission shall establish rules regarding the operation of the legislative parking facilities.
The Michigan state capitol commission may collect a fee from state employees and the general public using certain legislative parking facilities. The revenues received from the parking fees are appropriated on receipt and must be allocated by the Michigan state capitol commission.
As used in this section, “Michigan state capitol commission” means the Michigan state capitol commission established in the Michigan state capitol historic site act, 2013 PA 240, MCL 4.1945.
Sec. 605. The unexpended funds appropriated in part 1 for the legislative council are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is publication of the Michigan manual.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $3,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 606. The unexpended funds appropriated in part 1 for property management are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to purchase equipment and services for building maintenance to ensure a safe and productive work environment.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $2,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 607. The unexpended funds appropriated in part 1 for automated data processing are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to purchase equipment, software, and services to support and implement data processing requirements and technology improvements.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $3,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 608. In addition to funds appropriated in part 1, the Michigan capitol committee publications save the flags fund account may accept contributions, gifts, bequests, devises, grants, and donations. Those funds that are not expended in the fiscal year ending September 30, 2026 do not lapse at the close of the fiscal year, and must be carried forward for expenditure in the following fiscal years.
Sec. 611. (1) From the funds appropriated in part 1 for senate, $250,000.00 must be allocated for an internship program.
(2) From the funds appropriated in part 1 for house of representatives, $250,000.00 must be allocated for an internship program.
Sec. 612. It is the intent of the legislature that, from the funds appropriated in part 1, the Michigan state capitol commission established in section 5 of the Michigan state capitol historic site act, 2013 PA 240, MCL 4.1945, ensure that the Capitol Building is open for not less than 3 hours on Saturdays that are not state holidays. Sec. 615. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $18,218,100.00. From this amount, total legislature appropriations for pension-related legacy costs are estimated at $16,431,700.00. Total legislature
appropriations for retiree health care legacy costs are estimated at $1,786,400.00.
LEGISLATIVE AUDITOR GENERAL
Sec. 620. In accordance with section 53 of article IV of the state constitution of 1963, the auditor general shall conduct audits of the executive, judicial, and legislative branches.
Sec. 621. (1) The auditor general shall take all reasonable steps to ensure that certified minority- and women-owned and operated accounting firms, accounting firms owned and operated by persons with disabilities, and accounting firms that are geographically disadvantaged business enterprises participate in the audits of the books, accounts, and financial affairs of each principal executive department, branch, institution, agency, and office of this state.
If the auditor general contracts with a firm to perform audits of the principal executive departments and state agencies, the auditor general shall strongly encourage the firm to subcontract with certified minority- and women-owned and operated accounting firms, accounting firms owned and operated by persons with disabilities, and accounting firms that are geographically disadvantaged business enterprises.
Not later than November 1, the auditor general shall submit a report to the standard report recipients regarding the number of contracts entered into with certified minority- and women-owned and operated accounting firms, accounting firms owned and operated by persons with disabilities, and accounting firms that are geographically disadvantaged business enterprises.
Sec. 622. From the funds appropriated in part 1 to the office of the auditor general, the auditor general’s salary and the salaries of the remaining 2.0 FTE unclassified positions must be set by the speaker of the house of representatives, the senate majority leader, the house of representatives minority leader, and the senate minority leader.
Sec. 623. Any audits, reviews, or investigations requested of the auditor general by the legislature or by legislative leadership, legislative committees, or individual legislators must include an estimate of the additional costs involved and, if those costs exceed $50,000.00, must provide supplemental funding. The auditor general shall determine whether to perform those activities in accordance with Operations Manual Policy No. 2-26.
Sec. 625. A branch, department, office, board, commission, agency, authority, or institution of this state shall not deny the auditor general access to examine its confidential information. The auditor general is subject to the same duty of confidentiality imposed by law on the entity providing the confidential information.
Sec. 627. The unexpended funds appropriated in part 1 for field operations are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to conduct the state of Michigan annual comprehensive financial report.
The project will be accomplished by utilizing state employees and contract audits.
The total estimated cost of the project is $3,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 628. On a quarterly basis, the auditor general shall submit a report to the standard report recipients, the chairpersons of the senate and house of representatives appropriations committees, and the senate and house of representatives oversight committees that includes all of the following information related to projects initiated during the immediately preceding quarter:
Audit title.
Audit type.
Audit period.
Audit objectives.
Branch of government being audited.
Whether the auditor general or a contracted auditor is conducting the audit and, if a contracted auditor is conducting the audit, the identity of the contracted auditor.
Details regarding the reason for initiating the audit, including whether it was discretionary or required by statute.
Details regarding any similar audit the auditor general has completed in the past.
Estimated time frame for completion of the audit.
Estimated total auditor general resources necessary to complete the audit and release a report.
Sec. 629. On a quarterly basis, the auditor general shall submit a report to the standard report recipients, the chairpersons of the senate and house of representatives appropriations committees, and the senate and house of representatives oversight committees that includes all of the following information for each project in progress during the immediately preceding quarter:
Audit title.
Date the audit was initiated.
Audit status.
Estimated time frame for completion of the audit.
Details regarding the resources spent on the audit to date.
Estimated total auditor general resources necessary to complete the audit and release a report.
Sec. 630. On a quarterly basis, the auditor general shall submit a report to the standard report recipients, the chairpersons of the senate and house of representatives appropriations committees, and the senate and house of representatives oversight committees that contains all of the following information for each project completed during the immediately preceding quarter:
Audit title.
Date the audit was initiated.
Date the audit report was released.
Results of the audit, including the number and type of findings.
Details regarding total auditor general resources spent on the audit.
To the extent authorized by law, details regarding any inquiry, tip, or request related to the audit that the auditor general received before initiating the audit.
Sec. 631. The auditor general shall conduct an audit of the procedures used by the secretary of state to maintain and update the voter rolls in accordance with the generally accepted government auditing standards. The audit must be completed not later than September 15, 2026.
DEPARTMENT OF STATE
Sec. 701. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,500,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,500,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $50,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 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. 703. From the funds appropriated in part 1, the MDOS shall submit quarterly reports on record lookup fees to the standard report recipients. Each report must include the number of records sold and the revenues collected as authorized in section 208b of the Michigan vehicle code, 1949 PA 300, MCL 257.208b, section 7 of 1972 PA 222, MCL 28.297, and sections 80130, 80315, 81114, and 82156 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.80130, 324.80315, 324.81114, and 324.82156.
Sec. 705. (1) The MDOS may accept gifts, donations, contributions, and grants of money and other property from any private or public source to underwrite, in whole or in part, the cost of a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. A private or public funding source may receive written recognition in the publication and may furnish a traffic safety message, subject to approval of the MDOS, for inclusion in the publication. The MDOS may reject a gift, donation, contribution, or grant. The MDOS may furnish copies of a publication underwritten, in whole or in part, by a private source to the underwriter at no charge.
The MDOS may sell and accept paid advertising for placement in a departmental publication that is prepared and disseminated under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923. The MDOS may charge and receive a fee for any advertisement appearing in a departmental publication and shall review and approve the content of each advertisement. The MDOS may refuse to accept advertising from any person or organization. The MDOS may furnish a reasonable number of copies of a publication to an advertiser at no charge.
Pending expenditure, the funds received under this section must be deposited in the Michigan department of state publications fund created in section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211. Funds given, donated, or contributed to the MDOS from a private source are appropriated and allocated for the purpose for which the revenue is furnished. Funds granted to the MDOS from a public source are allocated and may be expended on receipt by the MDOS. The MDOS shall not accept a gift, donation, contribution, or grant if receipt is conditioned on a commitment of state funding at a future date. Revenue received from the sale of advertising is appropriated and may be expended on receipt by the MDOS.
Any unexpended revenues received under this section must be carried over into subsequent fiscal years and are available for appropriation for the purposes described in this section.
If the MDOS receives a gift, contribution, donation, or grant of money as authorized under section 705 of article 5 of 2024 PA 121, not later than March 1, the MDOS shall submit a report to the standard report recipients that includes all of the following information for the immediately preceding fiscal year:
The amount of gifts, contributions, donations, and grants of money received by the MDOS under section 705 of article 5 of 2024 PA 121.
A list of the expenditures made from the amounts received by the MDOS as reported in subdivision (a).
A list of any gift, donation, contribution, or grant of property other than funding received by the MDOS under section 705 of article 5 of 2024 PA 121.
The total revenue received from the sale of paid advertising accepted under this section and a statement of the total number of advertising transactions.
In addition to copies delivered without charge as the secretary of state considers necessary, the MDOS may sell copies of manuals and other publications regarding the sale, ownership, or operation or regulation of motor vehicles, with amendments, at prices to be established by the secretary of state. As used in this subsection, the term “manuals and other publications” includes videos and proprietary electronic publications. All funds received from sales of these manuals and other publications must be credited to the Michigan department of state publications fund created in section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211.
Sec. 707. Funds collected by the MDOS under section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211, are appropriated for all expenses necessary to provide for the costs of the publication described in section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211. Funds are allocated for expenditure when they are received by the department of treasury and do not lapse to the general fund at the end of the fiscal year.
Sec. 708. From the funds appropriated in part 1, the MDOS shall use available balances at the end of the state fiscal year to provide payment to the MDSP in the amount of $332,000.00 for the services provided by the traffic accident records program as first appropriated in 1990 PA 196 and 1990 PA 208.
Sec. 709. From the funds appropriated in part 1, the MDOS may restrict funds from miscellaneous revenue to cover cash shortages created from normal branch office operations. The restricted amount must not exceed
$50,000.00 of the total funds available in miscellaneous revenue.
Sec. 710. The MDOS shall delegate all responsibility for the procurement, development, and maintenance of all information technology services and products to the MDTMB unless otherwise delegated the responsibility by law in an effort to streamline the procurement process and to ensure compliance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 711. Collector plate and fund-raising registration plate revenues collected by the MDOS are appropriated and allotted for distribution to the recipient university or public or private agency overseeing a state-sponsored goal when received. Distributions must occur on a quarterly basis or as otherwise authorized by law. Any revenues remaining at the end of the fiscal year do not lapse to the general fund and remain available for distribution to the university or agency in the next fiscal year.
Sec. 713. (1) The MDOS, in collaboration with the Gift of Life Michigan or its successor federally designated organ procurement organization, may develop and administer a public information campaign concerning the Michigan organ donor program.
The MDOS may solicit funds from any private or public source to underwrite, in whole or in part, the public information campaign authorized by this section. The MDOS may accept gifts, donations, contributions, and grants of money and other property from private and public sources for this purpose. A private or public funding source underwriting the public information campaign, in whole or in substantial part, shall receive sponsorship credit for its financial backing.
Funds received under this section, including grants from state and federal agencies, do not lapse to the general fund at the end of the fiscal year and remain available for expenditure for the purposes described in this section.
Funding appropriated in part 1 for the organ donor program must be used to produce a pamphlet regarding organ donations and to distribute the pamphlet with driver licenses and personal identification cards. The pamphlet must do both of the following:
Explain the organ donor program and encourage people to become donors by marking a checkoff on driver license and personal identification card applications.
Include a return reply form addressed to the gift of life organization.
Funding appropriated in part 1 for the organ donor program must be used to pay for return postage costs of the return reply form described in subsection (4)(b).
In addition to the appropriations in part 1, the MDOS may receive and expend funds from the organ and tissue donation education fund for administrative expenses.
Not later than March 1, the department shall submit a report to the standard report recipients. The report must include all of the following:
The amount of revenue collected by the MDOS under this section.
The purpose of each expenditure.
The amount of revenue carried forward.
Sec. 714. (1) Except as otherwise provided under subsection (2), not less than 180 days before closing a branch office or consolidating a branch office and not less than 60 days before relocating a branch office, the MDOS shall submit a report to the standard report recipients, the members of the senate and house of representatives standing committees on appropriations, and legislators who represent affected areas. The report must include all of the following:
All analyses done regarding criteria for changes in the location of branch offices, including, but not limited to, all of the following:
Branch transactions.
Revenue.
The impact on citizens of the affected area, including information regarding additional distance to branch office locations resulting from the changes.
Detailed estimates of costs and savings that will result from the overall changes made to the branch office structure.
Detailed estimates of costs for new leased facilities and expansions of current leased space.
If the consolidation of a branch office is with another branch office that is located within the same local unit of government or the relocation of a branch office is to another location that is located within the same local unit of government, the MDOS is not required to submit a report under subsection (1).
As used in this section, “local unit of government” means a city, village, township, or county.
Sec. 715. (1) Any service assessment collected by the MDOS from the user of a credit or debit card under section 3 of 1995 PA 144, MCL 11.23, may be used by the MDOS for necessary expenses related to that service and may be remitted to a credit or debit card company, bank, or other financial institution.
The service assessment imposed by the MDOS for credit and debit card services may be based on a percentage of each individual credit or debit card transaction or a flat rate per transaction, or both, scaled to the amount of the transaction. However, the department shall not charge any amount for a service assessment that exceeds the costs billable to the MDOS for the service assessment.
If there is a balance of service assessments received from credit and debit card services remaining on September 30, the balance may be carried forward to the following fiscal year and appropriated for the same purpose.
As used in this section, “service assessment” means costs associated with service fees imposed by credit and debit card companies and processing fees imposed by banks and other financial institutions.
Sec. 716. From the funds appropriated in part 1 for branch operations, the department of state shall provide adequate in-person services as defined in section 1a of the Michigan vehicle code, 1949 PA 300, MCL 257.1a. Sec. 717. (1) The MDOS may accept gifts, donations, or contributions of property from any private or public source to support, in whole or in part, the operation of a departmental function relating to licensing, regulation, or safety. The MDOS may recognize a private or public contributor for making the contribution.
The MDOS may reject a gift, donation, or contribution. Any revenues received under this subsection may be expended for the departmental functions relating to licensing, regulation, or safety.
The MDOS shall not accept a gift, donation, or contribution under subsection (1) if receipt of the gift, donation, or contribution is conditioned on a commitment of future state funding.
If the MDOS receives a gift, donation, or contribution of property as authorized under this section, not later than March 1, the MDOS shall submit a report to the standard report recipients. The report must include a list of each gift, donation, or contribution received by the department under subsection (1) for the immediately preceding calendar year.
Sec. 718. From the funds appropriated in part 1 for election regulation, all money must be spent in accordance with the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992, and the instructions, orders, and guidance of the secretary of state regarding the proper method for the conduct and administration of elections.
Sec. 719. Not later than February 1, the MDOS shall submit a report to the standard report recipients on all funding allocated to counties, cities, and townships from funds appropriated in part 1 for election administration and services. The report must include the amount and purpose of each payment provided to a county, city, or township.
Sec. 720. Not later than February 1, the secretary of state shall submit a report to the standard report recipients that includes all of the following information:
The total number of notices sent by the clerk under section 509aa(2) or (3) of the Michigan election law, 1954 PA 116, MCL 168.509aa, that were returned as undeliverable as described in section 509aa(4) of the Michigan election law, 1954 PA 116, MCL 168.509aa.
The total number of electors to whom the secretary of state mailed a notice under section 509aa(5) of the Michigan election law, 1954 PA 116, MCL 168.509aa.
The total number of each of the following:
Electors who changed residence and moved out of state.
Electors who changed residence and moved in state.
In-state duplicate voter registration records.
Electors who are determined to be deceased.
The total number of electors who corrected their voter registration records after being mailed a notice by the secretary of state under section 509aa(5) of the Michigan election law, 1954 PA 116, MCL 168.509aa.
The number of possible improper votes cast by an elector at the preceding primary election referred to law enforcement by the secretary of state.
The number of possible improper votes cast by an elector at the immediately preceding general election referred to law enforcement by the secretary of state.
Sec. 724. The MDOS shall reimburse a county, city, or township for allowable expenses not later than 60 days after the MDOS receives a bill for allowable expenses and all necessary documentation from the county, city, or township.
Sec. 725. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $18,648,000.00. From this amount, total department of state appropriations for pension-related legacy costs are estimated at $16,819,300.00. Total department of state appropriations for retiree health care legacy costs are estimated at $1,828,700.00.
Sec. 728. The MDOS shall conduct systematic reviews of the qualified voter file by comparing information in the qualified voter file to the MDOS’s driver and identification data. The MDOS shall ensure that a notification is sent to individuals whose voter registration status is in question to verify information before the individual’s voter registration is cancelled. The MDOS shall report on various activities of the systematic reviews. DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET
Sec. 801. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$50,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$200,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$5,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$5,000,000.00 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. 802. Any proceeds that exceed necessary costs incurred in conducting transfers, auctions, direct sales, or scrapping of state surplus property under section 267 of the management and budget act, 1984 PA 431, MCL 18.1267, are appropriated to the MDTMB to offset any costs incurred in the acquisition and distribution of surplus property. The MDTMB shall provide consolidated internet auction services through this state’s contractors for all local units of government.
Sec. 803. (1) The MDTMB may receive and expend funds in addition to those authorized by part 1 for maintenance and operation services provided specifically to other principal executive departments or state agencies, the legislative branch, the judicial branch, or private tenants, or provided in connection with facilities transferred to the operational jurisdiction of the MDTMB.
The MDTMB may receive and expend funds in addition to those authorized by part 1 for real estate, architectural, design, engineering, and project oversight services provided specifically to other principal executive departments or state agencies, the legislative branch, the judicial branch, universities, community colleges, or private tenants.
The MDTMB may receive and expend funds in addition to those authorized in part 1 for mail pickup and delivery services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.
The MDTMB may receive and expend funds in addition to those authorized in part 1 for purchasing services provided specifically to other principal executive departments and state agencies, the legislative branch, or the judicial branch.
Any revenue collected by the MDTMB from user fees under subsections (1) to (4) must be carried forward and does not lapse to the general fund at the close of the fiscal year.
Sec. 805. To the extent a specific appropriation is required for a detailed source of financing included in part 1 for the MDTMB appropriations financed from special revenue and internal service and pension trust funds, or SIGMA user charges, the specific amounts are appropriated within the special revenue internal service and pension trust funds in portions not to exceed the aggregate amount appropriated in part 1.
Sec. 807. Funding in part 1 for SIGMA must be funded by proportionate charges assessed against the respective state funds benefiting from the SIGMA project in the amounts determined by MDTMB.
Sec. 808. (1) A deposit against the IDG from building occupancy and parking charges appropriated in part 1 must be collected, in part, from state agencies, the legislative branch, and the judicial branch based on estimated costs associated with maintenance and operation of buildings managed by MDTMB. To the extent excess revenue is collected due to estimates of building occupancy charges exceeding actual costs, the excess revenue may be carried forward into subsequent fiscal years for the purpose of returning funds to state agencies.
(2) An appropriation in part 1 for building occupancy and parking charges may be increased to return excess revenue collected to state agencies.
Sec. 809. On a biannual basis, the MDTMB shall submit a report to the standard report recipients on any revisions either individually or in the aggregate that increase or decrease current contracts by more than
$250,000.00 for computer software development, hardware acquisition, or quality assurance.
Sec. 810. (1) From the funds appropriated in part 1, the MDTMB shall maintain an internet website that contains notice of all solicitations, invitations for bids, and requests for proposals over $50,000.00 that are issued by the MDTMB or by any state agency operating under delegated authority, except for solicitations up to $500,000.00 in accordance with the MDTMB policy regarding providing opportunities to Michigan small businesses, geographically disadvantaged business enterprises, Michigan veteran-owned business, Michigan service disabled veteran-owned businesses, or Michigan recognized community rehabilitation organizations, or if the MDTMB determines and documents that it is in the best interest of this state. This information must appear on the first page of each department or state agency dashboard.
The MDTMB shall set the due date for acceptance of an invitation for bid or request for proposal to not less than 14 days after the notice is made available on the internet website described in subsection (1), unless the MDTMB determines and documents that a different due date is in the best interest of this state.
In addition to the requirements of this section, the MDTMB may advertise the solicitations, invitations for bids, and requests for proposals in any manner that the MDTMB determines is appropriate to give the greatest number of persons the opportunity to respond or make bids or requests for proposals.
A new request for a proposal that is publicly displayed on the internet website must include the proposal’s corresponding department or agency. The internet website must allow for the searching of requests for proposals by department or agency.
Sec. 811. From the funds appropriated in part 1, the MDTMB shall maintain a system that interfaces with other departments and agencies to track the performance of vendors in fulfilling contract obligations. The performance of these vendors must be recorded and used as a factor to determine future contracts awarded in the procurement process.
Sec. 812. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $51,306,300.00. From this amount, total MDTMB appropriations for pension-related legacy costs are estimated at $46,275,100.00. Total MDTMB appropriations for retiree health care legacy costs are estimated at $5,031,200.00.
Sec. 813. (1) Funds in part 1 for motor vehicle fleet are appropriated to the MDTMB for administration and the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles.
The funds described in subsection (1) must be funded by revenue from rates charged to principal executive departments and agencies for utilizing vehicle travel services provided by the MDTMB. Any revenue in excess of the amount appropriated in part 1 from the motor transport fund and any unencumbered funds are restricted revenues and may be carried over into the succeeding fiscal year.
The MDTMB shall, not later than 90 days after the close of the fiscal year, submit an annual report to the standard report recipients regarding the operation of the motor vehicle fleet. The report must include all of the following:
The number of vehicles assigned to, or authorized for use by, state departments and agencies.
The number of vehicles in the motor vehicle fleet.
The number of miles driven by fleet vehicles.
The number of gallons of fuel consumed by fleet vehicles.
A description of fleet garage operations.
The goods sold and services provided by the fleet garage.
The number of employees assigned to each fleet garage.
The information provided under subsection (3) may be adjusted during the fiscal year based on needs and cost savings to achieve the maximum value and efficiency from the state motor fleet.
The MDTMB may charge state agencies for fuel cost increases that exceed 10% of the budgeted price per gallon of motor vehicle fuels. The MDTMB shall notify state agencies, in writing or by email, not less than 30 days before implementing additional charges for fuel cost increases. Any revenue received from these charges is appropriated on receipt.
The state budget director, on notification to the senate and house of representatives standing committees on appropriations, may adjust spending authorization and the IDG from motor transport fund in the MDTMB to ensure that the appropriations for motor vehicle fleet in the MDTMB budget equal the expenditures for motor vehicle fleet in the budgets for all executive branch agencies.
Sec. 815. The MDTMB shall report quarterly to the standard report recipients on expenditures of funds appropriated in 2021 PA 87 for legal services funding and carried forward under work project account number 17458, titled “legal services”. The report must itemize expenditures by case, purpose, and department involved and must include expenditures related to all previously appropriated funds.
Sec. 816. From the funds appropriated in part 1, the office of the state employer shall work with all state departments and agencies to set requirements on in-person work and utilization of state buildings to ensure in-person work completed by state of Michigan nonfield employees is optimized and the occupancy rate of state-owned or occupied buildings, subject to market conditions, is 80% or higher.
Sec. 820. The MDTMB shall post on its website and make available to the public a list of all parcels of real property owned by this state that are available for purchase.
Sec. 821. (1) From the funds appropriated in part 1, the office of retirement services within the MDTMB shall prepare a report by September 30 on the judges’ retirement system, the military retirement system, the Michigan public school employees’ retirement system, the state employees’ retirement system, and the state police retirement system. The report must be submitted to the standard report recipients.
The report must include, but is not limited to, all of the following information for each of the retirement systems described in subsection (1):
A chart and table that details annual required contribution flow per year for fiscal year 2024-2025 and the subsequent 24 fiscal years.
Separate annual required contribution payment charts and tables for pension and other postemployment benefits.
Separate annual required contribution payment charts and tables for the current annualized rate of return, an annualized rate of return 50 basis points less than the current annualized rate of return, and an annualized rate of return 100 basis points less than the current annualized rate of return.
Separate annual required contribution payment charts and tables by normal cost and unfunded actuarial accrued liability.
A justification if the payroll growth assumption is maintained at or above 0% for any pension or OPEB plan. The report must include an analysis of active employee plan member forecasts.
The report must include the following items specific to the Michigan public school employees’ retirement system:
A copy of the retirement plan election guide that is provided to new Michigan public school employees’ retirement system hires as of the due date of the report.
The number of new Michigan public school employees’ retirement system employees who entered the defined contribution plan and pension plus II plan not later than 14 days after the end of the current fiscal year.
An explanation of how the retirement plan election guide explains that pension plus II members must pay 50% of any future unfunded actuarial accrued liability payments.
An explanation of how the retirement plan election guide explains that defined contribution plan members have annuity options that allow for guaranteed retirement income available through a private insurance company.
If any calculations are provided to plan members for expected retirement income, then the following items must be included:
An explanation of how the retirement plan election guide demonstrates a range of potential outcomes.
The underlying assumptions the retirement plan election guide uses to calculate expected future retirement income.
How underlying assumptions are disclosed in the guide.
The report must include the amount of money that each school district received, on a per pupil basis, in foundation allowances that was spent on Michigan public school employees’ retirement system costs in the immediately preceding fiscal year.
The office of retirement services must post the most recent year’s comprehensive annual financial report for each plan described in subsection (1) not later than 90 days after the end of the fiscal year.
Sec. 822. Not later than January 1, the MDTMB shall submit a report to the standard report recipients related to the salaries of unclassified employees and gubernatorial appointees within all state departments and agencies. The report must enumerate each unclassified employee and gubernatorial appointee and the employee’s or appointee’s annual salary rounded to the nearest thousand dollars.
Sec. 822c. The funds appropriated in part 1 must not be used to support any staff effort, projects, consultant expenses, or any other activity related to the development, financing, construction, operation, or implementation of the Gordie Howe International Crossing or any successor project unless the approval of the project is enacted into law.
Sec. 822d. Not later than December 31, the MDTMB shall submit a report to the standard report recipients that includes all of the following:
The fee and rate schedules to be used by state departments and agencies for services, including information technology, provided by the MDTMB during the current fiscal year.
The changes from fees and rates charged in the immediately preceding fiscal year.
An explanation of the factors that justify each fee and rate increase described in subdivision (b).
Sec. 822e. (1) In addition to the funds appropriated in part 1, the funds collected by the MDTMB for supplying census-related information and technical services, publications, statistical studies, population projections and estimates, and other demographic products are appropriated for all expenses necessary to provide the required services. These funds are available for expenditure when they are received and may be carried forward into the next fiscal year.
(2) Not later than March 1, the MDTMB shall submit a report to the standard report recipients that provides the amount of revenue collected by the MDTMB from the authorization in subsection (1) and the amount of revenue carried forward.
Sec. 822g. From the funds appropriated in part 1 for business support services, not more than an additional
$200,000.00 may be used to continue a comprehensive supplier risk and information subscription used for the precontract risk assessment program.
Sec. 822h. (1) From the funds in part 1 for capital city services, the MDTMB shall provide reimbursements to the city of Lansing to provide support for local infrastructure and municipal services, including, but not limited to, maintenance or improvement of local roads, sidewalks, public utility infrastructure, emergency response, traffic management, or other public safety services that support the state capitol and adjacent state facilities.
(2) The MDTMB shall reimburse the city described in subsection (1) quarterly for eligible expenses if the city of Lansing provides supporting documentation related to the eligible expenses to the MDTMB and the eligible expenses are approved for reimbursement.
(3) The city of Lansing shall maintain and provide any supporting documentation that is requested for auditing purposes.
Sec. 822j. (1) The make it in Michigan competitiveness fund is created within the state treasury.
Funds may be spent from the make it in Michigan competitiveness fund only on appropriation or administrative transfer pursuant to subsection (3).
A transfer of funds from federal or state restricted contingency funds into make it in Michigan may be made by the state budget director not less than 30 days after notifying each member of the senate and house of representatives appropriations committees. Those transfers may be disapproved by either appropriations committee within the 30 days and, if disapproved within that time, are not effective.
A transfer approved under this section constitutes authorization to transfer the amount recommended and approved. However, the amount must be reduced by the state budget director to be within the current unobligated amount of the appropriation.
Transfers must not be authorized under any of the following circumstances:
To create a new line-item appropriation or to create a new state program.
To or from an operating appropriation line item that did not appear in the fiscal year appropriation bills for which the transfer is being made.
To or from a work project as designated under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.
Between state governmental funds.
Interest and earnings from the investment of funds deposited in the make it in Michigan competitiveness fund must be deposited in the general fund.
Funds in the make it in Michigan competitiveness fund at the close of a fiscal year remain in the make it in Michigan competitiveness fund and do not lapse to the general fund.
Funds appropriated or transferred from the make it in Michigan competitiveness fund are available to leverage federal funding opportunities that include, but are not limited to, infrastructure, health, public safety, mobility and electrification, climate and the environment, economic development, or other funding opportunities administered by the federal government. Funding opportunities may be in the form of formula or competitive-based grants, cooperative agreements, or contracts, and may include funds contained in the infrastructure investment and jobs act, Public Law 117-58, the CHIPS act of 2022, division A of Public Law 117-167, the inflation reduction act of 2022, Public Law 117-169, or any other federal acts.
The Michigan infrastructure office, in collaboration with the state budget director, shall form an interagency evaluation committee that includes the department of environment, Great Lakes, and energy, the MDLEO, the MDOT, the MSF, or other entities at the discretion of the Michigan infrastructure office, to develop program guidelines and selection criteria for the recommended appropriation or transfer of funds. The interagency evaluation committee shall make recommendations to the director of the MDTMB and the state budget director on the disbursement of funds. Funding must also be used to cover all costs related to the administration of this section.
The MDTMB shall inform the legislature not later than 30 days after any federal funds are received that would be used as the basis for recommended appropriations or transfers from the make it in Michigan competitiveness fund.
Not later than 90 days after the close of each fiscal year, the MDTMB shall report to the legislature on the projects
funded with make it in Michigan competitiveness fund money.
MEMORIALS
Sec. 822k. The MDTMB may receive and expend funds from the Vietnam veterans memorial monument fund in accordance with the Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1051 to 35.1057. The funds are appropriated and allocated when received by the MDTMB and may be expended on receipt.
Sec. 822l. The Michigan veterans’ memorial park commission may receive and expend money from any source, public or private, including, but not limited to, gifts, grants, donations of money, and government appropriations, for the purposes described in Executive Order No. 2001-10. The funds are appropriated and allocated when received by the Michigan veterans’ memorial park commission and may be expended on receipt. Any deposit made under this section and any unencumbered funds are restricted revenues and may be carried over into subsequent fiscal years.
Sec. 822m. In addition to the funds appropriated in part 1, the MDTMB may receive and expend money from the Michigan law enforcement officers memorial monument fund in accordance with the Michigan law enforcement officers memorial act, 2004 PA 177, MCL 28.781 to 28.786. Any deposit made into the fund is restricted revenues and must be carried over into succeeding fiscal years.
INFORMATION TECHNOLOGY
Sec. 824. The MDTMB may enter into agreements to provide spatial information and technical services to other principal executive departments, state agencies, local units of government, and other organizations. The MDTMB may receive and expend funds in addition to those authorized in part 1 for providing information and technical services, publications, maps, and other products. The MDTMB may expend amounts received for salaries, supplies, and equipment necessary to provide informational products and technical services.
Sec. 825. (1) The legislature shall have access to all historical and current data contained within SIGMA, or its predecessor, pertaining to state departments.
(2) State departments shall have access to all historical and current data contained within SIGMA or its predecessor.
Sec. 826. As used in this part and part 1, “information technology services” means services that involve all aspects of managing and processing information, including, but not limited to, all of the following:
Application and mobile development and maintenance.
Desktop computer support and management.
Cybersecurity.
Social media.
Mainframe computer support and management.
Cloud services support and management, including, but not limited to, infrastructure as a service, platform as a service, and software as a service.
Local area network support and management, including, but not limited to, wired and wireless network build-out, support, and management.
Information technology project management.
Information technology procurement and contract management.
Telecommunication services, security, infrastructure, and support.
Server support and management.
Information technology planning and budget management.
Sec. 827. (1) The MDTMB shall assess all subscribers of the Michigan public safety communications system reasonable access and maintenance fees and deposit the fees in the Michigan public safety communications systems fees fund.
All money received by the MDTMB under this section must be expended for the support and maintenance of the Michigan public safety communications system.
Any deposits made under this section and unencumbered funds are restricted revenues and must be carried forward into succeeding fiscal years.
The MDTMB shall prepare a report that indicates the amount of revenue collected under this section and expended for support and maintenance of the Michigan public safety communication system for the immediately preceding 6-month period. The report must be submitted to the standard report recipients not later than April 15.
Sec. 828. Not later than 45 days after the end of the current fiscal year, the MDTMB shall submit a report to the standard report recipients that includes both of the following:
The estimated total amount of funding appropriated for information technology services and projects, by funding source, for all principal executive departments and agencies for the immediately preceding fiscal year.
A listing of the expenditures made from the amounts received by the MDTMB as reported in subdivision (a).
Sec. 829. The MDTMB shall prepare a report that analyzes and makes recommendations on the life cycle of information technology hardware and software. The report must be submitted to the standard report recipients not later than March 1.
Sec. 830. (1) Any revenue collected from licenses issued under the antenna site management project shall be deposited in the antenna site management revolving fund created for this purpose in the MDTMB. The MDTMB may receive and expend money from the fund for costs associated with the antenna site management project, including the cost of a third-party site manager. Any excess revenue remaining in the fund at the close of the fiscal year must be proportionately transferred to the appropriate state restricted funds as designated in a PA or the state constitution of 1963.
(2) An antenna must not be placed on any site under this section without complying with the respective local zoning codes and local unit of government processes.
Sec. 831. If the MDTMB provides information technology services to a department or agency directly, the MDTMB shall submit a monthly invoice to the department or agency for the information technology services provided. If the MDTMB provides information technology services to a department or agency through a contracted vendor, the MDTMB shall submit an invoice to the department or agency not later than 60 days after the MDTMB receives approval to pay the vendor invoice.
Sec. 832. (1) The MDTMB shall inform the senate and house of representatives appropriations subcommittees on general government and the senate and house fiscal agencies not later than 30 days after learning of the proposal of a potential penalty proposed or the assessment of an actual penalty assessed by the federal government for failure of the Michigan child support enforcement system to achieve certification by the federal government.
(2) If a potential penalty is proposed by the federal government, the MDTMB shall submit a report to the standard report recipients not later than 90 days after the date the potential penalty is proposed specifying the MDTMB’s plans to avoid the assessment of an actual penalty and ensure federal certification of the Michigan child support enforcement system.
Sec. 833. (1) The state budget director, on notification to the standard report recipients and the senate and house of representatives standing committees on appropriations, may adjust spending authorization and user fees in the MDTMB to ensure that the appropriations for information technology in the MDTMB equal the appropriations for information technology in the budgets for all executive branch agencies.
(2) If, during the fiscal year, a supplemental appropriation or transfer is made under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393, to or from an information technology line item in an agency budget, there is appropriated an equal amount of user fees in the MDTMB to accommodate an increase or decrease in spending authorization.
Sec. 834. (1) The MDTMB shall not contract with a vendor for a commercial-off-the-shelf product if the potential vendor would need to make significant customized changes to meet the requirements and specifications of the applicable department or agency work procured under the contract.
As used in this section, “commercial-off-the-shelf product” means a software product that is commercially ready-made and available for sale, lease, or license to the general public.
Sec. 835. The MDTMB shall provide a report to the standard report recipients on all new contracts for software development services that have a value greater than $10,000,000.00 or that are effective for a period longer than 3 years. The report must be submitted not later than January 15 and must cover the immediately preceding 12 months.
Sec. 836. The MDTMB and a sponsoring department or agency shall submit to each technology vendor on the project and to the standard report recipients all reports from independent verification and validation services in accordance with the reporting schedule or frequency established in the contract for the service.
Sec. 837. All information technology projects funded by appropriations in part 1 must do both of the following:
Use information technology project management best practices and services as defined or recommended by the enterprise portfolio management office of the MDTMB.
Comply with the requirements of the state unified information technology environment methodology as it applies to all information technology project management processes.
Sec. 838. (1) The funds appropriated in part 1 for information technology investment fund must be used for the modernization of state information technology systems, improvement of this state’s cybersecurity framework, and to achieve efficiencies.
The MDTMB shall develop a plan regarding the use of the funds appropriated in part 1 for the information technology investment fund.
The plan described in subsection (2) must include all of the following:
A description of proposed information technology investment projects.
The time frame for completion of the information technology investment projects.
The initial budgeted amount for each project.
The number of employees assigned to implement each information technology investment project.
The contracts entered into for each information technology investment project.
Any other information the MDTMB considers necessary.
The MDTMB shall submit a report to the standard report recipients that includes the plan and the anticipated spending reductions or overages for each of the proposed information technology investment projects. The report must also include both of the following:
A comparison of the initial budgeted amounts and cumulative costs, both by project and in total for all projects.
The amount of any transfer of budgeted funds from 1 project to another.
Sec. 839. In addition to the appropriations for information technology investment fund in part 1, there is appropriated related federal and state restricted funds up to the amounts that will be earned based on the initiatives undertaken with the funds in part 1. The state budget director shall determine and authorize the appropriate manner for implementing this section.
Sec. 840. From the funds appropriated in part 1, a state department or agency shall not issue an RFP for a contract for information technology software development unless the RFP includes a clear statement of objective that is not longer than 5 pages and that communicates all essential operational requirements of the contracted service.
STATE BUILDING AUTHORITY RENT
Sec. 842. (1) Funds appropriated in part 1 for state building authority rent may, in addition to this purpose, be expended for the payment of required premiums for insurance on facilities owned by the state building authority or payment of costs that may be incurred as the result of any deductible provisions in the applicable insurance policies.
(2) If the amount appropriated in part 1 for state building authority rent is not sufficient to pay the rent obligations and insurance premiums and deductibles identified in subsection (1) for state building authority projects, there is appropriated from the general fund of this state the amount necessary to pay the obligations. OFFICE OF THE STATE EMPLOYER
Sec. 843. (1) The funds appropriated in part 1 for statewide appropriations must be funded by assessments against longevity and insurance appropriations throughout state government in a manner prescribed by the MDTMB. The funds must be used as specified in joint labor/management agreements, or through the coordinated compensation hearings process. Any deposits of assessments made under this subsection and any unencumbered funds are restricted revenues, may be carried over into the succeeding fiscal years, and are appropriated.
(2) In addition to the funds appropriated in part 1 for statewide appropriations, the MDTMB may receive and expend funds in the additional amounts specified in joint labor/management agreements, or through the coordinated compensation hearings process, in the same manner and subject to the same conditions as prescribed in subsection (1).
Sec. 844. In addition to the funds appropriated in part 1, the MDTMB may receive and expend funds from other principal executive departments and state agencies to implement administrative leave bank transfer provisions specified in joint labor/management agreements. The funds may also be transferred to other principal executive departments and state agencies under the joint labor/management agreement and any amounts transferred under the joint labor/management agreement are authorized for receipt and expenditure by the receiving principal executive department or state agency. Any funds received by the MDTMB under this section and intended, under the joint labor/management agreements, to be available for use beyond the close of the fiscal year, and any unencumbered funds, may be carried over into the next fiscal year.
CIVIL SERVICE COMMISSION
Sec. 850. (1) In accordance with section 5 of article XI of the state constitution of 1963, all restricted funds must be assessed a sum not less than 1% of the total aggregate payroll paid from those funds for financing the civil service commission on the basis of actual 1% restricted sources total aggregate payroll of the classified service for the preceding fiscal year. This includes, but is not limited to, restricted funds appropriated in part 1 of any appropriations act. The civil service commission shall return any unexpended funds appropriated under this subsection to each 1% fund source not later than 6 months after the end of the fiscal year.
The appropriations in part 1 are estimates of actual charges based on payroll appropriations. With the approval of the state budget director, the civil service commission may adjust financing sources for civil service charges based on actual payroll expenditures, if the adjustments do not increase the total appropriation for the civil service commission.
The financing from restricted sources must be credited to the civil service commission by the end of the second fiscal quarter.
Sec. 851. Except where specifically appropriated for this purpose, financing from restricted sources must be credited to the civil service commission. For restricted sources of funding within the general fund that have the legislative authority for carryover, if current spending authorization or revenues are insufficient to accept the charge, the shortage must be taken from carryforward balances of that funding source. Restricted revenue sources that do not have carryforward authority must be utilized to satisfy civil service commission operating deductions first and civil service commission obligations second. General fund dollars are appropriated for any shortfall, if approved by the state budget director.
Sec. 852. The appropriation in part 1 to the civil service commission, for state-sponsored group insurance, flexible spending accounts, and COBRA, represents amounts, in part, included within the various appropriations throughout state government for the current fiscal year to fund the flexible spending account program included within the civil service commission. Deposits against state-sponsored group insurance, flexible spending accounts, and COBRA for the flexible spending account program must be made from assessments levied during the fiscal year in a manner prescribed by the civil service commission. Unspent employee contributions to the flexible spending accounts may be used to offset administrative costs for the flexible spending account program, and any remaining balance of unspent employee contributions lapses to the general fund.
Sec. 853. From the funds appropriated in part 1, the Michigan civil service commission shall continue to work toward completing its review of current employee classifications and educational requirements necessary for employment. On completion of the review, the commission, where possible, shall substitute relevant experience for the default educational requirement of a bachelor’s degree.
CAPITAL OUTLAY
Sec. 860. As used in sections 861 through 875 of this part:
“Board” means the state administrative board created in section 1 of 1921 PA 2, MCL 17.1.
“Community college” means a community college organized under the community college act of 1966, 1966 PA 331, MCL 389.1 to 389.195, or under part 25 of the revised school code, 1976 PA 451, MCL 380.1601 to 380.1607, and does not include a state agency or university.
“Director” means the director of the MDTMB.
“State agency” means an agency of state government. State agency does not include a community college or university.
“State building authority” means the authority created in section 2 of 1964 PA 183, MCL 830.412.
“University” means a 4-year university supported by this state. University does not include a community college or a state agency.
Sec. 861. Each capital outlay project authorized in this part and part 1 or any previous capital outlay act shall comply with the procedures required by the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 862. (1) The MDTMB shall submit a report to the standard report recipients and the JCOS on the status of each planning or construction project financed by the state building authority, this part and part 1, or a previous PA.
Before the end of the fiscal year, the MDTMB shall submit a report to the standard report recipients and the JCOS for each capital outlay project other than lump sums that includes all of the following:
The account number and name of each construction project.
The balance remaining in each account.
The date of the last expenditure from the account.
The anticipated date of occupancy if the project is under construction.
The appropriations history for the project.
The professional service contractor.
The amount of the project financed with federal funds.
The amount of the project financed through the state building authority.
The total authorized cost for the project and the state authorized share if different than the total.
Before the end of the fiscal year, the MDTMB shall submit a report to the standard report recipients and the JCOS on all of the following for each project by a state agency, university, or community college that is authorized for planning but is not yet authorized for construction:
The name of the project and account number.
Whether a program statement is approved.
Whether schematics are approved by the MDTMB.
Whether preliminary plans are approved by the MDTMB.
The name of the professional service contractor.
As used in this section, “project” includes appropriation line items made for purchase of real estate.
Sec. 863. The MDTMB shall work with all state departments and agencies to evaluate their current office building and space usage to identify any projected changes for the current and next fiscal year. The MDTMB shall report the following information to the standard report recipients not later than May 1:
Projected changes in state-owned property being utilized by each department and agency for the current and next fiscal year.
Projected changes to leased property being utilized by each department and agency for the current and next fiscal year.
A comparative analysis of 2022 occupancy levels to expected levels for the current and next fiscal year.
All of the following information for the immediately preceding fiscal year:
A list of expenditures related to space optimization as a result of remote work, including costs associated with divesting state-owned property and vacating leased facilities.
Net savings as a result of property divestment or vacated leased facilities.
A description of each divested property or location of each vacated leased facility.
Sec. 864. The appropriations in part 1 for capital outlay must be carried forward at the end of the fiscal year in accordance with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.
Sec. 865. (1) A site preparation economic development fund is created in the MDTMB. The MEDC board and the state budget director shall determine whether a specific state-owned site qualifies for inclusion in the site preparation economic development fund.
Any proceeds from the sale of an economic development site must be deposited in the site preparation economic development fund and are available for site preparation expenditures, unless otherwise provided by law. The economic development sites are authorized for sale consistent with state law. Expenditures from the site preparation economic development fund are authorized for site preparation activities that enhance the marketable sale value of the economic development sites.
A cash advance in an amount of not more than $25,000,000.00 is authorized from the general fund to the site preparation economic development fund.
Not later than December 31, the MDTMB shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations that includes both of the following:
The revenue and expenditure activity in the site preparation economic development fund for the immediately preceding fiscal year.
The sites identified as economic development sites.
As used in this section:
“Economic development site” means a state-owned site that is declared as surplus property under section 251 of the management and budget act, 1984 PA 431, MCL 18.1251, and would provide economic benefit to the area of the site or to this state.
“Site preparation activities” includes, but is not limited to, demolition, environmental studies and abatement, utility enhancement, and site excavation.
Sec. 866. (1) The energy efficiency revolving fund is created within the state treasury. The state treasurer may receive money or other assets from any source for deposit into the energy efficiency revolving fund. The state treasurer shall direct the investment of the energy efficiency revolving fund. The state treasurer shall credit to the energy efficiency revolving fund interest and earnings from energy efficiency revolving fund investments.
Money in the energy efficiency revolving fund at the close of the fiscal year remains in the energy efficiency revolving fund and does not lapse to the general fund.
The MDTMB shall provide oversight and direction for the energy efficiency revolving fund, coordinate a call for projects, and prioritize the award of projects that will contribute to a reduction in this state’s carbon footprint. State administrative costs must be not more than 10% of the total project cost.
The MDTMB shall set terms with agencies participating in the energy efficiency revolving fund program that include the scope of each project, funding commitments, data collection and reporting requirements, and any other financial terms related to realization of energy savings related to implementation of the project. The MDTMB may enter into a memorandum of understanding to memorialize these terms.
Not later than February 1, the MDTMB shall submit a report to the standard report recipients on projects funded under this section in the immediately preceding fiscal year. The report must list each approved project, the amount provided from the energy efficiency revolving fund for each project, the department or agency under which the project belongs, anticipated annual savings from each project, and revenue from savings deposited into the energy efficiency revolving fund by project.
Sec. 867. In addition to the appropriations for special maintenance, remodeling, and additions for state agencies in part 1, there is appropriated related federal and state restricted funds up to the amounts that will be earned based upon the initiatives undertaken with the funds in part 1. The state budget director shall determine and authorize the appropriate manner for implementing this section.
CAPITAL OUTLAY - UNIVERSITIES AND COMMUNITY COLLEGES
Sec. 873. (1) This section applies only to projects for community colleges.
State support is directed towards the remodeling and additions, special maintenance, or construction of certain community college buildings. The community college shall obtain or provide for site acquisition and initial main utility installation to operate the facility. The funding must be composed of local and state shares and not more than 50% of a capital outlay project, not including a lump-sum special maintenance project or remodeling and addition project, for a community college may be appropriated from state and federal funds, unless otherwise appropriated by the legislature.
An expenditure under this part and part 1 is authorized when the release of the appropriation is approved by the board on the recommendation of the director. The director may recommend to the board the release of any appropriation in part 1 only after the director is assured that the legal entity operating the community college to which the appropriation is made has complied with this part and part 1 and has matched the amounts appropriated as required by this part and part 1. A release of funds in part 1 must not exceed 50% of the total cost of planning and construction of any project, not including lump-sum remodeling and additions and special maintenance, unless otherwise appropriated by the legislature. Further planning and construction of a project authorized by this part and part 1 or applicable sections of the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, must be in accordance with the purpose and scope as defined and delineated in the approved program statements and planning documents. This part and part 1 are applicable to all projects for which planning appropriations were made in previous PAs.
The community college shall take the steps necessary to secure available federal construction and equipment money for projects funded for construction in this part and part 1 if an application was not previously made. If there is a reasonable expectation that a previous year unfunded application may receive federal money in a subsequent year, the community college shall take whatever action necessary to keep the application active.
Sec. 874. If university and community college matching revenues are received in an amount less than the appropriations for capital projects contained in this part and part 1, the state funds must be reduced in proportion to the amount of matching revenue received.
Sec. 875. (1) The director may require that community colleges and universities that have an authorized project described in part 1 submit documentation regarding the project match and governing board approval of the authorized project not more than 60 days after the beginning of the fiscal year.
If the documentation required by the director under subsection (1) is not submitted, or does not adequately authenticate the availability of the project match or governing board approval of the authorized project, the director may terminate the authorization. The authorization terminates 30 days after the director notifies the JCOS of the intent to terminate the project unless the JCOS approves an extension of the authorization.
ONE-TIME APPROPRIATIONS
Sec. 890. The unexpended funds appropriated in part 1 for election equipment reserve fund are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support the purchase of election equipment for local units of government.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 901. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$500,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$10,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $20,000.00 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. 902. (1) Amounts needed to pay for interest, fees, principal, mandatory and optional redemptions, arbitrage rebates as required by federal law, and costs associated with the payment, registration, trustee services, credit enhancements, and issuing costs in excess of the amount appropriated to the department of treasury in part 1 for debt service on notes and bonds that are issued by this state under sections 14, 15, or 16 of article IX of the state constitution of 1963, as implemented by 1967 PA 266, MCL 17.451 to 17.455, are appropriated.
In addition to the amount appropriated to the department of treasury for debt service in part 1, there is appropriated an amount for fiscal year cash-flow borrowing costs to pay for interest on interfund borrowing authorized under 1967 PA 55, MCL 12.51 to 12.53.
In addition to the amount appropriated to the department of treasury for debt service in part 1, all repayments received by this state on loans made from the school bond loan fund that the state treasurer determines are not required to be deposited in the school loan revolving fund under section 4 of 1961 PA 112, MCL 388.984, are appropriated to the department of treasury for the payment of debt service, including, but not limited to, optional and mandatory redemptions, on bonds, notes, or commercial paper issued by this state under 1961 PA 112, MCL 388.981 to 388.985.
Sec. 902a. As a condition of receiving the appropriations in part 1, not later than 30 days after a refunding or restructuring bond issue is sold, the department of treasury must submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations. The report must include all of the following:
A comparison of the annual debt service before the refinancing or restructuring to the annual debt service after the refinancing or restructuring.
The change in the principal and interest over the duration of the debt.
The projected change in the present value of the debt service as a result of the refinancing and restructuring.
Sec. 902b. As a condition of receiving the appropriations in part 1, not later than 30 days after the state of Michigan comprehensive annual financial report under section 494 of the management and budget act, 1984 PA 431, MCL 18.1494, is published, the department of treasury shall submit a report to the standard report recipients on all funds that are controlled or administered by the department of treasury and not appropriated in part 1. The current and all previous reports prepared as required under this section must be saved and made available on the department of treasury’s public website and stored in a common location with all other reports that the department of treasury is required by law to prepare. The link to the location of the reports must be clearly indicated on the main page of the department of treasury’s internet website. The report must include all of the following information for each fund for the immediately preceding fiscal year:
The starting balance.
Total revenue generated by transfers in and investments.
Total expenditures.
The ending balance.
Sec. 903. (1) From the funds appropriated in part 1, the department of treasury may contract with law firms or private collection agencies to collect taxes and other accounts due this state or due a city for which the department of treasury has entered into an agreement to provide tax administration services. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund the cost of these collections, including infrastructure costs. The additional amounts appropriated under this subsection must not exceed 25% of the collections or 2.5% plus operating costs, as applicable. Each contract must prescribe the applicable amount. The amounts appropriated to fund collection costs and fees under this subsection are appropriated from the fund or account to which the corresponding taxes and other accounts being collected are recorded or dedicated. However, if the taxes and other accounts collected are dedicated for a specific purpose under the state constitution of 1963, the amounts appropriated under this subsection are appropriated from the general purpose account of the general fund.
From the funds appropriated in part 1, the department of treasury may contract with law firms or private collections agencies to collect defaulted student loans and other accounts due the Michigan guaranty agency. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund collection costs and fees not to exceed 24.34% of the collection or a lesser amount as prescribed by the contract. The amounts appropriated under this subsection are appropriated from the fund or account to which the revenues being collected are recorded or dedicated.
By November 30, the department of treasury shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations. The report must include all of the following information for the immediately preceding fiscal year:
The name of each law firm and each private collection agency that the department of treasury contracted with under subsection (1) or (2).
The amount collected under each contract.
The costs of collection under each contract.
Any other information that is pertinent to determining whether the authority described in subsection (1) or (2) should be continued.
Sec. 904. (1) The bureau of investments of the department of treasury may charge an investment service fee against the applicable retirement funds. The revenue from the investment service fees charged under this subsection may be expended for necessary salaries, wages, contractual services, supplies, materials, equipment, travel, worker’s compensation insurance premiums, and grants to the civil service commission retirement fund and the state employees’ retirement fund. If the bureau of investments of the department of treasury charges a total amount of investment service fees under this subsection that is greater than the aggregate amount appropriated in part 1, the bureau of investments of the department of treasury shall periodically repay the surplus revenue to the applicable retirement funds. The department of treasury shall maintain accounting records in sufficient detail to enable repayment under this subsection.
(2) In addition to the funds appropriated in part 1 from the retirement funds to the department of treasury, there is appropriated from retirement funds an amount sufficient to pay for the services of money managers, investment advisors, investment consultants, custodians, or other outside professionals that the state treasurer considers necessary to prudently manage the retirement funds’ investment portfolios. The state treasurer shall submit an annual report to the standard report recipients and the senate and house of representatives standing committees on appropriations regarding the performance of each portfolio delineated by investment advisor.
(3) Not later than November 30, the department of treasury shall submit a report to the standard report recipients that identifies the service fees assessed against each retirement system under subsection (1) and the methodology used for assessment.
Sec. 904a. (1) There is appropriated an amount sufficient to recognize and pay expenditures for financial services provided by financial institutions or equivalent vendors that perform these financial services, including the department of treasury, as provided under section 1 of 1861 PA 111, MCL 21.181.
(2) The appropriations under subsection (1) must be funded by restricting revenues from common cash interest earnings and investment earnings in an amount sufficient to cover these expenditures. If the amounts of common cash interest earnings are insufficient to cover these expenditures, miscellaneous revenues must be used to fund the remaining balance of these expenditures.
Sec. 905. The municipal finance fee fund is created in the department of treasury as a revolving fund. The department of treasury shall deposit the fees that the department of treasury collects under the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, into the municipal finance fee fund. The money in the fund at the end of the fiscal year may be carried forward for future appropriation.
Sec. 906. (1) The department of treasury shall charge for audits as allowed under state or federal law or under a contract between the department of treasury and a local unit of government, other principal executive department, or state agency. However, the department of treasury shall not charge more than the actual cost for performing the audit. Not later than November 30, the department of treasury shall submit a report to the standard report recipients that includes details of the audits performed and audit charges for the immediately preceding fiscal year.
(2) The audit charges fund is created in the department of treasury as a revolving fund. The department of treasury shall deposit the contractual charges collected under subsection (1) into the audit charges fund. The money in the fund at the end of the fiscal year may be carried forward for future appropriation.
Sec. 907. (1) The department of treasury shall create and operate a property assessor certification and training program. The purpose of the program is to offer courses in assessment administration.
(2) The assessor certification and training fund is created in the department of treasury as a revolving fund. The department of treasury shall use the money in the assessor certification and training fund to create and operate the property assessor certification and training program described in subsection (1).
(3) Each participant in the program shall pay to the department of treasury an examination fee not to exceed
$50.00 per examination and a certification fee not to exceed $175.00. In addition, each participant shall pay a fee to cover the expenses incurred in offering the program to certified assessing personnel and other individuals interested in an assessment career opportunity. The department of treasury shall deposit the fees collected under this subsection into the property assessor certification and training program fund.
Sec. 908. The amount appropriated in part 1 for the home heating assistance program is to cover the costs, including data processing, of administering federal home heating credits to eligible claimants and of administering the supplemental fuel cost payment program for eligible tax credit and welfare recipients.
Sec. 909. Revenue from the airport parking tax act, 1987 PA 248, MCL 207.371 to 207.383, is appropriated and must be distributed in accordance with section 7a of the airport parking tax act, 1987 PA 248, MCL 207.377a.
Sec. 910. The disbursement by the department of treasury from the bottle deposit fund to dealers as required by section 3c(3) of 1976 IL 1, MCL 445.573c, is appropriated.
Sec. 911. (1) There is appropriated an amount sufficient to recognize and pay refundable tax credits, tax refunds, and interest as provided by law.
The appropriations under subsection (1) must be funded by restricting tax revenue in an amount sufficient to cover these expenditures.
Sec. 912. A plaintiff in a garnishment action involving this state shall pay to the state treasurer 1 of the following:
A fee of $6.00 at the time a writ of garnishment of periodic payments is served on the state treasurer, as provided in section 4012 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4012.
A fee of $6.00 at the time any other writ of garnishment is served on the state treasurer. However, the fee must be reduced to $5.00 for each writ of garnishment for individual income tax refunds or credits that is filed electronically.
Sec. 913. (1) The department of treasury may contract with private firms to appraise and, if necessary, appeal the assessments of senior citizen cooperative housing units. Payment for this service must be made from the savings that result from the appraisal or appeal process being conducted by private firms.
(2) The department of treasury may use a portion of the funds appropriated in part 1 for the senior citizen cooperative housing tax exemption program for an audit of the program. The department of treasury shall submit copies of any completed audit report to the standard report recipients. The department of treasury may use not more than 1% of the funds for administering and auditing the program.
Sec. 914. The department of treasury may provide a $200.00 annual prize from the Ehlers internship award account in the gifts, bequests, and deposit fund to the runner-up of the Rosenthal prize for interns. The Ehlers internship award account is interest bearing.
Sec. 915. As required under section 61 of the Michigan campaign finance act, 1976 PA 388, MCL 169.261, there is appropriated from the general fund to the state campaign fund an amount equal to the amounts designated for the 2023 tax year. Except as otherwise provided in this section, the amount appropriated does not revert to the general fund and remains in the state campaign fund. Any amount that remains in the state campaign fund in excess of $10,000,000.00 on December 31 reverts to the general fund.
Sec. 916. (1) The department of treasury may make available to an interested entity a customized list of otherwise unavailable nonconfidential information regarding unclaimed property that is in the department of treasury’s possession. The department of treasury shall charge for this information as follows:
For 1 to 100,000 records, 2.5 cents per record.
For 100,001 or more records, 0.5 cents per record.
The revenue received under subsection (1) must be deposited in the revenue account or fund that is associated with the applicable unclaimed property.
Not later than June 1, the department of treasury shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations that states the amount of revenue received from the sale of the information under this section.
Sec. 917. (1) There is appropriated for write-offs and advances an amount equal to total write-offs and advances for departmental programs. The amount appropriated under this subsection must not exceed current year authorizations that would otherwise lapse to the general fund.
Not later than November 30, the department of treasury shall submit a report to the standard report recipients. The report must include all of the following information for the immediately preceding fiscal year:
The amounts appropriated for write-offs and advances under subsection (1).
An explanation for each write-off or advance under subsection (1).
Sec. 919. (1) From funds appropriated in part 1, the department of treasury may contract with private auditing firms to audit for and collect unclaimed property due this state in accordance with the uniform unclaimed property act, 1995 PA 29, MCL 567.221 to 567.265. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to fund auditing and collection costs and fees not to exceed 12% of the collections or a lesser amount as prescribed by the applicable contract. The appropriation to fund collection costs and fees for the auditing and collection of unclaimed property due this state is from the fund or account to which the revenues being collected are recorded or dedicated.
(2) Not later than November 30, the department of treasury shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations. The report must include all of the following information for the immediately preceding fiscal year:
The name of each auditing firm that the department of treasury contracted with under subsection (1).
The amount collected by each of the auditing firms.
The costs of collection.
Any other information that is pertinent to determining whether the authority under subsection (1) should be continued.
Sec. 920. Not later than June 30, from the funds appropriated in part 1, the department of treasury shall do both of the following:
Produce a list of all personal property tax reimbursement payments to be distributed in the current fiscal year by the local community stabilization authority.
Post the list produced under subdivision (a) on the department of treasury’s public website.
Sec. 921. From the funds appropriated in part 1, the department of treasury shall, for each revenue administrative bulletin, administrative rule that involves tax administration or collection, and notice interpreting a change in law, submit a notification to every member of the legislature. The department of treasury shall submit the notification not later than 3 days after the department of treasury posts the notification. Each notification must include all of the following:
A summary of the proposed changes from current procedures.
Identification of industries that will or might be affected by the bulletin, rule, or notice.
A statement of the potential fiscal implications of the bulletin, rule, or notice. This subdivision does not apply to a bulletin, rule, or notice that is a routine update of a tax or interest rate required by statute.
A summary of the reason for the proposed change.
Sec. 924. (1) In addition to the funds appropriated in part 1, the department of treasury may receive and expend principal residence audit fund revenue for administration of principal residence audits under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(2) Not later than December 31, the department of treasury shall submit a report to the standard report recipients that includes the amount of exemptions denied and the revenue received under the program described in subsection (1) for the immediately preceding fiscal year.
Sec. 927. The department of treasury shall submit a progress report regarding essential service assessment audits to the standard report recipients. The report must include all of the following:
The number of audits.
The revenue generated from the audits.
The number of complaints received by the department of treasury related to the audits.
Sec. 928. The department of treasury may provide receipt, check and cash processing, data, collection, investment, fiscal agent, levy and check cost assessment, writ of garnishment, and other user services on a contractual basis for other principal executive departments and state agencies. Funds for the services provided are appropriated and must be expended for salaries, wages, fees, supplies, and equipment necessary to provide the services. Money in the fund that is unobligated at the end of the fiscal year lapses to the general fund. Sec. 930. (1) The department of treasury shall provide accounts receivable collections services to other principal executive departments and state agencies in accordance with 1927 PA 375, MCL 14.131 to 14.134, or to a city with which the department of treasury has contracted to provide tax administration services. The department of treasury shall deduct a fee equal to the cost of collections from all receipts except for unrestricted general fund collections. Fees must be credited to a restricted revenue account and are appropriated to the department of treasury to pay for the cost of collections. If the department of treasury deducts fees under this subsection that total an amount that is greater than the actual cost of the collections, the department of treasury shall periodically repay the surplus to the respective account. The department of
treasury shall maintain accounting records in sufficient detail to enable repayment under this subsection.
(2) Not later than November 30, the department of treasury shall submit a report to the standard report recipients that includes the following information regarding subsection (1) for the immediately preceding fiscal year:
The principal executive departments and state agencies served.
The funds collected.
The costs of collection.
Sec. 931. (1) Except as otherwise provided in this subsection, the appropriation in part 1 to the department of treasury for treasury fees must be assessed against all restricted funds that receive common cash earnings or other investment income. This subsection does not apply to federal or state restricted funds that are temporary in nature or otherwise do not qualify to be assessed treasury fees. The fee assessed against each
restricted fund must be based on the size of the restricted fund, calculated as the absolute value of the average daily cash balance plus the market value of investments in the immediately preceding fiscal year, and the level of resources necessary to maintain the restricted fund as required by each department. Not later than November 30, the department of treasury shall submit a report to the standard report recipients that identifies the fees assessed against each restricted fund and the methodology used for the assessment.
In addition to the funds appropriated in part 1, the department of treasury may receive and expend investment fees that are related to new restricted funding sources that participate in common cash earnings or other investment income during the current fiscal year.
As used in this section, “treasury fees” includes all costs, including administrative overhead, that are related to the investment of a restricted fund.
Sec. 932. The board of directors of the Michigan education trust may expend revenue received under the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442, for necessary salaries, wages, supplies, contractual services, equipment, worker’s compensation insurance premiums, and grants to the civil service commission retirement fund and the state employees’ retirement fund.
Sec. 934. (1) The department of treasury may expend revenues received under the hospital finance authority act, 1969 PA 38, MCL 331.31 to 331.84, the shared credit rating act, 1985 PA 227, MCL 141.1051
to 141.1076, the higher education facilities authority act, 1969 PA 295, MCL 390.921 to 390.934, the Michigan public educational facilities authority, Executive Reorganization Order No. 2002-3, MCL 12.192, the Michigan tobacco settlement finance authority act, 2005 PA 226, MCL 129.261 to 129.279, the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, part 505 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.50501 to 324.50522, the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c, and the MFA, Executive Reorganization Order No. 2010-2, MCL 12.194, for necessary salaries, wages, supplies, contractual services, equipment, worker’s compensation insurance premiums, grants to the civil service commission retirement fund and the state employees’ retirement fund, and other expenses as allowed under those acts or executive reorganization orders.
Not later than January 31, the department of treasury shall submit a report to the standard report recipients that includes both of the following for the immediately preceding fiscal year:
The amount and purpose of expenditures of $250,000.00 or more that are made under subsection (1) from funds received by the department of treasury that are in addition to those appropriated in part 1.
A list of reimbursement of revenue, if any.
Sec. 935. The position of student loan ombudsman is created in the department of treasury’s advocacy services team. The student loan ombudsman serves as an advocate for borrowers and shall work with the financial resource navigator within the department of lifelong learning and potential to provide technical assistance to individuals taking out or paying off student loans.
Sec. 936. Revenue collected in the state forensic laboratory fund is appropriated and shall be distributed in accordance with section 7 of the forensic laboratory funding act, 1994 PA 35, MCL 12.207.
Sec. 937. As a condition of receiving funds in part 1, not later than March 31, the department of treasury shall submit a report to the standard report recipients and the senate and house standing committees on appropriations regarding the department of treasury’s collection efforts for delinquent accounts. The report must include all of the following:
Information regarding the effectiveness of the department of treasury’s current collection strategies, including the use of vendors or contractors.
The amount of delinquent accounts.
The liquidation rates for declining delinquent accounts.
The profile of uncollected delinquent accounts, including specific uncollected amounts by category.
The department of treasury’s strategy to manage delinquent accounts when those accounts exceed the collectible period.
A summary of the strategies used in other states, including, but not limited to, secondary placement services, and assessing the benefits of those strategies.
Sec. 938. Revenue collected in the qualified heavy equipment rental personal property exemption reimbursement fund is appropriated and must be distributed in accordance with section 9 of the qualified heavy equipment rental personal property specific tax act, 2022 PA 35, MCL 211.1129.
Sec. 939. Revenue deposited in the local government reimbursement fund is appropriated and must be distributed in accordance with section 3a of the Michigan trust fund act, 2000 PA 489, MCL 12.253a.
Sec. 940. (1) The election administration support fund is created in the state treasury.
Any unexpended funds in the election administration support fund must be carried forward and are available for expenditure under this section.
Funds may be spent from the election administration support fund only on appropriation, or legislative transfer pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
The state treasurer may receive money or other assets from any source for deposit in the election administration support fund. The state treasurer shall direct the investment of the election administration support fund. The state treasurer shall credit to the election administration support fund interest and earnings from the election administration support fund.
Funds in the election administration support fund at the close of the fiscal year remain in the election administration support fund and do not lapse to the general fund.
Funds appropriated in part 1 for election administration support fund must be deposited in the election administration support fund.
Sec. 941. (1) Not later than November 1, from the funds appropriated in part 1, the department of treasury, in conjunction with the MSF, shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations on the annual cost of the MEGA tax credits. The report must include, for each year from 1995 to the expiration of the MEGA tax credit program, the board- approved credit amount, adjusted for credit amendments if applicable, and the actual and projected value of tax credits. For years for which credit claims are complete, the report must include the total of actual certificated credit amounts. For years for which claims are still pending or not yet submitted, the report must include a combination of actual credits if available and projected credits. Credit projections must be based on updated estimates of employees, wages, and benefits for eligible companies.
(2) In addition to the report under subsection (1), not later than November 1, the department of treasury, in conjunction with the MSF, shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations on the annual cost of all other certificated credits by program for each year until the credits expire or can no longer be collected. The report must include estimates on the brownfield redevelopment credit, film credits, MEGA photovoltaic technology credit, MEGA polycrystalline silicon manufacturing credit, MEGA vehicle battery credit, and other certificated credits.
Sec. 944. From the funds appropriated in part 1, if the department of treasury hires a pension plan consultant using any of the funds appropriated in part 1, the department of treasury shall do all of the following:
Retain each report provided to the department of treasury by that consultant.
Notify the standard report recipients that the department of treasury has hired a pension plan consultant, including the reason why the department of treasury hired the pension plan consultant.
Make a report described in subdivision (a) available to a standard report recipient if requested by the standard report recipient.
Sec. 945. From the funds appropriated in part 1, audits of local unit assessment administration practices, procedures, and records must be conducted in each assessment jurisdiction a minimum of 1 time every 5 years and in accordance with section 10g of the general property tax act, 1893 PA 206, MCL 211.10g.
Sec. 946. Revenue collected in the convention facility development fund is appropriated and must be distributed in accordance with sections 8, 9, and 10 of the state convention facility development act, 1985 PA 106, MCL 207.628, 207.629, and 207.630.
Sec. 947. It is the intent of the legislature that financial independence teams cooperate with the financial responsibility section to coordinate and streamline efforts in identifying and addressing fiscal emergencies in school districts and intermediate school districts.
Sec. 948. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $26,473,600.00. From this amount, total department of treasury appropriations for pension-related legacy costs are estimated at $23,877,500.00. Total department of treasury appropriations for retiree health care legacy costs are estimated at $2,596,100.00.
Sec. 949. (1) From the funds appropriated in part 1, the department of treasury may contract with private agencies to prevent the disbursement of fraudulent tax refunds. In addition to the amounts appropriated in part 1 to the department of treasury, there are appropriated amounts necessary to pay the costs of the contracts or to fund operations designed to reduce fraudulent income tax refund payments. The additional amount appropriated under this subsection must not be greater than $2,000,000.00. The appropriation to fund fraud prevention efforts under this subsection is from the fund or account to which the revenues being collected are recorded or dedicated.
(2) Not later than November 30, the department of treasury shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations. The report must include all of the following for the immediately preceding fiscal year:
The number of refund claims denied because of the fraud prevention operations.
The amount of refunds denied.
The costs of the fraud prevention operations.
Any other information that is pertinent to determining whether the authority under subsection (1) should be continued.
Sec. 949a. From the funds appropriated in part 1 for city income tax administration program, the department of treasury may expand its individual income tax administration for any additional cities that enter into service-level agreements with the department of treasury for this purpose. In addition to the funds appropriated in part 1, any additional local funds received as part of the service-level agreements are appropriated to the department for staffing and administration of the program.
Sec. 949b. Tax capture revenues collected in accordance with written agreements under the good jobs for Michigan program and transferred from the general fund for deposit into the good jobs for Michigan fund, including tax capture revenues collected for calculated payments from the good jobs for Michigan fund to authorized businesses and distributions to the MSF for administrative expenses, are appropriated in accordance with chapter 8D of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090g to 125.2090j. Sec. 949c. From the funds appropriated in part 1, funds must be expended in coordination with the department of agriculture and rural development to improve the timely processing and issuance of tax credits from the Michigan’s farmland and open space preservation program created under section 36109 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36109, for the Michigan’s farmland and open space preservation program under parts 361 and 362 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.36101 to 324.36116 and 324.36201 to 324.36207.
Sec. 949d. (1) From the funds appropriated in part 1 for financial review commission, the department of treasury shall continue financial review commission efforts in the current fiscal year. The purpose of the funding is to cover ongoing costs associated with the operation of the commission.
The department of treasury shall identify specific outcomes and performance measures for this initiative, including, but not limited to, the department of treasury’s ability to perform a critical fiscal review to ensure the city of Detroit does not reenter distress following its exit from bankruptcy and to ensure that the community district does not enter distress and maintains a balanced budget.
Not later than March 15, the department of treasury shall submit a report to the standard report recipients that includes both of the following:
A description of the specific outcomes and measures required in subsection (1).
The results and data related to these outcomes and measures.
Sec. 949e. From the funds appropriated in part 1 for the state essential services assessment program, the department of treasury shall administer the state essential services assessment program. The purpose of the program is to provide a phased-in replacement of locally collected personal property taxes on eligible manufacturing personal property. The program must provide the department of treasury with the ability to collect the state essential services assessment.
Sec. 949f. Revenue from the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436, related to counties with a population of more than 2,000,000 according to the 2000 federal decennial census is appropriated and must be distributed in accordance with section 12(2)(e) of the tobacco products tax act, 1993 PA 327, MCL 205.432.
Sec. 949h. Revenue from part 6 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27601 to 333.27605, is appropriated and must be distributed in accordance with part 6 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27601 to 333.27605.
Sec. 949i. Revenue from the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, is appropriated and must be distributed in accordance with the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.
Sec. 949j. All funds in the wrongful imprisonment compensation fund created in the wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751 to 691.1757, are appropriated and available for expenditure. Expenditures are limited to support wrongful imprisonment compensation payments under section 6 of the wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1756.
Sec. 949k. There is appropriated an amount equal to the tax captured revenues due under approved transformational brownfield plans created under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670.
Sec. 949m. From the funds appropriated in part 1, the Michigan infrastructure council shall plan, conduct, and contract for asset management improvement activities, including, but not limited to, any of the following:
Infrastructure data collection activities.
Asset manager training.
Development of a 30-year asset management plan for this state.
Assistance in asset management improvement projects, including maintaining an asset management portal.
Any other projects that promote improved asset management for infrastructure in this state.
Sec. 949n. In addition to the funds appropriated in part 1, the money in the fostering futures scholarship trust fund, including any money received as gifts or donations to the fostering futures scholarship trust fund, is appropriated and the department of treasury may issue payments in compliance with the fostering futures scholarship trust fund act, 2008 PA 525, MCL 722.1021 to 722.1031.
REVENUE SHARING
Sec. 950. The department of treasury shall distribute the funds appropriated in part 1 for constitutional revenue sharing to cities, villages, and townships, as required under section 10 of article IX of the state constitution of 1963. Revenue collected in accordance with section 10 of article IX of the state constitution of 1963 in excess of the amount appropriated in part 1 for constitutional revenue sharing is appropriated for distribution to cities, villages, and townships, on a population basis as required under section 10 of article IX of the state constitution of 1963.
Sec. 952. (1) The funds appropriated in part 1 for city, village, and township revenue sharing are for grants to cities, villages, and townships and must be distributed as provided in this section.
From the first $299,126,400.00 appropriated in part 1 for city, village, and township revenue sharing, each city, village, or township shall receive an amount equal to 100.0% of the revenue sharing payment for which the city, village, or township would have been eligible to receive under section 952 of article 5 of 2023 PA 119 rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952 of article 5 of 2023 PA 119 were satisfied.
The remaining amount appropriated in part 1 for city, village, and township revenue sharing after the distributions under subsection (2) must be distributed as follows:
1/3 shall be distributed as taxable value payments as provided under subsection (4).
1/3 must be distributed as unit type population payments as provided under subsection (5).
1/3 must be distributed as yield equalization payments as provided under subsection (6).
A taxable value payment must be made to each city, village, and township, determined as follows:
Determine the per capita taxable value for each city, village, and township by dividing the taxable value of that city, village, or township by the population of that city, village, or township.
Determine the statewide per capita taxable value by dividing the total taxable value of all cities, villages, and townships by the total population of all cities, villages, and townships.
Determine the per capita taxable value ratio for each city, village, and township by dividing the statewide per capita taxable value by the per capita taxable value for that city, village, or township.
Determine the adjusted taxable value population for each city, village, and township by multiplying the per capita taxable value ratio as determined under subdivision (c) for that city, village, or township by the population of that city, village, or township.
Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all cities, villages, and townships.
Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
Determine the taxable value payment for each city, village, and township by multiplying the result under subdivision (f) by the adjusted taxable value population for that city, village, or township.
A unit type population payment must be made to each city, village, and township, determined as follows:
Determine the unit type population weight factor for each city, village, and township as follows:
For a township with a population of 5,000 or less, 1.0.
For a township with a population of more than 5,000 but less than 10,001, 1.2.
Except as otherwise provided in subparagraph (xix), for a township with a population of more than 10,000 but less than 20,001, 1.44.
For a township with a population of more than 20,000 but less than 40,001, 4.32.
For a township with a population of more than 40,000 but less than 80,001, 5.18.
For a township with a population of more than 80,000, 6.22.
For a village with a population of 5,000 or less, 1.5.
For a village with a population of more than 5,000 but less than 10,001, 1.8.
For a village with a population of more than 10,000, 2.16.
For a city with a population of 5,000 or less, 2.5.
For a city with a population of more than 5,000 but less than 10,001, 3.0.
For a city with a population of more than 10,000 but less than 20,001, 3.6.
For a city with a population of more than 20,000 but less than 40,001, 4.32.
For a city with a population of more than 40,000 but less than 80,001, 5.18.
For a city with a population of more than 80,000 but less than 160,001, 6.22.
For a city with a population of more than 160,000 but less than 320,001, 7.46.
For a city with a population of more than 320,000 but less than 640,001, 8.96.
For a city with a population of more than 640,000, 10.75.
For a township that has a population of not less than 10,000 and certifies to the department of treasury that the township provides for or makes available all of the following, the township must receive the unit type population weight factor for a city with the same population:
Fire services.
Police services on a 24-hour basis either through contracting for or directly employing personnel.
Water services to 50% or more of its residents.
Sewer services to 50% or more of its residents.
Determine the adjusted unit type population for each city, village, and township by multiplying the unit type population weight factor for that city, village, or township as determined under subdivision (a) by the population of the city, village, or township.
Determine the total statewide adjusted unit type
population, which is the sum of the adjusted unit type population for all cities, villages, and townships.
Determine the unit type population payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted unit type population as determined under subdivision (c).
Determine the unit type population payment for each city, village, and township by multiplying the result under subdivision (d) by the adjusted unit type population for that city, village, or township.
A yield equalization payment must be made to each city, village, and township in an amount that is sufficient to provide the guaranteed tax base for a local tax effort, but not to exceed 0.02. The payment must be determined as follows:
The guaranteed tax base is the maximum combined state and local per capita taxable value that can be guaranteed in a state fiscal year to each city, village, and township for a local tax effort, not to exceed 0.02, if an amount equal to the amount described in subsection (3)(c) is distributed to cities, villages, and townships whose per capita taxable value is below the guaranteed tax base.
The full yield equalization payment to each city, village, and township is the product of the amounts determined under subparagraphs (i) and (ii):
An amount greater than zero that is equal to the difference between the guaranteed tax base determined in subdivision (a) and the per capita taxable value of the city, village, or township.
The local tax effort of the city, village, or township, not to exceed 0.02, multiplied by the population of that city, village, or township.
For purposes of this section, any city, village, or township that completely merges with another city, village, or township must be treated as a single entity, so that when determining the eligible city, village, and township revenue sharing payment under section 952 of article 5 of 2023 PA 119 for the combined single entity, the city, village, and township revenue sharing amount that each of the merging local units of government was eligible to receive under section 952 of article 5 of 2023 PA 119 is summed.
Sec. 954. (1) Cities, villages, and townships receiving a payment under section 952(2) and counties receiving a payment under section 955(2) shall receive 1/6 of their total payment on the last business day of October, December, February, April, June, and August. On the last business day of February 2026, cities, villages, and townships receiving a payment under section 952(3) and counties receiving a payment under section 955(3) shall receive 50% of the estimated payment to be received under section 952(3) or 955(3), as applicable. On the last business day of June 2026, cities, villages, and townships receiving a payment under section 952(3) and counties receiving a payment under 955(3) shall receive any remaining payment calculated under section 952(3) or 955(3), as applicable.
Payments distributed under section 952 or section 955 may be withheld in accordance with sections 17a and 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.
If a city, village, or township that receives a payment under section 952 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the city, village, or township must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under section 952 and the amount the city, village or township would have been eligible to receive under section 952 of article 5 of 2024 PA 121, rounded to the nearest dollar. A city, village, or township that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
If a county that receives a payment under section 955 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the county must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under section 955 and the amount the county would have been eligible to receive under section 955 of article 5 of 2024 PA 121, rounded to the nearest dollar. A county that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
Sec. 955. (1) The funds appropriated in part 1 for county revenue sharing are for grants to counties and must be distributed as provided in this section.
From the first $261,069,700.00 appropriated in part 1, each county shall receive an amount equal to 100.0% of the revenue sharing payment for which the county would have been eligible to receive under sections 952(3) and 955 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under sections 952 and 955 of article 5 of 2023 PA 119 were satisfied.
From the remaining amount appropriated in part 1 for county revenue sharing after the distributions under subsection (2), a taxable value payment must be made to each county, determined as follows:
Determine the per capita taxable value for each county by dividing the taxable value of that county by the population of that county.
Determine the statewide per capita taxable value by dividing the total taxable value of all counties by the total population of all counties.
Determine the per capita taxable value ratio for each county by dividing the statewide per capita taxable value by the per capita taxable value for that county.
Determine the adjusted taxable value population for each county by multiplying the per capita taxable value ratio as determined under subdivision (c) for that county by the population of that county.
Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all counties.
Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
Determine the taxable value payment for each county by multiplying the result under subdivision (f) by the adjusted taxable value population for that county.
Sec. 956. (1) From the funds appropriated in part 1 for financially distressed cities, villages, or townships, the department of treasury shall create and operate a grant program to award grants to cities, villages, and townships that have 1 or more conditions that indicate probable financial distress, as determined by the department of treasury. A city, village, or township with 1 or more conditions that indicate probable financial distress may apply in a manner determined by the department of treasury for a grant to pay for specific projects or services that move the city, village, or township toward financial stability. Grants must be used for specific projects or services that move the city, village, or township toward financial stability. The city, village, or township must use the grants under this section to do 1 or more of the following:
Make payments to reduce unfunded accrued liability.
Repair or replace critical infrastructure and equipment owned or maintained by the city, village, or township.
Reduce debt obligations.
Pay for costs associated with a transition to shared services with another jurisdiction.
Administer other projects that move the city, village, or township toward financial stability.
The department of treasury shall award not more than $2,000,000.00 to any city, village, or township under this section.
Not later than March 31, the department of treasury shall submit a report to the standard report recipients that includes all of the following for each grant recipient.
The name of the grant recipient.
The date the grant was approved.
The amount of the grant.
A description of the project or projects that will be paid by the grant.
The unexpended funds appropriated in part 1 for financially distressed cities, villages, or townships are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide assistance to financially distressed cities, villages, and townships under this section.
The projects will be accomplished by grants to cities, villages, and townships approved by the department of treasury.
The total estimated cost of all projects is $2,500,000.00.
The tentative completion date is September 30, 2030.
Sec. 957. A term that is defined in the Glenn Steil state revenue sharing act, 1971 PA 140, MCL 141.901 to 141.921, has the same meaning when used in sections 950 to 956.
Sec. 959. (1) The department of treasury shall distribute funds appropriated in part 1 for public safety revenue sharing grants as provided for in subsection (9) and as follows:
$3,250,000.00 to the MDHHS to establish and administer a grant program to award funds to community violence intervention programs.
$35,062,500.00 for a public safety assistance payment to each city, village, or township. The public safety assistance payment must be calculated as follows:
Determine the average violent crime count for each city, village, and township by adding the 2 highest annual violent crime counts for each city, village, and township from the 3 most recently available annual crime reports published by the MDSP as of the first day of the current fiscal year and dividing by 2.
Determine the statewide total violent crime count by summing the average violent crime count for each city, village, and township as determined under subparagraph (i).
Determine the proportional factor for each city, village, and township by dividing the average violent crime count for each city, village, and township as determined under subparagraph (i) by the statewide total violent crime count determined under subparagraph (ii).
Multiply the proportional factor determined in subparagraph (iii), for each city, village, and township by the total amount available for distribution under this subdivision, and round to the nearest dollar.
A public safety assistance payment to a city, village, or township as determined under subsection (1)(b) is limited to not more than 25% of the total amount available for distribution under subsection (1)(b).
All of the following apply to a distribution under subsection (1)(b):
A city, village, or township must use the distribution only for operational and capital expenditures that serve the purposes of public safety.
Not less than 75% of a public safety assistance payment distributed under subsection (1)(b) to a city, village, or township must be used to fund, either directly or indirectly through a subgrant to another governmental entity, a law enforcement agency or law enforcement officers as defined in section 2 of the Michigan commission on law enforcement standards act, 1965 PA 203, MCL 28.602.
Not more than 25% of a public safety assistance payment distributed under subsection (1)(b) to a city, village, or township must be used to fund other non-law-enforcement-related public safety purposes, which include, but are not limited to: public safety initiatives to improve recruitment or retention efforts; training programs; equipment purchases; programs designed to reduce identified risks to public safety; crime diversion programs; operational emergency medical or firefighter services; or capital improvements to public safety buildings or structures. All local public safety initiative expenses must be related to public safety and designed to reduce identified risks to public safety and cannot include unproven intervention solutions to community violence.
A distribution made under subsection (1)(b) must not be used for the following nonoperating expenses:
Pension and other post employee benefit (OPEB) payments.
Lawsuits and claims payments.
Debt service payments.
The acquisition or use of a vehicle weighing more than 15,000 pounds that is designed or used for a tactical police purpose.
The acquisition or use of facial recognition technology.
The acquisition or use of a chemical weapon.
A city, village, or township may subgrant all or part of the distribution under subsection (1)(b) if the subgrant is used for the purpose of public safety as described under subsection (3).
(5) Subject to subsections (6), (7), and (8), not later than November 30, the director of the MDSP shall provide the department of treasury with a certified list that contains all of the following:
Base crime level.
Current violent crime counts.
Current violent crime rates, as determined by the director of the MDSP.
The current violent crime data described in subsection (5)(b) and (c) mean the calendar year annual violent crime data for each city, village, and township received and finalized by the MDSP during the immediately preceding state fiscal year and the 2 immediately preceding calendar years before the immediately preceding state fiscal year.
Crimes reported by a city, village, township, or reported by a county on behalf of the city, village, or township, must be included in the certified list under subsection (5), but crimes reported by other authorities must be omitted from the certified list under subsection (5).
The certified list under subsection (5) must contain all cities, villages, and townships in this state and must report a zero for cities, villages, and townships that did not submit crime data.
$11,687,500.00 must be used for public safety assistance payments to counties. The payment to each county must be calculated by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under section 955(3)(e) and multiplying the result by the adjusted taxable value population for that county as determined under section 955(3)(d). All of the following apply to a distribution made under this subsection:
A county must use the distribution only for operational and capital expenditures that serve the purposes of public safety.
Not less than 75% of a public safety assistance payment distributed to a county under this subsection must be used to fund, either directly or indirectly through a subgrant to another governmental entity, a law enforcement agency or law enforcement officers as defined in section 2 of the Michigan commission on law enforcement standards act, 1965 PA 203, MCL 28.602.
Not more than 25% of a public safety assistance payment distributed to a county under this subsection must be used to fund other non-law-enforcement-related public safety purposes, which include, but are not limited to: public safety initiatives to improve recruitment or retention efforts; training programs; equipment purchases; programs designed to reduce identified risks to public safety; crime diversion programs; operational emergency medical or firefighter services; or capital improvements to public safety buildings or structures. All local public safety initiative expenses must be related to public safety and designed to reduce identified risks to public safety and cannot include unproven intervention solutions to community violence.
A distribution made under this subsection must not be used for the following nonoperating expenses:
Pension and other post employee benefit (OPEB) payments.
Lawsuits and claims payments.
Debt service payments.
The acquisition or use of a vehicle weighing more than 15,000 pounds that is designed or used for a tactical police purpose.
The acquisition or use of facial recognition technology.
The acquisition or use of a chemical weapon.
A county may subgrant all or part of the distribution under subsection (9) if the subgrant is used for the purpose of public safety as described in subsection (9).
As used in subsections (1) to (8):
“Base crime level” means the average of a city, village, or township’s 2 highest annual rates of violent crime, as certified by the director of the MDSP and determined by the annual crime reports published by the MDSP in the 3 calendar years immediately preceding the current calendar year.
“Population” means the counts, as defined by the Federal Bureau of Investigation and used by the director of the MDSP, to determine the population for each city, village, and township.
“Violent crime” means that term as defined by the director of the MDSP in accordance with the department’s incident crime reporting program and the corresponding annual crime reports.
“Violent crime count” means the number of violent crimes based on victim counts, as certified by the director of the MDSP. When a victim is connected to multiple offenses, the victim is counted under the highest-ranked offense, as defined by the director of the MDSP.
“Violent crime rate” means the number of crimes per 100,000 people, determined by dividing a particular city, village, or township violent crime count by the population, then multiplying by 100,000 and rounding to the nearest whole number.
As used in this section:
“Chemical weapon” means a munition or device that is specifically designed to cause death or other harm through a toxic chemical that would be released as a result of the employment of the munition or device.
“Facial recognition technology” means an automated or a semiautomated technological process that assists in identifying or verifying an individual based on the individual’s face.
It is the intent of the legislature that $50,000,000.00 be appropriated for the purposes outlined in this section in fiscal years 2025-2026, 2026-2027, and 2027-2028.
BUREAU OF STATE LOTTERY
Sec. 960. In addition to the funds appropriated in part 1 to the bureau of state lottery, there is appropriated from state lottery fund revenues the amount necessary for, and directly related to, implementing and operating lottery games under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47, and activities under the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.152, including expenditures for contractually mandated payments for vendor commissions, contractually mandated payments for instant tickets intended for resale, the contractual costs of providing and maintaining the online system communications network, and incentive and bonus payments to lottery retailers.
Sec. 964. For the bureau of state lottery, there is appropriated 1% of the lottery’s immediately preceding fiscal year’s gross sales for promotion and advertising.
MICHIGAN GAMING CONTROL BOARD
Sec. 970. As used in sections 971 to 979:
“Compulsive gaming prevention fund” means the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.
“Fantasy contest fund” means the fantasy contest fund created in section 16 of the fantasy contests consumer protection act, 2019 PA 157, MCL 432.516.
“First responder presumed coverage fund” means the first responder presumed coverage fund created in section 405 of the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.405.
“Internet gaming fund” means the internet gaming fund created in section 16 of the lawful internet gaming act, 2019 PA 152, MCL 432.316.
“Internet sports betting fund” means the internet sports betting fund created in section 16 of the lawful sports betting act, 2019 PA 149, MCL 432.416.
Sec. 971. (1) From the revenue collected by the Michigan gaming control board from the total annual assessment of each casino licensee, funds are appropriated and must be distributed as described in section 12a(5) of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212a.
The revenue collected in the internet sports betting fund is appropriated and must be distributed in accordance with the lawful sports betting act, 2019 PA 149, MCL 432.401 to 432.419.
The revenue collected in the internet gaming fund is appropriated and must be distributed in accordance with the lawful internet gaming act, 2019 PA 152, MCL 432.301 to 432.322, and the Traxler-McCauley- Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.152.
Sec. 972. After all other required expenditures described in section 16(3) of the fantasy contests consumer protection act, 2019 PA 157, MCL 432.516, section 16(4) of the lawful internet gaming act, 2019 PA 152, MCL 432.316, and section 16(4) of the lawful sports betting act, 2019 PA 149, MCL 432.416 are made, any money remaining in the fantasy contest fund, internet gaming fund, and internet sports betting fund is appropriated and must be deposited in the state school aid fund as described in section 16(3)(b) of the fantasy contests consumer protection act, 2019 PA 157, MCL 432.516, section 16(4) of the lawful internet gaming act, 2019 PA 152, MCL 432.316, and section 16(4) of the lawful sports betting act, 2019 PA 149, MCL 432.416.
Sec. 973. (1) Funds appropriated in part 1 for local government programs may be used to provide assistance to a local revenue sharing board referenced in an agreement authorized by the Indian gaming regulatory act, Public Law 100-497.
A local revenue sharing board described in subsection (1) shall comply with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
A county treasurer may receive and administer funds on behalf of a local revenue sharing board. Funds appropriated in part 1 for local government programs may be used to audit local revenue sharing board funds held by a county treasurer. This section does not limit the ability of local units of government to enter into agreements with federally recognized Indian tribes to provide financial assistance to local units of government or to jointly provide public services.
A local revenue sharing board described in subsection (1) shall comply with all applicable provisions of any agreement authorized by the Indian gaming regulatory act, Public Law 100-497, in which the local revenue sharing board is referenced, including, but not limited to, the disbursal of tribal casino payments received in accordance with applicable provisions of the tribal-state class III gaming compact under which those funds are received.
The director of the MDSP and the executive director of the Michigan gaming control board may assist the local revenue sharing boards in determining allocations to be made to local public safety organizations.
Not later than September 30, the Michigan gaming control board shall submit a report to the standard report recipients and the senate and house of representatives standing committees on appropriations on the receipts and distribution of revenues by local revenue sharing boards.
Sec. 974. If revenues collected in the state services fee fund created in section 12a of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212a, are less than the amounts appropriated from the state services fee fund, available revenues must be used to fully fund the appropriation in part 1 for casino gaming regulation activities before distributions are made to other state departments and agencies. If the remaining revenue in the state services fee fund is insufficient to fully fund appropriations to other state departments or agencies, the shortfall must be distributed proportionally among those departments and agencies.
Sec. 975. In expending the funds appropriated in part 1 for advertising for responsible gaming, the Michigan gaming control board shall engage with MDHHS on strategies to support addiction prevention and education efforts in addition to advertising for responsible gaming. Not later than September 1, the Michigan gaming control board shall submit a report to the standard report recipients on the expenditures and programming funded from the appropriations in part 1 for advertising for responsible gaming.
Sec. 976. The executive director of the Michigan gaming control board may pay rewards of not more than
$5,000.00 to a person who provides information that results in the arrest and conviction on a felony or misdemeanor charge for a crime that involves the horse racing industry. A reward paid under this section must be paid out of the appropriation in part 1 for the racing commission.
Sec. 977. All appropriations from the equine industry development fund created in section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320, except for the racing commission appropriations, must be reduced proportionately if revenues to the equine industry development fund decline during the current fiscal year to a level lower than the amount appropriated in part 1.
Sec. 978. The Michigan gaming control board shall use actual expenditure data in determining the actual regulatory costs of conducting racing dates and shall submit a report of that data to the standard report recipients and the senate and house of representatives appropriations subcommittees on agriculture. The Michigan gaming control board may not be reimbursed for more than the actual regulatory cost of conducting race dates. In determining actual costs, the Michigan gaming control board shall take into account that each specific breed of horse may require different regulatory mechanisms.
Sec. 979. From the funds appropriated in part 1 for millionaire party regulation, the Michigan gaming control board may receive and expend internet gaming fund revenue in an amount that is not more than the amount appropriated in part 1 for necessary expenses incurred in the licensing and regulation of millionaire parties under article 2 of the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.132 to
432.152. Any unused internet gaming fund revenues are subject to the distribution requirements in section 16 of the lawful internet gaming act, 2019 PA 152, MCL 432.316. Not later than March 1, the Michigan gaming control board shall submit a report to the standard report recipients that includes all of the following:
The total expenditures related to the licensing and regulating of millionaire parties.
The steps taken to ensure charities are receiving revenue due to them.
A description of the progress on promulgating rules to ensure compliance with the Traxler-McCauley- Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.152.
Any enforcement actions taken.
ONE-TIME APPROPRIATIONS
Sec. 991. (1) The department of treasury shall distribute and award funds appropriated in part 1 for public safety constituency grants as provided in subsection (2) and as follows:
$17,000,000.00 must be awarded to eligible offices of county prosecutors to reduce the average caseloads per attorney. To be eligible to receive a grant, all of the following criteria must be met:
The office of a county prosecutor must receive at a minimum the same amount of funding from the county for the fiscal year ending in 2026 as the office of county prosecutor received from the county in the immediately preceding fiscal year.
The county is 1 of the 15 counties with the highest violent crime rate per 1,000 residents as determined for each county. The violent crime rate is calculated by dividing the total violent crime incidents reported for the county according to the most recent annual crime report published by the MDSP that is available as of April 1 of the previous state fiscal year by the total population of the county according to the most recent federal decennial census and then multiplying by 1,000.
The office of the county prosecutor must apply for a grant in a form and manner determined by the department of treasury. The office of the county prosecutor must include with its application a proposed budget designating that grant proceeds will support only costs that reduce the average caseload per attorney.
The office of the county prosecutor submits a report including, at a minimum, the current number of staff, average caseload per attorney, and the local funding that supports the office of the county prosecutor.
The amount of the grant to each office of a county prosecutor under subdivision (a) is the greater of either of the following and must be adjusted in accordance with subdivisions (c) and (d) as needed:
The amount received under Section 991 of article 5 of 2023 PA 119.
An amount equal to the product of $7.50 multiplied by the population of the county in which the office of the county prosecutor is located, according to the most recent federal decennial census.
If there is any money remaining after determining the initial grant award amounts under subdivision (b), each office of county prosecutor that meets all the requirements of subdivision (a) must be awarded an additional amount determined by dividing the remaining amount of funding available by the sum of the populations of each county that meets all the requirements of subdivision (a) and then multiplying the quotient by the population of that county.
If the total amount appropriated does not support the full grant amounts determined under subdivision (b), then the amount awarded to each county prosecutor that meets all of the requirements of subdivision (a) must be reduced. The amount reduced must be determined by dividing the total amount determined under subdivision (b) that exceeds the appropriation amount under subdivision (a) by the sum of the population of each county that meets all the requirements under subdivision (a) and then multiplying the quotient by the population of that county.
The department of treasury shall not use any of the funds appropriated under this subsection for administration.
Not later than August 31, the department of treasury shall submit a report to the standard report recipients that includes all of the following:
A listing of all the offices of a county prosecutor that received a grant under this subsection.
The information required under subdivision (a)(iv).
The amount awarded to each office of a county prosecutor described under subdivision (a), including either of the following, if applicable:
The amount of any increase under subdivision (c).
The amount of any reduction under subdivision (d).
$8,000,000.00 must be distributed by the department of treasury to local units of government to assist with purchasing fire equipment or fire gear for firefighters. From this amount, at least $4,000,000.00 must
be distributed to local units of government with predominately on-call, part-time, or volunteer fire departments. The department of treasury shall award grants to local units of government on a competitive basis. Local units of government must submit a grant application in a form and manner determined by the department of treasury. An application must include a proposed budget designating that any awarded funds will be used to support only costs for purchasing fire equipment or fire gear for firefighters that are on-call, part-time, or volunteer. Grant funding for a single local unit of government under this subsection must not exceed $50,000.00. As used in this subsection:
“Firefighter” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362.
“Fire department” means an organized fire department as that term is defined in section 1 of the fire prevention code, 1941 PA 207, MCL 29.1.
“Fire equipment” includes, but is not limited to, cardiac monitors for advanced life support; extrication equipment; ventilation equipment, including, but not limited to, fans, saws, chainsaws, rotary saws, axes, and pike polls. Fire equipment does not include turnout gear or personal protection equipment.
“Full-time” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362. Full-time does not include part-paid time or nonpaid time.
“Local unit of government” means a city, village, township, or tribal government or an authority or commission established by a county, village, city, or township by resolution, motion, or charter.
“Paid on-call” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362. Paid on-call includes part-paid time.
“Part-time” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362. Part-time includes part-paid time.
“Predominately on-call, part-time or volunteer” means a fire department where more than 50% of the firefighters are part time, volunteer, or paid on-call firefighters and registered as having more than 50% nonpaid or part-paid firefighters as described in the fire service directory established by MDLARA under the fire prevention code, 1941 PA 207, MCL 29.1 to 29.33.
“Tribal Government” means the government of any Indian tribe, band, nation, or other organized group or community of Indians that is recognized as eligible by the United States Secretary of the Interior for the special programs and services provided by the United States to Indians because of their status as Indians and is recognized as possessing powers of self-government.
“Volunteer” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362.
“Volunteer firefighter” or “paid on-call firefighter” means that term as defined in section 2 of the firefighters training council act, 1966 PA 291, MCL 29.362. Volunteer firefighter or paid on-call firefighter includes a nonpaid firefighter. Volunteer or paid on-call firefighter does not include full-time firefighters.
The unexpended funds appropriated in part 1 for public safety constituency grants are designated as a work project appropriation. Unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide funding to county prosecutor offices and for firefighter equipment grants.
The project will be accomplished by utilizing state employees, contracts with vendors, or local partners.
The estimated cost of the project is $25,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 992. (1) From the funds appropriated in part 1 for public safety revenue sharing grants, the department of treasury shall distribute revenues as provided for in subsections (2) and (3) and as follows:
$10,000,000.00 for a public safety academy assistance grant program. The funds appropriated under this subsection must be used by the Michigan commission on law enforcement standards to do all of the following:
Administer a competitive public safety academy assistance scholarship program that provides police academy scholarships of not more than $20,000.00 per recruit on a first-come, first-served basis to an individual who meets the requirements of subdivision (b) and any necessary requirements to enroll in a police academy program.
Pay the salaries of training academy recruits from local public safety agencies or to pay the salaries of police cadets who are receiving tuition assistance under subparagraph (i), and academy tuition and eligible related costs as determined by the Michigan commission on law enforcement standards.
In order to receive a scholarship under subdivision (a), an individual must have applied to at least 1 law enforcement basic training academy approved by the Michigan commission on law enforcement standards, have completed an interview, and received approval for the scholarship from the public safety agency that the individual intends to serve.
For the purposes of subdivision (a), not more than 25 scholarships may be approved for a particular public safety agency.
The Michigan commission on law enforcement standards may use not more than $140,000.00 for administration of the scholarship program established and administered by the Michigan commission on law enforcement standards under subdivision (a).
The Michigan commission on law enforcement standards may set any necessary additional requirements for the distribution of the funds disbursed under subdivision (a).
$7,500,000.00 must be distributed to cities, villages, and townships for public safety assistance payments as described in section 959(1)(b).
$2,500,000.00 must be distributed to counties for public safety assistance payments as described in section 959(9).
The unexpended funds appropriated in part 1 for public safety revenue sharing grants are designated as a work project appropriation. Unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditure under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide public safety revenue sharing grants.
The project will be accomplished by utilizing state employees, contracts with vendors, or local partners.
The estimated cost of the project is $20,000,000.00.
The tentative completion date is September 30, 2030.
STATE BUILDING AUTHORITY
Sec. 1100. (1) Subject to section 242 of the management and budget act, 1984 PA 431, MCL 18.1242, and on the approval of the state building authority, the department of treasury may expend from the general fund of this state during the fiscal year an amount necessary to meet the cash flow requirements of those state building authority projects solely for lease to a state agency identified in both part 1 and this section, and for which state building authority bonds or notes have not been issued, and for the sole acquisition by the state building authority of equipment and furnishings for lease to a state agency as permitted by 1964 PA 183, MCL 830.411 to 830.425, for which the issuance of bonds or notes is authorized by an appropriations PA that is effective for the immediately preceding fiscal year. Any general fund advances for which state building authority bonds have not been issued must bear an interest cost to the state building authority at a rate that is not greater than the rate earned by the state treasurer’s common cash fund during the period in which the advances are outstanding and are repaid to the general fund of this state.
On sale of bonds or notes for the projects identified in part 1 or for equipment as authorized by an appropriations PA and in this section, the state building authority shall credit the general fund of this state an amount equal to the amount expended from the general fund plus interest, if any, as described in this section.
For state building authority projects for which bonds or notes have been issued and on the request of the state building authority, the state treasurer shall make advances without interest from the general fund as necessary to meet cash flow requirements for the projects. The state building authority shall reimburse the state treasurer for the advances when the investments earmarked for the financing of the projects mature.
If a project identified in part 1 is terminated after final design is complete, advances made on behalf of the state building authority for the costs of final design must be repaid to the general fund in a manner recommended by the director of the state building authority.
Sec. 1102. (1) The state building authority shall not release state building authority funding to a university or community college to finance the construction or renovation of a facility that collects revenue in excess of money required for the operation of that facility unless the university or community college agrees to use that excess revenue to reimburse the state building authority. The excess revenue received by the state building authority as reimbursement must be credited to the general fund to offset rent obligations associated with the retirement of bonds issued for the applicable facility. The auditor general shall annually identify and audit the facilities that are subject to this section. Costs associated with the administration of the audit must be charged against money received by the state building authority as reimbursement under this section.
(2) As used in this section, “revenue” includes state appropriations, facility opening money, other state aid, indirect cost reimbursement, and other revenue generated by the activities of the facility.
Sec. 1103. Not later than October 15, the state building authority shall submit a report to the standard report recipients and the JCOS regarding the status of construction projects associated with state building authority bonds as of the end of the immediately preceding fiscal year. Not later than 30 days after a refinancing or restructuring bond issue is sold, the state building authority shall submit a report to the standard report recipients and the JCOS regarding the status of construction projects associated with that bond issue. Each report must include all of the following:
A list of all completed construction projects for which state building authority bonds have been sold, and which bonds are currently active.
A list of all projects under construction for which sale of state building authority bonds is pending.
A list of all projects authorized for construction or identified in an appropriations act for which approval of schematic/preliminary plans or total authorized cost is pending that have state building authority bonds identified as a source of financing.
REVENUE STATEMENT
Sec. 1201. In accordance with section 18 of article V of the state constitution of 1963, fund balances and estimates are presented in the following statement:
BUDGET RECOMMENDATIONS BY OPERATING FUNDS
(Amounts in millions) Fiscal Year 2025-2026
Beginning Balance | Estimated Revenue | Ending Balance | |
OPERATING FUNDS | |||
General fund/general purpose | 721.6 | 14,650.4 | 11.7 |
School aid fund | 1,002.6 | 18,891.4 | 18.6 |
Federal aid | 0.0 | 28,767.0 | 0.0 |
Transportation funds | 0.0 | 8,583.1 | 0.0 |
Special revenue funds | 2,788.3 | 8,824.6 | 2,103.8 |
Other funds | 2,144.7 | 129.0 | 2,273.7 |
TOTALS | $6,657.2 | $79,845.5 | $4,407.8 |
ARTICLE 6
DEPARTMENT OF HEALTH AND HUMAN SERVICES PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of health and human services for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF HEALTH AND HUMAN SERVICES | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 15,108. 5 | ||
Average population | 798.0 | ||
GROSS APPROPRIATION | $ | 30,025,568,200 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 15,448,000 | ||
ADJUSTED GROSS APPROPRIATION | $ | 30,010,120,200 | |
Federal revenues: | |||
Capped federal revenues | 527,619,500 | ||
Social security act, temporary assistance for needy families | 592,213,400 | ||
Total other federal revenues | 19,656,273,800 | ||
Special revenue funds: | |||
Total local revenues | 183,204,100 | ||
Total private revenues | 178,884,400 | ||
Michigan merit award trust fund | 86,768,700 | ||
Total other state restricted revenues | 1,652,908,800 | ||
State general fund/general purpose | $ | 7,132,247,500 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 1,012.4 | ||
Unclassified salaries—FTEs | 6.0 | $ | 1,474,500 |
Administrative hearings officers | 9,457,100 | ||
Child welfare institute—FTEs | 58.0 | 9,962,700 | |
Coordinated children’s healthcare policy and supports—FTEs | 74.0 | 22,663,300 | |
Demonstration projects—FTEs | 7.0 | 6,776,900 | |
Departmental administration and management—FTEs | 646.4 | 109,337,700 | |
Legal services | 100,000 | ||
Office of inspector general—FTEs | 203.0 | 29,590,100 | |
Property management | 65,006,000 | ||
Terminal leave payments | 7,091,300 | ||
Training and program support—FTEs | 24.0 | 3,660,200 | |
Worker’s compensation | 7,922,300 | ||
GROSS APPROPRIATION | $ | 273,042,100 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of lifelong education, advancement, and potential | $ | 1,868,400 | |
IDG from department of technology, management, and budget - office of retirement services | 600 | ||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 27,517,900 | ||
Capped federal revenues | 19,662,400 | ||
Total other federal revenues | 90,086,100 | ||
Special revenue funds: | |||
Total local revenues | 86,000 | ||
Total private revenues | 4,063,300 | ||
Total other state restricted revenues | 1,340,000 | ||
State general fund/general purpose | $ | 128,417,400 | |
Sec. 103. CHILD SUPPORT ENFORCEMENT | |||
Full-time equated classified positions | 186.7 | ||
Child support enforcement operations—FTEs | 180.7 | $ | 30,634,900 |
Child support incentive payments | 24,409,600 | ||
Legal support contracts | 132,600,300 | ||
State disbursement unit—FTEs | 6.0 | 7,391,200 | |
GROSS APPROPRIATION | $ | 195,036,000 | |
Appropriated from: | |||
Federal revenues: | |||
Capped federal revenues | 16,273,100 | ||
Total other federal revenues | 153,119,700 | ||
State general fund/general purpose | $ | 25,643,200 | |
Sec. 104. COMMUNITY SERVICES AND OUTREACH | |||
Full-time equated classified positions | 53.0 | ||
Bureau of community services and outreach—FTEs | 24.0 | $ | 3,622,700 |
Community services and outreach administration—FTEs | 17.0 | 6,865,900 | |
Community services block grant | 37,170,600 | ||
Diaper assistance grant | 6,404,400 | ||
Homeless programs—FTE | 1.0 | 34,782,100 | |
Housing and support services | 13,031,000 | ||
Kids’ food basket | 525,000 | ||
Runaway and homeless youth grants | 13,126,100 | ||
School success partnership program | 1,525,000 | ||
Senior university | 400,000 | ||
Weatherization assistance | 21,860,300 | ||
Weatherization assistance IIJA—FTEs | 11.0 | 40,013,700 | |
GROSS APPROPRIATION | $ | 179,326,800 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 31,150,400 | ||
Capped federal revenues | 109,646,900 | ||
Total other federal revenues | 14,360,100 | ||
State general fund/general purpose | $ | 24,169,400 | |
Sec. 105. CHILDREN’S SERVICES AGENCY - CHILD WELFARE | |||
Full-time equated classified positions | 3,813.2 | ||
Adoption subsidies | $ | 233,486,300 | |
Adoption support services—FTEs | 10.0 | 41,917,700 | |
Attorney general contract | 5,191,100 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Child abuse and neglect - children’s justice act—FTE | 1.0 | $ | 630,100 |
Child care fund | 307,889,100 | ||
Child care fund - indirect cost allotment | 3,500,000 | ||
Child protection | 2,050,300 | ||
Child welfare administration travel | 390,000 | ||
Child welfare licensing—FTEs | 53.0 | 7,680,900 | |
Child welfare local office staff - noncaseload compliance—FTEs | 353.0 | 43,144,700 | |
Child welfare medical/psychiatric evaluations | 7,928,500 | ||
Children’s protective services - caseload staff—FTEs | 1,461.0 | 176,223,900 | |
Children’s protective services supervisors—FTEs | 387.0 | 50,201,200 | |
Children’s services administration—FTEs | 205.2 | 29,166,900 | |
Children trust Michigan—FTEs | 12.0 | 5,208,200 | |
Contractual services, supplies, and materials | 9,852,000 | ||
Court-appointed special advocates | 2,250,000 | ||
Education planners—FTEs | 15.0 | 1,995,400 | |
Family preservation and prevention services administration—FTEs | 9.0 | 1,443,400 | |
Family preservation programs—FTEs | 34.0 | 60,586,300 | |
Foster care payments | 357,906,200 | ||
Foster care services - caseload staff—FTEs | 838.0 | 101,190,300 | |
Foster care services supervisors—FTEs | 227.0 | 32,351,400 | |
Guardianship assistance program | 13,083,500 | ||
Interstate compact | 179,600 | ||
Peer coaches—FTEs | 45.5 | 6,579,600 | |
Permanency resource managers—FTEs | 28.0 | 3,666,600 | |
Prosecuting attorney contracts | 8,142,800 | ||
Second line supervisors and technical staff—FTEs | 126.0 | 20,609,200 | |
Settlement monitor | 2,709,800 | ||
Strong families/safe children | 11,100,000 | ||
Title IV-E compliance and accountability office—FTEs | 4.0 | 477,200 | |
Youth in transition—FTEs | 4.5 | 8,202,200 | |
GROSS APPROPRIATION | $ | 1,556,934,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of lifelong education, advancement, and potential | 244,400 | ||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 293,208,200 | ||
Capped federal revenues | 103,713,900 | ||
Total other federal revenues | 279,743,000 | ||
Special revenue funds: | |||
Local funds - county chargeback | 45,457,000 | ||
Private - collections | 1,226,900 | ||
Children’s trust fund | 2,895,300 | ||
Total other state restricted revenues | 3,500,000 | ||
State general fund/general purpose | $ | 826,945,700 | |
Sec. 106. CHILDREN’S SERVICES AGENCY - JUVENILE JUSTICE | |||
Full-time equated classified positions | 190.5 | ||
Bay Pines Center—FTEs | 53.0 | $ | 7,706,100 |
Committee on juvenile justice administration—FTEs | 2.5 | 372,200 | |
Committee on juvenile justice grants | 3,000,000 | ||
Community support services—FTEs | 3.0 | 2,520,200 | |
County juvenile officers | 3,977,600 | ||
Juvenile justice, administration and maintenance—FTEs | 21.0 | 5,551,900 | |
Michigan youth treatment center—FTEs | 111.0 | 16,260,600 | |
GROSS APPROPRIATION | $ | 39,388,600 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Federal revenues: | |||
Capped federal revenues | $ | 7,754,800 | |
Total other federal revenues | 268,200 | ||
Special revenue funds: | |||
Local funds - state share education funds | 1,527,500 | ||
Local funds - county chargeback | 10,484,300 | ||
State general fund/general purpose | $ | 19,353,800 | |
Sec. 107. PUBLIC ASSISTANCE | |||
Full-time equated classified position | 1.0 | ||
Emergency services local office allocations | $ | 14,313,500 | |
Family independence program | 67,315,300 | ||
Family independence program - clothing allowance | 10,000,000 | ||
Family independence program - child supplemental payment | 23,240,100 | ||
Food assistance program benefits | 3,499,778,300 | ||
Indigent burial | 2,684,700 | ||
Low-income home energy assistance program | 174,951,600 | ||
Michigan agricultural surplus system | 12,045,000 | ||
Michigan energy assistance program—FTE | 1.0 | 100,000,000 | |
Prenatal and infant support program | 20,000,000 | ||
Refugee assistance program | 7,954,200 | ||
State disability assistance payments | 5,060,500 | ||
State supplementation | 55,415,900 | ||
GROSS APPROPRIATION | $ | 3,992,759,100 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 118,727,800 | ||
Capped federal revenues | 182,905,800 | ||
Total other federal revenues | 3,495,068,300 | ||
Special revenue funds: | |||
Child support collections | 8,162,100 | ||
Low-income energy assistance fund | 100,000,000 | ||
Public assistance recoupment revenue | 4,793,300 | ||
Supplemental security income recoveries | 2,001,800 | ||
State general fund/general purpose | $ | 81,100,000 | |
Sec. 108. LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES | |||
Full-time equated classified positions | 5,506.5 | ||
Administrative support workers—FTEs | 127.0 | $ | 15,197,400 |
Adult services local office staff—FTEs | 550.0 | 69,864,200 | |
Contractual services, supplies, and materials | 31,501,000 | ||
Donated funds positions—FTEs | 159.0 | 29,662,100 | |
Elder Law of Michigan MiCAFE contract | 450,000 | ||
Electronic benefit transfer (EBT) | 8,214,000 | ||
Employment and training support services | 3,869,100 | ||
Food assistance reinvestment—FTEs | 16.0 | 3,809,400 | |
Local office policy and administration—FTEs | 122.0 | 21,488,400 | |
Local office staff travel | 8,327,400 | ||
Medical/psychiatric evaluations | 1,120,100 | ||
Public assistance local office staff—FTEs | 4,532.5 | 536,748,600 | |
SSI advocacy legal services grant | 975,000 | ||
GROSS APPROPRIATION | $ | 731,226,700 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of corrections | $ | 120,200 | |
IDG from department of lifelong education, advancement, and potential | 8,303,900 | ||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 73,188,000 | ||
Capped federal revenues | 55,323,500 | ||
Total other federal revenues | 258,462,800 | ||
Special revenue funds: | |||
Local funds - donated funds | 4,413,300 | ||
Private funds - donated funds | 10,101,100 | ||
Private revenues | 250,000 | ||
State general fund/general purpose | $ | 321,063,900 | |
Sec. 109. DISABILITY DETERMINATION SERVICES | |||
Full-time equated classified positions | 628.4 | ||
Disability determination operations—FTEs | 624.3 | $ | 124,435,800 |
Retirement disability determination—FTEs | 4.1 | 650,800 | |
GROSS APPROPRIATION | $ | 125,086,600 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of technology, management, and budget - office of retirement services | 827,400 | ||
Federal revenues: | |||
Total other federal revenues | 121,539,300 | ||
State general fund/general purpose | $ | 2,719,900 | |
Sec. 110. BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL PROJECTS | |||
Full-time equated classified positions | 99.0 | ||
Behavioral health program administration—FTEs | 59.0 | $ | 51,245,600 |
Community substance use disorder prevention, education, and treatment— FTEs | 9.0 | 79,207,900 | |
Family support subsidy | 16,290,400 | ||
Federal and other special projects | 2,535,600 | ||
Gambling addiction—FTEs | 4.0 | 9,530,100 | |
Mental health diversion council | 3,850,000 | ||
Michigan clinical consultation and care | 5,289,000 | ||
Office of recipient rights—FTEs | 25.0 | 3,563,200 | |
Opioid response activities—FTEs | 2.0 | 122,157,200 | |
Protection and advocacy services support | 194,400 | ||
GROSS APPROPRIATION | $ | 293,863,400 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 16,290,400 | ||
Total other federal revenues | 162,602,700 | ||
Special revenue funds: | |||
Total private revenues | 2,704,700 | ||
Total other state restricted revenues | 67,380,100 | ||
State general fund/general purpose | $ | 44,885,500 | |
Sec. 111. BEHAVIORAL HEALTH SERVICES | |||
Full-time equated classified positions | 15.0 | ||
Autism services | $ | 467,644,200 | |
Behavioral health community supports and services—FTEs | 11.0 | 42,072,800 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Certified community behavioral health clinic demonstration | $ | 916,062,700 | |
Civil service charges | 297,500 | ||
Community mental health non-Medicaid services | 125,578,200 | ||
Federal mental health block grant—FTEs | 4.0 | 24,483,900 | |
Health homes | 50,239,800 | ||
Healthy Michigan plan - behavioral health | 438,267,500 | ||
Medicaid mental health services | 3,188,847,900 | ||
Medicaid substance use disorder services | 96,323,300 | ||
Multicultural integration funding | 17,284,900 | ||
Nursing home PAS/ARR-OBRA | 15,213,600 | ||
State disability assistance program substance use disorder services | 2,018,800 | ||
GROSS APPROPRIATION | $ | 5,384,335,100 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 421,000 | ||
Capped federal revenues | 184,500 | ||
Total other federal revenues | 3,678,625,800 | ||
Special revenue funds: | |||
Total local revenues | 9,943,600 | ||
Total other state restricted revenues | 560,000 | ||
State general fund/general purpose | $ | 1,694,600,200 | |
Sec. 112. STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES | |||
Full-time equated classified positions | 2,158.6 | ||
Average population | 798.0 | ||
Caro Regional Mental Health Center - psychiatric hospital - adult—FTEs | 432.7 | $ | 66,322,100 |
Average population | 145.0 | ||
Center for forensic psychiatry—FTEs | 624.5 | 114,162,800 | |
Average population | 240.0 | ||
Developmental disabilities council and projects—FTEs | 10.0 | 3,221,100 | |
Gifts and bequests for patient living and treatment environment | 1,000,000 | ||
IDEA, federal special education | 120,000 | ||
Kalamazoo Psychiatric Hospital - adult—FTEs | 473.2 | 69,704,600 | |
Average population | 170.0 | ||
Purchase of medical services for residents of hospitals and centers | 445,600 | ||
Revenue recapture | 750,100 | ||
Southeast Michigan state psychiatric hospital - psychiatric hospital - adult, children, and adolescents | 100 | ||
Special maintenance | 924,600 | ||
State hospital administration—FTEs | 34.0 | 5,801,900 | |
Walter P. Reuther Psychiatric Hospital - adult, children, and adolescents— FTEs | 584.2 | 119,200,400 | |
Average population | 243.0 | ||
GROSS APPROPRIATION | $ | 381,653,300 | |
Appropriated from: | |||
Federal revenues: | |||
Total other federal revenues | 47,027,600 | ||
Special revenue funds: | |||
Total local revenues | 23,283,200 | ||
Total private revenues | 1,000,000 | ||
Total other state restricted revenues | 19,189,200 | ||
State general fund/general purpose | $ | 291,153,300 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 113. HEALTH AND HUMAN SERVICES POLICY AND INITIATIVES | |||
Full-time equated classified positions | 79.3 | ||
Certificate of need program administration—FTEs | 11.3 | $ | 2,764,600 |
Child advocacy centers | 1,407,000 | ||
Child advocacy centers - supplemental grants | 2,000,000 | ||
Community health programs—FTEs | 5.0 | 17,500,000 | |
Crime victim grants administration services—FTEs | 15.0 | 3,121,100 | |
Crime victim justice assistance grants | 78,579,300 | ||
Crime victim rights services grants | 19,869,900 | ||
Crime victim rights sustaining grants—FTEs | 2.0 | 30,000,000 | |
Domestic violence prevention and treatment—FTEs | 15.6 | 20,295,200 | |
Human trafficking intervention services—FTE | 1.0 | 200,000 | |
Michigan essential health provider | 3,519,600 | ||
Minority health grants and contracts—FTEs | 3.0 | 1,163,200 | |
Nurse education and research program—FTEs | 3.0 | 828,300 | |
Policy and planning administration—FTEs | 19.9 | 2,955,300 | |
Primary care services—FTEs | 3.0 | 3,812,000 | |
Rape prevention and services—FTE | 0.5 | 7,097,300 | |
Rural health services | 175,000 | ||
Uniform statewide sexual assault evidence kit tracking system | 369,500 | ||
GROSS APPROPRIATION | $ | 195,657,300 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of licensing and regulatory affairs | 828,300 | ||
IDG from department of lifelong education, advancement, and potential | 2,400 | ||
IDG from department of treasury, Michigan finance authority | 117,700 | ||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 6,736,000 | ||
Capped federal revenues | 11,597,900 | ||
Total other federal revenues | 86,288,100 | ||
Special revenue funds: | |||
Total private revenues | 855,000 | ||
Child advocacy centers fund | 1,407,000 | ||
Compulsive gaming prevention fund | 1,040,500 | ||
Crime victims rights fund | 18,798,200 | ||
Sexual assault victims’ prevention and treatment fund | 3,000,000 | ||
Total other state restricted revenues | 3,335,400 | ||
State general fund/general purpose | $ | 61,650,800 | |
Sec. 114. EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND LABORATORY | |||
Full-time equated classified positions | 448.9 | ||
Bioterrorism preparedness—FTEs | 53.0 | $ | 31,131,300 |
Childhood lead program—FTEs | 4.5 | 2,351,200 | |
Emergency medical services program—FTEs | 27.0 | 7,188,500 | |
Epidemiology administration—FTEs | 73.5 | 26,963,000 | |
Healthy homes program—FTEs | 65.0 | 53,602,700 | |
Laboratory services—FTEs | 102.0 | 31,655,300 | |
Newborn screening follow-up and treatment services—FTEs | 10.5 | 10,202,600 | |
PFAS and environmental contamination response—FTEs | 43.0 | 18,614,600 | |
Vital records and health statistics—FTEs | 70.4 | 11,719,800 | |
GROSS APPROPRIATION | $ | 193,429,000 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of environment, Great Lakes, and energy | $ | 2,525,000 | |
Federal revenues: | |||
Total other federal revenues | 79,095,500 | ||
Special revenue funds: | |||
Total private revenues | 1,342,600 | ||
Total other state restricted revenues | 33,832,700 | ||
State general fund/general purpose | $ | 76,633,200 | |
Sec. 115. LOCAL HEALTH AND ADMINISTRATIVE SERVICES | |||
Full-time equated classified positions | 193.6 | ||
AIDS prevention, testing, and care programs—FTEs | 79.0 | $ | 110,924,100 |
Cancer prevention and control program—FTEs | 18.0 | 15,939,900 | |
Chronic disease control and health promotion administration—FTEs | 28.4 | 12,490,100 | |
Diabetes and kidney program—FTEs | 8.0 | 4,217,400 | |
Essential local public health services | 81,419,300 | ||
Implementation of 1993 PA 133, MCL 333.17015 | 20,000 | ||
Local health services—FTEs | 4.3 | 9,029,400 | |
Medicaid outreach cost reimbursement to local health departments | 12,500,000 | ||
Public health administration—FTEs | 9.0 | 2,316,400 | |
Sexually transmitted disease control program—FTEs | 20.0 | 8,585,900 | |
Smoking prevention program—FTEs | 15.0 | 7,187,900 | |
Violence prevention—FTEs | 11.9 | 14,078,900 | |
GROSS APPROPRIATION | $ | 278,709,300 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 2,300 | ||
Total other federal revenues | 90,986,400 | ||
Special revenue funds: | |||
Total local revenues | 10,150,000 | ||
Total private revenues | 74,556,600 | ||
Total other state restricted revenues | 11,966,800 | ||
State general fund/general purpose | $ | 91,047,200 | |
Sec. 116. FAMILY HEALTH SERVICES | |||
Full-time equated classified positions | 136.6 | ||
Child and adolescent health care and centers | $ | 41,242,700 | |
Dental programs—FTEs | 5.3 | 7,933,300 | |
Drinking water declaration of emergency | 3,971,000 | ||
Family, maternal, and child health administration—FTEs | 49.0 | 10,429,800 | |
Family planning local agreements | 15,810,700 | ||
Immunization program—FTEs | 20.8 | 19,933,400 | |
Local MCH services | 7,018,100 | ||
Pregnancy prevention program | 1,297,900 | ||
Prenatal care outreach and service delivery support—FTEs | 19.5 | 42,440,700 | |
Special projects | 6,789,100 | ||
Sudden and unexpected infant death and suffocation prevention program | 321,300 | ||
Women, infants, and children program administration and special projects— FTEs | 42.0 | 19,768,700 | |
Women, infants, and children program local agreements and food costs | 251,285,000 | ||
GROSS APPROPRIATION | $ | 428,241,700 | |
Appropriated from: | |||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 500,000 | ||
Total other federal revenues | 269,297,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Special revenue funds: | |||
Total local revenues | $ | 42,817,700 | |
Total private revenues | 64,785,700 | ||
Total other state restricted revenues | 3,270,500 | ||
State general fund/general purpose | $ | 47,570,800 | |
Sec. 117. CHILDREN’S SPECIAL HEALTH CARE SERVICES | |||
Full-time equated classified positions | 51.8 | ||
Bequests for care and services—FTEs | 9.8 | $ | 2,394,700 |
Children’s special health care services administration—FTEs | 42.0 | 9,285,200 | |
Medical care and treatment | 411,929,200 | ||
Outreach and advocacy | 6,722,200 | ||
GROSS APPROPRIATION | $ | 430,331,300 | |
Appropriated from: | |||
Federal revenues: | |||
Total other federal revenues | 230,954,400 | ||
Special revenue funds: | |||
Total private revenues | 1,025,200 | ||
Total other state restricted revenues | 4,579,400 | ||
State general fund/general purpose | $ | 193,772,300 | |
Sec. 118. AGING SERVICES | |||
Community services | $ | 59,047,200 | |
Employment assistance | 3,500,000 | ||
Nutrition services | 50,004,200 | ||
Respite care program | 7,268,700 | ||
Senior volunteer service programs | 4,765,300 | ||
GROSS APPROPRIATION | $ | 124,585,400 | |
Appropriated from: | |||
Federal revenues: | |||
Total other federal revenues | 67,787,400 | ||
Special revenue funds: | |||
Total private revenues | 300,000 | ||
Michigan merit award trust fund | 4,068,700 | ||
Total other state restricted revenues | 2,800,000 | ||
State general fund/general purpose | $ | 49,629,300 | |
Sec. 119. HEALTH AND AGING SERVICES ADMINISTRATION | |||
Full-time equated classified positions | 523.0 | ||
Aging services administration—FTEs | 43.0 | $ | 9,697,700 |
Health services administration—FTEs | 480.0 | 133,182,800 | |
GROSS APPROPRIATION | $ | 142,880,500 | |
Appropriated from: | |||
Federal revenues: | |||
Total other federal revenues | 92,642,900 | ||
Special revenue funds: | |||
Total local revenues | 37,700 | ||
Total private revenues | 1,721,300 | ||
Total other state restricted revenues | 336,300 | ||
State general fund/general purpose | $ | 48,142,300 | |
Sec. 120. HEALTH SERVICES | |||
Adult home help services | $ | 595,150,700 | |
Ambulance services | 25,000,500 | ||
Auxiliary medical services | 5,819,200 | ||
Dental clinic program | 1,000,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Dental services | $ | 328,242,000 | |
Federal Medicare pharmaceutical program | 389,029,800 | ||
Federally qualified health centers | 125,514,100 | ||
Health plan services | 3,509,255,900 | ||
Healthy Michigan plan | 2,362,533,800 | ||
Home health services | 5,891,400 | ||
Hospice services | 198,455,700 | ||
Hospital services and therapy | 368,558,700 | ||
Integrated care organizations | 438,634,200 | ||
Long-term care services | 2,634,382,500 | ||
Maternal and child health | 36,553,100 | ||
Medicaid home- and community-based services waiver | 557,568,300 | ||
Medicare premium payments | 1,016,980,600 | ||
Personal care services | 4,994,500 | ||
Pharmaceutical services | 388,783,200 | ||
Physician services | 221,272,700 | ||
Program of all-inclusive care for the elderly | 288,918,800 | ||
Rural health transformation program | 250,000,000 | ||
School-based services | 225,919,400 | ||
Special Medicaid reimbursement | 341,750,400 | ||
Transportation | 20,840,900 | ||
GROSS APPROPRIATION | $ | 14,341,050,400 | |
Appropriated from: | |||
Federal revenues: | |||
Total other federal revenues | 10,075,797,200 | ||
Special revenue funds: | |||
Total local revenues | 35,003,800 | ||
Total private revenues | 9,702,000 | ||
Michigan merit award trust fund | 82,700,000 | ||
Total other state restricted revenues | 1,279,959,800 | ||
State general fund/general purpose | $ | 2,857,887,600 | |
Sec. 121. INFORMATION TECHNOLOGY | |||
Full-time equated classified positions | 11.0 | ||
Bridges information system—FTEs | 10.0 | $ | 123,932,600 |
Child support automation | 45,101,900 | ||
Comprehensive child welfare information system | 8,750,300 | ||
Information technology services and projects | 231,695,000 | ||
Michigan Medicaid information system—FTE | 1.0 | 104,020,300 | |
Michigan statewide automated child welfare information system | 22,474,200 | ||
GROSS APPROPRIATION | $ | 535,974,300 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of lifelong education, advancement, and potential | 609,700 | ||
Federal revenues: | |||
Social security act, temporary assistance for needy families | 24,471,400 | ||
Capped federal revenues | 20,556,700 | ||
Total other federal revenues | 337,214,400 | ||
Special revenue funds: | |||
Total private revenues | 5,250,000 | ||
Total other state restricted revenues | 2,010,400 | ||
State general fund/general purpose | $ | 145,861,700 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 122. ONE-TIME APPROPRIATIONS | ||
Behavioral health statewide supports | $ | 5,108,700 |
Career and workforce readiness wraparound services | 750,000 | |
Cellular therapy | 750,000 | |
Community health screenings | 5,000,000 | |
Community violence prevention - community grant program | 1,800,000 | |
Cranial hair prothesis | 125,000 | |
Crime victim’s rights sustaining grants | 5,000,000 | |
Delayed cognition/fine motor skills checklist toolkit | 500,000 | |
Dementia support | 408,600 | |
Dental clinic | 2,900,000 | |
Dental safety net providers - stabilization payments | 4,000,000 | |
Electronic benefit transfer reinvestment | 16,000,000 | |
Federally-qualified health centers - training program | 2,000,000 | |
Food assistance program reinvestment | 30,000,000 | |
Foster care program | 2,025,000 | |
Homeless shelter capital and infrastructure costs | 2,000,000 | |
Hospital infrastructure | 10,000,000 | |
Implementation of maternal health policy changes | 299,700 | |
Kids’ food basket | 1,000,000 | |
Liver screening pilot project | 250,000 | |
Maternal-fetal medicine programming | 1,500,000 | |
Medicaid blood pressure monitors | 1,225,100 | |
Medicaid children’s rehabilitation services | 1,000,000 | |
Medicaid funding for freestanding birth centers and licensed midwives | 2,881,800 | |
Medicaid outreach | 950,000 | |
Mothers in foster care - wraparound services program | 250,000 | |
Multicultural integration funding | 8,600,000 | |
National association of Yemeni Americans | 800,000 | |
Opioid response activities | 76,750,000 | |
Payments to cover after school and extracurriculars for foster care children | 758,000 | |
Permanent supportive housing | 5,000,000 | |
Revive health clinic | 300,000 | |
Suicide prevention council | 125,000 | |
Trauma recovery center pilot program | 2,000,000 | |
Underserved healthcare facility project | 1,500,000 | |
University DSH backfill | 3,500,000 | |
Water affordability | 5,000,000 | |
GROSS APPROPRIATION | $ | 202,056,900 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 25,306,900 | |
Special revenue funds: | ||
Michigan opioid healing and recovery fund | 76,750,000 | |
State general fund/general purpose | $ | 100,000,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the current fiscal year, total state spending under part 1 from state sources is $8,871,925,000.00 and state spending under part 1 from state sources to be paid to local units of government is $2,096,123,300.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF HEALTH AND HUMAN SERVICES | ||
CHILD SUPPORT ENFORCEMENT | ||
Child support incentive payments | $ | 9,570,000 |
Legal support contracts | 1,300 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
COMMUNITY SERVICES AND OUTREACH | ||
Homeless programs | $ | 10,000 |
Housing and support services | 124,700 | |
CHILDREN’S SERVICES AGENCY – CHILD WELFARE | ||
Child care fund | 163,181,200 | |
Child care fund - indirect cost allotment | 3,500,000 | |
Child welfare licensing | 69,300 | |
Children trust Michigan | 62,600 | |
Contractual services, supplies, and materials | 10,800 | |
Foster care payments | 3,629,600 | |
Prosecuting attorney contracts | 1,269,100 | |
Strong families/safe children | 62,600 | |
CHILDREN’S SERVICES AGENCY – JUVENILE JUSTICE | ||
Bay Pines Center | 50,500 | |
Community support services | 334,400 | |
County juvenile officers | 73,300 | |
PUBLIC ASSISTANCE | ||
Emergency services local office allocations | 2,200,000 | |
Indigent burial | 2,900 | |
Michigan energy assistance program | 400,000 | |
State disability assistance payments | 161,000 | |
LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES | ||
Contractual services, supplies, and materials | 93,000 | |
Employment and training support services | 5,700 | |
DISABILITY DETERMINATION SERVICES | ||
Disability determination operations | 2,000 | |
BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL PROJECTS | ||
Behavioral health program administration | 102,000 | |
Community substance use disorder prevention, education, and treatment | 8,737,400 | |
Mental health diversion council | 255,100 | |
Opioid response activities | 2,393,500 | |
BEHAVIORAL HEALTH SERVICES | ||
Autism services | 150,699,000 | |
Behavioral health community supports and services | 160,700 | |
Certified community behavioral health clinic demonstration | 201,533,900 | |
Community mental health non-Medicaid services | 125,578,200 | |
Health homes | 4,444,700 | |
Healthy Michigan plan - behavioral health | 43,826,800 | |
Medicaid mental health services | 1,052,319,800 | |
Medicaid substance use disorder services | 33,713,100 | |
Multicultural integration funding | 1,064,400 | |
Nursing home PAS/ARR-OBRA | 4,476,100 | |
State disability assistance program substance use disorder services | 1,807,300 | |
STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES | ||
Caro Regional Mental Health Center - psychiatric hospital – adult | 198,600 | |
Center for forensic psychiatry | 749,600 | |
Kalamazoo Psychiatric Hospital - adult | 63,600 | |
Walter P. Reuther Psychiatric Hospital – adult, children, and adolescents | 106,400 | |
HEALTH AND HUMAN SERVICES POLICY AND INITIATIVES | ||
Crime victim rights services grants | 11,593,000 | |
Domestic violence prevention and treatment | 170,700 | |
Primary care services | 79,900 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND LABORATORY | ||
Emergency medical services program | $ | 3,800 |
Epidemiology administration | 459,100 | |
Healthy homes program | 1,233,400 | |
PFAS and environmental contamination response | 200 | |
LOCAL HEALTH AND ADMINISTRATIVE SERVICES | ||
AIDS prevention, testing, and care programs | 2,708,200 | |
Cancer prevention and control program | 43,700 | |
Essential local public health services | 75,932,300 | |
Local health services | 1,996,400 | |
Public health administration | 100 | |
Sexually transmitted disease control program | 778,100 | |
Smoking prevention program | 242,900 | |
FAMILY HEALTH SERVICES | ||
Drinking water declaration of emergency | 126,900 | |
Family planning local agreements | 224,000 | |
Immunization program | 2,155,600 | |
Pregnancy prevention program | 65,000 | |
Prenatal care outreach and service delivery support | 8,612,100 | |
CHILDREN’S SPECIAL HEALTH CARE SERVICES | ||
Medical care and treatment | 1,101,500 | |
Outreach and advocacy | 2,708,200 | |
AGING SERVICES | ||
Community services | 32,428,100 | |
Nutrition services | 12,849,100 | |
Respite care program | 5,800,000 | |
Senior volunteer service programs | 954,100 | |
HEALTH SERVICES | ||
Adult home help services | 82,100 | |
Ambulance services | 848,600 | |
Dental services | 869,600 | |
Healthy Michigan plan | 346,100 | |
Hospital services and therapy | 231,500 | |
Long-term care services | 95,276,900 | |
Medicaid home- and community-based services waiver | 15,952,100 | |
Personal care services | 14,900 | |
Physician services | 2,698,600 | |
Transportation | 492,300 | |
TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT | $ | 2,096,123,300 |
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:
“AIDS” means acquired immunodeficiency syndrome.
“CCBHC” means certified community behavioral health clinic.
“CMHSP” means a community mental health services program as that term is defined in section 100a of the mental health code, 1974 PA 258, MCL 330.1100a.
“CMS” means the Centers for Medicare and Medicaid Services.
“CPT” means current procedural terminology.
“Current fiscal year” means the fiscal year ending September 30, 2026.
“Department” means the department of health and human services.
“Director” means the director of the department.
“EPSDT” means early and periodic screening, diagnosis, and treatment.
“Federal poverty level” means the poverty guidelines revised periodically and published in the Federal Register by the Secretary of the United States Department of Health and Human Services under the Secretary’s authority to revise the poverty line under 42 USC 9902.
“FQHC” means federally qualified health center.
“FTE” means full-time equated.
“GME” means graduate medical education.
“Health plan” means, at a minimum, an organization that meets the criteria for delivering the comprehensive package of services under the department’s comprehensive health plan.
“HEDIS” means health care effectiveness data and information set.
“HMO” means health maintenance organization.
“IDEA” means the individuals with disabilities education act, 20 USC 1400 to 1482.
“IDG” means interdepartmental grant.
“MCH” means maternal and child health.
“Medicaid” means subchapter XIX of the social security act, 42 USC 1396 to 1396w-8.
“Medicare” means subchapter XVIII of the social security act, 42 USC 1395 to 1395lll.
“MiCAFE” means Michigan’s coordinated access to food for the elderly.
“MIChild” means the program described in section 1670 of this part.
“MiSACWIS” means Michigan statewide automated child welfare information system.
“PACE” means program of all-inclusive care for the elderly.
“PAS/ARR-OBRA” means the preadmission screening and annual resident review required under the omnibus budget reconciliation act of 1987, section 1919(e)(7) of the social security act, 42 USC 1396r.
(aa) “PATH” means Partnership. Accountability. Training. Hope. (bb) “PFAS” means perfluoroalkyl and polyfluoroalkyl substances.
(cc) “PIHP” means an entity designated by the department as a regional entity or a specialty prepaid inpatient health plan for Medicaid mental health services, services to individuals with developmental disabilities, and substance use disorder services. Regional entities are described in section 204b of the mental health code, 1974 PA 258, MCL 330.1204b. Specialty prepaid inpatient health plans are described in section 232b of the mental health code, 1974 PA 258, MCL 330.1232b.
(dd) “Previous fiscal year” means the fiscal year ending September 30, 2025.
(ee) “Quarterly basis” means February 1, April 1, July 1, and September 30 of the current fiscal year. (ff) “Semiannual basis” means March 1 and September 30 of the current fiscal year.
(gg) “Settlement” means the settlement agreement entered in the case of Dwayne B. v Snyder, Docket No. 2:06-cv-13548 in the United States District Court for the Eastern District of Michigan.
(hh) “SSI” means supplemental security income.
“Standard report recipients” means the senate and house of representatives appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house of representatives policy offices, and the state budget office.
(jj) “Temporary assistance for needy families” or “TANF” or “title IV-A” means part A of subchapter IV of the social security act, 42 USC 601 to 619.
(kk) “Title IV-B” means part B of title IV of the social security act, 42 USC 621 to 629m. (ll) “Title IV-D” means part D of title IV of the social security act, 42 USC 651 to 669b. (mm) “Title IV-E” means part E of title IV of the social security act, 42 USC 670 to 679c.
(nn) “Title X” means subchapter VIII of the public health service act, 42 USC 300 to 300a-8, which establishes grants to states for family planning services.
Sec. 204. The department 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:
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.
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.
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.
Sec. 206. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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 or agency 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. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, each department and agency receiving appropriations in part 1 shall prepare a report on out of state travel expenses not later than January 1. The report must list all travel outside this state by classified and unclassified employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’s budget. The department or agency shall submit the report to the standard report recipients and to the house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 the chairpersons of the senate and house of representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000,000.00 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. Federal contingency authorization must not be made available to increase TANF authorization.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$50,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$30,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$45,000,000.00 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. (1) A department or agency 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 each department or agency:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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 of representatives appropriations committees.
Sec. 214. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 215. If either of the following events occurs, not later than 30 days after the event occurs, the department shall notify the standard report recipients of that fact:
A legislative objective of this part or of a bill or amendment to a bill to amend the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, cannot be implemented because implementation would conflict with or violate federal law.
A federal grant for which a notice of an award has been received cannot be used or will not be used. Sec. 216. (1) In addition to funds appropriated in part 1 for all programs and services, there is appropriated,
for write-offs of accounts receivable, deferrals, and for prior year obligations in excess of applicable prior year appropriations, an amount equal to total write-offs and prior year obligations, but not to exceed amounts available in prior year revenues.
(2) The department’s ability to satisfy appropriation fund sources in part 1 is not limited to collections and accruals pertaining to services provided in the current fiscal year and includes reimbursements, refunds, adjustments, and settlements from prior years.
Sec. 217. Not later than February 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the detailed names and amounts of estimated federal, restricted, private, and local sources of revenue that support the appropriations in each of the line items in part 1 for the previous fiscal year. The report must itemize, rather than aggregate, specific revenue sources deposited into the generic statewide integrated governmental management application (SIGMA) fund numbers 1200, 1274, 4000, and 5000.
Sec. 218. As required under part 23 of the public health code, 1978 PA 368, MCL 333.2301 to 333.2321, the appropriations in part 1 must include the following:
Immunizations.
Communicable disease control.
Sexually transmitted infection control.
Tuberculosis control.
Prevention of gonorrhea eye infection in newborns.
Screening newborn infants for the conditions listed in section 5431 of the public health code, 1978 PA 368, MCL 333.5431, or recommended by the newborn screening quality assurance advisory committee created under section 5430 of the public health code, 1978 PA 368, MCL 333.5430.
Health and human services annex of the Michigan Emergency Management Plan.
Prenatal care.
Mental health.
Sec. 219. (1) The department may contract with the Michigan Public Health Institute for the design and implementation of projects and for other public health-related activities prescribed in section 2611 of the public health code, 1978 PA 368, MCL 333.2611. The department may develop a master agreement with the Michigan Public Health Institute to carry out the activities described in this subsection for up to a 1-year period.
On a semiannual basis, the department shall submit, to the standard report recipients, a report that includes all of the following:
A detailed description of each funded project.
The amount allocated for each project, the appropriation line item from which the allocation is funded, and the source of financing for each project.
The expected project duration.
A detailed spending plan for each project, including a list of all subgrantees and the amount allocated to each subgrantee.
On a semiannual basis, the department shall provide, to the standard report recipients, a copy of all reports, studies, and publications produced by the Michigan Public Health Institute, its subcontractors, or the department with the funds appropriated in the department’s budget in the previous fiscal year and allocated to the Michigan Public Health Institute.
Sec. 220. The department shall ensure that faith-based organizations are able to apply and compete for services, programs, or contracts that the organizations are qualified and suitable to fulfill. The department shall not disqualify faith-based organizations solely on the basis of the religious nature of the organizations or the guiding principles or statements of faith for the organizations.
Sec. 221. In accordance with section 1b of the social welfare act, 1939 PA 280, MCL 400.1b, the department shall treat part 1 and this part as a time-limited addendum to the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
Sec. 222. (1) Not later than 30 days before the implementation date of a major policy change, the department shall report the change to the standard report recipients.
The department shall make the department’s entire policy and procedures manual available and accessible to the public on the department’s website.
The department shall attach each policy bulletin issued during the previous calendar year to the report under section 248.
Sec. 223. The department may establish and collect fees for publications, videos and related materials, conferences, and workshops. Collected fees are appropriated when received and must be used to offset expenditures for publication printing and mailing, costs of the publications, videos and related materials, conferences, and workshops. The department shall not collect fees under this section that exceed the cost of the expenditures. If collected fees are appropriated under this section in an amount that exceeds the current fiscal year appropriation, not later than 30 days after the collected fee appropriation, the department shall notify the standard report recipients of that fact.
Sec. 224. The department may retain all of this state’s share of food assistance overissuance collections as an offset to general fund/general purpose costs. Retained collections must be applied against federal funds deductions in all appropriation units where department costs related to the investigation and recoupment of food assistance overissuances are incurred. Retained collections in excess of the investigation and recoupment costs must be applied against the federal funds deducted in the departmental administration and support appropriation unit.
Sec. 225. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 226. If the revenue collected by the department from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward with the approval of the state budget director into the subsequent fiscal year. The revenue carried forward under this section must be used as the first source of funds in the subsequent fiscal year.
Sec. 227. If the department receives tobacco tax funds and Healthy Michigan fund revenue from part 1, not later than April 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on both of the following activities during the previous fiscal year:
Tobacco tax revenue appropriations in the Medicaid program.
Information for each project implemented with revenue under this section, including all of the following:
The project’s name.
The appropriation line item and amount.
The project’s target population.
A description of the project.
The outcomes or accomplishments of the project.
Sec. 228. If the department is authorized under federal law or the law of this state to collect an overpayment owed to the department, beginning 60 days after the initial notification date of the overpayment amount, the department may assess a penalty of 1% per month. If an overpayment is caused by department error, a penalty may be assessed 6 months after the initial notification date of the overpayment amount. The department shall not collect penalty interest in an amount that exceeds the amount of the original overpayment. This state’s share of any funds collected under this section must be deposited in the general fund of this state.
Sec. 230. (1) Not later than March 1 and June 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the status of the implementation of any noninflationary, noncaseload, programmatic funding increases in the current fiscal year from the previous fiscal year. The report must confirm the implementation of already-implemented funding increases and provide an explanation for any planned implementation of funding increases that have not yet occurred. For any planned implementation of funding increases that have not yet occurred, the report must include an expected implementation date and the reason for delayed implementation.
For any programmatic funding increases not reported as implemented or in process under subsection (1), the department shall submit, to the standard report recipients, a status update not later than June 1 of the current fiscal year.
Sec. 231. (1) The department shall not expend the funds appropriated in part 1 to enter into any contract with a Medicaid managed care organization of MI Choice Waiver, MI Health Link, MI Coordinated Health, or behavioral health unless the Medicaid managed care organization agrees to do all of the following:
Continue the direct care wage increase funded at $3.40 per hour for the services noted in the department’s Medicaid provider letter L 21-76 under the Medicaid managed care organization’s relevant program.
Ensure, to the greatest extent possible, that the full amount of funds appropriated for direct care worker wages, except for costs incurred by the employer, including payroll taxes, is provided to direct care workers through maintained increased wages.
Permit a direct care worker to elect, in writing or electronically, to not receive the wage increase provided in this section.
(2) Not later than March 1 of the current fiscal year, the department shall submit a report to the standard report recipients that includes the following information by program and provider type for the previous fiscal year:
Hours of service that qualified for the direct care worker wage increase.
The aggregate increase in wages attributable to the funding appropriated in part 1.
A comparison of the projected increase included in the capitation rates and the reported amount expended on the wage increase.
Sec. 232. The department shall provide the approved spending plan for each line item receiving an appropriation in the current fiscal year to the senate and house of representatives appropriations subcommittees on the department budget and the senate and house fiscal agencies not later than 60 days after approval by the department or not later than January 15 of the current fiscal year, whichever is earlier. In all places that a line-item appropriation number is listed, a line-item appropriation name must be included. The spending plan must include the following information regarding planned expenditures for each category: allocation in the previous period, change in the allocation, and new allocation. The spending plan must include the following information regarding each revenue source for the line item: category of the fund source indicated by general fund/general purpose, state restricted, local, private, or federal. Figures included in the approved spending plan must not be assumed to constitute the actual final expenditures, as line items may be updated on an as-needed basis to reflect changes in projected expenditures and projected revenue. The department shall supplement the spending plan information by providing a list of all active contracts and grants in the department’s contract system. For amounts listed in the other contracts category of each spending plan, the department shall include the name of the line item and the name of the fund source for each contract, grant, and amount for the current fiscal year. For amounts listed in the all other costs category of each spending plan, the department shall provide a list detailing planned expenditures and amounts for the current fiscal year and include the name of the line item and the name of the fund source related to each expenditure and amount.
Sec. 233. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 234. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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 235. (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. 236. (1) The department shall maximize the utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
(2) The department shall comply with requirements set by the office of state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80 percent or higher, subject to market conditions.
(3) The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified services is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 237. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 of each year that describes the processes it has developed and implemented under provisions of this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 238. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 239. For behavioral and physical health services provided through managed care or the fee-for-service program, the department shall require, for the nonfacility component of the reimbursement rate, at least the same reimbursement for that service, if that service is provided through telemedicine, as if the service involved face-to-face contact between the health care professional and the patient.
Sec. 240. 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. 241. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on total actual expenditures in the previous fiscal year for advertising and media outreach, including the purpose, amount, and fund source by program or appropriation line item.
Sec. 242. Not later than March 1 of the current fiscal year, the department shall submit a description of programs report to the standard report recipients. For each program, the report must include the appropriation unit; the line item name and number; the appropriation history; the program name; the program overview; a financing summary; and, where applicable, the program’s legal basis, effectiveness, and outcomes.
Sec. 243. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $201,838,700.00. From this amount, total department appropriations for pension-related legacy costs are estimated at $182,045,900.00. Total department appropriations for retiree health care legacy costs are estimated at $19,792,800.00.
Sec. 244. On a quarterly basis, the department shall submit, to the standard report recipients, a report on any line-item appropriation for which the department estimates total annual expenditures would exceed the funds appropriated for the line-item appropriation by 5% or more. The department shall provide a detailed explanation for any relevant line-item appropriation exceedance and identify the corrective actions undertaken to mitigate line-item appropriation expenditures from exceeding the funds appropriated for the line-item appropriation by a greater amount. This section does not apply for line-item appropriations that are part of the May revenue estimating conference caseload and expenditure estimates.
Sec. 245. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 246. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations in this state.
Sec. 247. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 248. 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 report must include a reference to the public act that necessitates the policy change. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.
Sec. 250. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 253. (1) The department shall ensure that each federally recognized tribe is able to apply and compete for services, programs, grants, and contracts.
(2) For competitive grant programs described in this part, each federally recognized tribe is eligible to apply for grant funds made available to organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and to local units of government.
Sec. 263. (1) Except as provided in this subsection, before submission of a waiver, state plan amendment, or similar proposal to CMS or another federal agency, the department shall notify the standard report recipients of the planned submission. This subsection does not apply to the submission of a waiver, state plan amendment, or similar proposal that does not propose a material change or is outside of the ordinary course of a waiver, state plan amendment, or similar proposal.
On a semiannual basis, the department shall submit, to the standard report recipients, a report that summarizes the status of any new or ongoing discussions with CMS, the United States Department of Health and Human Services, or another federal agency regarding any potential or future waiver applications and the status of any submitted waivers that have not yet received federal approval. If there is not a reportable item at the time that a semiannual report is due, a report is not required.
Sec. 264. The department shall not take disciplinary action against an employee of the department for communicating with a member of the senate or house of representatives or a member’s staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.
Sec. 270. The department shall advise the legislature of the receipt of a notification from the attorney general’s office of a legal action in which expenses had been recovered under section 10b of the social welfare act, 1939 PA 280, MCL 400.610b. If applicable, not later than February 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report that includes, but is not limited to, all of the following:
The total amount recovered from the legal action.
The program or service for which the money was originally expended.
Details on the disposition of the funds recovered, such as the appropriation or revenue account in which the money was deposited.
A description of the facts involved in the legal action.
Sec. 274. On the day that is 1 week after the day that the governor submits the executive budget proposal for the ensuing fiscal year to the legislature, the department, in collaboration with the state budget office, shall submit, to the standard report recipients, a report on spending and revenue projections for each of the capped federal funds listed in this subsection. The report must contain actual spending and revenue in the previous fiscal year, spending and revenue projections for the current fiscal year as enacted, and spending and revenue projections in the executive budget proposal for the immediately ensuing fiscal year for each individual line item for the department budget. The report must also include federal funds transferred to other departments. The capped federal funds include, but are not limited to, all of the following:
TANF.
Title XX social services block grant.
Title IV-B subpart I child welfare services block grant.
Title IV-B subpart II promoting safe and stable families funds.
Low-income home energy assistance program.
Sec. 275. (1) On a quarterly basis, the department, with the approval of the state budget director, is authorized to realign sources between other federal, TANF, and capped federal financing authorizations to maximize federal revenues. The realignment of financing must not produce any of the following:
A gross increase or decrease in the department’s total individual line item authorizations.
A net increase or decrease in total federal revenues.
A net increase in TANF authorization.
On a quarterly basis, the department shall submit, to the standard report recipients, a report on the realignment of federal fund sources transacted to date in the current fiscal year under subsection (1), including the dates, line items, and amounts of the transactions. If, at the time a quarterly report is due, a transaction was not made under subsection (1), a report is not required.
Not later than 30 days after the date on which year-end book closing is completed, the department shall submit, to the standard report recipients, a report on the realignment of federal fund sources that took place as part of the year-end closing process for the previous fiscal year.
Sec. 290. Any public advertisement for public assistance must inform the public of the welfare fraud hotline operated by the department.
Sec. 295. Not later than April 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on funds appropriated for the healthy moms, healthy babies initiative. The report must include the budgeted amount, year-to-date expenditures, remaining balance of appropriations, and the percent of budget spent for each appropriation related to the initiative. The report must also include information on how the funds have assisted with meeting the goals and outcomes of the initiative.
Sec. 297. On a quarterly basis, the department or agency receiving appropriations in part 1 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.
DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. From the funds appropriated in part 1 for child welfare institute, the department shall train private child placing agency staff in the pre-service training requirements for child welfare caseworkers and supervisors. Private child placing agency staff must be provided an opportunity to complete the training in a virtual format at the staff’s private child placing agency facility. If a private child placing agency prefers a hybrid training format that includes virtual and in-person instruction, the training must be available to the private child placing agency staff.
Sec. 303. From the funds appropriated in part 1 for training and program support, the department shall develop and implement a training program with the requisite materials to assist eligibility specialists in following the verification procedures of Healthy Michigan plan community engagement requirements for the eligibility determination and redetermination processes.
CHILD SUPPORT ENFORCEMENT
Sec. 401. (1) The appropriations in part 1 assume a total federal child support incentive payment of
$26,500,000.00.
From the federal money received for child support incentive payments, $12,000,000.00 must be retained by this state and expended for child support program expenses.
From the federal money received for child support incentive payments, $14,500,000.00 must be paid to counties based on each county’s performance level for each of the performance measures under 45 CFR 305.2.
If the child support incentive payment to this state from the federal government is greater than
$26,500,000.00, then 100% of the amount in excess must be retained by this state and is appropriated until the total retained by this state reaches $15,397,400.00.
If the child support incentive payment to this state from the federal government is greater than the amount needed to satisfy subsections (1), (2), (3), and (4), the additional funds are subject to appropriation by the legislature.
If the child support incentive payment to this state from the federal government is less than
$26,500,000.00, then the state share and the county share must each be reduced by 50% of the shortfall.
Sec. 409. (1) If statewide retained child support collections exceed $38,300,000.00, 75% of the amount in excess of $38,300,000.00 is appropriated to legal support contracts. The excess appropriation may be distributed to eligible counties to supplement, but not supplant, county title IV-D funding.
(2) Each county whose retained child support collections in the current fiscal year exceed its fiscal year 2004-2005 retained child support collections, excluding tax offset and financial institution data match collections in both the current fiscal year and fiscal year 2004-2005, shall receive its proportional share of the 75% excess appropriation.
Sec. 410. (1) If title IV-D-related child support collections are escheated, the state budget director is authorized to adjust the sources of financing for the funds appropriated in part 1 for legal support contracts to reduce federal authorization by 66% of the escheated amount and increase general fund/general purpose authorization by the same amount. The adjustment is required to offset the loss of federal revenue due to the escheated amount being counted as title IV-D program income in accordance with 45 CFR 304.50.
(2) Not later than 30 days after an adjustment under subsection (1), the department shall notify the standard report recipients of the adjustment.
COMMUNITY SERVICES AND OUTREACH
Sec. 450. (1) From the funds appropriated in part 1 for school success partnership program, not later than December 1 of the current fiscal year, the department shall allocate $1,525,000.00 of TANF revenue to support Northeast Michigan Community Service Agency programming. The department shall require the Northeast Michigan Community Service Agency to measure and report the following performance objectives for the duration of the state funding for the school success partnership program:
Increasing school attendance and decreasing chronic absenteeism.
Increasing grade-based academic performance, with emphasis on math and reading.
Identifying barriers to attendance and success and connecting families with resources to reduce the barriers.
Increasing parent involvement.
(2) Not later than July 15 of the current fiscal year, the Northeast Michigan Community Service Agency shall submit a report to the department on the number of children and families served and the services that were provided to families to meet the performance objectives identified in this section. Not later than 1 week after the department receives the report, the department shall distribute the report to the standard report recipients.
Sec. 453. (1) From the funds appropriated in part 1 for homeless programs, the department shall allocate funds to the emergency shelter program to support efforts of shelter providers to move homeless individuals and households into permanent housing as quickly as possible. The funds must be equal to or exceed the amount that a provider would receive if the provider is paid a $19.00 per diem rate. Expected outcomes are increased shelter discharges to stable housing destinations, decreased recidivism rates for shelter clients, and a reduction in the average length of stay in emergency shelters.
(2) Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the total amount expended for the emergency shelter program in the prior 2 fiscal years, the total number of shelter nights provided, and the average length of stay in an emergency shelter.
Sec. 454. The department shall allocate the full amount of funds appropriated in part 1 for homeless programs to provide services for homeless individuals and families, including, but not limited to, third-party contracts for emergency shelter services.
Sec. 455. As a condition of receipt of federal TANF revenue, after admitting a family to a homeless shelter, the homeless shelter and human services agencies shall collaborate with the department to obtain necessary TANF eligibility information on the family as soon as possible. From the funds appropriated in part 1 for homeless programs, the department is authorized to make allocations of TANF revenue only to the homeless shelters and human services agencies that report necessary data to the department to meet TANF eligibility reporting requirements. Homeless shelters or human services agencies that do not report necessary data to the department to meet TANF eligibility reporting requirements shall not receive reimbursements that exceed the per diem amount the homeless shelters or human service agencies received in fiscal year 2000. The use of TANF revenue under this section is not an ongoing commitment of funding.
Sec. 456. From the funds appropriated in part 1 for homeless programs, the department shall allocate
$10,000.00 to reimburse public service agencies that provide documentation of paying birth certificate fees on behalf of category 1 homeless clients at county clerk’s offices. Each public service agency must be reimbursed for the cost of the birth certificate fees quarterly until the allocation is fully spent.
Sec. 457. From the funds appropriated in part 1 for homeless programs, the department shall allocate
$8,500,000.00 of TANF revenue to support family shelters or families who are homeless and at risk of being homeless. Funds appropriated under this section must be used as follows:
$3,000,000.00 for emergency hotels for families experiencing homelessness.
$3,500,000.00 for assistance and supports to families engaged with child welfare. This may include, but is not limited to, eviction diversion, first month’s rent and deposit, and utility arrears.
$2,000,000.00 for creating additional spaces at family homeless shelters that have been in operation for at least 24 months.
Sec. 458. From the funds appropriated in part 1 for homeless programs, the department shall require any entities receiving direct or indirect state funds to report data to a Homeless Management Information System that satisfies the baseline data collection requirements.
Sec. 459. From the funds appropriated in part 1 for homeless programs, the department shall allocate
$2,000,000.00 of TANF revenue to acquire and develop for individuals and families noncongregate shelter that utilizes options under a Housing First model and prioritizes providing stable and permanent housing without preconditions or requirements, such as sobriety or participation in treatment programs. Eligible uses for this funding may include, but are not limited to, hotels, motels, dormitories, recuperative care facilities, and other facilities that offer noncongregate shelter.
Sec. 460. From the funds appropriated in part 1 for kids’ food basket, the department shall allocate
$525,000.00 to fund a project with a nonprofit, community-based organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a city with a population between 185,000 and 200,000 and in a county with a population between 600,000 and 700,000, according to the most recent federal decennial census. The nonprofit organization recipient must have an existing network of food delivery to low-income children in not less than 3 counties in this state. The nonprofit organization shall use the funds to expand its services to additional schools and communities. The funding may be used to cover employee costs, food and supplies, equipment, and other operational costs identified by the organization to support its mission and goals.
Sec. 462. From the funds appropriated in part 1 for senior university, the department shall allocate
$400,000.00 to a community action alliance located in a city with a population over 500,000 according to the most recent federal decennial census to improve connectivity and computer skills to seniors.
Sec. 463. From the funds appropriated in part 1 for runaway and homeless youth grants and domestic violence prevention and treatment, the department is authorized to make allocations of TANF revenue only to agencies that report necessary data to the department to meet TANF eligibility reporting requirements.
Sec. 464. (1) From the funds appropriated in part 1 for diaper assistance grant, the department shall allocate grants to diaper assistance programs, maternity homes, local county offices, and other nonprofit agencies that distribute diapers free of charge and were established as of January 1, 2020. The funds must be used only to purchase diapering supplies and to cover related administrative costs. Not more than 10% of the funds appropriated in part 1 are expendable for administrative purposes.
Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the distribution of diapering supplies that includes, but is not limited to, the names and locations of the entities described in subsection (1) that distribute diaper supplies and the total amount of diapering supplies distributed to each entity.
Funds appropriated for diaper assistance grant are considered work project funds, do not lapse at the end of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to provide funding for grants for eligible entities to distribute diapers free of charge.
The work project will be accomplished through partnerships with diaper assistance programs, maternity homes, and other nonprofit agencies.
The total estimated cost of the work project is $6,404,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 465. (1) From the funds appropriated in part 1 for community services and outreach administration,
$2,950,000.00 must be distributed as provided in subsection (2). Michigan 2-1-1 must continue to seek funding from local United Way organizations and other nonprofit organizations and foundations.
Funds distributed under subsection (1) must be distributed to Michigan 2-1-1, a nonprofit corporation organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and whose mission is to coordinate and support a statewide 2-1-1 system. Michigan 2-1-1 shall use the funds only to fulfill the Michigan 2-1-1 business plan adopted by Michigan 2-1-1 in January 2005.
Michigan 2-1-1 shall refer any received calls that report fraud, waste, or abuse of state-administered public assistance to the department.
Michigan 2-1-1 shall submit, to the department, the senate and house of representatives standing committees with primary jurisdiction over matters relating to human services and telecommunications on 2-1-1 system performance, and the standard report recipients, a report that includes, but is not limited to, call volume by health and human service needs and unmet needs identified through caller data and number and the percentage of callers referred to public or private provider types.
Sec. 466. Not later than March 1 of the current fiscal year, the department shall submit to the standard report recipients a report on the runaway homeless youth program that includes, but is not limited to, all of the following:
A list of counties served and the amount of funding allocated to each county.
The amount of funding being allocated to previously underserved communities and how capacity has been expanded or is planned to be expanded in those communities.
Identified barriers that have hindered providers from expanding capacity.
CHILDREN’S SERVICES AGENCY - CHILD WELFARE
Sec. 501. (1) A goal is established that not more than 25% of all children in foster care at any given time during the current fiscal year, unless contrary to the best interest of the child, will have been in foster care for 24 months or more.
(2) Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report describing the steps that will be taken to achieve the goal under subsection (1). The report must also include the following:
An explanation of the most significant barriers that prevent long-term foster children from permanent placements.
The number of children currently in foster care for longer than 24 months and the percentage of those children that had paid Medicaid behavioral health claims or encounters within the last year.
Sec. 502. From the funds appropriated in part 1 for foster care, the department shall reimburse Indian tribal governments for 50% of the foster care expenditures for children who are under the jurisdiction of Indian tribal courts and are not otherwise eligible for federal foster care cost sharing. However, the department may reimburse up to 100% of the foster care expenditures for an Indian tribal government that enters into a state- tribal Title IV-E agreement allowed under this state’s Title IV-E state plan.
Sec. 505. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on youth referred or committed to the department for care or supervision in the previous fiscal year that outlines the number of youth served by the department in the juvenile justice system by the type of setting for each youth.
Sec. 506. From the funds appropriated in part 1 for attorney general contract, not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the juvenile justice system in any county in which funds appropriated in part 1 are expended. The report must include, but not be limited to, all of the following:
The number of youth referred or committed to the department for care or supervision in the previous fiscal year and in the first quarter of the current fiscal year.
The number of youth referred or committed to the care or supervision of the county in which funds appropriated in part 1 were expended for the previous fiscal year and the first quarter of the current fiscal year.
The type of setting for each youth referred or committed for care or supervision, any applicable performance outcomes, and identified financial costs or savings.
The required and actual staff-to-youth ratios.
Sec. 507. The department’s ability to satisfy appropriation deductions in part 1 for foster care private collections is not limited to collections and accruals pertaining to services provided only in the current fiscal year and may include revenues collected during the current fiscal year for services provided in prior fiscal years. Sec. 508. (1) In addition to the amount appropriated in part 1 for children trust Michigan, money granted or money received as gifts or donations to the children’s trust fund created in 1982 PA 249, MCL 21.171 to
21.172, is appropriated for expenditure.
(2) For the funds described in subsection (1), the department shall ensure that administrative delays are avoided and local grant recipients and direct service providers receive money in an expeditious manner. The department and the state board as that term is defined in section 2 of the child abuse and neglect prevention act, 1982 PA 250, MCL 722.601, shall make the children’s trust fund contract funds available to grantees not later than 31 days after the start date of the funded project.
Sec. 509. (1) From the funds appropriated in part 1 for adoption support services, the department shall maintain a rate structure that pays for cases based on the average length of time it takes to reach adoption finalization by case characteristics for licensed child placing agencies contracted with the department that provide adoption services for youth in foster care.
(2) For cases accepted before the implementation of the new rate structure described in subsection (1), the department shall maintain the increase of contracted rates paid to private child placing agencies, including the $23.00 per diem for all foster youth from the date of the case acceptance to the date of adoption petition acceptance or 150 days, whichever occurs sooner, for licensed child placing agencies contracted with the department to provide adoption services for foster youth. The per diem rate must be separate from the outcome-based reimbursement system and must not be deducted from the total reimbursement an agency receives for the applicable placement or finalization rate of an adoption.
Sec. 510. The department shall submit reports on a monthly basis to the standard report recipients on all of the following:
The number of children awaiting placement in a residential setting by child caring institution.
The reason for the delay in placement, including, but not limited to, facility bed shortages, placement process delays, or other reasons.
The number of incentive payments that were awarded by the department by child caring institution.
The number of incentive payments that were denied by the department by child caring institution.
Of the denials identified in subdivision (d), the department shall provide the rationale for denial of incentive payments including, but not limited to, refusal of placement, lack of staffing, or other reasons.
Sec. 511. The department shall submit, to the standard report recipients and the senate and house of representatives standing committees that cover subject matters dealing with families and human services, reports on a semiannual basis that include the number and percentage of children who received timely physical and mental health examinations after entry into foster care. The goal of the program is for not less than 85% of children to have an initial medical and mental health examination that is not later than 30 days after entry into foster care.
Sec. 512. (1) From the funds appropriated in part 1 for foster care payments, the department shall allocate
$500,000.00 of TANF revenue to provide luggage to a child who is being removed from the child’s home or changing placement and is a TANF eligible individual. The luggage provided under this section is considered to belong to the child and may not be confiscated by the department or the child’s foster parent. The department is not required to provide new luggage under this section to a child who is changing placement and has had luggage previously provided by the department.
The department may partner with local charities to establish and maintain the supply of luggage to be used to transport a child’s personal belongings. Additionally, the department may accept donations of luggage to fulfill the requirements of this section.
As used in this section, “luggage” means any of the following:
A suitcase of any size.
A duffel bag that holds at least 30 liters.
Sec. 513. (1) The department shall not expend funds appropriated in part 1 to pay for the department’s direct placement of a child in an out-of-state facility unless all of the following conditions are met:
An appropriate placement is not available in this state, as determined by the department’s interstate compact office.
An out-of-state placement exists that is nearer to the child’s home than the closest appropriate in-state placement, as determined by the department’s interstate compact office.
The out-of-state facility meets all of the licensing standards for a comparable facility in this state.
The out-of-state facility meets all of the applicable licensing standards of the state in which it is located.
The department has visited the site of the out-of-state facility; has reviewed the facility records, licensing records, and reports; and believes that the facility is an appropriate placement for the child.
The department shall not expend money for a child placed in an out-of-state facility without approval of the executive director of the children’s services agency.
Not later than March 1 of the current fiscal year, the department shall submit, to the state court administrative office and the standard report recipients, a report on the number of Michigan children residing in out-of-state facilities in the previous fiscal year, the total cost and average per diem cost of the out-of-state placements to this state, a list of each out-of-state placement arranged by the Michigan county of residence for each child, and a list of out-of-state facilities that were visited by the department before the child’s placement.
Sec. 514. (1) From the funds appropriated in part 1 for foster care payments, the department shall maintain a statewide respite care services network available to licensed foster parents and unlicensed relative caregivers that care for children in foster care.
(2) Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the total number of licensed foster parents and unlicensed relative caregivers that were provided respite services, the average amount of respite time per month, and the total amount of funding spent on respite services during the previous fiscal year.
Sec. 515. If a children’s protective services caseworker requests approval for another children’s protective services caseworker or other department employee to accompany the caseworker on a home visit because the caseworker believes that it would be unsafe to conduct the home visit alone, the department shall not deny the request.
Sec. 516. (1) From funds appropriated in part 1 for child care fund, the administrative or indirect cost payment equal to 10% of a county’s total monthly gross expenditures must be distributed to the county on a monthly basis, and a county is not required to submit documentation to the department for any of the expenditures that are covered under the 10% payment as described in section 117a(4)(b)(ii) and (iv) of the social welfare act, 1939 PA 280, MCL 400.117a.
(2) From the funds appropriated in part 1 for child care fund – indirect cost allotment, the department shall allocate $3,500,000.00 to counties and tribal governments that receive reimbursements in part 1 from child care fund.
(3) The amount described in subsection (2) must be distributed to each county or tribal government in the same proportion as indirect cost allotments are provided to counties in the same manner described in section 117a of the social welfare act, 1939 PA 280, MCL 400.117a.
Sec. 517. For a child placed in a family foster care home located out of this state, the department may ask a state or private child placing agency contracted by the receiving state to carry out required visits and any additional visits that the department finds necessary.
Sec. 518. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the cumulative child care fund expenditures of in-home juvenile justice care that are eligible for the 75% state and 25% local split required under section 117a(4)(i) of the social welfare act, 1939 PA 280, MCL 400.117a. Eligible expenditures include community-based juvenile supervision, services, and related practices, and per diem rates for the use of respite and shelter for less than 30 days. The report must also include the expenditures by county and type of service provided, the number of youth receiving care, and the number of days of care.
Sec. 520. Not later than February 15 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the number of days of care and expenditures by funding source for the previous fiscal year for out-of-home placements by specific placement programs for child abuse or child neglect and juvenile justice, including, but not limited to, paid relative placement, department direct family foster care, private-agency-supervised foster care, private child caring institutions, county-supervised facilities, and independent living. The report must also include the number of days of care for department-operated residential juvenile justice facilities by security classification.
Sec. 522. (1) From the funds appropriated in part 1 for youth in transition, the department shall allocate
$750,000.00 for scholarships through the fostering futures scholarship program in the Michigan education trust to youth who were in foster care because of child abuse or child neglect and are attending a college or a career technical educational institution located in this state. One hundred percent of the funds appropriated must be used to fund scholarships for the youth described in this section.
(2) Not later than June 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report that includes the number of youth who applied for scholarships under this section, the number of youth who received scholarships under this section and the amount of each scholarship, and the total amount of funds spent or encumbered in the current fiscal year.
Sec. 523. Not later than February 15 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the families first, family reunification, and families together building solutions family preservation programs. The report must include both of the following:
Utilization and outcome data based on families served.
For each program, information on any innovations or expansions that may increase child safety and reduce risk.
Sec. 524. As a condition of receiving funds appropriated in part 1 for strong families/safe children, not later than October 1 of the current fiscal year, counties shall submit the service spending plan to the department for approval. Not later than 30 calendar days after receipt of a properly completed service spending plan, the department shall approve the service spending plan.
Sec. 525. The department shall maintain the same on-site evaluation processes for privately operated child welfare and juvenile justice residential facilities as is used to evaluate state-operated facilities. Penalties for noncompliance must be the same for privately operated child welfare and juvenile justice residential facilities and state-operated facilities.
Sec. 526. From the funds appropriated in part 1 for court-appointed special advocates, the department shall allocate $2,250,000.00 to fund a project with a nonprofit, community-based organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, located in a charter township with a population between 18,000 and 19,000 that is located in a county with a population between 600,000 and 700,000, according to the most recent federal decennial census. The nonprofit organization recipient must have an existing network of affiliate programs operating in not less than 25 counties in this state. The recipient nonprofit organization shall use the funds to recruit, screen, train, and supervise volunteers who provide advocacy services on behalf of abused and neglected children.
Sec. 528. From the funds appropriated in part 1 for child care fund, the department shall allocate
$3,730,300.00 to support the annual basic grant to counties with a population of less than 75,000, according to the most recent federal decennial census, and as described in section 117e of the social welfare act, 1939 PA 280, MCL 400.117e, and to eligible tribal entities. The basic grant must be $56,520.00 to eligible counties and tribal entities.
Sec. 529. From the funds appropriated in part 1 for family preservation programs, the department shall increase the total combined funding levels of the families first, family reunification, and families together building solutions family preservation programs at an amount not less than the amount provided as of September 30, 2021.
Sec. 530. (1) All master contracts relating to foster care and adoption services as funded by the appropriations in section 105 of part 1 must be performance-based contracts that employ a client-centered and results-oriented process that is based on measurable performance indicators and desired outcomes and includes an annual assessment of the quality of services provided.
(2) Not later than February 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report detailing measurable performance indicators, desired outcomes, and an assessment of the quality of services provided by the department during the previous fiscal year.
Sec. 532. Beginning on October 1 of the current fiscal year, the department shall hold semiannual meetings with state and private residential providers to receive feedback and discuss potential improvements to the residential system.
Sec. 534. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the adoption subsidies expenditures from the previous fiscal year. The report must include, but is not limited to, the range of non-$0.00 annual adoption support subsidy amounts, for both Title IV-E eligible cases and state-funded cases, paid to adoptive families; the number of Title IV-E and state-funded cases; the number of cases in which an adoption support subsidy request by an adoptive parent was denied by the department; and the number of adoptive parents who requested a renegotiation of their adoption support subsidy contract.
Sec. 537. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the following information for cases of child abuse or child neglect from the previous fiscal year:
The total number of relative care placements.
The total number of relative care placements into unlicensed relative homes.
The total number of relative care placements into licensed relative homes.
The total number of unlicensed relative providers with a relative placement that were denied a foster home license due to not meeting the standards established for foster care licensing in this state.
From a sample of cases, a list of the reasons documented by the department for denial of relative foster home licensure.
For licensed relative caregivers without placements, the status of Title IV-E claims for foster care maintenance payments and foster care administrative payments.
Sec. 540. If a physician or psychiatrist who is providing services to a state or court ward placed in a residential facility submits a formal request to the department to change the psychotropic medication for a ward, the department shall, if the ward is a state ward, make a determination on the proposed change not later than 7 business days after the request or, if the ward is a temporary court ward, seek parental consent not later than 7 business days after the request. If the determination or parental consent is not provided by the seventh business day, the department shall petition the court for the determination or consent on the eighth business day.
Sec. 546. (1) From the funds appropriated in part 1 for foster care payments and from child care fund, the department shall pay an administrative rate before incentive payments of not less than $60.20 to providers of general foster care, independent living, and trial reunification services.
(2) From the funds appropriated in part 1, the department shall pay providers of independent living plus services per diem statewide rates for staff-supported housing and host-home housing that are based on proposals submitted in response to a solicitation for pricing. The independent living plus program provides staff-supported housing and services for foster youth 16 years of age to 19 years of age who, because of their individual needs and assessments, are not initially appropriate for general independent living foster care.
(3) If required by the federal government to meet Title IV-E requirements, on a quarterly basis, providers of foster care services shall submit a report on expenditures to the department to identify actual costs of providing foster care services.
Sec. 547. (1) From the funds appropriated in part 1 for the guardianship assistance program, the department shall pay a minimum rate that is not less than the approved age-appropriate payment rates for youth placed in family foster care.
(2) The department shall submit, to the standard report recipients, a report that includes quarterly data on the number of children enrolled in the guardianship assistance and foster care – children with serious emotional disturbance waiver programs.
Sec. 550. (1) The department shall not offset against reimbursements to counties or seek reimbursement from counties for charges that were received by the department more than 12 months before the department seeks to offset against reimbursement. A county shall not request reimbursement, and reimbursements must not be paid, for a charge that is more than 12 months after the date of service or original status determination when initially submitted by the county.
(2) Not later than 12 months after a date of service, a service provider shall submit a request for payment. A request for payment submitted later than 12 months after the date of service requires the provider to submit an exception request to the county or the department for approval or denial.
(3) A county is not subject to any offset, chargeback, or reimbursement liability for a prior expenditure resulting from an error in a foster care fund source determination.
Sec. 551. Not later than 30 days after a county requests a clarification through the department’s child care fund management unit email address, the department shall respond to the request.
Sec. 552. Sixty days after a county’s child care fund review is completed, including the receipt of all requested documentation from the county, the department shall provide the results of the review to the county. In the review, the department shall not evaluate the relevancy, quality, effectiveness, efficiency, or impact of the services provided to youth by the county’s child care fund programs. The department shall not release the results of a county’s child care fund review to a third party without the permission of the county. Sec. 554. From the funds appropriated in part 1 for foster care payments, the department shall allocate
$50,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501; currently has locations in 3 cities; operates on a 100% volunteer basis with a board of directors consisting of not more than 15 members; is a dedicated community of individuals that give their time, talent, and resources to provide the best quality shopping environment that they can to local children in need; and provides clothing, shoes, toys, linens, nursery furniture, strollers, car seats, school supplies, hygiene products, and safety equipment to local foster children and their families free of charge.
Sec. 557. If a vehicle that is owned by the state is available and not scheduled for use by other state workers, the department may consider a children’s protective services caseworker or a foster care caseworker driving the vehicle to a foster home visit or driving the vehicle to the caseworker’s own home as an allowable use of the vehicle if the driving would be helpful to the caseworker in conducting the caseworker’s work.
Sec. 559. (1) From the funds appropriated in part 1 for adoption support services, not later than December 1 of the current fiscal year, the department shall allocate $500,000.00 to a grant recipient to operate and expand its adoptive parent mentor program to provide a listening ear, knowledgeable guidance, and community connections to adoptive parents and children who were adopted in this state or another state.
(2) Not later than March 1 of the current fiscal year, the grant recipient shall submit, to the standard report recipients, a report on the program described in subsection (1), including, but not limited to, the number of cases served and the number of cases in which the program prevented an out-of-home placement.
Sec. 562. If a foster parent transports a foster child to parent-child visitation, the department shall reimburse the foster parent for the foster parent’s time and travel. As part of the foster care parent contract, the department shall provide written confirmation to foster parents that states that the foster parents have the right to request reimbursement for all parent-child visitations. Not later than 60 days after receiving a request from a foster parent for eligible reimbursement, the department shall provide the reimbursement.
Sec. 564. (1) The department shall maintain a clear policy for parent-child visitations. All of the following individuals shall meet an 85% success rate, after accounting for factors outside of caseworker control:
Caseworkers and supervisors of local county offices.
Caseworkers and supervisors of child placing agencies.
In accordance with the court-ordered number of required meetings between caseworkers and a parent, the caseworkers shall achieve a success rate of 85%, after accounting for factors outside of caseworker control.
Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the following:
The percentage of success rates for parent-child visitations and court-ordered required meetings under subsections (1) and (2) for the previous fiscal year.
The barriers to achieve the success rates described in subsections (1) and (2) and how this information is tracked.
Sec. 568. (1) The department shall ensure each youth transitioning out of foster care is given assistance with obtaining a driver license or state identification card and is issued a copy of the youth’s Social Security number, as required by department policy. Assistance must be provided to each youth who is eligible to obtain a driver license or state identification card and, based on the youth’s citizenship and legal residency status, a Social Security card.
(2) Not later than April 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the number of youth who obtained a driver license or state identification card, the number of youth who obtained a Social Security card, and the number of youth who were eligible but did not receive a driver license, state identification card, or Social Security card and an explanation as to why the youth did not receive the documents.
Sec. 569. The department shall reimburse each private child placing agency that completes an adoption at the rate on the date when the petition for adoption and the required support documentation were accepted by the court and not the rate on the date when the court’s order placing for adoption was entered.
Sec. 574. (1) From the funds appropriated in part 1 for foster care payments, $1,375,000.00 is allocated to support family incentive grants to private and community-based foster care service providers and relative caregivers for assistance with home improvements to alleviate safety concerns or obtain items needed to ensure compliance with licensing rule requirements and to accommodate children in foster care.
(2) Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the total amount expended in the previous year for grants to private and community- based foster care service providers for home improvements or physical exams described in subsection (1) and the number of grants issued.
Sec. 575. From the funds appropriated in part 1 for children’s services administration, the department shall allocate $200,000.00 to provide support and coordinated services to the kinship caregiver advisory council. The responsibilities of the council may include all of the following:
Establishing a public awareness campaign to educate the public about kinship caregivers and this state’s efforts to better serve kinship caregivers.
Consulting and coordinating with the kinship caregiver navigator program to collect aggregate data on individuals being served by the kinship caregiver navigator program, including information on what services the individuals need.
Consulting and collaborating with the provider of the kinship caregiver navigator program on the design and administration of the program.
Establishing, maintaining, and updating a list of local support groups and programs that provide services to kinship families and, in order to obtain a better understanding of the issues facing kinship families, devising a plan of action for engaging with the groups and programs on the list.
Developing methods to promote and improve collaboration between state, county, and local governments and agencies and private stakeholders for all of the following reasons:
To obtain a broad understanding of the characteristics and prevalence of kinship caregiving.
To improve service delivery.
To include the methods in the council’s recommendations.
Sec. 578. (1) From the funds appropriated in part 1 for foster care payments, the department shall allocate Title IV-E passthrough funds for educational pilot programs to strengthen this state’s child welfare workforce. The department shall enter into contractual arrangements with state universities to provide bachelor of social work and master of social work educational training, including field placements and stipends for tuition and educational expenses. In exchange, students completing eligible educational programs are contractually obligated to work for Michigan child welfare agencies for a minimum of 4 months for every semester they receive the stipend. The matching funds for the Title IV-E funds must be provided by the participating state universities from the expenses incurred for training child welfare students who participate in the program.
(2) Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients, a report on the status of pilot programs under subsection (1) that includes, but is not limited to, the total number of applicants, the total number of program participants, a list of state universities that participated in the pilot programs, and the total amount of matching funds that each state university contributed to the programs.
Sec. 581. From the funds appropriated in part 1 for foster care payments, the department shall allocate
$50,000.00 for caseworkers to provide immediate assistance with urgent needs, including, but not limited to, food, clothing, and other basic necessities, for children, including children who are victims of human trafficking, on the children’s removal from the children’s homes or other dangerous environments.
Sec. 583. Not later than March 1 of the current fiscal year, the department shall submit, to the standard report recipients and the senate and house of representatives standing committees that cover subject matters dealing with families and human services, a report that includes all of the following:
The number and percentage of foster parents that closed their license in the previous fiscal year, the reasons the foster parents left, and how the figures compare to the figures for prior fiscal years.
The number and percentage of foster parents successfully retained in the previous fiscal year and how the figures compare to the figures for prior fiscal years.
The number and percentage of licensed foster homes that closed their license because they adopted their foster child.
Sec. 585. Each month, the department shall make available at least 1 pre-service training class in which new caseworkers for private foster care and adoption agencies can enroll.
Sec. 588. (1) Concurrently with public release, the department shall transmit, without revision, all reports from the court-appointed settlement monitor, including, but not limited to, the needs assessment and period outcome reporting, to the standard report recipients.
(2) Not later than October 1 of the current fiscal year, the department shall submit, to the standard report recipients, a detailed plan that addresses the status and progress toward exiting the settlement by September 30 of the current fiscal year. The report must include an update on the department’s child welfare initiative.
Sec. 589. (1) From the funds appropriated in part 1 for child care fund, the department shall pay 100% of the administrative rate for all new cases referred to providers of foster care services.
(2) On a quarterly basis, the department shall submit a report, to the standard report recipients, on the monthly number of all foster care cases administered by the department and all foster care cases administered by private providers.
Sec. 592. On a quarterly basis, the department shall submit, to the chairs of the senate and house of representatives standing oversight committees and the standard report recipients, a report that includes data from children’s protective services staff for each of the following for the most recent quarter before the applicable report is submitted:
The percent of investigations commenced in 24 hours immediately after receiving a report.
The percent of central registry reviews performed for required individuals.
The percent of face-to-face contacts made within the established timeframe required by the department.
In appropriate cases, the percent of sibling placement evaluations completed when 1 or more children remain in the home after a child has been removed.
The percent of supervisory reviews performed in a timely manner.
The results of a department survey of children’s protective services investigators on the number of investigators who are concerned for their own personal safety.
The percent of investigators using the mobile application or another tool to document compliance.
Sec. 593. The department shall conduct an annual review in each county to determine if the county has adopted and implemented standard child abuse and child neglect investigation and interview protocols under section 8(6) of the child protection law, 1975 PA 238, MCL 722.628.
Sec. 594. From the funds appropriated in part 1 for foster care payments, the department shall support regional resource teams to provide for the recruitment, retention, and training of foster and adoptive parents and shall expand the Michigan youth opportunities initiative to all counties of this state. The purpose of the funding is to increase the number of annual inquiries from prospective foster parents, increase the number of nonrelative foster homes that achieve licensure each year, increase the annual retention rate of nonrelative foster homes, reduce the number of older foster youth placed outside of family settings, and provide older youth with enhanced support in transitioning to adulthood.
Sec. 598. Partial child care fund reimbursements to counties for undisputed charges must not be made later than 45 business days after receipt of the required forms and documentation. Not later than 15 business days after receiving a request from a county for reimbursement of a disputed charge, the department shall commence activity to investigate and resolve the disputed reimbursement charge. The activity to investigate and resolve a disputed reimbursement charge may include, but is not limited to, the use of a formal appeals process under applicable law and the department chargeback policy. Not later than 45 business days after a properly corrected submission by the county, the department shall reimburse the county for the corrected charge or charges.
PUBLIC ASSISTANCE
Sec. 601. After a client agrees to the release of the client’s name and address to the local housing authority, the department shall request from the local housing authority information regarding whether the housing unit for which vendoring has been requested meets applicable local housing codes. Vendoring must be terminated if the local housing authority indicates in writing that the unit does not meet local housing codes and until the local housing authority indicates in writing that the local housing codes have been met.
Sec. 602. The department shall conduct a full evaluation of an individual’s assistance needs if the individual has applied for disability more than 1 time in a 1-year period.
Sec. 603. For any change in the income of a recipient of the food assistance program, the family independence program, or state disability assistance that results in a benefit decrease, the department shall notify the recipient of the amount of the decrease not later than 15 work days before the first day of the month in which the decrease takes effect.
Sec. 604. (1) From the funds appropriated in part 1 for state disability assistance payments, the department shall operate a state disability assistance program. Except as provided in subsection (3), to be eligible for the program, an individual must be a needy citizen of the United States or alien exempted from the SSI citizenship requirement who is not less than 18 years of age, or an emancipated minor, and meets 1 or more of the following requirements:
Is a recipient of SSI, Social Security, or medical assistance due to disability or being 65 years of age or older.
Is an individual with a physical or mental impairment that meets federal SSI disability standards, except that the minimum duration of the disability must be 90 days. Substance use disorder alone is not a basis for eligibility.
Is a resident of an adult foster care facility, a home for the aged, a county infirmary, or a substance use disorder treatment center.
Is an individual receiving 30-day postresidential substance use disorder treatment.
Is an individual diagnosed as having AIDS.
Is an individual receiving special education services through a local intermediate school district.
Is a caretaker of a disabled individual who meets the requirements specified in subdivision (a), (b), (e), or (f).
An applicant for or recipient of state disability assistance is considered needy if the applicant or recipient does both of the following:
Meets the same asset test as is applied for the family independence program.
Has a monthly budgetable income that is less than the payment standards.
Except for an individual described in subsection (1)(c) or (d), an individual is not disabled under this section if the individual’s drug addiction or alcoholism is a contributing factor material to the determination of disability.
As used in this section:
“Material to the determination of disability” means that, if the individual stopped using drugs or alcohol, the individual’s remaining physical or mental limitations would not be disabling. If the individual’s remaining physical or mental limitations would be disabling, then the drug addiction or alcoholism is not material to the determination of disability and the individual may receive state disability assistance, but the individual must actively participate in a substance abuse treatment program, and the assistance must be paid to a third party or through vendor payments.
“Substance abuse treatment” includes receipt of inpatient or outpatient services or participation in Alcoholics Anonymous or a similar program.
Sec. 605. The level of reimbursement provided to state disability assistance recipients in licensed adult foster care facilities must be the same as the prevailing SSI rate under the personal care category.
Sec. 606. County department offices shall require each recipient of family independence program and state disability assistance who has applied with the Social Security Administration for SSI to sign a contract to repay any assistance rendered through the family independence program or state disability assistance program on receipt of retroactive SSI benefits.
Sec. 607. (1) The department’s ability to satisfy appropriation deductions in part 1 for state disability assistance/supplemental security income recoveries and public assistance recoupment revenues is not limited to recoveries and accruals pertaining to state disability assistance, or family independence program grant payments provided only in the current fiscal year and may include revenues collected during the current year that are prior-year-related and not a part of the department’s accrued entries.
(2) The department may use SSI recoveries to satisfy the deduct in any line in which the revenues are appropriated, regardless of the source from which the revenue is recovered.
Sec. 608. An adult foster care facility that provides domiciliary care or personal care to a resident receiving SSI or a home for the aged serving a resident receiving SSI shall not require a resident described in this section to reimburse the home for the aged or adult foster care facility for care at a rate in excess of a rate that is authorized by the legislature. To the extent permitted by federal law, an adult foster care facility and home for the aged that serves a resident receiving SSI is not prohibited from accepting a third-party payment in addition to SSI if the payment is not for food, clothing, or shelter, or would result in a reduction in the resident’s SSI payment.
Sec. 609. The department shall not reduce the state supplementation level under the SSI program for the personal care/adult foster care and home for the aged categories during the current fiscal year. Not later than 30 days before a proposed reduction in the state supplementation level, the department shall notify the legislature of the proposed reduction.
Sec. 610. (1) The department shall grant an exemption from the good-cause criteria for the state emergency relief program if an emergency results from an unexpected expense related to maintaining or securing employment.
In determining housing affordability eligibility for state emergency relief, a group is considered to have sufficient income to meet ongoing housing expenses if the group’s total housing obligation does not exceed 75% of the group’s total net income.
The department shall not make a state emergency relief payment to an individual who has been found guilty of fraud in obtaining public assistance.
The department shall not make a state emergency relief payment to an individual who is an out-of-state or nonlegal resident.
The department shall distribute a state emergency relief payment for rent assistance directly to a landlord and shall not add the payment to a Michigan bridge card.
Sec. 611. The state supplementation level under the SSI program for the living independently category or living in the household of another category must not exceed the minimum state supplementation level as required under federal law.
Sec. 613. (1) From the funds appropriated in part 1 for indigent burial, the department shall provide a reimbursement for the final disposition of an indigent individual. A reimbursement under this section must comply with all of the following:
The maximum allowable reimbursement for the final disposition is $960.00.
The adult burial with services allowance is $875.00.
The adult burial without services allowance is $610.00.
The infant burial allowance is $240.00.
The adult cremation with services allowance is $640.00.
The adult cremation without services allowance is $390.00.
The maximum allowable reimbursement if an irrevocable funeral agreement exists is $260.00.
The department shall reimburse up to $80.00 for a cremation permit fee and for mileage at the standard rate for an eligible cremation. A reimbursement under this subsection must take into consideration whether an indigent individual’s religious preference prohibits cremation.
An application for burial services must be made no later than 20 business days after the burial, cremation, or donation takes place. A friend or relative of the indigent individual may supplement the burial payment in any amount up to $6,000.00 for additional services. A funeral director, with written authorization provided by a relative of the indigent individual, is deemed an authorized representative for burial benefits.
By January 31 of the current fiscal year, the department shall submit a report to the standard report recipients on burial service payments issued from the state emergency relief program during the previous fiscal year. The report must include the number of applicants denied and the number of payments by the following burial service categories:
Fetus or infant less than 1 month of age.
Burial with memorial service.
Burial without memorial service.
Cremation with memorial service.
Cremation without memorial service.
Transportation of a donated or unclaimed body being cremated.
Cremation permit fee for an unclaimed body.
Disposition of an unclaimed body.
Payment if an irrevocable funeral agreement exists.
An unclaimed body received by a university.
Sec. 614. By January 15 of the current fiscal year, the department shall submit a report to the standard report recipients on the number and percentage of state disability assistance recipients who were determined to be eligible for federal SSI benefits in the previous fiscal year.
Sec. 615. Except as required by federal law, the department shall not use funds appropriated in part 1 to provide public assistance to an individual who is not a United States citizen, permanent resident alien, or refugee. This section does not prohibit the department from entering into a contract with a food bank, emergency shelter provider, or another human service agency that may, as a normal part of doing business, provide food or emergency shelter.
Sec. 616. The department shall require a retailer that participates in the electronic benefits transfer program to charge no more than a $2.50 fee for cash back as a condition of participation.
Sec. 619. The department shall not deny a title IV-A assistance and food assistance benefit under 21 USC 862a to an individual who has been convicted of a felony for the possession, use, or distribution of a controlled substance, if both of the following are met:
The act that resulted in the conviction occurred after August 22, 1996.
The individual is not in violation of the individual’s probation or parole requirements.
Sec. 620. (1) The department shall determine a Medicaid applicant’s Medicaid eligibility not later than 90 days after the Medicaid applicant completes a Medicaid application if the Medicaid applicant’s disability is an eligibility factor. For other Medicaid applicants, including an applicant who is a patient of a nursing home, the department shall determine the applicant’s Medicaid eligibility within 45 days after receiving the Medicaid applicant’s application.
On a quarterly basis, the department shall submit a report to the standard report recipients on the number of recipients who were ineligible for Medicaid after Medicaid eligibility redeterminations resumed after federal continuous enrollment requirements ended. The report must include, in a monthly data format, the number of recipients who had their eligibility examined directly, through an ex parte eligibility process or through a passive eligibility process. The report must also include a copy of each baseline and monthly report that the department provides to CMS for unwinding data reporting and the number of recipients who did not respond to the department through eligibility outreach or data requests.
Sec. 625. From the funds appropriated in part 1 for SSI advocacy legal services grant, the department shall allocate $975,000.00 as a grant to the Legal Services Association of Michigan (LSAM). The purpose of the grant is to assist current or potential recipients of state disability assistance who have applied for or wish to apply for SSI or other federal disability benefits. LSAM shall provide a list of newly eligible SSI recipients to the department to verify that services are provided to department referrals.
Sec. 645. The department shall consider an individual or family to be homeless for purposes of eligibility for state emergency relief, if the individual or family is living temporarily with another in order to escape domestic violence. The department shall define and verify domestic violence in the same manner as the department defines and verifies that term in the department’s policies on good cause for not cooperating with child support and paternity requirements.
Sec. 653. From the funds appropriated in part 1 for food assistance program benefits, an individual who is the victim of domestic violence or human trafficking and who does not qualify for any other exemption may be exempt from the 3-month in 36-month limit on receiving food assistance under 7 USC 2015. The department may extend the exemption for an additional 3 months if an individual described in this section demonstrates to the department a continuing need.
Sec. 654. The department shall notify a recipient of food assistance program benefits that the recipient’s benefits can be spent with the recipient’s Michigan bridge card at many farmers markets in this state. The department shall also provide a recipient with information about the double up food bucks program that is administered by the Fair Food Network. The information about the double up food bucks program must include, but is not limited to, information that if the recipient spends $20.00 at a participating farmers market through the program, the recipient may receive an additional $20.00 to buy Michigan produce.
Sec. 655. Not later than 14 days after the spending plan for low-income home energy assistance program is approved by the state budget office, the department shall provide the spending plan, including itemized projected expenditures and itemized expenditures for the previous fiscal year, to the standard report recipients.
Sec. 660. From the funds appropriated in part 1 for Michigan agricultural surplus system, the department shall allocate $12,045,000.00 for procuring and distributing the Michigan agricultural surplus system to distribute surplus produce to low-income residents of this state.
Sec. 669. From the funds appropriated in part 1 for family independence program – clothing allowance, the department shall allocate $10,000,000.00 for the annual clothing allowance. The department shall grant the allowance to eligible children in a family independence program group.
Sec. 672. (1) By February 15 of the current fiscal year, the department’s office of inspector general shall submit a report to the standard report recipients on the department’s efforts to reduce the inappropriate use of Michigan bridge cards and food assistance program trafficking. The department shall provide information on the number of recipients of services who used their Michigan bridge card inappropriately and the current status of each case, the number of recipients whose benefits were permanently and temporarily revoked as a result of inappropriately using their Michigan bridge cards, and the number of retailers that were fined or removed from the electronic benefit transfer program for permitting the inappropriate use of Michigan bridge cards. The report must also include the number of Michigan bridge card trafficking instances and overall welfare fraud referrals, that includes, but is not limited to, information on the number of investigations completed, fraud and intentional program violation dollar amounts identified, the number of referrals to prosecutors, the number of administrative hearing referrals and waivers, and the number of program disqualifications imposed. The report must distinguish between savings and cost avoidance. As used in this subsection:
“Cost avoidance” includes expenditures avoided due to front-end eligibility investigations and other preemptive actions undertaken in the prevention of fraud.
“Savings” includes receivables established from instances of fraud committed.
If a fourth Michigan bridge card has been issued to a household in a 12-month period, the department shall notify the household that the household has reached the number of issued cards threshold. At a household’s fifth and each subsequent card replacement request, a card will not be issued until a recipient from the household has spoken directly to the local office district manager or county director. The district manager or county director may issue a new Michigan bridge card based on the district manager’s or county director’s assessment of the recipient’s situation and the recipient’s explanation.
As used in this section:
“Food assistance trafficking” means the buying and selling of food assistance benefits for cash or items not authorized under 7 USC 2036b.
“Inappropriate use” means not used to meet a family’s ongoing basic needs, including, but not limited to, food, clothing, shelter, utilities, household goods, personal care items, and general incidentals.
Sec. 677. (1) The department shall establish a state goal for the percentage of family independence program cases involved in employment activities. The percentage established must not be less than 50%. The goal for long-term employment must be 15% of cases for 6 months or more.
The department shall submit an annual report, providing quarterly data, to the standard report recipients on the number of cases referred to PATH, the current percentage of family independence program cases involved in PATH employment activities, an estimate of the current percentage of family independence program cases that meet federal work participation requirements on the whole, and an estimate of the current percentage of the family independence program cases that meet federal work participation requirements for those cases referred to PATH.
The department shall submit a report to the standard report recipients. The report must include quarterly data on all of the following:
The number and percentage of nonexempt family independence program recipients who are employed.
The average and range of wages of employed family independence program recipients.
The number and percentage of employed family independence program recipients who remain employed for 6 months or more.
Sec. 678. (1) From the funds appropriated in part 1 for family independence program – child supplemental payment, the department shall allocate $16,240,100.00 of TANF revenue to provide a supplemental payment for the current fiscal year for each child under 6 years of age within a family receiving cash assistance. Not later than November 30 of the current fiscal year, the department shall distribute an equal payment based on the funds available in part 1 and the total number of children under 6 years of age who are within a family receiving cash assistance.
From the funds appropriated in part 1 for family independence program – child supplemental payment, the department shall allocate $7,000,000.00 of TANF revenue to provide a supplemental payment for the current fiscal year for each child 6 years of age or older but under 14 years of age within a family receiving cash assistance. Not later than November 30 of the current fiscal year, the department shall distribute an equal payment based on the funds available in part 1 and the total number of children who are 6 years of age or older but under 14 years of age within a family receiving cash assistance.
By February 1 of the current fiscal year, the department shall submit a report to the standard report recipients on the amount of funding distributed under this section and shall include the number of family independence program cases, the number of family independence program eligible children by age group, and the amount of funding distributed by age category.
Sec. 686. (1) The department shall confirm that an individual who presents a personal identification issued by another state and is seeking assistance through the family independence program, food assistance program, state disability assistance program or medical assistance program is not receiving benefits from another state.
The department shall confirm the address provided by an individual who is seeking family independence program benefits or state disability assistance benefits.
The department shall prohibit an individual who has property assets assessed at a value higher than
$200,000.00 from receiving assistance through a department-administered program, unless prohibiting assistance would violate a federal law or guideline.
The department shall make a reasonable attempt to obtain an up-to-date telephone number for an individual seeking medical assistance benefits during the eligibility determination or redetermination process for the individual.
Sec. 687. (1) On a quarterly basis, the department shall compile and make available a report on its website that contains all of the following information about the family independence program, state disability assistance, the food assistance program, indigent burial, Medicaid, and state emergency relief:
The number of applications received.
The number of applications approved.
The number of applications denied.
The number of applications pending and neither approved nor denied.
The number of cases opened.
The number of cases closed.
The number of cases at the beginning of the quarter and the number of cases at the end of the quarter.
The department shall compile and make the information provided under subsection (1) available for this state as a whole and for each county and shall report the information separately for each program listed in subsection (1).
On a quarterly basis, the department shall compile and make available a report on its website of the following family independence program information:
The number of new applicants who successfully met the requirements of the 10-day assessment period for PATH.
The number of new applicants who did not meet the requirements of the 10-day assessment period for PATH.
The number of cases sanctioned because of a school truancy policy.
The number of cases closed because of the lifetime limits.
The number of first-, second-, and third-time sanctions.
The number of children 0 to 5 years of age who are living in a family independence program-sanctioned household.
Sec. 689. (1) From the funds appropriated in part 1 for prenatal and infant support program, the department shall allocate $20,000,000.00 of TANF revenue for programs that are intended to improve the economic stability of households with very young children.
In allocating the funds referenced in subsection (1), the department shall give preference to programs that demonstrate the following:
Effectiveness in improving the economic stability of households with pregnant women at a minimum of 20 weeks gestation, and with young children.
Partnerships with local health care providers and nonprofit human service agencies that provide for improved maternal and infant health outcomes.
Compliance with TANF requirements established by the Administration for Children and Families within the United States Department of Health and Human Services.
By September 30 of the current fiscal year, the department, through agreements with contracted implementing agencies, shall report to the standard report recipients information for the previous fiscal year on the aggregated demographic data of all program recipients regardless of underlying funding source. The report must include, but not be limited to, aggregated recipient data from contracted implementing agencies with each contracted implementing agency providing the age, race, ethnicity, Hispanic or Latino origin, federal poverty level, funding source, and zip codes of all program recipients.
CHILDREN’S SERVICES AGENCY – JUVENILE JUSTICE
Sec. 701. Unless required by a change to federal law or the law of this state or at the request of a provider, the department shall not alter the terms of a signed contract with a private residential facility that serves children who are under state or court supervision without receiving written consent from a representative of the private residential facility.
Sec. 702. Not later than November 10 of the current fiscal year, the department shall submit a report to the standard report recipients on all of the following:
The number of youth who resided at the Shawono Center on January 24, 2025, who were moved to other juvenile residential facilities, listed by facility.
The number of staff at the Shawono Center on January 24, 2025, who accepted new positions within the department. The information must include the number of staff who have relocated to the new Michigan youth treatment center.
The number of staff at the Shawono Center on January 24, 2025, who are no longer employed by the department.
The number of youth who resided at the Shawono Center on January 24, 2025, who returned to their homes. Sec. 706. A county is subject to a 50% chargeback for the use of an alternative regional detention service,
if the detention service does not fall under the basic grant provision of section 117e of the social welfare act, 1939 PA 280, MCL 400.117e, or if a county operates the detention service program primarily with professional rather than volunteer staff.
Sec. 707. To be reimbursed for child care fund expenditures, a county shall submit to the department the report required under section 117a(11) of the social welfare act, 1939 PA 280, MCL 400.117a, to enable the department to document a potential federally claimable expenditure.
Sec. 708. (1) As a condition of receiving funds appropriated in part 1 for the child care fund line item, by October 15 of the current fiscal year, a county shall have an approved service spending plan for the current fiscal year. Not later than August 15 of the current fiscal year, a county shall submit the county’s service spending plan for the following fiscal year to the department for approval. The department shall approve a county’s service spending plan not later than 30 calendar days after the department receives a properly completed service spending plan from the county that complies with the requirements of the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b. The department shall notify and submit revisions to a service spending plan to a county whose service spending plan is not approved after initial submission. The department shall not request any additional revisions to a county’s service spending plan outside of the requested revision notification submitted to the county by the department. The department shall notify a county that its service spending plan is approved not later than 30 days after the department considers the county’s revisions to the county’s service spending plan.
(2) A county shall submit an amendment to its county service spending plan for the current fiscal year to the department not later than August 30 of the current fiscal year. A county shall submit payable estimates for the current fiscal year to the department not later than September 15 of the current fiscal year.
(3) Not later than February 15 of the current fiscal year, the department shall submit a report to the standard report recipients on the number of counties that fail to submit a service spending plan by August 15 of the previous fiscal year and the number of service spending plans not approved by October 15. The report must include the number of county service spending plans that were not initially approved by the department and the number of service spending plans that were not approved by the department after being resubmitted by the county after revisions were requested by the department under subsection (1).
Sec. 709. The department’s master contract for juvenile justice residential foster care services must prohibit a contractor from denying a referral for placing a youth, or terminating a youth’s placement, if the youth’s assessed treatment needs are in alignment with the facility’s residential program type, as identified by a court or the department. The master contract must also require that a youth placed in a juvenile justice residential foster care facility has regularly scheduled treatment sessions with a licensed psychologist or a psychiatrist, or both, and access to the licensed psychologist or a psychiatrist as needed.
LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES
Sec. 801. The department shall submit a quarterly report that contains monthly data to the standard report recipients on the most recent food assistance program error rate derived from the active cases, reported to the United States Department of Agriculture Food and Nutrition Service for the supplemental nutrition assistance program.
Sec. 802. From the funds appropriated in part 1 for local office staff travel, the department shall allocate up to $100,000.00 annually toward reimbursing the out-of-pocket costs of county board members and county department directors to attend statewide meetings of the Michigan County Social Services Association.
Sec. 807. From the funds appropriated in part 1 for Elder Law of Michigan MiCAFE contract, the department shall allocate not less than $450,000.00 to the Elder Law of Michigan MiCAFE to assist this state’s elderly population in participating in the food assistance program. Of the $450,000.00 allocated under this section, the department shall use $225,000.00 of general fund/general purpose revenue as state matching funds to receive not less than $225,000.00 in funding from the United States Department of Agriculture to provide outreach program activities as part of a statewide food assistance hotline. The outreach program activities may include eligibility screening and information services.
Sec. 825. (1) From the funds appropriated in part 1, the department shall provide an individual with not more than $2,000.00 for vehicle repairs, including a repair done in the previous 12 months. The $2,000.00 limit described in this section includes the combined total of payments made by the department and the work participation program.
(2) By February 1 of the current fiscal year, the department shall submit a report to the standard report recipients that details the total amount of funding distributed and the total number of payments made for vehicle repairs.
Sec. 826. (1) From the funds appropriated in part 1 for local office policy and administration, not less than
$300,000.00 is allocated for the department to contract with the Prosecuting Attorneys Association of Michigan to provide the support and services necessary to increase the capability of this state’s prosecutors, adult protective service system, and criminal justice system to effectively identify, investigate, and prosecute elder abuse and financial exploitation.
(2) Not later than March 1 of the current fiscal year, the Prosecuting Attorneys Association of Michigan shall submit a report to the department on the efficacy of the contract. The department shall submit the report to the standard report recipients not later than 30 days after the department receives the report from the Prosecuting Attorneys Association of Michigan.
Sec. 850. (1) The department shall maintain each out-stationed eligibility specialist in a community-based organization, community mental health agency, nursing home, adult placement and independent living setting, FQHC, and hospital, unless the community-based organization, community mental health agency, nursing home, adult placement and independent living setting, FQHC, or hospital requests to discontinue the positions at its facility.
From the funds appropriated in part 1 for donated funds positions, the department shall enter into a contract with any agency that is able and eligible under federal law to provide the required matching funds for federal funding, as determined by federal law.
A contract for a donated funds position for assistance payments must include, but not be limited to, performance metrics on both of the following topics:
Meeting a standard of promptness for processing an application for Medicaid and other public assistance programs under the law of this state.
Meeting required standards for error rates in determining programmatic eligibility, as determined by the department.
The department shall fill an additional donated funds position only after a new contract has been signed with an agency. The position must be abolished when the contract expires or is terminated.
The department shall classify as a limited-term FTE a new employee who is hired to fill a donated funds position contract or is hired to fill a vacancy from an employee who transferred to a donated funds position.
By March 1 of the current fiscal year, the department shall submit a report to the standard report recipients detailing information on the donated funds positions. The report must include, but is not limited to, the total number of occupied positions, the total private contribution of the positions, and the total cost to this state for a nonsalary expenditure for the donated funds position employees.
Sec. 851. From the funds appropriated in part 1 for adult services local office staff, the department shall seek to reduce the number of older adults who are victims of crime and fraud by increasing the standard of promptness in every county, as measured by commencing an investigation not later than 24 hours after a report is made to the department, establishing face-to-face contact with the client not later than 72 hours after a report is made to the department, and completing the investigation not later than 30 days after a report is made to the department.
DISABILITY DETERMINATION SERVICES
Sec. 890. From the funds appropriated in part 1 for disability determination services, the department shall maintain the unit rates in effect on September 30, 2019 for medical consultants performing disability determination services, including physicians, psychologists, and speech-language pathologists.
BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL PROJECTS
Sec. 901. The department shall use the funds appropriated in part 1 to support a system of comprehensive community mental health services under the full authority and responsibility of local CMHSPs or PIHPs in accordance with the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, the Medicaid provider manual, federal Medicaid waivers, and all other applicable federal law and the law of this state.
Sec. 902. (1) From the funds appropriated in part 1, the department shall make a final authorization to a CMHSP or PIHP on the execution of a contract between the department and the CMHSP or PIHP. The contract must contain an approved plan and budget and any policy and procedure governing the obligations and responsibilities of each party to the contract. Each contract with a CMHSP or PIHP that the department is authorized to enter into under this subsection must include a provision that the contract is not valid unless the total dollar obligation for all of the contracts between the department and the CMHSPs or PIHPs entered into under this subsection for the current fiscal year does not exceed the amount of money appropriated in part 1 for the contracts authorized under this subsection.
The department shall immediately submit a report to the standard report recipients if either of the following occurs:
The department enters into a new contract with a CMHSP or PIHP that would affect a rate or expenditure.
The department amends a contract that the department has entered into with a CMHSP or PIHP that would affect a rate or expenditure.
The report required by subsection (2) must include information about any changes to the contract and the change’s effects on rates and expenditures.
Sec. 904. (1) Not later than September 30 of the current fiscal year, the department shall provide a report on the CMHSPs, PIHPs, and designated regional entities for substance use disorder prevention and treatment to the standard report recipients that includes the information required by this section.
The report required under subsection (1) must contain, unless otherwise noted, information for each CMHSP and PIHP and a statewide summary, as follows:
A statewide summary of the demographic description of service recipients that, minimally, includes reimbursement eligibility, client population group, age, ethnicity, housing arrangements, and diagnosis.
Per capita expenditures in total and by client population group.
A statewide summary of Medicaid-funded cost information for the 3 diagnosis groups of adults with a mental illness, children with a serious emotional disturbance, and individuals with an intellectual or developmental disability. The statewide summary must, minimally, include expenditures by service category for each of the 3 diagnosis groups described in this subdivision and cases, units, and cost of each specific service code index or health care common procedure coding system code for each of the 3 diagnosis groups.
Financial information on non-Medicaid mental health services by general fund cost reporting category.
Information about access to each CMHSP, PIHP, and designated regional entity for substance use disorder prevention and treatment, that includes, but is not limited to, all of the following:
The number of individuals receiving requested services.
The number of individuals who requested services but did not receive services.
The number of second opinions requested under the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, and the determination of any appeals.
Lapses and carryforwards during the previous fiscal year for each CMHSP, PIHP, and designated regional entity for substance use disorder prevention and treatment.
Performance indicator information required to be submitted to the department in the contracts with each PIHP.
Administrative expenditures of each CMHSP and PIHP that include a breakout of the salary, benefits, and pension of each executive-level staff, which includes, but is not limited to, the director, chief executive, and chief operating officer.
The report required under subsection (1) must contain the following information from the previous fiscal year on substance use disorder prevention, education, and treatment programs:
A statewide summary of the demographic description of service recipients that, minimally, must include reimbursement eligibility, primary substance of abuse, age, ethnicity, housing arrangements, and sex at birth.
The expenditures stratified by department-designated regional entities for substance use disorder prevention and treatment, by fund source, by subcontractor, by population served, and by service type.
The expenditures per state client, with data on the distribution of expenditures reported using a histogram approach.
The number of services provided by subcontractor and by service type. Additionally, data on length of stay, referral source, and participation in other state programs.
The collections from other first- or third-party payers, private donations, or other state or local programs, by department-designated regional entities for substance use disorder prevention and treatment, by subcontractor, by population served, and by service type.
Information about access to CMHSPs, PIHPs, and designated regional entities for substance use disorder prevention and treatment that includes, but is not limited to, the following:
The number of individuals receiving requested services.
The number of individuals who requested services but did not receive services.
The department shall include the data reporting requirements described in subsections (2) and (3) in the department’s annual contract with each CMHSP, PIHP, and designated regional entity for substance use disorder prevention and treatment.
The department shall take all reasonable actions to ensure that the data required are complete and consistent among all CMHSPs, PIHPs, and designated regional entities for substance use disorder prevention and treatment.
Sec. 907. (1) The department shall expend the amount appropriated in part 1 for community substance use disorder prevention, education, and treatment to coordinate care and services provided to individuals with severe and persistent mental illness and substance use disorder diagnoses.
(2) Each managing entity shall continue current efforts to collaborate on the delivery of services to clients with mental illness and substance use disorder diagnoses, with the goal of providing services in an administratively efficient manner.
Sec. 909. From the funds appropriated in part 1 for health homes, the department shall use available revenue from the marihuana regulatory fund established in section 604 of the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27604, to improve physical health, expand access to substance use disorder prevention and treatment services, and strengthen the existing prevention, treatment, and recovery systems.
Sec. 910. The department shall ensure that substance use disorder treatment is provided to applicants and recipients of public assistance through the department who are required to obtain substance use disorder treatment as a condition of eligibility for public assistance.
Sec. 911. (1) The department shall ensure that a contract with a CMHSP or PIHP requires the CMHSP or PIHP to implement programs to encourage the diversion of individuals with a serious mental illness, serious emotional disturbance, or developmental disability from possible jail incarceration, when appropriate.
(2) Each CMHSP or PIHP shall have jail diversion services and shall work toward establishing working relationships with representative staff of local law enforcement agencies, including county prosecutors’ offices, county sheriffs’ offices, county jails, municipal police agencies, municipal detention facilities, and the courts. Written interagency agreements describing what services each participating agency is prepared to commit to the local jail diversion effort and the procedures to be used by local law enforcement agencies to access mental health jail diversion services are strongly encouraged.
Sec. 912. The department shall contract directly with the Salvation Army Harbor Light program, at an amount not less than the amount provided during the fiscal year ending September 30, 2020, to provide non- Medicaid substance use disorder services if the local coordinating agency or the department confirms the Salvation Army Harbor Light program meets the standard of care established by the department. The standard of care must include, but is not limited to, using a medication assisted treatment option.
Sec. 914. Not later than June 1 of the current fiscal year, the department shall submit a report to the standard report recipients on outcomes of the funds provided in part 1 to the Michigan Clinical Consultation and Care program (MC3). The outcomes reported must include, but are not limited to, the number of same-day telephone consultations with primary care providers and the number of local resource recommendations made to primary care providers who are providing medical care to patients who need behavioral health services.
Sec. 915. From the funds appropriated in part 1 for community substance use disorder prevention, education, and treatment and opioid response activities, the department shall, to the extent possible, provide grants, pursuant to federal law, to local public entities that provide substance use disorder services and to 1 private entity that has a statewide contract to provide community-based substance use disorder services.
Sec. 916. From the funds appropriated in part 1 for behavioral health program administration, the department shall allocate $100,000.00 as a grant to a nonprofit mental health clinic located in a county with a population between 290,000 and 300,000 according to the most recent federal decennial census that provides counseling services, accepts clients regardless of their ability to pay for services through sliding scale copayments and volunteer services, and uses fundraising to support their clinic.
Sec. 917. (1) From the funds appropriated in part 1 for opioid response activities, the department shall allocate $55,000,000.00 from the Michigan opioid healing and recovery fund created under section 3 of the Michigan trust fund act, 2000 PA 489, MCL 12.253, to programs and services to address the opioid crisis in a manner consistent with the opioid judgement, settlement, or compromise of claims pertaining to violations, or alleged violations, of law related to the manufacture, marketing, distribution, dispensing, or sale of opioids. The funds must be allocated as follows:
$9,750,000.00 must be allocated for primary prevention activities, including:
$1,000,000.00 for public health awareness and education campaigns.
$2,000,000.00 for support of families impacted by the opioid epidemic.
$3,500,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, providing recreational therapy, healthy living, and substance use intervention services in a city with a population between 100,000 and 600,000 in a county with a population greater than 1,700,000, according to the most recent federal decennial census, for a substance use disorder services program that implements evidence- based interventions and education campaigns to prevent substance use among at-risk youth.
The remainder for primary prevention activities.
$13,500,000.00 must be allocated for harm reduction, including:
$10,500,000.00 to support harm reduction agencies.
$3,000,000.00 for Naloxone distribution.
$10,250,000.00 must be allocated to substance use disorder treatment, including:
$5,000,000.00 for workforce development programming.
$250,000.00 for access to treatment in jails.
$5,000,000.00 for expansion of evidence-based treatment programming.
$15,000,000.00 must be allocated for recovery investments, including:
$3,000,000.00 for recovery and permanent housing developments.
$12,000,000.00 for recovery and sober living organizations.
$4,500,000.00 must be allocated for informed decision-making and evaluation of investments, including:
$2,500,000.00 for oversight and grants management.
$2,000,000.00 for data to inform investments and evaluation progress.
$2,000,000.00 must be allocated for stand-alone investments, including $2,000,000.00 to invest in tribal communities.
If any allocations remain after the completion of the projects listed in subsection (1)(a) to (f), the department may expend remaining funds for additional opioid response activities that are consistent with the purposes outlined in this section.
On a semiannual basis, the department shall submit to the standard report recipients a report on all of the following:
Total revenues deposited into and expenditures and encumbrances from the Michigan opioid healing and recovery fund since the creation of the fund.
Revenues deposited into and expenditures and encumbrances from the Michigan opioid healing and recovery fund during the previous 6 months.
Estimated revenues to be deposited into and the spending plan for the Michigan opioid healing and recovery fund for the next 12 months.
Sec. 918. On a quarterly basis, providing monthly data, the department shall submit a report to the standard report recipients on the amount of funding paid to PIHPs to support the Medicaid managed mental health care program. The report must include information on the total paid to each PIHP, per capita rate paid for each eligibility group for each PIHP, the number of cases in each eligibility group for each PIHP, and a year- to-date summary of eligibles and expenditures for the Medicaid managed mental health care program.
Sec. 920. As part of the Medicaid rate-setting process for behavioral health services, the department shall work with PIHP network providers and actuaries to include, as part of the Medicaid rate, state and federal wage and compensation increases that directly impact staff who provide Medicaid-funded community living supports, personal care services, respite services, skill-building services, and other supports and services that the department determines are similar.
Sec. 922. From the funds appropriated in part 1 for behavioral health program administration, the department shall allocate $600,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a city with a population between 66,000 and 67,000, according to the most recent federal decennial census, to administer an online and interactive version of the protected health information consent tool and make any revisions to the tool to reflect any recent legislative changes. The contracting entity that receives funds appropriated under this section shall also develop accompanying trainings and resources for users. Additionally, the contracting entity that receives funds appropriated under this section shall work closely with the Michigan Health Information Network Shared Services and the department to develop the technical specifications for integrating the protected health information consent tool with other relevant systems and applications, including, but not limited to, CareConnect360.
Sec. 924. From the funds appropriated in part 1, for the purposes of actuarially sound rate certification and approval for Medicaid behavioral health managed care programs, the department shall maintain a fee schedule for autism services reimbursement rates for direct services. Expenditures used for rate setting shall not exceed the rates identified in the fee schedule. The fee schedule must include a rate for behavioral technicians that is not less than $66.00 per hour.
Sec. 926. (1) From the funds appropriated in part 1 for community substance use disorder prevention, education, and treatment, $1,000,000.00 is allocated for a specialized substance use disorder detoxification project administered by a 9-1-1 service district in conjunction with a substance use and case management provider. The project must be located at a hospital within a 9-1-1 service district with at least 600,000 residents and 15 member communities and that is located within a county with a population of at least 1,500,000 according to the most recent federal decennial census.
(2) The substance use and case management provider receiving funds under this section shall collect and submit to the department data on the outcomes of the project throughout the duration of the project and the department shall submit a report on the project’s outcomes to the standard report recipients.
Sec. 928. (1) Each PIHP shall provide, from the PIHP’s internal resources, local funds to be used as a part of the state match required under the Medicaid program in order to increase capitation rates for PIHPs. The local funds must not include either of the following:
State funds received by a CMHSP for services provided to non-Medicaid recipients.
The state matching portion of the Medicaid capitation payments made to a PIHP.
(2) Not later than April 1 of the current fiscal year, the department shall report to the standard report recipients on the lapse by PIHP from the previous fiscal year and the projected lapse by PIHP in the current fiscal year.
Sec. 929. From the funds appropriated in part 1 for Michigan Clinical Consultation and Care, the department shall allocate at least $325,000.00 to address needs in a city in which a declaration of emergency was issued because of drinking water contamination.
Sec. 935. A county required under the mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, to provide matching funds to a CMHSP for mental health services rendered to residents in the county’s jurisdiction shall pay the matching funds in equal installments on not less than a quarterly basis throughout the fiscal year, with the first payment being made by October 1 of the current fiscal year.
Sec. 940. (1) In accordance with section 236 of the mental health code, 1974 PA 258, MCL 330.1236, the department shall review expenditures for each CMHSP to identify any CMHSP with a projected allocation surplus and to identify any CMHSP with a projected allocation shortfall. The department shall encourage the board of a CMHSP with a projected allocation surplus to concur with the department’s recommendation to reallocate the projected surplus to a CMHSP with a projected allocation shortfall.
A CMHSP that has its projected surplus reallocated during the current fiscal year as described in subsection (1) is not eligible for an additional funding reallocation during the remainder of the current fiscal year, unless the CMHSP is responding to a public health emergency as determined by the department.
A CMHSP shall report to the department on a proposed reallocation described in this section at least 30 days before the reallocation takes effect.
The department shall notify the chairs of the appropriation subcommittees on the department budget when a request is made and when the department grants approval for a reallocation described in subsection
(1). Not later than February 1 of the current fiscal year, the department shall submit a report on the amount of funding reallocated in the previous fiscal year to the standard report recipients.
Sec. 942. A CMHSP shall provide at least 30 days’ notice before reducing, terminating, or suspending a service provided by the CMHSP to a CMHSP client, unless the service is authorized by a physician and the service no longer meets established criteria for medical necessity.
Sec. 960. (1) From the funds appropriated in part 1 for autism services, the department shall continue to cover all Medicaid autism services to Medicaid enrollees eligible for the services that were covered on January 1, 2019.
To restrain cost increases in the autism services line item, the department shall do all of the following:
Not later than March 1 of the current fiscal year, develop and implement specific written guidance for standardization of Medicaid PIHPs and CMHSPs autism spectrum disorder administrative services, including, but not limited to, reporting requirements, coding, and reciprocity of credentialing and training between PIHPs and CMHSPs to reduce administrative duplication at the PIHP, CMHSP, and service provider levels.
Require consultation with the client’s evaluation diagnostician and PIHP to approve the client’s ongoing therapy for 3 years, unless the client’s evaluation diagnostician recommended an evaluation before the 3 years or if a clinician on the treatment team recommended an evaluation for the client before the third year.
Limit the authority to perform a diagnostic evaluation for Medicaid autism services to qualified licensed practitioners as determined by the department.
Allow and expand the utilization of telemedicine and telepsychiatry to increase access to diagnostic evaluation services.
Coordinate with the department of insurance and financial services on oversight for compliance with the Paul Wellstone and Pete Domenici mental health parity and addiction equity act of 2008, Public Law 110-343, as it relates to autism spectrum disorder services, to ensure appropriate cost sharing between public and private payers.
Require that Medicaid eligibility be confirmed through prior evaluations conducted by qualified licensed practitioners as determined by the department.
Maintain regular statewide provider trainings on autism spectrum disorder standard clinical best practice guidelines for treatment and diagnostic services.
By March 1 of the current fiscal year, the department shall submit a report to the standard report recipients on total autism services spending broken down by PIHP and CMHSP for the previous fiscal year and current fiscal year and total administrative costs broken down by PIHP, CMHSP, and the type of administrative cost for the previous fiscal year and current fiscal year.
Sec. 962. For special projects involving high-need children or adults, including the not guilty by reason of insanity population, the department may contract directly with providers of services to the children and adults described in this section.
Sec. 965. From the funds appropriated in part 1, the department and each PIHP shall maintain the comparison rate and any associated reimbursement rate of the bundled rate H0020 for the administration and services of methadone at not less than $19.00.
Sec. 972. From the funds appropriated in part 1 for behavioral health program administration, the department shall allocate not less than $9,386,400.00 of general fund/general purpose revenue and any associated federal match or federal grant funding, including, but not limited to, associated federal 988 grant funding for the mental health telephone access line known as the Michigan crisis and access line (MiCAL), to provide for both of the following in accordance with section 165 of the mental health code, 1974 PA 258, MCL 330.1165:
Primary coverage in a region where a regional national suicide prevention lifeline center does not provide coverage.
Statewide secondary coverage.
Sec. 974. The department and a PIHP shall allow an individual with an intellectual or developmental disability who receives supports and services from a CMHSP to instead receive supports and services from another provider if the individual is eligible and qualified to receive supports and services from another provider. Other providers may include, but are not limited to, MIChoice and PACE.
Sec. 978. From the funds appropriated in part 1 for community substance use disorder prevention, education, and treatment and recovery community organizations, the department shall allocate $1,200,000.00 as grants for recovery community organizations in accordance with section 273b of the mental health code, 1974 PA 258, MCL 330.1273b. A grant must be used to offer or expand recovery support center services or recovery community center services to individuals seeking long-term recovery from substance use disorders. Sec. 994. (1) Not later than June 1 of the current fiscal year, the department shall seek, if necessary, federal approval through either a waiver request or state plan amendment to allow a CMHSP, PIHP, or subcontracting provider agency that is reviewed and accredited by a national accrediting entity for behavioral health care services to be considered in compliance with state program review and audit requirements that
are addressed and reviewed by that national accrediting entity.
Not later than September 30 of the current fiscal year, the department shall report to the standard report recipients all of the following:
The status of the federal approval process required in subsection (1).
A list of each CMHSP, PIHP, and subcontracting provider agency that is considered to be in compliance with state program review and audit requirements under subsection (1).
For each CMHSP, PIHP, or subcontracting provider agency described in subdivision (b), both of the following:
The state program review and audit requirements that the CMHSP, PIHP, or subcontracting provider agency is considered to be in compliance with.
The national accrediting entity that reviewed and accredited the CMHSP, PIHP, or subcontracting provider agency.
The department shall continue to comply with the laws of this state and federal law and shall not initiate an action that negatively impacts beneficiary safety. Any cost savings attributed to this action must be reinvested back into services.
As used in this section, “national accrediting entity” means the Joint Commission, formerly known as the Joint Commission on Accreditation of Healthcare Organizations; the Commission on Accreditation of Rehabilitation Facilities; the Council on Accreditation; the URAC, formerly known as the Utilization Review Accreditation Commission; the National Committee for Quality Assurance; or another appropriate entity, as approved by the department.
Sec. 995. (1) From the funds appropriated in part 1 for mental health diversion council, the department shall allocate $3,850,000.00 to continue to implement the jail diversion programs that are intended to address the recommendations of the mental health diversion council.
(2) Not later than March 1 of the current fiscal year, the department shall submit a report to the standard report recipients on the planned allocation of the funds appropriated for the mental health diversion council.
(3) As used in this section, “mental health diversion council” means the council as that term is defined in section 207e of the mental health code, 1974 PA 258, MCL 330.1207e.
Sec. 996. From the funds appropriated in part 1 for family support subsidy, the department shall make monthly payments of $300.36 to a parent or legal guardian of a child approved for the family support subsidy by a CMHSP.
Sec. 997. The department shall use population data from the most recent federal data from the United States Census Bureau in determining the distribution of substance use disorder block grant funds.
Sec. 998. If the department decides to use census data to distribute state general funds to CMHSPs, the department shall use the most recent federal data from the United States Census Bureau.
BEHAVIORAL HEALTH SERVICES
Sec. 1001. Not later than May 15 of the current fiscal year, each CMHSP shall submit a report to the department that identifies populations being served by the CMHSP broken down by program eligibility category. The report must also include the percentage of the operational budget that is related to program eligibility enrollment. Not later than June 30 of the current fiscal year, the department shall submit the reports described in this section to the standard report recipients.
Sec. 1002. The funds appropriated in part 1 must not be used by the department to expand the certified community behavioral health clinic demonstration.
Sec. 1003. The department shall notify the Community Mental Health Association of Michigan when developing a policy or procedure that will impact a PIHP or CMHSP.
Sec. 1004. The department shall submit a report to the standard report recipients on any rebased formula changes to either Medicaid behavioral health services or non-Medicaid mental health services 90 days before the department implements the formula change. The notification must include a table showing the changes in funding allocation by PIHP for Medicaid behavioral health services or by CMHSP for non-Medicaid mental health services.
Sec. 1005. (1) From the funds appropriated in part 1 for health homes, the department shall maintain the number of behavioral health homes and maintain the number of substance use disorder health homes, in place by PIHP region as of September 30 of the previous fiscal year. The department may expand the number of behavioral health homes and the number of substance use disorder health homes in a PIHP region added after October 1 of the current fiscal year.
(2) On a semiannual basis, the department shall submit a report to the standard report recipients on the number of individuals being served and expenditures incurred by each PIHP region by site.
Sec. 1006. (1) From the funds appropriated in part 1 for certified community behavioral health clinics, not later than May 1 of the current fiscal year the department shall submit to the standard report recipients an outcomes report for CCBHCs during the previous fiscal year that includes both statewide and CCBHC site- specific information on all of the following:
The total number of distinct individuals served by the CCBHCs.
The percentage of individuals served by the CCBHCs that were Medicaid recipients.
The percentage of individuals served by the CCBHCs that were not Medicaid recipients.
The total number of CCBHC daily visits.
Total number of CCBHC services provided, broken down by the 9 core CCBHC services.
Total expenditures from base and supplemental payments.
Staffing and staff vacancy levels of the CCBHCs.
The amount of prospective payment system rates for each CCBHC over the entire demonstration period allocated across the 9 service types.
The total expenditures by CCBHC in the previous fiscal year.
The total cost factors and implications in interpreting how CCBHCs deliver care over the course of the demonstration period.
The comparison of costs for a random sample of enrollees between care provided by a CCBHC provider and a Medicaid provider that is not a CCBHC. The sample must include participants known to have received services at CCBHC providers and Medicaid providers that are not CCBHCs.
(2) From the funds appropriated in part 1 for certified community behavioral health clinics, the department shall submit the CCBHC cost efficiency evaluation to the standard report recipients not later than 7 business days after the department’s receipt of the final information required from the relevant contractors.
Sec. 1008. (1) A PIHP and CMHSP shall do all of the following:
Work to reduce administration costs by ensuring that PIHP and CMHSP responsible functions are efficient in allowing optimal transition of dollars to the direct services considered most effective in assisting individuals served. Any consolidation of administrative functions must demonstrate, by independent analysis, a reduction in dollars spent on administration resulting in greater dollars spent on direct services. Savings resulting from increased efficiencies must not be applied to PIHP and CMHSP net assets, internal service fund increases, building costs, increases in the number of PIHP and CMHSP personnel, or other areas not directly related to the delivery of improved services.
Take an active role in managing mental health care by ensuring consistent and high-quality service delivery throughout its network and promote a conflict-free care management environment.
Ensure that direct service rate variances are related to the level of need or other quantifiable measures to ensure that the most money possible reaches direct services.
Whenever possible, promote fair and adequate direct care reimbursement, including, but not limited to, fair wages for direct service workers.
(2) Not later than June 30 of the current fiscal year, the department shall submit a report to the standard report recipients on any actual reduction of administrative costs over the prior 2 fiscal years.
Sec. 1010. (1) The department shall use the funds appropriated in part 1 for behavioral health community supports and services to reduce waiting lists at state-operated hospitals and centers through cost-effective community-based and residential services, including, but not limited to, assertive community treatment, forensic assertive community treatment, crisis stabilization units in accordance with chapter 9A of the mental health code, 1974 PA 258, MCL 330.1971 to 330.1979, and psychiatric residential treatment facilities in accordance with section 137a of the mental health code, 1974 PA 258, MCL 330.1137a.
From the funds appropriated in part 1 for behavioral health community supports and services, the department shall allocate $30,450,000.00 to reimburse private providers for intensive psychiatric treatments and services that are provided outside of state-operated hospitals and centers and for support efforts related to overseeing community-based programs placement.
If a private provider has an existing wait list for intensive psychiatric treatments and services, a reimbursement to the private provider under this section must not be conditioned on the private provider giving wait-list priority to individuals placed with funds appropriated in this section.
Not later than March 1 of the current fiscal year, the department shall submit a report to the standard report recipients on all of the following:
The types of community supports and services purchased.
The quantity, measured by days or other relevant unit of service, of each community support and service purchased.
The quantifiable impact of the purchase of community supports and services, including the number of individuals served, the number of successful discharges, and the number of re-escalations to either the discharging entity or a state psychiatric hospital.
Sec. 1014. (1) From the funds appropriated in part 1 to agencies providing physical and behavioral health services to multicultural populations, the department shall award grants in accordance with the requirements of subsections (2) and (3). This state is not liable for any spending above the contract amount. The department shall not release funds until reporting requirements under section 1014 of article 6 of 2024 PA 121 are satisfied.
The department shall require each contractor described in subsection (1) that receives greater than
$1,000,000.00 in state grant funding to comply with performance-related metrics to maintain their eligibility for funding. The performance-related metrics shall include, but not be limited to, all of the following:
Each contractor or subcontractor shall have accreditations that attest to their competency and effectiveness as behavioral health and social service agencies.
Each contractor or subcontractor shall have a mission that is consistent with the purpose of the multicultural agency.
Each contractor shall validate that any subcontractors utilized within these appropriations share the same mission as the lead agency receiving funding.
Each contractor or subcontractor shall demonstrate cost-effectiveness.
Each contractor or subcontractor shall ensure their ability to leverage private dollars to strengthen and maximize service provision.
Each contractor or subcontractor shall provide timely and accurate reports regarding the number of clients served, units of service provision, and ability to meet their stated goals.
The department shall require each contractor described in subsection (1) to ensure that the funds appropriated in this section are only used on proven or established programs.
The department shall require an annual report from the contractors described in subsection (2). The annual report, due 60 days following the end of the contract period, must include specific information on services and programs provided, the client base to which the services and programs were provided, information on any wraparound services provided, and the expenditures for those services. Not later than February 1 of the current fiscal year, the department must submit the annual reports to the standard report recipients.
Sec. 1034. (1) PIHPs must verify, on a quarterly basis, to the department and to the standard report recipients that every provider within the PIHP’s provider network receives not less than the applicable reimbursement rates or fees required in sections 924 and 231 of this part. The verification under this subsection must provide actual claims and utilization data.
The department shall seek CMS approval to exclude PIHPs that are not compliant with subsection (1) from all performance incentives available to PIHPs.
The department shall audit the claims and utilization data provided in this section. If the department audit determines that a PIHP reimburses any provider within that PIHP’s provider network at a rate less than the applicable reimbursement rates or fees required in sections 924 and 231 of this part, the department shall notify that PIHP that it is not eligible for performance incentives funded in part 1. Not later than 10 days after a notification to a PIHP under this subsection, the department shall notify the standard report recipients that the PIHP is not eligible for performance incentives funded in part 1.
STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES
Sec. 1051. The department shall continue a revenue recapture project to generate additional revenues from third parties related to cases that have been closed or are inactive. A portion of revenues collected through the project’s efforts may be used for departmental costs and contractual fees associated with retroactive collections under the project and to improve ongoing departmental reimbursement management functions.
Sec. 1052. The department shall use gifts and bequests received for patient living and treatment environments for additional private funds to provide specific enhancements for individuals residing at state- operated facilities. The department shall use the gifts and bequests consistent with the stipulation of the donor. The department shall use gift and bequest donations within 3 years unless otherwise stipulated by the donor.
Sec. 1055. (1) The department shall not implement a closure or consolidation of a state hospital, center, or agency, until each CMHSP or PIHP affected by the closure or consolidation has programs and services in place for the individuals currently in the hospital, center, or agency that is to be closed or consolidated, and has a plan for providing services to the individuals who would have been admitted to the hospital, center, or agency.
A closure or consolidation is dependent on adequate department-approved CMHSP and PIHP plans that include a discharge and aftercare plan for each individual currently in a facility described in subsection
(1). A discharge and aftercare plan must address an individual’s housing needs. A homeless shelter or similar temporary shelter arrangement is inadequate to meet an individual’s housing needs.
Four months after a closure is certified under section 19(6) of the state employees’ retirement act, 1943 PA 240, MCL 38.19, the department shall provide a closure plan to the standard report recipients.
On the closure of a hospital, center, or agency and after transitional costs have been paid, the remaining balances of funds appropriated for the hospital, center, or agency must be transferred to CMHSPs or PIHPs responsible for providing services for individuals previously served by the hospital, center, or agency.
Sec. 1056. The department may collect revenue for patient reimbursement from first- and third-party payers, including Medicaid and local county CMHSP payers, to cover the cost of patient placement in state hospitals and centers. The department may adjust financing sources for patient reimbursement based on actual revenues earned. If the revenue collected exceeds current year expenditures, the revenue may be carried forward with approval of the state budget director. The department shall use the revenue carried forward as a first source of funds in the subsequent year.
Sec. 1058. Effective October 1 of the current fiscal year, the department, in consultation with the department of technology, management, and budget, may maintain a bid process to identify 1 or more private contractors to provide food and custodial services for the administrative areas at a state hospital identified by the department as capable of generating savings through the outsourcing of food and custodial services.
Sec. 1059. (1) The department shall identify specific outcomes and performance measures for state- operated hospitals and centers. Unless specified, the outcomes and performance measures must be calculated on an average monthly basis from the previous calendar year, as follows:
The average wait time from the time of the receipt of a court order for the treatment of an individual who is determined incompetent to stand trial until the individual’s admission to the center for forensic psychiatry or other state-operated psychiatric hospital.
The average number of individuals determined not guilty by reason of insanity by an order of the court who, on the first day of each month, are waiting to receive admission into the center for forensic psychiatry or other state-operated psychiatric hospital.
The average number of adults who, on the first day of each month, are waiting to receive admission into another state-operated hospital or center through the civil admissions process.
The average number of children who, on the first day of each month, are waiting to receive admission into another state-operated hospital or center through the civil admissions process.
The average wait time for an adult who is awaiting admission into another state-operated hospital or center through the civil admissions process.
The average wait time for a child who is awaiting admission into another state-operated hospital or center through the civil admissions process.
The number of individuals determined not guilty by reason of insanity or incompetent to stand trial by an order of the court who have been determined to be ready for discharge to the community, and the average wait time between being determined to be ready for discharge to the community and actual community placement.
The number of adults admitted through the civil admission process that have been determined to be ready for discharge to the community, and the average wait time between being determined to be ready for discharge to the community and actual community placement.
The number of children admitted through the civil admission process that have been determined to be ready for discharge to the community, and the average wait time between being determined to be ready for discharge to the community and actual community placement.
The most recent 12-month total number of individuals determined not guilty by reason of insanity by an order of the court ordering the individual to be admitted into the center for forensic psychiatry or other state-operated psychiatric hospital.
The most recent 12-month total number of adults requested to be admitted to a state-operated hospital or center through the civil admissions process.
The most recent 12-month total number of children requested to be admitted to a state-operated hospital or center through the civil admissions process.
The number of individuals determined not guilty by reason of insanity by an order of the court who were removed from the admissions waiting list and the reason for the removal from the admissions waiting list.
The number of adults awaiting admission through the civil admission process removed from the admission waiting list and the reason for the removal from the admission waiting list.
The number of children awaiting admission through the civil admission process removed from the admission waiting list and the reason for the removal from the admission waiting list.
The number of individuals determined not guilty by reason of insanity by an order of the court and not admitted into the center for forensic psychiatry or other state-operated hospital or center, and the rationale for the individual not being admitted.
The number of adults not admitted into the other state-operated hospitals or centers through the civil admissions process and the rationale for the individual not being admitted.
The number of children not admitted into a state-operated hospital or center through the civil admission process and the rationale for the individual not being admitted.
(2) Not later than April 1 of the current fiscal year, the department shall submit a report to the standard report recipients of this part on the outcomes and performance measures required under subsection (1).
Sec. 1060. Not later than March 1 of the current fiscal year, the department shall submit a report on mandatory overtime, staff turnover, and staff retention at the state psychiatric hospitals and centers to the standard report recipients. The report must include, but is not limited to, the following:
The number of direct care and clinical staff positions that are currently vacant by hospital, and how that number compares to the number of vacancies during the previous fiscal year.
A breakdown of voluntary and mandatory overtime hours worked by position and by hospital, and how that breakdown compares to the breakdown of voluntary and mandatory overtime hours during the previous fiscal year.
The ranges of wages paid by position and by hospital, and how the ranges of wages paid compare to wages paid during the previous fiscal year.
Sec. 1061. (1) On a semiannual basis, the department shall report to the standard report recipients a status update on the construction of the new state psychiatric hospital that will house both children and adults. The report must include, but is not limited to, an estimated timeline for completion and any obstacles that have caused a delay in construction progress.
(2) Not later than March 1 of the current fiscal year, the department shall report to the standard report recipients a proposed transition plan for the transfer of children and adults currently residing at the Walter P. Reuther Psychiatric Hospital to the newly constructed state psychiatric hospital. Additionally, the report must include a plan for either the future use or the demolition of the Walter P. Reuther Psychiatric Hospital, and an estimated cost for both a plan for a future use and a plan for demolition of Walter P. Reuther Psychiatric Hospital.
Sec. 1063. (1) From the funds appropriated in part 1 for southeast Michigan state psychiatric hospital and Walter P. Reuther - psychiatric hospital – adult, children and adolescents, the department shall maintain a psychiatric transitional unit and children’s transition support team. The unit and support team described in this subsection shall augment the continuum of behavioral health services for high-need youth and provide additional continuity of care and transition into supportive community-based services.
The outcome and performance measures for the unit and support team described in subsection (1) include, but are not limited to, the following:
The rate of rehospitalization for youth served through the unit or support team at 30 and 180 days.
The measured change in the Michigan Child and Adolescent Needs and Strengths tool for youth and families served through the unit or support team.
HEALTH AND HUMAN SERVICES POLICY AND INITIATIVES
Sec. 1140. From the funds appropriated in part 1 for primary care services, $400,000.00 is allocated to free health clinics operating in this state. The department shall distribute the funds equally to each free health clinic. As used in this section, “free health clinic” means a nonprofit organization that uses a volunteer health professional to provide care to an uninsured individual.
Sec. 1143. From the funds appropriated in part 1 for primary care services, the department shall allocate no less than $675,000.00 for island primary health care access and services including island clinics, in the following amounts:
Beaver Island, $250,000.00.
Mackinac Island, $250,000.00.
Drummond Island, $150,000.00.
Bois Blanc Island, $25,000.00.
Sec. 1145. The department shall take steps necessary to work with the Indian Health Service, tribal health program facilities, or Urban Indian Health Program facilities, that provide services under a contract with a Medicaid managed care entity to ensure that the facilities described in this section receive the maximum amount allowable under federal law for Medicaid services.
Sec. 1146. From the funds appropriated in part 1 for domestic violence prevention and treatment, the department shall allocate $1,000,000.00 to support programs that serve survivors of domestic violence, sexual violence, and human trafficking. The funds appropriated in this section must be allocated in the following manner:
$500,000.00 must be allocated to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, that is located in a city with a population between 10,000 and 15,000 and in a county with a population between 35,000 and 36,900, according to the most recent federal decennial census. To be eligible for funding under this subsection, the nonprofit organization must be a statewide tribal domestic violence and sexual assault coalition serving the tribes located in this state.
$500,000.00 must be allocated to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, with a stated mission of being dedicated to the empowerment of all the state’s survivors of domestic violence, sexual violence, and human trafficking and to develop and promote comprehensive efforts aimed at eliminating all forms of domestic and sexual violence, including human trafficking, in Michigan.
Sec. 1153. From the funds appropriated in part 1 for crime victim rights sustaining grants, the department shall allocate $102,600.00 of state general fund/general purpose revenue for a sexual assault nurse examiners program at a hospital that is located in a city with a population between 21,600 and 21,700 in a county with a population between 64,300 and 64,400, according to the most recent federal decennial census. The funds allocated under this section must be used to support staff compensation and training, victim needs, and community awareness, education, and prevention programs.
Sec. 1155. (1) From the funds appropriated in part 1 for the uniform statewide sexual assault evidence kit tracking system, in accordance with the final report of the Michigan sexual assault evidence kit tracking and reporting commission, the department shall allocate $369,500.00 for administering a uniform statewide sexual assault evidence kit tracking system. The system must include all of the following:
A uniform statewide system to track the submission and status of sexual assault evidence kits.
A uniform statewide system to audit untested kits that were collected on or before March 1, 2015 and were released by victims to law enforcement.
Secure electronic access for victims.
The ability to accommodate concurrent data entry with kit collection through mechanisms that include, but are not limited to, web entry through computers or smartphones, and through scanning devices.
(2) The sexual assault evidence tracking fund established in section 1451 of 2017 PA 158 shall continue to be maintained in the department of treasury. Money in the sexual assault evidence tracking fund at the close of a fiscal year remains in the sexual assault evidence tracking fund, does not revert to the general fund, and is appropriated as provided by law for the development and implementation of a uniform statewide sexual assault evidence kit tracking system as described in subsection (1).
Sec. 1157. (1) From the funds appropriated in part 1 for child advocacy centers - supplemental grants, the department shall allocate $2,000,000.00 to provide additional funding to child advocacy centers to support the general operations of child advocacy centers. The department shall allocate the additional funding to each center according to the formula under this section. The department shall set a formula in consultation with children’s advocacy centers of Michigan (CAC-MI) to allocate the additional funding. The formula must include base funding for each program and factors, such as the number of children in the service area, square miles of the service area, and prior service levels. The purpose of the additional funding is to increase the amount of services provided to children and their families who are victims of abuse over the amount provided in the previous fiscal year.
(2) Not later than March 1 of the current fiscal year, the department shall submit to the standard report recipients a report on the distribution of child advocacy center – supplemental grants funding from the previous fiscal year. The report must include the amount allocated to each specific child advocacy center or other community-based child protection entity, including, but not limited to, child abuse councils.
Sec. 1158. From the funds appropriated in part 1 for crime victim rights sustaining grants, the department shall allocate $29,897,400.00 to supplement the loss of federal victims of crime act and state crime victim rights funding. The department must distribute the funds consistent with the regular allocation formula for crime victim justice grants and crime victim rights services grants.
Sec. 1159. (1) From the funds appropriated in part 1 for community health programs, the department shall support preventive health supports and services in regions with high health care access and outcome disparities. The department shall use the funds appropriated pursuant to this section to provide for all of the following:
Financial support for the operation of community-based health clinics. A community-based health clinic shall provide preventive health supports and services, be established in communities with high social vulnerability and health disparities, and be operated in cooperation with trusted community partners with demonstrated experience in serving as an access point for preventive health supports and services.
Financial support for the operation of healthy community zones. The healthy community zones must utilize long-term strategies to address access to healthy food, affordable housing, and safety networks.
Financial support for the operation of mobile health units to provide preventive health supports and services for individuals residing in areas with high disparities in health care outcomes and access.
(2) Not later than March 1 of the current fiscal year, the department shall submit to the standard report recipients a report on the outcome of the community health programs described in subsection (1). The report must include, but is not limited to, all of the following:
The list of communities served.
The types of health services offered by grant recipients.
A spending report from the grant recipients.
Sec. 1160. Not later than March 1 of the current fiscal year, the department shall submit to the standard report recipients a report on the distribution of crime victim rights justice assistance grants, crime victim rights services grants, and crime victim rights sustaining grants from the previous fiscal year. The report must include the amount allocated to nonprofit agencies for crime victim services listed by agency and the amount of funding that the department has used for administrative purposes.
EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND LABORATORY
Sec. 1180. From the funds appropriated in part 1 for epidemiology administration and for childhood lead program, the department shall maintain a public health drinking water program and maintain enhanced efforts to monitor child blood lead levels. The public health drinking water program shall ensure that appropriate investigations of potential health hazards occur for all community and noncommunity drinking
water supplies where chemical exceedances of action levels, health advisory levels, or maximum contaminant limits are identified. The goals of the childhood lead program must include improving the identification of children affected by lead exposure, improving the timeliness of case follow-up, and attaining nurse care management for children with lead exposure, and to achieve a long-term reduction in the percentage of children in this state with elevated blood lead levels.
Sec. 1181. From the funds appropriated in part 1 for epidemiology administration, the department shall maintain a vapor intrusion response program. The vapor intrusion response program shall assess risks to public health at vapor intrusion sites and respond to vapor intrusion risks if appropriate. The goals of the vapor intrusion response program must include reducing the number of individuals who are exposed to toxic substances through vapor intrusion and improving health outcomes for individuals who are identified as having been exposed to vapor intrusion.
Sec. 1182. Not later than April 1 of the current fiscal year, the department shall submit a report to the standard report recipients on the expenditures and activities undertaken by the lead abatement program during the previous fiscal year using the funds previously appropriated for the healthy homes program. The report must include, but is not limited to, a funding allocation schedule, the expenditures by category of expenditure and by subcontractor, a description of program elements, the number of housing units abated of lead-based paint hazards by zip code, and a description of program accomplishments and progress.
LOCAL HEALTH AND ADMINISTRATIVE SERVICES
Sec. 1220. The amount appropriated in part 1 for implementation of the 1993 additions of or amendments to sections 9161, 16221, 16226, 17015, and 17515 of the public health code, 1978 PA 368, MCL 333.9161, 333.16221, 333.16226, 333.17015, and 333.17515, must be used to reimburse local health departments for costs incurred to implement section 17015(18) of the public health code, 1978 PA 368, MCL 333.17015.
Sec. 1221. If a county that participates in a district health department or has an associated arrangement with another local health department takes action to stop participating in that arrangement after October 1 of the current fiscal year, the department may assess a penalty from the local health department’s operational accounts in an amount equal to no more than 6.25% of the local health department’s essential local public health services funding. The department shall assess a penalty only if a county requests the dissolution of the health department.
Sec. 1222. (1) The department shall prospectively allocate funds appropriated in part 1 for essential local public health services to local health departments to support immunizations, infectious disease control, sexually transmitted disease control and prevention, hearing screening, vision services, food protection, public water supply, private groundwater supply, and on-site sewage management. The department shall consult with the department of agriculture and rural development before allocating funds for food protection under this section. The department shall consult with the department of environment, Great Lakes, and energy before allocating funds for public water supply, private groundwater supply, and on-site sewage management under this section.
The department shall not distribute funds under subsection (1) to a county unless the county maintains local spending in the current fiscal year in an amount that is equal to or exceeds the amount the county expended in fiscal year 1992-1993 for the services described in subsection (1).
Not later than February 1 of the current fiscal year, the department shall submit a report to the standard report recipients on the planned allocation of the funds appropriated for essential local public health services.
The department shall continue to implement the distribution formula for allocating essential local public health services funding to local health departments as specified in section 1234 of article X of 2018 PA 207.
From the funds appropriated in part 1 for essential local public health services, each local public health department is allocated not less than the amount allocated to that local public health department during the previous fiscal year.
Sec. 1227. The department shall establish criteria for all funds allocated for health and wellness initiatives. The criteria must include a requirement that a program receiving funding is evidence-based and supported by research, includes interventions that have been shown to demonstrate outcomes that lower cost and improve quality, and is designed for statewide impact. The department shall give preference to a program that uses the funding as match for additional resources, including, but not limited to, federal sources.
Sec. 1231. (1) From the funds appropriated for local health services, up to $4,750,000.00 is allocated for grants to local health departments to support PFAS response and emerging public health threat activities. The department shall allocate a portion of the funding in a collaborative fashion with local health departments in jurisdictions experiencing PFAS contamination. The department shall allocate the remainder of the funding to address infectious and vector-borne disease threats, and other environmental contamination issues, including, but not limited to, vapor intrusion, drinking water contamination, and lead exposure. The department shall allocate the funding to address issues including, but not limited to, staffing, planning and response, and creating and disseminating materials related to PFAS contamination issues and other emerging public health issues and threats.
(2) Not later than March 1 of the current fiscal year, the department shall submit a report to the standard report recipients on actual expenditures in the previous fiscal year and planned spending in the current fiscal year of the funds described in subsection (1). The report must include recipient entities, the amount of allocation, the general category of allocation, and detailed uses.
Sec. 1232. The department may work to ensure that the United States Department of Defense reimburses the state for costs associated with PFAS and environmental contamination response at military training sites and support facilities.
Sec. 1233. The department shall not expend general fund and state restricted fund appropriations in part 1 for PFAS and environmental contamination response if federal funding or private grant funding is available for the same expenditures.
Sec. 1239. The department shall participate in and give necessary assistance to the Michigan PFAS action response team (MPART) pursuant to Executive Order No. 2019-03. The department shall collaborate with MPART and other departments to carry out appropriate activities, actions, and recommendations as coordinated by MPART. Efforts must be continuous to ensure that the department’s activities are not duplicative with activities of another department or agency.
Sec. 1240. From the funds appropriated in part 1 for chronic disease control and health promotion administration, $70,000.00 is allocated to support a rare disease advisory council and the responsibilities of the rare disease advisory council, which may include all of the following:
Developing a list of rare diseases.
Posting the list of rare diseases on the department’s website.
Updating the list of rare diseases.
Annually investigating and reporting to the legislature on 1 rare disease on the list, and including legislative recommendations in the report.
FAMILY HEALTH SERVICES
Sec. 1301. (1) Not later than April 1 of the current fiscal year, the department shall submit to the standard report recipients a report on planned allocations from the amounts appropriated in part 1 for local MCH services, prenatal care outreach and service delivery support, family planning local agreements, and pregnancy prevention programs. Using applicable federal definitions, the report must include information on all of the following:
The funding allocations.
The actual number of women, children, and adolescents served and the amounts expended for each group for the previous fiscal year.
A breakdown of the expenditure of the funds between urban and rural communities.
The department shall ensure that the distribution of funds through the programs described in subsection (1) takes into account the needs of rural communities.
As used in this section, “rural community” means any of the following:
A county, city, village, or township with a population of 30,000 or less.
A county, city, village, or township described in subdivision (a), if it is located within a metropolitan statistical area.
Sec. 1302. From the funds appropriated in part 1 for special projects, the department shall allocate
$500,000.00 of TANF revenue to purchase child restraint systems for newborn children who are TANF eligible. The child restraint systems must meet the standards of all applicable federal law and the laws of this state, be purchased in volume by this state, and be distributed through maternal infant health program providers.
Sec. 1306. (1) From the funds appropriated in part 1 for the drinking water declaration of emergency, the department shall allocate funds to address needs in a city in which a declaration of emergency was issued because of drinking water contamination. The funds allocated under this section may be used to support any of the following activities:
Nutrition assistance, nutritional and community education, food bank resources, and food inspections.
Epidemiological analysis and case management of individuals at risk of elevated blood lead levels.
Support for child and adolescent health centers, and the children’s health care access program.
Nursing services, breastfeeding education, evidence-based home visiting programs, intensive services, and outreach for children exposed to lead coordinated through local community mental health organizations.
Department local office operations costs.
Lead poisoning surveillance, investigations, treatment, and abatement.
Nutritional incentives provided to local residents through the double up food bucks expansion program.
Genesee County health department food inspectors to perform water testing at local food service establishments.
Transportation related to health care delivery.
Senior initiatives.
Lead abatement contractor workforce development.
Any other activity that the department considers appropriate.
(2) From the funds appropriated in part 1 for the drinking water declaration of emergency, the department shall allocate $500,000.00 for rides to wellness through the Flint mass transportation authority.
Sec. 1308. From the funds appropriated in part 1 for prenatal care outreach and service delivery support, the department shall allocate not less than $500,000.00 for evidence-based programs to reduce infant mortality. The funds must be used for enhanced support and education to nursing teams or other teams of health professionals that the department considers qualified, client recruitment in areas designated as underserved for obstetrical and gynecological services and in other high-need communities, strategic planning to expand and sustain programs, and marketing and communications of programs to raise awareness, engage stakeholders, and recruit nurses.
Sec. 1311. From the funds appropriated in part 1 for prenatal care outreach and service delivery support, the department shall allocate not less than $2,750,000.00 of state general fund/general purpose revenue for a rural home visit program. The department shall give equal consideration to all eligible evidence-based providers in all regions in contracting for rural home visitation services.
Sec. 1313. (1) From the funds appropriated in part 1, the department shall continue developing an outreach program on fetal alcohol syndrome services, targeting health promotion, prevention, and intervention.
The department shall explore federal grant funding to address prevention services for fetal alcohol syndrome and to reduce alcohol consumption among pregnant women.
Sec. 1314. From the funds appropriated in part 1, the department shall enhance the department’s education and outreach efforts that encourage women of childbearing age to seek the confirmation of a pregnancy at the earliest indication of a possible pregnancy and to initiate continuous and routine prenatal care on the confirmation of a pregnancy. The department shall ensure that the department’s programs, policies, and practices promote prenatal and obstetrical care by doing all of the following:
Supporting access to care.
Reducing and eliminating barriers to care.
Supporting recommendations for best practices.
Encouraging optimal prenatal habits, including, but not limited to, prenatal medical visits, use of prenatal vitamins, and the cessation of tobacco use, alcohol use, or drug use.
Tracking birth outcomes to study improvements in prevalence of neonatal substance exposure, fetal alcohol syndrome, and other preventable neonatal disease.
Tracking maternal increase in healthy behaviors following childbirth.
Sec. 1315. From the funds appropriated in part 1 for dental programs, $200,000.00 is allocated to the Michigan Dental Association for the administration of a volunteer dental program that provides dental services to the uninsured.
Sec. 1316. The department shall use revenue from permit fees for mobile dental facilities that the department receives under section 21605 of the public health code, 1978 PA 368, MCL 333.21605, to offset the costs of processing and issuing permits for mobile dental facilities.
Sec. 1325. From the funds appropriated in part 1 for prenatal care outreach and service delivery support, the department shall allocate $5,000,000.00 to support grants to local collaboratives to enhance the ability of local collaboratives to coordinate and improve maternal and infant health outcomes. To receive a grant under this section, a local collaborative must be a part of a perinatal quality collaborative.
Sec. 1341. The department shall use income eligibility and verification guidelines established by the Food and Nutrition Service agency of the United States Department of Agriculture to determine eligibility of individuals for the special supplemental nutrition program for women, infants, and children (WIC) as stated in current WIC policy.
Sec. 1343. (1) From the funds appropriated in part 1 for dental programs, the department shall allocate
$4,260,000.00 of state and local funds, plus any private contributions received to support the program, to establish and maintain the dental oral assessment program described in section 9316 of the public health code, 1978 PA 368, MCL 333.9316.
Not later than December 31 of the current fiscal year, the department shall submit a report to the standard report recipients that provides a summary of the dental reports the department receives from principals and administrators under section 9316 of the public health code, 1978 PA 368, MCL 333.9316.
Sec. 1349. Subject to federal approval, from the funds appropriated in part 1 for immunization program, the department shall allocate all of the following funds to support a statewide media campaign for improving this state’s immunization rates:
$740,000.00 of general fund/general purpose revenue.
Any available work project funds.
Any available federal match through a contract administered by the department with oversight from the behavioral and physical health and aging services administration and the public health administration.
CHILDREN’S SPECIAL HEALTH CARE SERVICES
Sec. 1360. From the funds appropriated in part 1, the department may do 1 or more of the following:
Provide special formulas for eligible individuals with specified metabolic and allergic disorders.
Provide medical care and treatment to eligible individuals with cystic fibrosis who are 26 years of age or older.
Provide medical care and treatment to eligible individuals with hereditary coagulation defects, commonly known as hemophilia, who are 26 years of age or older.
Provide human growth hormone to eligible individuals.
Provide mental health care to eligible individuals for mental health needs that result from, or are a symptom of, the individual’s qualifying medical condition.
Provide medical care and treatment to eligible individuals with sickle cell disease who are 26 years of age or older.
Sec. 1361. From the funds appropriated in part 1 for medical care and treatment, the department may spend the funds to continue developing and expanding telemedicine capacity to allow families with children in the children’s special health care services program to access specialty providers more readily and in a more timely manner. The department may spend funds to support chronic complex care management of children enrolled in the children’s special health care services program to minimize hospitalizations and reduce costs to the program while improving outcomes and quality of life. As used in this section, “children’s special health care services program” or “program” means the program established under section 5815 of the public health code, 1978 PA 368, MCL 333.5815.
AGING SERVICES
Sec. 1402. The department may encourage the Food Bank Council of Michigan to collaborate directly with each area agency on aging and any other organization that provides senior nutrition services to secure the food access of older adults.
Sec. 1403. (1) From the funds appropriated in part 1, the department may implement a palliative care advisory task force. The palliative care advisory task force shall do all of the following:
Provide the legislature with a recommended definition for palliative care in this state.
Conduct research on palliative care.
Make recommendations that will expand the provision of palliative care.
Identify palliative care services that are offered and measures for reimbursement of the services.
Develop key program metrics for palliative care services and make recommendations to the department and the legislature.
Collaborate with individuals who are able to improve and expand high-quality palliative care services.
Develop engagement strategies to educate the public on access to palliative care and to improve an individual’s ability to make informed decisions on preferred care.
Identify the capacity of palliative care providers to provide palliative care services.
(2) If the department implements the task force described in subsection (1), then not later than January 1 of the current fiscal year, the palliative care advisory task force shall submit to the standard report recipients a report that identifies the palliative care services available in this state and any palliative care services that are not offered in this state but would provide a benefit.
Sec. 1404. From the funds appropriated in part 1 for community services, the department shall allocate
$658,000.00 to area agencies on aging for home and community-based services.
Sec. 1417. Not later than March 31 of the current fiscal year, the department shall submit to the standard report recipients a report that contains all of the following information:
The total allocation of state resources made to each area agency on aging by individual program and administration.
Detailed expenditures by each area agency on aging by individual program and administration, including both state-funded resources and locally funded resources.
Sec. 1421. From the funds appropriated in part 1 for community services, $1,100,000.00 is allocated for locally determined needs that are provided by area agencies on aging.
HEALTH AND AGING SERVICES ADMINISTRATION
Sec. 1505. Not later than March 1 of the current fiscal year, the department shall submit a report to the standard report recipients on the actual reimbursement savings and cost offsets that have resulted from the funds appropriated in part 1 for the office of inspector general and third-party liability efforts in the previous fiscal year.
Sec. 1507. From the funds appropriated in part 1 for office of inspector general, the inspector general shall audit and recoup inappropriate or fraudulent payments from Medicaid managed care organizations to health care providers. Unless authorized by federal law or a law of this state, the department shall not fine, temporarily halt operations of, disenroll as a Medicaid provider, or terminate a managed care organization or health care provider from providing services due to the discovery of an inappropriate payment found during the course of an audit.
Sec. 1512. From the funds appropriated in part 1, the department shall maintain the Medicaid encounter quality initiative report to separate nonclinical administrative costs from actual claims and encounter costs. Sec. 1518. The department shall coordinate with the department of licensing and regulatory affairs to ensure that, on the issuance of an order suspending the license of an adult foster care facility, home for the aged, or nursing home, the department of licensing and regulatory affairs provides a notice to the department, to the house and senate appropriations subcommittees on the department budget, and to the members of the house of representatives and senate that represent the legislative districts of the county in which the adult
foster care facility, home for the aged, or nursing home is located.
HEALTH SERVICES
Sec. 1605. The protected income level for Medicaid coverage determined under section 106(1)(b)(iii) of the social welfare act, 1939 PA 280, MCL 400.106, is 100% of the related public assistance standard.
Sec. 1606. For the purpose of guardian and conservator charges, the department may deduct up to
$83.00 per month as an allowable expense against a recipient’s income when determining Medicaid eligibility and patient pay amounts.
Sec. 1607. (1) The department shall immediately presume that an applicant for Medicaid whose qualifying condition is pregnancy is eligible for Medicaid coverage, unless the preponderance of evidence in the applicant’s application indicates otherwise. The applicant who is qualified as described in this subsection is allowed to select or remain with the Medicaid participating obstetrician of the applicant’s choice.
Each qualifying applicant is entitled to receive all medically necessary obstetrical and prenatal care without preauthorization from a health plan. All claims submitted for payment for obstetrical and prenatal care must be paid at the Medicaid fee-for-service rate if a contract does not exist between the Medicaid participating obstetrical or prenatal care provider and the managed care plan. The applicant must receive a listing of Medicaid physicians and managed care plans in the immediate vicinity of the applicant’s residence.
If an applicant, presumed to be eligible for Medicaid under subsection (1), is subsequently found to be ineligible, a Medicaid physician or managed care plan that has been providing pregnancy services to the applicant is entitled to reimbursement for the services until the Medicaid physician or managed care plan is notified by the department that the applicant was found to be ineligible for Medicaid.
If the preponderance of evidence in an application under subsection (1) indicates that the applicant is not eligible for Medicaid, the department shall refer the applicant to the nearest public health clinic or similar entity as a potential source for receiving pregnancy-related services.
The department shall develop an enrollment process for applicants covered under this section that facilitates the selection of a managed care plan at the time of application.
The department shall require that Medicaid managed care plans enroll women whose qualifying condition for Medicaid is pregnancy.
The department shall encourage physicians to provide an applicant whose qualifying condition for Medicaid is pregnancy with a referral to a Medicaid participating dentist at the applicant’s first pregnancy- related appointment.
Sec. 1608. It is the intent of the legislature that the department comply with all the residency and eligibility provisions of Public Law 119-21 when determining eligibility for medical assistance.
Sec. 1611. (1) For care provided to Medicaid recipients with other third-party sources of payment, Medicaid reimbursement shall not exceed, in combination with such other resources, including Medicare, those amounts established for Medicaid-only patients. The Medicaid payment rate shall be accepted as payment in full. Other than an approved Medicaid copayment, no portion of a provider’s charge shall be billed to the recipient or any person acting on behalf of the recipient. This section does not affect the level of payment from a third-party source other than the Medicaid program. The department shall require a nonenrolled provider to accept Medicaid payments as payment in full.
(2) Notwithstanding subsection (1), if a hospital service is provided to a dual Medicare/Medicaid recipient with only Medicare part B coverage, the Medicaid reimbursement must equal, when combined with a payment for Medicare or other third-party source of payment, the amount established for a Medicaid-only patient, including a capital payment.
Sec. 1620. (1) If a Medicaid claim is a fee-for-service Medicaid claim, the professional dispensing fee for a drug that is listed as a medication on the Michigan pharmaceutical products list is $20.02 or the pharmacy’s submitted dispensing fee, whichever is less.
(2) If a Medicaid claim is a fee-for-service Medicaid claim, the professional dispensing fee for a drug that is not listed as a specialty medication on the Michigan pharmaceutical products list is as follows:
If the drug is indicated as preferred on the department’s preferred drug list, $10.80 or the pharmacy’s submitted dispensing fee, whichever is less.
If the drug is not on the department’s preferred drug list, $10.64 or the pharmacy’s submitted dispensing fee, whichever is less.
If the drug is indicated as nonpreferred on the department’s preferred drug list, $9.00 or the pharmacy’s submitted dispensing fee, whichever is less.
Sec. 1626. (1) Not later than January 15 of the current fiscal year, each pharmacy benefit manager that receives reimbursements directly, through a department-administered fee-for-services contract, or through a Medicaid health plan, from the funds appropriated in part 1 for health services must submit all of the following information to the department for the previous fiscal year:
The total number of prescriptions that were dispensed.
The aggregate fiscal year paid pharmacy claims repriced using the wholesale acquisition cost for each drug on its formulary.
The aggregate amount of rebates, discounts, and price concessions that the pharmacy benefit manager received for each drug on its formulary. The aggregate amount of rebates must include any utilization discounts the pharmacy benefit manager received from a manufacturer.
The aggregate amount of administrative fees that the pharmacy benefit manager received from all pharmaceutical manufacturers.
The aggregate amount identified in subdivisions (b) and (c) that were retained by the pharmacy benefit manager and did not pass through to the department or to the Medicaid health plan.
The aggregate amount of reimbursements the pharmacy benefit manager paid to contracting pharmacies.
Any other information considered necessary by the department.
Not later than March 1 of the current fiscal year, the department shall submit a report including the information provided under subsection (1) to the standard report recipients.
Any nonaggregated information submitted under this section is confidential and must not be disclosed to any person by the department. The information described in this subsection is not a public record of the department.
Sec. 1628. From the funds appropriated in part 1 for hospital services and therapy and Healthy Michigan plan, the department shall continue to allocate $3,000,000.00 in general fund/general purpose revenue and any associated federal match to maintain the Medicaid reimbursement rate for dental services provided at ambulatory surgical centers and outpatient hospitals. The funding provided in this section must be used to maintain the minimum rate of reimbursement for dental services provided in ambulatory surgical centers at
$1,495.00 and maintain the minimum rate of reimbursement for dental services provided in outpatient hospitals at $2,300.00.
Sec. 1629. The department shall utilize maximum allowable cost pricing for generic drugs that is based on wholesaler pricing to providers. The wholesaler pricing must be based on the price available from at least 2 wholesalers who deliver drugs in this state.
Sec. 1630. Not later than April 1 of the current fiscal year, from the funds appropriated in part 1 for Medicaid dental services, the department shall submit a report to the standard report recipients on the dental service benefit. The report must cover all of the following areas:
Information on the implementation of the Adult Medicaid dental benefit redesign including all of the following information:
The number of dental providers, by Medicaid health plan in this state, who provided 1 or more Medicaid dental services in the fiscal year ending September 30, 2022, and the number of additional providers who were added in the previous fiscal year, with a delineation in the reported numbers based on the average payment per visit and before and after the implementation of the Adult Medicaid dental benefit redesign.
The status of enhanced care coordination.
The array of covered dental benefits and services before the Adult Medicaid dental benefit redesign and how the available benefits and services changed or expanded after the Adult Medicaid dental benefit redesign.
Information on the Healthy Kids Dental program including all of the following information:
The number of children enrolled in the Healthy Kids Dental program who visited the dentist in the previous fiscal year broken down by dental benefit manager.
The number of dentists who accept payment from the Healthy Kids Dental program broken down by dental benefit manager.
The annual change in dental utilization of children enrolled in the Healthy Kids Dental program broken down by dental benefit manager.
Service expenditures for the Healthy Kids Dental program broken down by dental benefit manager.
Administrative expenditures for the Healthy Kids Dental program broken down by dental benefit manager.
Sec. 1631. (1) The department shall require copayments on dental, podiatric, and vision services provided to Medicaid recipients, except as prohibited by federal law or a law of this state.
Except as otherwise prohibited by federal law or a law of this state, the department shall require Medicaid recipients to pay the following copayments:
Two dollars for a physician office visit.
Three dollars for a hospital emergency room visit.
Fifty dollars for the first day of an inpatient hospital stay.
Two dollars for an outpatient hospital visit.
One dollar for a generic drug or any drug indicated as preferred on the department’s preferred drug list and $3.00 for a brand-name drug not indicated as preferred on the department’s preferred drug list.
Sec. 1633. (1) The department of health and human services shall request from the federal Centers for Medicare and Medicaid Services a reasonable transition period to assure insurance providers have adequate planning time.
(2) For the first quarterly payment due after approval by the federal Centers for Medicare and Medicaid Services of a revised insurance provider assessment tax structure, the department of health and human services and the department of treasury shall work with insurance providers to establish a reasonable time period for submission of that payment. Thereafter, quarterly payments shall be due on the dates specified in subsection (7) of the insurance provider assessment act.
Sec. 1634. (1) The assessment imposed under the insurance provider assessment act shall terminate on the effective date of any law that establishes an ongoing alternative revenue source dedicated to funding Michigan’s medical assistance program, provided that the revenue from that source is sufficient, as determined by the department of health and human services, to replace the revenue generated by the assessment.
(2) If an ongoing alternative revenue source dedicated to funding Michigan’s medical assistance program is statutorily enacted but does not generate sufficient revenue to fully replace the revenue from the assessment imposed under the insurance provider assessment, the amount of the assessment shall be reduced by an amount equivalent to the revenue generated by that dedicated source. The department of health and human services shall adjust the per member month tax rate accordingly to reflect the reduced assessment amount.
Sec. 1640. From the funds appropriated in part 1, the department shall maintain the rate increase for the home help individual caregiver rate and the home help agency provider rate specified in the department’s Medicaid provider letters L 24-66, L 24-67, and L 24-74.
Sec. 1641. An institutional provider that is required to submit a cost report under the Medicaid program shall submit cost reports completed in full not more than 5 months after the end of the institutional provider’s fiscal year.
Sec. 1644. (1) From the funds appropriated in part 1, the department shall maintain wages at a level not less than the amount in effect the previous fiscal year. This funding must include all costs incurred by the employer, including, but not limited to, payroll taxes, due to the wage increase. As used in this subsection, “direct care workers” means a registered professional nurse, licensed practical nurse, competency-evaluated nursing assistant, and respiratory therapist.
(2) From the funds appropriated in part 1, the department shall maintain wages at a level not less than the amount in effect during the previous fiscal year for direct care workers who are employed by licensed adult foster care facilities and licensed homes for the aged and who provide Medicaid-funded fee-for-service personal care services that were not eligible for any direct care worker pay adjustment under Medicaid- funded managed care. This funding must include all costs incurred by the employer, including, but not limited to, payroll taxes, due to the wage increase.
Sec. 1645. (1) From the funds appropriated in part 1, the department shall maintain the wages of eligible nonclinical staff employed by skilled nursing facilities. The funding must include all costs incurred by the employer, including payroll taxes, due to prior wage increases.
The nonclinical staff eligible for the wages described in subsection (1) are those whose costs are reported in the following job classifications in nursing facility institutional cost reports shared with the department:
Other housekeeping.
Other maintenance worker.
Other plant operations.
Other laundry.
Dining room assistants.
Other dietary workers.
Other medical records.
Other social services.
Other diversion therapy.
Beauty and barber.
Gift, flower, coffee, and canteen worker.
Sec. 1646. From the funds appropriated in part 1, the department shall maintain the Medicaid reimbursement rates for orthotic and prosthetic providers in place in the previous fiscal year.
Sec. 1647. (1) The department shall provide written notification to the standard report recipients at least 5 business days before implementing any changes to the approved spending plan for the home and community-based services (HCBS) provided under section 9817 of Public Law 117-2.
(2) By February 1 of the current fiscal year, the department shall submit a comprehensive report to the standard report recipients detailing the use of all HCBS funds received under section 9817 of Public Law 117-2. The report must include, but is not limited to, all of the following:
Total funds received and total expenditures by fiscal year.
Expenditures by category and by vendor or grantee.
Program accomplishments and progress.
Any unspent balances and projected future spending.
A list of active contracts and grants associated with HCBS funding.
Sec. 1657. (1) The department shall not make reimbursement for Medicaid to screen and stabilize a Medicaid recipient, including stabilization of a psychiatric crisis, in a hospital emergency room, contingent on obtaining prior authorization from the recipient’s HMO. If the recipient is discharged from the emergency room, the hospital shall notify the recipient’s HMO within 24 hours of the diagnosis and treatment received.
If the treating hospital determines that the recipient will require further medical service or hospitalization beyond the point of stabilization, that hospital shall receive authorization from the recipient’s HMO prior to admitting the recipient.
Subsections (1) and (2) do not require an alteration to an existing agreement between an HMO and its contracting hospitals and do not require an HMO to reimburse for services that are not considered to be medically necessary.
Sec. 1662. (1) From the funds appropriated in part 1, the department shall require an annual external quality review of each contracting HMO. The external quality review must analyze and evaluate aggregated information on quality, timeliness, and access to health care services that the HMO or its contractors furnish to Medicaid beneficiaries. The department shall create a report containing each quality review required under this subsection.
(2) The department shall require Medicaid HMOs to provide EPSDT utilization data through the encounter data system, and HEDIS well child health measures in accordance with the National Committee for Quality Assurance prescribed methodology.
(3) The department shall submit a copy of the analysis of the Medicaid HMO annual audited reports on HEDIS and the report under subsection (1) to the standard report recipients within 30 days after the department’s receipt of the final information required from the contractors.
Sec. 1670. (1) The appropriation in part 1 for the MIChild program is to be used to provide comprehensive health care to all children under age 19 who reside in families with an income at or below 212% of the federal poverty level, who are uninsured and have not had coverage by other comprehensive health insurance within 6 months of applying for MIChild benefits, and who are residents of this state. The department shall develop detailed eligibility criteria through the behavioral and physical health and aging services administration public concurrence process. The eligibility criteria must be consistent with the provisions of this part and part 1.
(2) The department shall provide up to 1 year of continuous eligibility to a child eligible for the MIChild program unless the child reaches age 19.
Sec. 1677. From the funds appropriated in part 1 for the MIChild program, the department shall provide, at a minimum, all benefits available under the Michigan benchmark plan that are delivered through contracted providers and consistent with federal law, including, but not limited to, the following medically necessary services:
Inpatient mental health services, other than substance use disorder treatment services, including services furnished in a state-operated mental hospital and residential or other 24-hour therapeutically planned structured services.
Outpatient mental health services, other than substance use disorder services, including services furnished in a mental hospital operated by this state and community-based services.
Durable medical equipment and prosthetic and orthotic devices.
Dental services as outlined in the approved MIChild state plan.
Substance use disorder treatment services that may include inpatient, outpatient, and residential substance use disorder treatment services.
Care management services for mental health diagnoses.
Physical therapy, occupational therapy, and services for individuals with speech, hearing, and language disorders.
Emergency ambulance services.
Sec. 1682. (1) In addition to the appropriations in part 1, the department is authorized to receive and spend penalty money received as the result of noncompliance with Medicaid certification regulations. Penalty money, characterized as private funds, received by the department shall increase authorizations and allotments in the long-term care accounts.
Any unexpended penalty money, at the end of the year, must carry forward to the following year.
Not later than March 1 of the current fiscal year, the department shall report to the standard report recipients on penalty money received by the department as described in subsection (1). The report must include, but is not limited to, the following information:
The amount of penalty monies received by the department in the previous fiscal year listed by the assessed entity.
A list of the entities that were assessed penalties in the previous fiscal year with the rationale for each penalty. Sec. 1692. (1) The department is authorized to pursue reimbursement for eligible services provided in Michigan schools from the federal Medicaid program. The department and the state budget director are authorized to negotiate and enter into agreements, together with the department of education, with local and intermediate school districts regarding the sharing of federal Medicaid services funds received for these services. The department is authorized to receive and disburse funds to participating school districts pursuant
to agreements described in this subsection and pursuant to federal law and a law of this state.
From the funds appropriated in part 1 for health services school-based services payments, the department is authorized to do all of the following:
Finance activities within the behavioral and physical health and aging services administration related to eligible services.
Reimburse participating school districts pursuant to the fund-sharing ratios negotiated in the state-local agreements authorized in subsection (1).
Offset general fund costs associated with the Medicaid program.
Sec. 1694. From the funds appropriated in part 1 for special Medicaid reimbursement, $2,628,500.00 of general fund/general purpose revenue and any associated federal match must be distributed for poison control services to an academic health care system that has a high volume of providing care to indigent individuals. Sec. 1697. The department shall require that Medicaid health plans administering Healthy Michigan plan benefits maintain a network of dental providers in sufficient numbers, mix, and geographic locations throughout their respective service areas in order to provide adequate dental care for Healthy Michigan plan
enrollees.
Sec. 1700. Not later than December 1 of the current fiscal year, the department shall report to the standard report recipients on the distribution of funding provided, and the net benefit if the special hospital payment is not financed with general fund/general purpose revenue, to each eligible hospital during the previous fiscal year from the following special hospital payments:
GME.
Special rural hospital payments provided under section 1802(1)(b) of this part.
Lump-sum payments to rural hospitals for obstetrical care provided under section 1802(1)(a) of this part. Sec. 1702. From the funds appropriated in part 1, the department shall allocate $2,830,000.00 in general fund/general purpose revenue and any associated federal match to maintain the rates in place in the previous fiscal year for private duty nursing services for Medicaid beneficiaries under the age of 21. These additional funds must be used to attract and retain highly qualified registered nurses and licensed practical nurses to provide private duty nursing services so that medically fragile individuals can be cared for in the most
homelike setting possible.
Sec. 1757. The department shall obtain proof from all Medicaid recipients that they are United States citizens or otherwise legally residing in this country and that they are residents of this state before approving Medicaid eligibility.
Sec. 1764. The department shall annually certify whether rates paid to Medicaid health plans and specialty PIHPs are actuarially sound in accordance with federal requirements. The department shall provide to the standard report recipients a copy of the rate certification required under this section and the approval of rates paid to Medicaid health plans and specialty PIHPs for any fiscal year not later than October 1 for Medicaid capitation rate certifications and not later than February 15, May 15, and August 15 for any Medicaid capitation rate amendments. Following the rate certification, the department shall ensure that no new or revised state Medicaid policy bulletin that is promulgated materially impacts the capitation rates that have been certified.
Sec. 1775. From the funds appropriated in part 1, by not later than March 1 of the current fiscal year, the department shall provide a report to the standard report recipients on the transition of the MI Health Link program to an integrated dual eligible special needs plan (D-SNP) required by Medicare Advantage and Part D Final Rule (CMS-4192-F). The report must include all of the following:
The status of any extension received from CMS for the MI Health Link demonstration.
The amount and fund source of realized or anticipated transition costs by fiscal year.
The status of the transition, by MI Health Link service region and by individual county within a region.
A summary of the efforts taken to engage beneficiaries, stakeholders, and health plans in the transition process.
A summary of necessary Medicaid contractual and policy changes related to D-SNP contracting, including any carve-outs that will be proposed.
A summary of the eligibility guidelines and covered benefits proposed in the D-SNP transition, including a comparison of long-term services and supports, home- and community-based services and behavioral health services as of September 30, 2024, and in the proposed D-SNP.
A verification of the inclusion of the most important aspects of the MI Health Link into any D-SNP proposal, including, but not limited to, the following:
$0.00 copayments and deductibles for all covered services.
Access to a care coordinator for care navigation and care planning.
A single card for all Medicare and Medicaid services.
Sec. 1786. From the funds appropriated in part 1, the department shall maintain Medicaid reimbursement for the administration of injectable, nasal, and oral vaccines at $23.03.
Sec. 1787. From the funds appropriated in part 1 for health plan services, Healthy Michigan plan, and long-term care services, the department shall maintain the Medicaid reimbursement rates in place in the previous fiscal year for CPT codes 31579, 92507, 92508, 92520, 92521, 92522, 92523, 92524, 92526, 92597,
92607, 92608, 92609, 92610, 92630, 92633, 92700, 94010, 97129, 97130, 97533, 97799, G2250, G2251,
and S9152.
Sec. 1788. From the funds appropriated in part 1, the department shall provide Medicaid reimbursement rates, including Medicaid reimbursements from the ambulance provider quality assurance assessment, for ground ambulance services at not less than 100% of the Medicare base rates for Locality 01 for ground ambulance services in effect on January 1, 2023.
Sec. 1789. From the funds appropriated in part 1 for federally qualified health centers, the department shall allocate not less than $11,300,000.00 in general fund/general purpose revenue and any associated federal match to maintain Medicaid prospective payment system reimbursement rates.
Sec. 1790. The department shall maintain the current practitioner rates paid for CPT codes 90791 through 90899 for psychiatric procedures through Medicaid fee-for-service and through the comprehensive Medicaid health plans for psychiatric procedures provided for Medicaid recipients under the age of 21.
Sec. 1791. From the funds appropriated in part 1 for health plan services and physician services, the department shall provide Medicaid reimbursement rates for neonatal services at 100% of the Medicare rate received for those services in effect on the date the services are provided to eligible Medicaid recipients. The neonatal services and physician services eligible for reimbursement rates under this section are described as CPT codes 99468, 99469, 99471, 99472, 99475, 99476, 99477, 99478, 99479, and 99480.
Sec. 1794. (1) From the funds appropriated in part 1, the department shall provide Medicaid reimbursements for hospital-based substance use disorder peer-supports.
(2) Not later than March 1 of the current fiscal year, the department shall report to the standard report recipients on the statewide amounts and each hospital amount for hospital-based substance use disorder peer- supports during the first quarter of the current fiscal year, including for all of the following:
The number of individuals served.
The Medicaid reimbursement utilization.
The total expenditures.
Sec. 1801. From the funds appropriated in part 1 for physician services and health plan services, the department shall continue the increase to Medicaid rates for primary care services provided only by primary care providers. The department shall not provide the increase to Medicaid rates under this section to primary care providers whose primary practice is as a non-primary-care subspecialty. The department shall establish policies that most effectively limit the increase to primary care providers for primary care services only. As used in this section, “primary care provider” means a physician, or a practitioner working in collaboration with a physician, who is either licensed under part 170 or part 175 of the public health code, 1978 PA 368, MCL 333.17001 to 333.17097 and 333.17501 to 333.17556, and who works as a primary care provider in general practice or is board-eligible or certified with a specialty designation of family medicine, general internal medicine, or pediatric medicine, or is a provider who provides the department with documentation of equivalency.
Sec. 1802. (1) From the funds appropriated in part 1 for hospital services and therapy, the department shall provide for the following:
$8,470,200.00 in general fund/general purpose revenue as lump-sum payments to noncritical access hospitals that qualified for rural hospital access payments in fiscal year 2013-2014 and that provide
obstetrical care this fiscal year. Payment amounts must be based on the volume of obstetrical care cases and newborn care cases for all such cases billed by each qualified hospital in the most recent year for which data is available. The department shall make payments not later than January 1 of the current fiscal year. For the current fiscal year, a hospital that met established occupied bed criteria based on Medicaid cost reports as of the fiscal year ending September 30, 2011, and that is located within a county with a population of not more than 165,000 and within a city, village, or township with a population of not more than 16,000, according to the 2000 federal decennial census, is eligible.
$15,204,800.00 in general fund/general purpose revenue and any associated federal match awarded as rural access payments to noncritical access hospitals that meet criteria established by the department for services to low-income rural residents. One of the reimbursement components of the criteria established by the department under this subsection must be assistance with labor and delivery services.
Payments under this section must be made by January 1 of the current fiscal year.
The department shall publish the distribution of payments for the current fiscal year and the previous fiscal year.
Sec. 1803. (1) From the funds appropriated in part 1 for rural health transformation program, the department shall provide grants to hospitals and providers, in accordance with federal requirements.
Not later than January 15 of the current fiscal year, the department shall provide to the standard report recipients the rural health transformation program grant application and plan submitted to CMS.
Not later than 30 days after receiving CMS notification of the acceptance or rejection of the application described under subsection (2), the department shall notify the standard report recipients of any modifications prescribed by CMS to the original application and plan.
Sec. 1804. The department may utilize the federal public assistance reporting information system to continue to work to identify Medicaid recipients who are veterans and who may be eligible for federal veterans’ health care benefits or other benefits and shall continue to refer veterans to the department of military and veterans affairs for assistance in securing additional benefits.
Sec. 1810. In advance of the annual rate setting development, Medicaid health plans must be given at least 60 days to dispute and correct any discarded encounter data before rates are certified. The department shall notify each contracting Medicaid health plan of any encounter data that have not been accepted for the purposes of rate setting.
Sec. 1812. Not later than June 1 of the current fiscal year, and using the most recent available cost reports, the department shall complete a report of all direct and indirect costs associated with residency training programs for each hospital that receives funds appropriated in part 1 for graduate medical education or through the MiDocs consortium. The report shall be submitted to the standard report recipients.
Sec. 1820. (1) In order to avoid duplication of effort, if a Medicaid health plan has been reviewed and accredited by a national accrediting entity for health care services, the department shall use applicable national accreditation review criteria to determine compliance with corresponding requirements in this state.
The department shall continue to comply with federal law and laws of this state and shall not initiate an action that negatively impacts beneficiary safety.
As used in this section, “national accrediting entity” means the National Committee for Quality Assurance, the URAC, formerly known as the Utilization Review Accreditation Commission, or another appropriate entity, as approved by the department.
Sec. 1830. From the funds appropriated in part 1 for hospital services and therapy, the department shall allocate $5,000,000.00 to support prenatal health care providers operating in this state to provide services for existing group-based prenatal care programs that include 1 or more health care professionals leading small groups of expectant mothers – in the same phase of pregnancy – in discussions and other health services that promote the well-being and health of mothers and babies.
Sec. 1831. From the funds appropriated in part 1 for hospital services and therapy, the department shall allocate $10,000,000.00 to continue to support hospitals in this state to improve maternal safety and outcomes by administering and expanding a data-driven maternal safety and quality improvement initiative that is based on interdisciplinary and consensus-based practices. The initiative expansion must focus on mitigating pregnancy-associated injury and death, work to improve outcomes for underserved groups, and address problems related to substance use disorders.
Sec. 1833. (1) In addition to the funds appropriated in part 1, the department is authorized to expend an amount not to exceed $3,315,000,000.00 for state restricted insurance provider assessment and associated federal Medicaid reimbursement matching revenues, if revenues are available under sections 7, 11, and 17 of the insurance provider assessment act, 2018 PA 175, MCL 550.1757, 550.1761, and 550.1767.
Not later than 10 calendar days after expenditure authorization in subsection (1) is utilized, the department shall report to the standard report recipients all of the following:
Total state restricted expenditures incurred for this use of authorization under subsection (1), by line item.
Total federal expenditures incurred for this use of authorization under subsection (1), by line item.
Total gross expenditures incurred for this use of authorization under subsection (1).
Total year-to-date expenditure authorization remaining under subsection (1).
Sec. 1834. (1) In addition to the funds appropriated in part 1, the department is authorized to expend an amount not to exceed $6,017,000,000.00 for state restricted quality assurance assessment program and associated federal Medicaid reimbursement matching revenues, if revenues are available and the department has received CMS approval of the expenditures under the state’s Medicaid preprint.
Not later than 10 calendar days after expenditure authorization in subsection (1) is utilized, the department shall report to the standard report recipients all of the following:
Total state restricted expenditures incurred for this use of authorization under subsection (1), by line item.
Total federal expenditures incurred for this use of authorization under subsection (1), by line item.
Total gross expenditures incurred for this use of authorization under subsection (1).
Total year-to-date expenditure authorization remaining under subsection (1).
Sec. 1837. The department shall continue, and expand where appropriate, utilization of telemedicine and telepsychiatry as strategies to increase access to services for Medicaid recipients.
Sec. 1846. From the funds appropriated in part 1 for graduate medical education, the department shall distribute the funds with an emphasis on the following health care workforce goals:
The encouragement of the training of physicians in specialties, including primary care, that are necessary to meet the future needs of residents of this state.
The training of physicians in settings that include ambulatory sites and rural locations.
The training of practitioners providing pediatric psychiatry services.
Sec. 1850. The department may allow Medicaid health plans to assist with maintaining eligibility through outreach activities to ensure continuation of Medicaid eligibility and enrollment in managed care. The assistance may include mailings, telephone contact, or face-to-face contact with beneficiaries enrolled in the individual Medicaid health plan. Medicaid health plans may offer assistance in completing paperwork for beneficiaries enrolled in the Medicaid health plan.
Sec. 1854. The funds appropriated in part 1 for PACE must support a current fiscal year enrollment cap that is not less than 8,597.
Sec. 1855. From the funds appropriated in part 1 for PACE, to the extent that funding is available in the PACE line item and unused program slots are available, the department may do the following:
Increase the number of slots for a local and already-established PACE if the local PACE has provided appropriate documentation to the department indicating its ability to expand capacity to provide services to additional PACE clients.
Suspend the 10 member per month individual PACE enrollment increase cap in order to allow unused and unobligated slots to be allocated to address unmet demand for PACE services.
Sec. 1856. (1) From the funds appropriated in part 1 for hospice services, $5,000,000.00 shall be expended to provide room and board for Medicaid-eligible individuals who meet hospice eligibility requirements and receive services at Medicaid enrolled hospice residences in this state. The department shall distribute funds through grants based on the total beds located in all eligible residences that have been providing these services as of October 1, 2017. An eligible grant applicant may inform the department of the applicant’s request to reduce the grant amount allocated for the applicant’s residence and the funds must be distributed proportionally to increase the total grant amount of the remaining grant-eligible residences. Grant amounts shall be paid out monthly with 1/12 of the total grant amount distributed each month to the grantees.
Not later than September 15 of the current fiscal year, each Medicaid-enrolled hospice with a residence that receives funds under this section shall provide a report to the department on the utilization of the grant funding provided in subsection (1). The report must be provided in a format prescribed by the department and must include the following information:
The number of patients served.
The number of days served.
The daily room and board rates for the patients served.
If there is not sufficient funding to cover the total room and board need, the number of patients who did not receive care due to insufficient grant funding.
If funds awarded under this section remain unused at the end of the current fiscal year, the Medicaid- enrolled hospice with a residence shall return those unused funds to this state.
Sec. 1859. The department shall partner with the Michigan Association of Health Plans and Medicaid health plans to develop and implement strategies for the use of information technology services for Medicaid research activities. The department shall make available state medical assistance program data, including Medicaid behavioral data, to the Michigan Association of Health Plans and Medicaid health plans or any vendor considered qualified by the department to perform research activities consistent with this state’s goals of improving health; increasing the quality, reliability, availability, and continuity of care; and reducing the cost of care for the eligible population of Medicaid recipients.
Sec. 1862. From the funds appropriated in part 1, the department shall maintain payment rates for Medicaid obstetrical services at 95% of Medicare levels effective October 1, 2014.
Sec. 1870. (1) From the funds appropriated in part 1 for hospital services and therapy, the department shall allocate $6,400,000.00 in general fund/general purpose revenue plus any contributions from public entities, up to $5,000,000.00, and any associated federal match to the MiDocs consortium to create new primary care residency slots in underserved communities. The new primary care residency slots must be in 1 of the following specialties: family medicine, general internal medicine, general pediatrics, general OB-GYN, psychiatry, or general surgery.
The department shall seek any necessary approvals from CMS to allow the department to implement the program described in this section.
Assistance with repayment of medical education loans, loan interest payments, or scholarships provided by the MiDocs consortium shall be contingent upon a minimum 2-year commitment to practice in an underserved community in this state post-residency and an agreement to forego any sub-specialty training for at least 2 years post-residency with the exception of a child and adolescent psychiatry followship that must be integrated with a psychiatry residency training program in a MiDocs consortium affiliated institution.
The MiDocs consortium shall work with the department to integrate the Michigan inpatient psychiatric admissions discussion (MIPAD) recommendations and, when possible, prioritize training opportunities in state psychiatric hospitals and community mental health organizations.
The department shall maintain the MiDocs consortium initiative advisory council to help support implementation of the program described in this section, and to provide oversight. The advisory council must be composed of the MiDocs consortium, the Michigan Area Health Education Centers, the Michigan Primary Care Association, the Michigan Center for Rural Health, the Michigan Academy of Family Physicians, and any other appointees designated by the department.
Not later than September 1 of the current fiscal year, the MiDocs consortium shall submit a report to the standard report recipients that includes all of the following information:
Audited financial statement of per-resident costs.
Education and clinical quality data.
Roster of trainees, including areas of specialty and locations of training.
Medicaid revenue by training site.
The department shall monitor outcome and performance measures for this program, including, but not limited to, the following:
Increasing this state’s ability to recruit, train, and retain primary care physicians and other select specialty physicians in underserved communities.
Maximizing training opportunities with community health centers, rural critical access hospitals, solo or group private practice physician practices, schools, and other community-based clinics, in addition to the required training through rotations at inpatient hospitals.
Increasing the number of residency slots for family medicine, general internal medicine, general pediatrics, general OB-GYN, psychiatry, and general surgery.
Unexpended and unencumbered funds up to a maximum $6,400,000.00 in general fund/general purpose revenue plus any contributions from public entities, up to $5,000,000.00, and any associated federal match remaining in accounts appropriated in part 1 for hospital services and therapy are designated as work project appropriations, and any unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures for the MiDocs consortium to create new primary care residency slots in underserved communities under this section until the work project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to fund the cost of the MiDocs consortium to create new primary care residency slots in underserved communities.
The work project will be accomplished by contracting with the MiDocs consortium to oversee the creation of new primary care residency slots.
The total estimated completion cost of the work project is $20,200,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1872. From the funds appropriated in part 1 for personal care services, the department shall maintain the monthly Medicaid personal care supplement paid to adult foster care facilities and homes for the aged that provide personal care services to Medicaid recipients in place during the previous fiscal year.
Sec. 1874. The department shall ensure, in counties where PACE services are available, that PACE is included as an option in all options counseling and enrollment brokering for aging services and managed care programs, including, but not limited to, Area Agencies on Aging, centers for independent living, and the MiChoice home and community-based waiver. The department must include approved marketing and discussion materials for options counseling.
Sec. 1879. Not later than May 15 of the current fiscal year, the department shall submit to the standard report recipients a report with Medicaid pharmaceutical information. The report shall include, for the previous fiscal year, the total Medicaid pharmaceutical costs and the total Medicaid pharmaceutical rebates. The report must categorize the total Medicaid pharmaceutical costs and total Medicaid pharmaceutical rebates recognized by the contracted health plans and the department. In addition, the report must also include all of the following information:
The total estimated pharmaceutical benefit expenses incurred by contracted health plans from the previous fiscal year and through the first 2 quarters of the current fiscal year.
The total estimated pharmaceutical benefit expenses included in approved initial rates for contracted health plans from the previous fiscal year and total estimated pharmaceutical benefit expenses included in approved initial rates for contracted health plans for the first 2 quarters of the current fiscal year.
The total Medicaid pharmaceutical rebates received by the department in the previous fiscal year and the single preferred drug list supplemental rebates invoices in the previous fiscal year.
Information as to whether the average benefit expense for the composite average across all rate cells and service categories included in capitation rates, based on actual enrollment and anticipated recoveries, for the previous fiscal year and through the first 2 quarters of the current fiscal year exceeded the reported contracted health plan’s experience, adjusted for completion over the same reporting periods.
The following information related to the current Medicaid pharmacy carve-out of pharmaceutical products as provided for in section 109h of the social welfare act, 1939 PA 280, MCL 400.109h:
The number of prescriptions paid by the department during the previous fiscal year.
The total amount of expenditures for prescriptions paid by the department during the previous fiscal year.
The number of and total expenditures for prescriptions paid by the department for generic equivalents during the previous fiscal year.
Sec. 1880. (1) The department shall align all pharmacy-related policies with the United States Food and Drug Administration quality and clinical standards. Any single preferred drug list utilization management criteria will be established in consultation with the Medicaid health plans and the Michigan pharmacy and therapeutics committee described in section 9705 of the public health code, 1978 PA 368, MCL 333.9705, with consideration given to applicable United States Food and Drug Administration dosing guidelines, subsequent evidence-based literature or studies, and current treatment guidelines.
(2) The department shall revise existing pharmacy coverage policies to limit the authorization of anti- obesity GLP-1 receptor agonists exclusively to individuals classified as morbidly obese. Coverage is contingent on documented failure of all other clinically appropriate weight-loss interventions and must be considered only as a measure to avert the need for higher-cost bariatric surgery.
Sec. 1888. The department shall establish contract performance standards associated with the capitation withhold provisions for Medicaid health plans at least 3 months before the implementation of those standards. The determination of whether performance standards have been met must be based primarily on recognized concepts such as 1-year continuous enrollment and the health care effectiveness data and information set, HEDIS, audited data.
Sec. 1889. All quality assurance assessment program revenue collected under section 20161 of the public health code, 1978 PA 368, MCL 333.20161, must only be expended on services provided under the Healthy Michigan plan, under 2013 PA 107, or the state Medicaid program, under Title XIX and Title XXI. INFORMATION TECHNOLOGY
Sec. 1901. (1) The department shall submit a report on a semiannual basis to the standard report recipients that lists the projects approved in the previous 6 months and provides the purpose for approving each project including any federal, state, court, or legislative requirement for each project.
(2) Once an award for an expansion of information technology is made, the department shall submit a report to the standard report recipients that provides the projected cost of the expansion broken down by use and type of expense.
Sec. 1902. (1) From the funds appropriated in part 1 for comprehensive child welfare information system, the department shall submit a report not later than March 1 to the standard report recipients. The report must include, but is not limited to, the following:
The total expenditures by fiscal year, from all sources, on the development of the comprehensive child welfare information system.
The expenditure plan for the subsequent fiscal year for the development, implementation, and maintenance of the comprehensive child welfare information system.
The details on upgrades, remediation of user-reported issues, and other modifications to currently implemented modules of the comprehensive child welfare information system that occurred during the current fiscal year and are planned for the subsequent fiscal year.
The current timeline for the full implementation of the comprehensive child welfare information system.
(2) The department shall continue to provide the report described in subsection (1) after the implementation of the comprehensive child welfare information system is complete and operational.
Sec. 1903. (1) Not later than November 1 of the current fiscal year, the department shall submit a report to the standard report recipients that describes the status of an implementation plan regarding the appropriation in part 1 to modernize the MiSACWIS. The report must include, but is not limited to, an update on the status of the settlement and efforts to bring the system in compliance with the settlement and other federal guidelines set forth by the United States Department of Health and Human Services Administration for Children and Families.
Not later than July 1 of the current fiscal year, the department shall submit to the standard report recipients a report on the department’s efforts and recommendations to develop and implement a simpler and more streamlined process for the annual renewal of the licenses for family foster care homes, and the development of a simpler and more efficient version of the application form for renewal of the licenses for family foster care homes.
From the funds appropriated in part 1 for Michigan statewide automated child welfare information system, the department shall submit a report by not later than March 1 to the standard report recipients. The report must include, but is not limited to, the following:
The current timeline for the phaseout of MiSACWIS and MiSACWIS’s replacement by the comprehensive child welfare information system.
Expenditures, from all funding sources, for maintenance, upgrades, and remediation of user-reported issues in the previous fiscal year.
Any cost savings realized by decommissioning MiSACWIS.
Sec. 1906. From the funds appropriated in part 1 for information technology services and projects, the department shall allocate $1,750,000.00 general fund/general purpose revenue, and all associated federal matching revenue, to a public and private nonprofit collaboration that is designated as this state’s statewide health information exchange by cooperative agreement, to implement health information technology strategies for health information exchange development, data management, and population health at a statewide level.
Sec. 1909. (1) From the funds appropriated in part 1 for child support automation, the department shall only encumber or expend funds for the operation, maintenance, and improvements of the Michigan child support enforcement system.
From the funds appropriated in part 1 for bridges information system, the department shall only encumber or expend funds for the operation, maintenance, and improvements of Bridges and MIBridges.
From the funds appropriated in part 1 for Michigan Medicaid information system, the department shall only encumber or expend funds for the operation, maintenance, and improvements of the community health automated Medicaid processing system.
From the funds appropriated in part 1 for Michigan statewide automated child welfare information system, the department shall only encumber or expend funds for the operation, maintenance, and improvements of MiSACWIS.
From the funds appropriated in part 1 for comprehensive child welfare information system, the department shall only encumber or expend funds for the operation, maintenance, and improvements to the comprehensive child welfare information system.
From the funds appropriated in part 1 for comprehensive child welfare information system, the department shall continue development of a new information system to replace MiSACWIS consistent with the plan provided by the department to the United States District Court for Eastern District of Michigan as a part of the settlement. The development of the comprehensive child welfare information system must adhere to department of technology, management, and budget and information technology investment fund (ITIF) policies and practices, including use of the state unified information technology environment methodology and agile development. The project team shall also participate in and comply with the enterprise portfolio management office process and product quality assurance. To ensure full transparency, the project must be included in the ITIF portfolio for executive, legislative, and external reporting purposes. As a component of the ITIF portfolio, the project is subject to governance and oversight by the information technology investment management board.
Sec. 1910. From the funds appropriated in part 1, $535,974,300.00 is appropriated for information technology services and projects including:
$123,932,600.00 for bridges information system.
$22,474,200.00 for Michigan statewide automated child welfare information system.
$104,020,300.00 for Michigan Medicaid information system.
$45,101,900.00 for child support automation.
$8,750,300.00 for comprehensive child welfare information system.
ONE-TIME APPROPRIATIONS
Sec. 1930. (1) From the funds appropriated in part 1 for opioid response activities, the department shall allocate $76,750,000.00 from the Michigan opioid healing and recovery fund created under section 3 of the Michigan trust fund act, 2000 PA 489, MCL 12.253, to programs and services to address the opioid crisis in a manner consistent with the opioid judgment, settlement, or compromise of claims pertaining to violations, or alleged violations, of law related to the manufacture, marketing, distribution, dispensing, or sale of opioids. The funds must be allocated as follows:
$4,000,000.00 must be allocated for primary prevention activities, including for public health awareness and education campaigns, including $3,000,000.00 to a nonprofit organization organized under the laws of this state, that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, that is located in a city with a population greater than 600,000 according to the most recent federal decennial census, and that was established in 1955 to deliver holistic care and wraparound services to address social determinants impacting health, education, and economic stability. To be eligible for funds under this subdivision, the organization must have a stated vision of being the premier provider of holistic care in the communities it serves. The funds must be used to expand substance use disorder prevention and treatment services.
$17,250,000.00 must be allocated to substance use disorder treatment, including:
$6,000,000.00 for workforce development programming.
$1,750,000.00 for access to treatment in jails.
$4,500,000.00 for expansion of evidence-based treatment programming of which $3,500,000.00 must be allocated to a coalition located in a county with a population of at least 1,500,000 according to the most recent federal decennial census, that has an aim to lead and support communities to dispel the myths and stigmas about drug addiction through public education, shares stories of recovery, partners with local and state leaders, creates positive social changes, and provides recovery support services for individuals in need. The $3,500,000.00 in funds allocated under this subparagraph must be used to support mobile psychiatric services and services provided by a licensed master’s social worker, 24-hour crisis stabilization and observation beds, short-term crisis residential services and crisis stabilization, crisis hotlines that are available at any time, warm lines, psychiatric advance directive statements, and peer crisis services.
$5,000,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and that has a headquarters in a charter township with a population between 100,000 and 105,000 in a county with a population between 700,000 and 1,000,000 according to the most recent federal decennial census. To receive funding under this subparagraph, the nonprofit organization must have a stated mission to offer community- based, compassionate, best-practice/evidence-based services to those suffering from addiction and their loved ones, and to erase the stigma of addiction and instill compassion and hope.
$37,500,000.00 must be allocated for recovery investments, including:
$17,000,000.00 for recovery and permanent housing developments, of which $5,000,000.00 must be allocated to a nonprofit organization that is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, is located in a city with a population greater than 600,000 according to the most recent federal decennial census, was established in 2005, and operates as a certified community behavioral health clinic to create a 30-bed residential treatment program for young adults with a substance use disorder and expand the substance use disorder workforce.
$10,000,000.00 for peer services.
$10,000,000.00 for job training.
$3,500,000.00 must be allocated for informed decision-making and evaluation of investments, including:
$1,000,000.00 for data to inform investments and evaluation progress.
$2,500,000.00 to support local governments in needs assessments and making impact.
$15,000,000.00 must be allocated for stand-alone investments, including:
$3,000,000.00 to invest in tribal communities.
$2,000,000.00 for law enforcement training.
$10,000,000.00 for diversion programs.
If any allocations remain after the completion of the projects listed in subsection (1)(a) to (e), the department may expend remaining funds for additional opioid response activities that are consistent with the purposes outlined in this section.
Sec. 1932. (1) From the funds appropriated for Medicaid children’s rehabilitation services, the department shall allocate $100,000.00 to enhance the Medicaid provider reimbursement rates for services provided to Medicaid-enrolled children receiving inpatient and outpatient care in any of the following settings:
Acute care children’s hospitals.
Rehabilitation hospitals serving children.
Behavioral health hospitals or designated inpatient psychiatric units serving children.
The enhanced reimbursement in subsection (2) must apply to the professional services provided by licensed physicians, advanced practice providers (APPs), psychologists, and other eligible enrolled Medicaid providers involved in the direct care of children.
From the funds appropriated in part 1 for Medicaid children’s rehabilitation services, $900,000.00 is allocated to support statewide physician services, access initiatives, and nonclinical and supportive care services at the Joan Secchia Children’s Rehabilitation Hospital in Grand Rapids.
The funds provided in subsection (3) must be used to enhance the comprehensive rehabilitative care and access of children through the provision of the following services:
Educational services, including licensed teachers to ensure academic continuity for children during hospitalization.
Child life specialists to support emotional coping and developmentally appropriate education related to illness and treatment.
Recreational therapy, music therapy, and art therapy as part of a holistic rehabilitation model.
Family and caregiver support services, including respite, lodging assistance, psychosocial support, and navigation services during the course of a child’s inpatient rehabilitation.
A statewide system of access to consulting pediatric physiatrists and other professionals familiar with rehabilitation care of kids.
Sec. 1933. From the funds appropriated in part 1 for Medicaid outreach, the department shall allocate
$950,000.00 in general fund/general purpose revenue and any associated federal match to enhance Medicaid health plan outreach to improve access and utilization of Medicaid covered services in partnership with the National Kidney Foundation of Michigan. The funds under this section must also support outreach efforts by the Morris Hood III Chronic Kidney Disease and COVID-19 Complications Prevention Initiative to identify, educate, and prevent chronic kidney disease in high-risk populations and regions.
Sec. 1934. From the funds appropriated in part 1 for dental clinic, the department shall allocate
$2,900,000.00 to United Way of Northwest Michigan for the cost of purchasing, rather than leasing, a building that houses both a dental clinic and the United Way of Northwest Michigan.
Sec. 1936. From the funds in part 1 for cranial hair prothesis, the department shall allocate $125,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a city with a population between 58,800 and 59,000 that is located in a county with a population between 881,000 and 882,000, according to the most recent federal decennial census. To be eligible for funds under this section, an organization must have current experience providing wigs and support services to children and young adults experiencing hair loss as a result of an illness.
Sec. 1937. (1) From the funds appropriated in part 1 for hospital infrastructure, the department shall allocate $10,000,000.00 to Sheridan Community Hospital as state matching funds for the construction of a new hospital on already-owned land for the purposes of increasing health care capacity in this state.
(2) Funds appropriated in part 1 for hospital infrastructure are considered work project funds, do not lapse at the close of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to construct a new hospital on already-owned land for the purposes of increasing health care capacity.
The work project will be accomplished through a grant to Sheridan Community Hospital.
The total estimated cost of the work project is $10,000,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1938. From the funds appropriated in part 1 for foster care program, the department shall allocate
$2,025,000.00 to The New Foster Care for services through the Bridge Program, including housing, child welfare housing infrastructure, or other supportive housing projects.
Sec. 1950. From the funds appropriated in part 1 for cellular therapy, $750,000.00 is allocated to Versiti Michigan. The funds must be used to enhance the collection of fetal umbilical cord blood and stem cells for transplant, expand cord blood laboratory capabilities, expand the diversity of collections, and build information technology infrastructure.
Sec. 1954. From the funds appropriated in part 1 for homeless shelter capital and infrastructure costs, the department shall allocate $2,000,000.00 to a nonprofit, community-based organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a city with a population between 639,000 and 650,000 according to the most recent federal decennial census. To be eligible for the funding under this section, the organization must use the grant to make capital and infrastructure repairs to structures to convert the structures into emergency homeless shelters for women and children and shelters for individuals who are parolees from the department of corrections.
Sec. 1956. (1) From the funds appropriated in part 1 for permanent supportive housing, the department shall allocate $5,000,000.00 to expand supportive housing services. Organizations that received funding under section 1983 of article 6 of 2023 PA 166 or section 701 of article 16 of 2024 PA 121 are eligible to apply for and receive funding under this section. The funds must be used for services to households living in supportive housing who need additional services to maintain stability and currently homeless households moving into supportive housing.
From the funds appropriated in this section, no more than 8% may be allocated as grants to organizations providing permanent supportive housing for capacity building necessary to develop and sustain high-quality service delivery and to build administrative capacity to seek Medicaid reimbursement for eligible services.
From the funds appropriated in this section, at least 1% must be allocated to a national nonprofit organization that is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, was founded in 1991 with 100 to 250 employees, is a national leader in supportive housing, and provides technical assistance and capacity building support to organizations providing permanent supportive housing services.
Funds appropriated in part 1 for permanent supportive housing are considered work project funds, do not lapse at the close of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to provide funding for grants to eligible entities to provide permanent supportive housing services for eligible households.
The work project will be accomplished through partnerships with community-based agencies that provide supportive housing services, the Michigan state housing development authority, and local governments.
The total estimated cost of the work project is $5,000,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1958. From the funds appropriated in part 1 for electronic benefit transfer reinvestment, the department shall allocate an amount not to exceed $16,000,000.00 to adopt chip card technology for all Michigan bridge cards and any other credit and debit industry standards as published by the Accredited Standards Committee X9. The department shall begin to implement these standards by January 1 of the current fiscal year.
Sec. 1960. From the funds appropriated in part 1 for career and workforce readiness wraparound services, the department shall allocate $750,000.00 to a nonprofit organization that is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a city with a population greater than 600,000 according to the most recent federal decennial census, to support the operation and expansion of a neighborhood-based medical clinic that provides essential health services to residents in underserved areas of the city in which the organization is located. To be eligible to receive funds under this section, the organization must have been established in 1906 and have a stated vision of being the region’s leading human service organization, impacting lives, and helping individuals achieve their full potential at every age and stage.
Sec. 1962. From the funds appropriated in part 1 for national association of Yemeni Americans, the department shall allocate $800,000.00 to a qualified Yemeni nonprofit organization to provide communities with the best services suited to the communities according to their time and needs, with no prejudice, and regardless of religion, culture, or ethnic background. As used in this section, “qualified Yemeni nonprofit organization” means an organization that was established in 2000, is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and has its administrative office located in a county with a population of at least 1,750,000 and in a city with a population between 109,000 and 110,000.
Sec. 1964. (1) From the funds appropriated in part 1 for community health screenings, the department shall allocate $5,000,000.00 as a grant to a nonprofit organization that is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and is located in a in a city with a population between 85,000 and 87,000 and in a county with a population between 1,200,000 and 1,300,000 according to the most recent federal decennial census, to conduct community health screenings and to collect and distribute public health data on underserved urban and rural populations, first responders, and veterans, to the department.
(2) Funds appropriated for community health screenings are considered work project funds, do not lapse at the end of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to provide funding for health screenings at no cost to the public in order to reduce health disparities in rural or medically underserved communities.
The work project will be accomplished through partnerships with nonprofit agencies.
The total estimated cost of the work project is $5,000,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1965. (1) From the funds appropriated in part 1 for water affordability, the department shall allocate
$5,000,000.00 as grants to qualified providers to assist eligible residents who have a financial burden, have accumulated a balance on their water utility bill, have had their water service shut off, and/or are at risk of having their water service shut off. Eligible expenditures from these funds must be income-based and must include all of the following:
Restoring residential water service.
Paying down water bills currently in arrears.
Supporting reasonable water affordability plans that are based on an individual’s ability to pay, including capped payments based on household income to prevent accumulating a balance on future water bills and funding to qualified providers to cover the remaining cost of service.
Protecting participating residents from water shutoffs.
To be considered a qualified provider under this section, the provider must be 1 of the following:
A community water system.
A community action agency.
A nonprofit, community-based organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, with a history of doing utility assistance work.
Qualified providers receiving grants under this section may spend not more than 3% of the total grant award for administrative services related to the implementation of this section.
Qualified providers receiving grants under this section shall report to the department by September 30 of the current fiscal year on outcomes and performance measures for the program, including, but not limited to, all of the following:
The total grant award received by the qualified provider.
The percentage of the grant award that was used for administrative costs.
The total dollars spent broken down by type of assistance provided.
The number of individuals helped broken down by type of assistance provided.
The number of individual applicants denied assistance.
Upon receipt of the information required under subsection (4), the department shall compile and forward the report to the standard report recipients.
The unexpended funds appropriated in part 1 for water affordability are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide grants to qualified providers that assist eligible residents who have a financial burden, have accumulated a balance on their water utility bill, have had their water service shut off, and/or are at risk of having their water service shut off.
The project will be accomplished through competitive grants to qualified providers.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 1966. From the funds appropriated in part 1 for Revive health clinic, the department shall allocate
$300,000.00 to Revive Community Health Center for health support services as the center pursues certification as a FQHC.
Sec. 1967. (1) From the funds appropriated in part 1 for trauma recovery center pilot program, the department shall allocate $2,000,000.00 for a 3-year trauma recovery center pilot program at a level I Michigan-designated trauma facility for adults. The pilot program must be located in a city with a population greater than 500,000 according to the most recent federal decennial census. The pilot program must do all of the following to be awarded funding under this section:
Use an evidence-informed integrated trauma recovery service model for providing and delivering services.
Comply with applicable statutory requirements for the trauma facility’s administration and operation, and for service requirements and funding.
Except as otherwise provided in subsection (2), demonstrate to the department that the trauma facility adheres to all guidelines for implementing and operating a trauma recovery center, as developed by the National Alliance of Trauma Recovery Centers.
The department may award the funding to a level I Michigan-designated trauma facility for adults that does not adhere to the requirements described in subsection (1) if the facility demonstrates to the department the facility’s ability to comply with the requirements on the receipt of the funds under this section.
The unexpended funds appropriated in part 1 for trauma recovery center pilot program are designated as a work project appropriation. Unencumbered or unallotted funds do not lapse at the end of the fiscal year and must be available for expenditures under this section until the project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to ensure that the pilot programs located in level I Michigan designated trauma facilities for adults are developing a model for trauma service provision and delivery.
The project will be accomplished by utilizing state employees, contracting with vendors, or working with local partners.
The estimated cost of the project is $2,000,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1968. From the funds appropriated in part 1 for implementation of maternal health policy changes, the department shall allocate $299,700.00 to implement Senate Bill No. 29 and Senate Bill No. 30 of the 103rd Legislature.
Sec. 1970. From the funds appropriated in part 1 for mothers in foster care - wraparound services program, the department shall allocate $250,000.00 as a grant to a nonprofit organization to offer comprehensive mental health support, prenatal care coordination, parenting classes, mentorship, and social integration activities that meets all of the following requirements:
Is organized under the laws of this state.
Is exempt from federal income tax under the laws of this state under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501.
Assists teen mothers exiting foster care.
Is located in a city with a population greater than 600,000 and in a county with a population of more than 1,700,000 according to the most recent federal decennial census.
Sec. 1971. (1) From the funds appropriated in part 1 for delayed cognition/fine motor skills checklist toolkit, the department shall allocate $500,000.00 to a nonprofit organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, that is educating the public about prevention efforts in an effort to reduce medical costs and improving the quality of life for those living at risk of a mental disability to increase their operations to provide developmental milestones toolkits to low-income families located in a county with a population greater than 1,500,000 according to the most recent federal decennial census. The nonprofit organization must be located in a city with a population between 90,000 and 105,000 according to the most recent federal decennial census with a stated mission of providing evidence-informed strategies and training to parents, educators, community stakeholders, and policymakers to ameliorate common childhood conditions.
(2) The unexpended funds appropriated in part 1 for developmental milestones toolkit are designated as a work project appropriation. Unencumbered or unallotted funds do not lapse at the end of the fiscal year and must be available for expenditures under this section until the project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide developmental milestones toolkits to low-income families located in a county with a population greater than 1,500,000 according to the most recent federal decennial census.
The project will be accomplished by a nonprofit 501(c)(3) organization.
The estimated cost of the project is $500,000.00.
The tentative completion date is September 30, 2030.
Sec. 1973. (1) From the funds appropriated in part 1 for dental safety net providers - stabilization payments, the department shall allocate $4,000,000.00 to implement an enhanced Medicaid reimbursement rate for dental services provided to Medicaid-enrolled adults.
The enhanced Medicaid reimbursement rate applies only to adult services delivered by dental safety net providers that have an established agreement with a local health department.
The department shall determine the enhanced Medicaid reimbursement methodology to reflect increased costs of care and to support provider sustainability.
Sec. 1974. From the funds appropriated in part 1 for Medicaid blood pressure monitors, the department shall allocate $800,000.00 to implement 2024 PA 244.
Sec. 1976. (1) From the funds appropriated in part 1 for kids’ food basket, the department shall allocate
$1,000,000.00 to fund a project with a nonprofit, community-based organization organized under the laws of this state that is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, and that is located in a city with a population between 185,000 and 200,000 and in a county with a population between 600,000 and 700,000, according to the most recent federal decennial census. The nonprofit organization recipient must have an existing network of food delivery to low-income
children in not less than 3 counties in this state. The nonprofit organization shall use the funds to expand its services to additional schools and communities. The funding may be used to cover employee costs, food and supplies, equipment, capital, and other operational costs identified by the organization to support its mission and goals.
(2) The unexpended funds appropriated in part 1 for kids’ food basket are designated as a work project appropriation. Unencumbered or unallotted funds do not lapse at the end of the fiscal year and must be available for expenditures under this section until the project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support employee costs, food and supplies, equipment, capital, and other operational costs identified by the organization to support its mission and goals.
The project will be accomplished by a nonprofit 501(c)(3) organization.
The estimated cost of the project is $1,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 1977. (1) From the funds appropriated in part 1 for underserved healthcare facility project, the department shall allocate $1,500,000.00 to a wellness center to support a pediatric and sedation dentistry clinic. The pediatric and sedation dental clinic must serve uninsured and underinsured children and adolescents and eligible adults who have a mental illness, severe emotional disturbance, intellectual developmental disorder, or co-occurring substance use disorder. To be eligible for the funds under this section, the wellness center must meet all of the following requirements:
Be dedicated to enhancing the well-being of individuals by providing an array of comprehensive behavioral and physical health services in a trauma-informed environment and by promoting quality of life, continuous improvement, social awareness, and healing.
Have its administrative office located in a county with a population of greater than 1,750,000 and in a city with a population between 109,000 and 111,000 according to the most recent federal decennial census.
Be accredited by CARF International.
(2) The unexpended funds appropriated in part 1 for underserved healthcare facility project are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support a pediatric and sedation dentistry clinic.
The project will be accomplished by a CARF International accredited wellness center.
The estimated cost of the project is $1,500,000.00.
The tentative completion date is September 30, 2030.
Sec. 1978. From the funds appropriated in part 1 for university DSH backfill, $3,500,000.00 of general fund/general purpose revenue must be distributed to a university located in a county with a population between 284,000 and 285,000, according to the most recent federal decennial census, that has a college of allopathic medicine and a college of osteopathic medicine. The purpose of this project is to ensure continued access to medical care for indigents and increase the efficiency and effectiveness of medical practitioners providing services to Medicaid beneficiaries under managed care.
Sec. 1980. (1) From the funds appropriated in part 1 for federally-qualified health centers - training program, the department shall allocate $2,000,000.00 to partner with a health centers careers training program to provide additional recruitment and training opportunities for individuals employed in FQHCs operating in this state.
The health centers careers training program described in subsection (1) must do all of the following:
Provide recruiting and training opportunities for professions, including, but not limited to, medical and dental assistants, community health workers, doulas, medical billing and coding professionals, pharmacy technicians, and opticians.
Provide paid clinical or internship experience opportunities for behavioral health students.
Provide on-the-job training and apprenticeship opportunities.
Support opportunities to grow workforce and career opportunities for low-income and underserved communities.
Funds appropriated for federally-qualified health centers - training program are considered work project funds, do not lapse at the end of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to provide funding for recruitment and training programs at FQHCs in this state.
The work project will be accomplished through partnerships with FQHCs and other nonprofit agencies.
The total estimated cost of the work project is $2,000,000.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1982. (1) From the funds appropriated in part 1 for Medicaid funding for freestanding birth centers and licensed midwives, the department shall allocate not less than $1,000,000.00 of general fund/general purpose revenue and any associated federal matching funds to provide perinatal and gynecological services when perinatal and gynecological services are provided by a perinatal or gynecological professional who is licensed, registered, or otherwise authorized to practice in this state, including, but not limited to, a licensed midwife acting within the scope of the licensed midwife’s license. Medicaid reimbursement must be paid when gynecological or perinatal care service is provided in a hospital, medical care facility, freestanding birth center licensed under article 17 of the public health code, 1978 PA 368, MCL 333.20101 to 333.22260, midwifery care facility, or home setting. The rates paid to perinatal or gynecological professionals described in this section must be the same as those paid to other perinatal or gynecological professionals, regardless of the location of those services.
The perinatal or gynecological care services described in subsection (1) must meet all of the following:
Promote high-quality, cost-effective, and evidence-based care.
Promote high-value, evidence-based payment models.
Prevent risk in subsequent pregnancies.
Funds appropriated for Medicaid funding for freestanding birth centers and licensed midwives are considered work project funds, do not lapse at the end of the fiscal year, and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to provide funding for perinatal or gynecological services at freestanding birth centers or through licensed midwives.
The work project will be accomplished through partnerships with medical providers and other nonprofit agencies.
The total estimated cost of the work project is $2,881,800.00.
The tentative completion date for the work project is September 30, 2030.
Sec. 1984. (1) From the funds appropriated in part 1 for payments to cover after school and extracurriculars for foster care children, the department shall allocate $758,000.00 to reimburse children in foster care for the costs of extracurricular activities, which include, but are not limited to, athletics, music, band, drama, and other enrichment activities.
(2) The unexpended funds appropriated in part 1 for foster care extracurricular activities are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and must be available for expenditures for projects under this section until the projects have been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the work project is to reimburse children in foster care for the costs of extracurricular activities.
The work project will be accomplished by utilizing state employees or contracts.
The total estimated cost of the work project is $1,000,000.00.
The tentative completion date is September 30, 2030.
Sec. 1995. (1) From the funds appropriated in part 1 for liver screening pilot project, the department shall allocate $250,000.00 to partner with at least 1 Medicaid health plan to develop and fund a basic liver screening pilot project for Medicaid eligible women, between the ages of 25 and 45. The pilot project must include, but is not limited to, screening for cholestatic liver disorders associated with increased risk of end- stage liver disease.
(2) By September 30 of the current fiscal year, the department shall submit a report to the standard report recipients on the outcomes of the liver screening pilot project. The report must include, but is not limited to, all of the following:
Demographic information of pilot participants who are at higher risk for developing cholestatic liver disorders.
The number of pilot participants who were identified as high-risk for developing a cholestatic liver disorder who did not follow through with referrals or treatment recommendations.
Recommendations on how to increase awareness for cholestatic liver disorders, including screening and genetic testing.
Recommendations on investments and strategies to increase screening and genetic testing for cholestatic liver disorders.
Any other information considered relevant by the department.
Sec. 1999. From the funds appropriated in part 1 for dementia support, the department shall allocate
$408,600.00 to a nonprofit organization that is organized under the laws of this state, is exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501, was founded and governed by individuals living with dementia, and is located in a county with a population between 41,000 and 44,000 according to the most recent federal decennial census. Eligible expenditures from these funds include:
Development of resources to empower individuals recently diagnosed with dementia with information about practical supports and effective communications with health care providers.
Provision of interactive educational programming and outreach to equip individuals living with dementia and their family care partners with essential resources needed to thrive and live well with dementia.
Development of financial planning and employment resources for individuals and families facing younger onset dementia.
Creation of peer support opportunities for individuals living with early-stage and middle-stage dementia in home- or community-based settings.
Creation of a public awareness campaign about the incidence of dementia across age groups and resources and strategies available to individuals to allow them to live well with dementia in-home or community-based settings.
Sec. 2005. From the funds appropriated in part 1 for maternal-fetal medicine programming, the department shall allocate $1,500,000.00 to an office of women’s health located at a university in a county with a population greater than 1,500,000, according to the most recent federal decennial census, to oversee the programming. The funding must be used for a collaboration of universities and hospitals across this state to develop and implement a model to reduce infant and maternal mortality through best practices, patient incentives and transportation, navigators, and on-site medication distribution.
Sec. 2006. From the funds appropriated in part 1 for suicide prevention council, the department shall allocate $125,000.00 of general fund/general purpose revenue and any associated federal match or grant funding, to establish and support a Michigan Suicide Prevention Council. The council shall do all of the following:
Coordinate statewide suicide prevention efforts, including alignment with the Michigan Suicide Prevention Plan: A Systems Level Approach to Preventing Suicide, 2024–2027.
Engage stakeholders such as the department of education, the American Foundation for Suicide Prevention, the National Alliance on Mental Illness, the Michigan Psychiatric Society, law enforcement, and community mental health organizations.
Develop and disseminate age-appropriate and medically accurate educational materials on suicide risk factors, protective factors, and warning signs, in consultation with relevant agencies and experts.
Advise the department on policy and funding priorities related to suicide prevention, including recommendations for regional coverage gaps in the National Suicide Prevention Lifeline network.
Submit an annual report to the standard report recipients by June 1 of the current fiscal year. The report must include:
Council membership and meeting summaries.
Progress on strategic goals.
Funding allocations and expenditures.
Evaluation metrics and outcomes.
ARTICLE 7
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of insurance and financial services for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 390.5 | ||
GROSS APPROPRIATION | $ | 79,406,400 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 763,800 | ||
ADJUSTED GROSS APPROPRIATION | $ | 78,642,600 | |
Federal revenues: | |||
Total federal revenues | 250,000 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 0 | ||
Total other state restricted revenues | 78,392,600 | ||
State general fund/general purpose | $ | 0 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 23.5 | ||
Unclassified salaries—FTEs | 6.0 | $ | 984,100 |
Administrative hearings | 173,700 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Department services—FTEs | 17.0 | $ | 8,777,800 |
Executive director programs—FTEs | 6.5 | 1,737,700 | |
Property management | 1,217,200 | ||
Worker’s compensation | 1,900 | ||
GROSS APPROPRIATION | $ | 12,892,400 | |
Appropriated from: | |||
Special revenue funds: | |||
Bank fees | 1,027,600 | ||
Captive insurance regulatory and supervision fund | 83,200 | ||
Consumer finance fees | 665,900 | ||
Credit union fees | 1,556,100 | ||
Deferred presentment service transaction fees | 285,900 | ||
Insurance bureau fund | 5,730,600 | ||
Insurance continuing education fees | 55,300 | ||
Insurance licensing and regulation fees | 2,093,800 | ||
MBLSLA fund | 1,394,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 103. INSURANCE AND FINANCIAL SERVICES REGULATION | |||
Full-time equated classified positions | 367.0 | ||
Consumer services and protection—FTEs | 105.0 | $ | 17,894,000 |
Financial institutions evaluation—FTEs | 131.0 | 23,061,300 | |
Insurance evaluation—FTEs | 131.0 | 21,946,100 | |
GROSS APPROPRIATION | $ | 62,901,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDLARA, for debt management | 763,800 | ||
Federal revenues: | |||
Federal revenues | 250,000 | ||
Special revenue funds: | |||
Bank fees | 6,564,600 | ||
Captive insurance regulatory and supervision fund | 644,600 | ||
Consumer finance fees | 2,415,800 | ||
Credit union fees | 8,456,700 | ||
Deferred presentment service transaction fees | 2,360,200 | ||
Insurance bureau fund | 26,824,900 | ||
Insurance continuing education fees | 548,300 | ||
Insurance licensing and regulation fees | 8,094,600 | ||
MBLSLA fund | 5,942,500 | ||
Multiple employer welfare arrangement | 35,400 | ||
State general fund/general purpose | $ | 0 | |
Sec. 104. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 3,612,600 | |
GROSS APPROPRIATION | $ | 3,612,600 | |
Appropriated from: | |||
Special revenue funds: | |||
Bank fees | 288,000 | ||
Captive insurance regulatory and supervision fund | 23,200 | ||
Consumer finance fees | 186,700 | ||
Credit union fees | 436,000 | ||
Deferred presentment service transaction fees | 80,500 | ||
Insurance bureau fund | 1,710,800 | ||
Insurance continuing education fees | 15,700 | ||
Insurance licensing and regulation fees | 481,200 | ||
MBLSLA fund | 390,500 | ||
State general fund/general purpose | $ | 0 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $78,392,600.00 and total state spending under part 1 from state sources to be paid to local units of government is $0.00.
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:
“Department” means the department of insurance and financial services.
“Director” means the director of the department.
“FTE” means full-time equated position in the classified service of this state.
“IDG” means interdepartmental grant.
“MBLSLA fund” means the restricted account established under section 8 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1658.
“MDLARA” means the Michigan department of licensing and regulatory affairs.
“Standard report recipients” means the senate and house appropriations subcommittees on licensing and regulatory affairs and insurance and financial services, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 204. The department 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:
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.
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.
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.
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 outside this state by classified and unclassified employees 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 the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 208. 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 area. 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. 209. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$200,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,000,000.00 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.
Sec. 210. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
Sec. 211. 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. 212. 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 standard report recipients and to the senate and house appropriations committees.
Sec. 213. 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. 214. 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. 215. (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. 216. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 217. 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 report must include reference to the public act that necessitates the policy change. 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. 218. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 219. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 220. (1) The department shall maximize the utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 221. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 222. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 223. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $6,514,000.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $5,875,200.00. Total appropriations for retiree health care legacy costs for the department are estimated at $638,800.00.
Sec. 224. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 225. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 226. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 227. The department shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s website, the department shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 228. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 250. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits. Not later than February 1, the department shall report on fees collected from credit card payments for licenses, fees, and permits in the previous year.
Sec. 251. From the funds appropriated in part 1 from the insurance bureau fund, funds may be expended to support legislative participation in insurance activities coordinated by insurance and legislative associations, in accordance with section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225.
Sec. 252. The department shall submit a report to the standard report recipients by September 30 detailing any expenditure of funds for a television or radio production that was made to a third-party vendor in the fiscal year ending September 30, 2026. The report must include all of the following information for each expenditure:
Total amount of the expenditure.
Fund source for the expenditure.
Name of any vendor that created the production and the amount paid to each vendor.
Purpose of the production.
INSURANCE AND FINANCIAL SERVICES REGULATION
Sec. 301. The annual health insurance rate change report prepared pursuant to 45 CFR 154.301(b) shall be transmitted electronically to the standard report recipients and must include the following:
The number that are approved by the department.
The number of denials issued by the department.
The number of objections issued by the department.
The percentage of rate filings processed within the applicable statutory time frames.
The average number of calendar days to process rate filings.
Sec. 302. In addition to the funds appropriated in part 1, the funds collected by the department in connection with a conservatorship under section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, and funds collected by the department from corporations being liquidated under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, must be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and must not lapse to the general fund at the end of the fiscal year. The total amount appropriated under this section and section 303 must not exceed $600,000.00.
Sec. 303. The department may make available to interested entities customized listings of nonconfidential information in its possession. The department may establish and collect a reasonable charge to provide this service. The revenue from this service is appropriated when received and must be used to offset expenses to provide the service. Any balance of this revenue collected and unexpended at the end of the fiscal year must lapse to the appropriate restricted fund. The total amount appropriated under this section and section 302 must not exceed $600,000.00.
Sec. 304. The department must electronically transmit the annual report prepared under section 238 of the insurance code of 1956, 1956 PA 218, MCL 500.238, and section 2108 of the banking code of 1999, 1999 PA 276, MCL 487.12108, to the standard report recipients at the time of the publication of the report. Sec. 305. The department shall update examination manuals and letters of guidance to state-chartered financial institutions as necessary to reflect how the department will evaluate institutions that provide banking or other financial services to marihuana-related businesses or businesses that transport, test, grow, process, or sell marihuana, based on state statute and guidance. The department may also include guidance
or information on how federal law and regulations may impact state-chartered institutions.
Sec. 306. Not later than March 30, the department shall provide a report to the standard report recipients and the chairs of the senate and house standing committees that address financial and insurance issues based on filings received from insurers for automobile insurance, as that term is defined in section 2102 of the insurance code of 1956, 1956 PA 218, MCL 500.2102, in the previous calendar year that includes all of the following:
The number of automobile insurance rate filings received by the department.
The number of objections issued by the department for automobile insurance rate filings.
The average number of calendar days to process rate filings.
Pursuant to section 2111f of the insurance code of 1956, 1956 PA 218, MCL 500.2111f, the weighted average, aggregated personal protection insurance rate change for policies subject to the coverage limits under section 3107c(1)(a) to (d) of the insurance code of 1956, 1956 PA 218, MCL 500.3107c.
Sec. 307. (1) From the funds appropriated in part 1 for consumer services and protection, at least 1.0 FTE must provide customer service outreach or education related to financial services and insurance claims and be trained and experienced to assist catastrophic accident survivors.
(2) Not later than September 30, the department shall submit a report to the standard report recipients and the chairs of the senate and house standing committees that address financial and insurance issues that provides all of the following:
The number of automobile insurance consumers assisted.
The number of complaints received.
The number of utilization review orders issued.
The number upholding the insurer’s decision.
The number reversing the insurer’s decision.
ARTICLE 8 JUDICIARY PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the judiciary for the fiscal year ending September 30, 2026 from the following funds:
JUDICIARY | |||
APPROPRIATION SUMMARY | |||
Full-time equated exempted positions | 643.5 | ||
GROSS APPROPRIATION | $ | 383,621,700 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 1,902,300 | ||
ADJUSTED GROSS APPROPRIATION | $ | 381,719,400 | |
Federal revenues: | |||
Total federal revenues | 7,270,900 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 1,906,400 | ||
Total other state restricted revenues | 96,468,300 | ||
State general fund/general purpose | $ | 276,073,800 | |
Sec. 102. SUPREME COURT | |||
Full-time equated exempted positions | 306.0 | ||
Community dispute resolution—FTEs | 3.0 | $ | 3,388,800 |
Drug treatment courts—FTEs | 2.0 | 13,266,700 | |
Foster care review board—FTEs | 10.0 | 1,445,600 | |
Jail reform advisory support—FTE | 1.0 | 160,100 | |
Judicial information systems—FTEs | 91.0 | 21,070,400 | |
Judicial institute—FTEs | 17.0 | 2,906,500 | |
Justice for all—FTEs | 2.0 | 1,539,700 | |
Mental health courts and diversion services—FTE | 1.0 | 5,779,400 | |
Michigan legal help | 1,000,000 | ||
Next generation Michigan court system | 4,116,000 | ||
Other federal grants | 275,100 | ||
State court administrative office—FTEs | 83.0 | 15,690,000 | |
Supreme court administration—FTEs | 96.0 | 16,707,900 | |
Swift and sure sanctions program | 1,537,600 | ||
Veterans courts | 1,061,200 | ||
GROSS APPROPRIATION | $ | 89,945,000 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of corrections | 52,300 | ||
IDG from department of state police | 1,500,000 | ||
IDG from department of state police, Michigan justice training fund | 100,000 | ||
Federal revenues: | |||
DOJ, drug court training and evaluation | 300,000 | ||
DOT, National Highway Traffic Safety Administration | 2,358,700 | ||
Federal funds | 275,100 |
For Fiscal Year Ending Sept. 30, 2026 | |||
HHS, access and visitation grant | $ | 506,100 | |
HHS, children’s justice grant | 256,800 | ||
HHS, court improvement project | 998,800 | ||
HHS, safe access for victims economic security grant | 420,000 | ||
HHS, state opioid response grant | 352,200 | ||
HHS, title IV-D child support program | 891,400 | ||
HHS, title IV-E foster care program | 328,000 | ||
Special revenue funds: | |||
Interest on lawyers trust accounts | 407,900 | ||
Private funds | 501,100 | ||
State justice institute | 529,000 | ||
Community dispute resolution fund | 2,424,700 | ||
Court of appeals filing/motion fees | 1,450,000 | ||
Drug treatment court fund | 1,920,500 | ||
Justice system fund | 643,300 | ||
Law exam fees | 794,500 | ||
Miscellaneous revenue | 249,400 | ||
State court fund | 419,900 | ||
State general fund/general purpose | $ | 72,265,300 | |
Sec. 103. COURT OF APPEALS | |||
Full-time equated exempted positions | 179.0 | ||
Court of appeals operations—FTEs | 179.0 | $ | 27,733,200 |
GROSS APPROPRIATION | $ | 27,733,200 | |
Appropriated from: | |||
State general fund/general purpose | $ | 27,733,200 | |
Sec. 104. BRANCHWIDE APPROPRIATIONS | |||
Full-time equated exempted positions | 6.0 | ||
Branchwide appropriations—FTEs | 6.0 | $ | 11,160,000 |
GROSS APPROPRIATION | $ | 11,160,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 11,160,000 | |
Sec. 105. JUSTICES’ AND JUDGES’ COMPENSATION | |||
Judges positions—591.0 justices and judges | |||
Supreme court justices’ salaries—7.0 justices | $ | 1,270,500 | |
Circuit court judges’ state base salaries—223.0 judges | 31,326,100 | ||
Circuit court judicial salary standardization | 10,196,800 | ||
Court of appeals judges’ salaries—25.0 judges | 5,037,400 | ||
District court judges’ state base salaries—232.0 judges | 32,583,200 | ||
District court judicial salary standardization | 10,608,600 | ||
Probate court judges’ state base salaries—104.0 judges | 14,486,400 | ||
Probate court judicial salary standardization | 4,715,300 | ||
Judges’ retirement system defined contributions | 9,400,600 | ||
OASI, Social Security | 8,339,600 | ||
GROSS APPROPRIATION | $ | 127,964,500 | |
Appropriated from: | |||
Special revenue funds: | |||
Court fee fund | 3,028,200 | ||
State general fund/general purpose | $ | 124,936,300 | |
Sec. 106. JUDICIAL AGENCIES | |||
Full-time equated exempted positions | 14.0 | ||
Judicial tenure commission—FTEs | 14.0 | $ | 2,944,500 |
GROSS APPROPRIATION | $ | 2,944,500 | |
Appropriated from: | |||
State general fund/general purpose | $ | 2,944,500 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 107. INDIGENT DEFENSE - CRIMINAL | |||
Full-time equated exempted positions | 112.5 | ||
Appellate public defender program—FTEs | 94.0 | $ | 16,869,500 |
Juvenile life resentencing—FTEs | 18.5 | 3,055,800 | |
Michigan appellate assigned counsel system roster attorney compensation grants | 3,208,100 | ||
GROSS APPROPRIATION | $ | 23,133,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of state police | 250,000 | ||
Federal revenues: | |||
Federal funds | 583,800 | ||
Special revenue funds: | |||
Interest on lawyers trust accounts | 88,400 | ||
Michigan justice fund | 380,000 | ||
Miscellaneous revenue | 172,400 | ||
State general fund/general purpose | $ | 21,658,800 | |
Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE | |||
Indigent civil legal assistance | $ | 7,937,000 | |
GROSS APPROPRIATION | $ | 7,937,000 | |
Appropriated from: | |||
Special revenue funds: | |||
State court fund | 7,937,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 109. TRIAL COURT OPERATIONS | |||
Full-time equated exempted positions | 26.0 | ||
Court equity fund reimbursements | $ | 60,815,700 | |
Drug case-flow program | 250,000 | ||
Drunk driving case-flow program | 3,300,000 | ||
Judicial technology improvement fund | 4,815,000 | ||
Juror compensation reimbursement—FTE | 1.0 | 6,616,200 | |
Statewide e-file system—FTEs | 25.0 | 12,007,200 | |
GROSS APPROPRIATION | $ | 87,804,100 | |
Appropriated from: | |||
Special revenue funds: | |||
Court equity fund | 50,440,000 | ||
Drug case information management fund | 250,000 | ||
Drunk driving case-flow assistance fund | 3,300,000 | ||
Judicial electronic filing fund | 12,007,200 | ||
Judicial technology improvement fund | 4,815,000 | ||
Juror compensation fund | 6,616,200 | ||
State general fund/general purpose | $ | 10,375,700 | |
Sec. 110. ONE-TIME APPROPRIATIONS | |||
Judicial tenure commission | $ | 500,000 | |
Juvenile life resentencing | 2,325,000 | ||
Statewide case management system | 2,007,600 | ||
Supreme court administration - office of reporter of decisions | 167,400 | ||
GROSS APPROPRIATION | $ | 5,000,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 5,000,000 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $372,542,100.00 and total state spending under part 1 from state sources to be paid to local units of government is $151,181,500.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
JUDICIARY | ||
SUPREME COURT | ||
Drug treatment courts | $ | 9,216,700 |
Mental health courts and diversion services | 5,779,400 | |
Next generation Michigan court system | 4,116,000 | |
State court administrative office | 200,000 | |
Swift and sure sanctions program | 1,537,600 | |
Veterans courts | 1,061,200 | |
JUSTICES’ AND JUDGES’ COMPENSATION | ||
Circuit court judicial salary standardization | $ | 10,196,800 |
District court judicial salary standardization | 10,608,600 | |
OASI, Social Security | 1,459,400 | |
Probate court judges’ state base salaries | 14,486,400 | |
Probate court judicial salary standardization | 4,715,300 | |
TRIAL COURT OPERATIONS | ||
Court equity fund reimbursements | $ | 60,815,700 |
Drug case-flow program | 250,000 | |
Drunk driving case-flow program | 3,300,000 | |
Judicial technology improvement fund | 4,815,000 | |
Juror compensation reimbursement | 6,616,200 | |
Statewide e-file system | 12,007,200 | |
TOTAL | $ | 151,181,500 |
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:
“DOJ” means the United States Department of Justice.
“DOT” means the United States Department of Transportation.
“FTE” means full-time equated exempted positions.
“HHS” means the United States Department of Health and Human Services.
“IDG” means interdepartmental grant.
“OASI” means old age survivor’s insurance.
“Standard report recipients” means the senate and house appropriations subcommittees on corrections and judiciary, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“Title IV-D” means the part of the federal social security act, 42 USC 301 to 1397mm, pertaining to the child support enforcement program.
“Title IV-E” means the part of the federal social security act, 42 USC 301 to 1397mm, pertaining to the foster care program.
Sec. 204. The judicial branch 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:
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.
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.
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.
Sec. 206. The state court administrative office shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel outside this state by judicial branch employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the judicial branch’s budget. The state court administrative office 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:
The dates of each travel occurrence.
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, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 207. Not later than December 15, the judicial branch shall cooperate with the state budget office to 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 judicial 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. 208. From the funds appropriated in part 1, the judicial branch shall maintain a searchable website accessible by the public at no cost that posts all of the expenditures made by the judicial branch within a fiscal year. A post must include the purpose for the expenditure. The judicial branch shall not provide financial information on the public website that would violate a federal or state law, rule, regulation, or guideline that establishes privacy or security standards applicable to that financial information.
Sec. 209. Not later than 14 days after the release of the executive budget recommendation, the judicial branch 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. 210. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $12,043,600.00 for the judicial branch. From this amount, total appropriations for pension-related legacy costs for the judicial branch are estimated at $10,862,600.00. Total appropriations for retiree health care legacy costs for the judicial branch are estimated at $1,181,000.00.
Sec. 211. The judicial branch shall not take disciplinary action against an employee of the judicial branch because the employee communicates with a member of the legislature or legislative staff, unless the communication is prohibited by law and the judicial branch is exercising its authority as provided by law.
Sec. 212. The judicial branch shall receive and retain copies of all reports funded from appropriations in part 1. The judicial branch shall follow federal and state law and guidelines for short-term and long-term retention of records. The judicial branch may electronically retain copies of reports unless otherwise required by federal and state guidelines.
Sec. 213. To the extent possible, the judicial branch shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.
Sec. 214. Not later than 6 months after the state budget office issues work project letters, the judicial branch shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 215. (1) Funds appropriated in part 1 to an entity in the judicial branch must not be expended or transferred to another account without written approval of the authorized agent of the judicial entity. If the authorized agent of the judicial entity notifies the state budget director of its approval of an expenditure or transfer, the state budget director shall immediately make the expenditure or transfer. The authorized judicial entity agent shall be designated by the chief justice of the supreme court.
(2) Funds appropriated to the judicial branch must not be expended by a component in the judicial branch without the approval of the supreme court.
Sec. 216. The judicial branch shall make each report required under this act readily accessible to the public and conspicuously post each required report in a single archivable location on the judicial branch’s website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the judicial branch’s website, the judicial branch shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 217. Not later than November 15, the judicial branch shall disclose on a publicly accessible website private and other third-party funds received by the judicial branch in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
JUDICIAL BRANCH
Sec. 301. From the funds appropriated in part 1 for the judicial branch, $711,900.00 is allocated for circuit court reimbursement under section 3 of 1978 PA 16, MCL 800.453, and for costs associated with the court of claims.
Sec. 302. A member of the legislature may request a report or data from the data collected in the judicial data warehouse. The report must be made available to the public upon request, unless disclosure is prohibited by court order or state or federal law. If data is provided under this section, the data must be public and nonidentifying information, as determined by the state court administrative office. As used in this section, “nonidentifying information” means information that does not include personal information that, if released, would be considered invasion of privacy.
Sec. 303. From the funds appropriated in part 1 for community dispute resolution, community dispute resolution centers shall provide dispute resolution services specified in the community dispute resolution act, 1988 PA 260, MCL 691.1551 to 691.1564, help reduce suspensions and truancy, and improve school environment. The funds appropriated in part 1 for community dispute resolution may be used to develop or expand juvenile diversion services in coordination with local prosecutors.
Sec. 304. If funds in the court fee fund are insufficient to pay judges’ compensation, the difference between the appropriated amount from that fund for judges’ compensation and the actual amount available after the amount appropriated for trial court reimbursement is made is appropriated from the state general fund for judges’ compensation. If an appropriation from the state general fund is necessary under this section, not later than 14 days after the appropriation, the state court administrative office shall submit a report to the standard report recipients and the senate and house appropriations committees.
Sec. 305. From the funds appropriated in part 1, the state court administrative office shall submit a report on drug treatment, mental health, and veterans court programs in this state not later than March 1. The report must include all of the following information for each individual court, by program:
The number of each type of program.
The number of program participants.
The impact of the programs on offender criminal involvement and recidivism.
An accounting of previous fiscal year expenditures, including grant amounts requested, grant amounts awarded, and grant amounts expended.
Sec. 306. (1) The funds appropriated in part 1 for drug treatment courts must be administered by the state court administrative office to operate drug treatment court programs. A drug treatment court shall use all available county and state personnel involved in the disposition of cases, including, but not limited to, parole and probation agents, prosecuting attorneys, defense attorneys, and community corrections providers. The funds may be used in connection with other federal, state, and local funding sources.
From the funds appropriated in part 1, the chief justice shall allocate sufficient funds for the Michigan judicial institute to provide in-state training for those identified in subsection (1) and new drug treatment court judges.
The state court administrative office may prioritize funding for courts that have a higher number of filed substance use disorder cases.
To assist the department of corrections and avoid prison bed space growth for nonviolent offenders, the judicial branch shall receive $1,500,000.00 in Byrne formula grant funding through an interdepartmental grant from the department of state police to be used to support drug treatment court costs consistent with Byrne grant program criteria.
Sec. 307. (1) From the funds appropriated in part 1 for swift and sure sanctions programs, the state court administrative office shall administer a program to distribute grants to qualifying courts in accordance with the objectives and requirements of the probation swift and sure sanctions act, chapter XIA of the code of criminal procedure, 1927 PA 175, MCL 771A.1 to 771A.8. Not more than $150,000.00 of the funds designated for the program is available to the state court administrative office to pay for employee costs associated with the administration of the program funds. Of the funds designated for the program,
$500,000.00 is reserved for programs in counties that had more than 325 individuals sentenced to prison in the previous calendar year. Courts interested in participating in the swift and sure sanctions program may apply to the state court administrative office for a portion of the funds appropriated in part 1 under this section.
(2) Not later than March 1, the state court administrative office, in coordination with the department of corrections, shall submit a report on the swift and sure sanctions program that includes all of the following information for each individual court, by program:
A list of courts that participate in the program.
The number of offenders who participate in the program.
The criminal history of offenders who participate in the program.
The recidivism rate of offenders who participate in the program, including the rate of return to jail, prison, or both.
A detailed description of the establishment and parameters of the program.
An accounting of previous fiscal year expenditures, including, but not limited to, grant amounts requested by the courts, grant amounts awarded to the courts, and grant amounts expended by the courts.
Sec. 308. From the funds appropriated in part 1, the judicial branch shall support a statewide legal self- help internet website and local nonprofit self-help centers that use the statewide website to provide assistance to individuals who represent themselves in civil legal proceedings. The state court administrative office shall summarize the costs to maintain the website, provide statistics on the number of individuals who visit the website, and provide information on content usage, form completion, and user feedback not later than March 1 for the previous fiscal year.
Sec. 309. From the funds appropriated in part 1, the state court administrative office shall submit a report on the statewide judicial case management system not later than March 1. The report must provide a status update on development and implementation of the statewide judicial case management system and must include all appropriation and expenditure data for all previous and the current fiscal years.
Sec. 310. The state court administrative office shall not impose local user fees or collect local user fees from trial courts that are using the statewide judicial case management system.
Sec. 311. (1) If Byrne formula grant funding is awarded to the state appellate defender office in excess of the amount appropriated in part 1, the state appellate defender office may receive and expend not more than
$250,000.00 of Byrne formula grant funds as an interdepartmental grant from the department of state police.
(2) If the state appellate defender office receives federal grant funding from the United States Department of Justice in excess of the amount appropriated in part 1, the state appellate defender office may receive and expend not more than $300,000.00 in federal grant funds.
Sec. 312. (1) From the funds appropriated in part 1 for drug treatment courts, the judicial branch shall maintain a medication-assisted treatment program to provide treatment for opioid-addicted and alcohol- addicted individuals who are referred to and voluntarily participate in the medication-assisted treatment program.
(2) Not later than March 1, the judicial branch shall report on the medication-assisted treatment program. The report must include itemized spending by court, the number of participants, and statistics that indicate average program participation duration and success rates.
Sec. 313. (1) From the funds appropriated in part 1, the state appellate defender office shall operate the program to ensure this state’s compliance with Montgomery v Louisiana, 577 US 190 (2016), People v Parks, 510 Mich 225 (2022), People v Stovall, 510 Mich 301 (2022), People v Poole, Mich App ;
NW2d (2024) (COA #352589, January 18, 2024), People v Czarnecki, Mich (2025), and People v Taylor, Mich (2025). The purpose of the program is to ensure competent, resourced, and supervised counsel in cases that involve resentencing individuals who are serving a life sentence for an offense committed when the individuals were 20 years of age or younger.
(2) The state appellate defender office shall submit a report not later than March 1 on the number of cases investigated and prepared by the state appellate defender office under subsection (1). The report must include a calculation of the hours spent and the incremental costs associated with the investigation and robust examination of each case.
Sec. 314. (1) The funds appropriated in part 1 for Michigan appellate assigned counsel system roster attorney compensation grants must be deposited into the restricted Michigan appellate assigned counsel system attorney compensation fund created in subsection (2).
(2) The Michigan appellate assigned counsel system attorney compensation fund is created in the state treasury. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund and credit to the fund interest and earnings from fund investments. Unexpended funds at the close of the fiscal year must remain in the fund and shall not lapse to the general fund. The judicial branch shall be the administrator of the fund for auditing purposes. The judicial branch shall expend money from the fund to provide payments to indigent defense systems as provided under section 8a of the appellate defender act, 1978 PA 620, MCL 780.718a.
(3) All funds available in the Michigan appellate assigned counsel system attorney compensation fund are appropriated and available for expenditure as provided by law.
ONE-TIME APPROPRIATIONS
Sec. 401. From the one-time funds appropriated in part 1 for judicial tenure commission, the judicial tenure commission may hire up to 3.0 limited term employees to assist the commission with addressing the judicial complaint backlog.
Sec. 402. From the one-time funds appropriated in part 1 for juvenile life resentencing, the state appellate defender office may hire up to 14.0 limited term employees to support the financial impact of recent supreme court decisions that require resentencing of individuals who were sentenced to life without parole for crimes they committed at ages 19 and 20.
Sec. 403. From the one-time funds appropriated in part 1 for supreme court administration – office of reporter of decisions, the supreme court may hire 1.0 limited term employee to serve as an editor for the office of reporter of decisions. The editor must work to reduce the court of appeals backlog of opinions awaiting review and editing.
ARTICLE 9
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of labor and economic opportunity for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 34.5 | ||
Full-time equated classified positions | 2,599.0 | ||
GROSS APPROPRIATION | $ | 1,731,079,700 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 0 | ||
ADJUSTED GROSS APPROPRIATION | $ | 1,731,079,700 | |
Federal revenues: | |||
Total federal revenues | 1,188,234,200 | ||
Special revenue funds: | |||
Total local revenues | 6,200,000 | ||
Total private revenues | 8,088,200 | ||
Total other state restricted revenues | 312,373,700 | ||
State general fund/general purpose | $ | 216,183,600 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 34.5 | ||
Full-time equated classified positions | 66.0 | ||
Unclassified salaries—FTEs | 34.5 | $ | 4,869,600 |
Executive direction and operations—FTEs | 66.0 | 10,912,100 | |
Property management | 6,605,800 | ||
GROSS APPROPRIATION | $ | 22,387,500 | |
Appropriated from: | |||
Federal revenues: | |||
DED, vocational rehabilitation and independent living | 3,469,700 | ||
DOL, federal funds | 3,266,600 | ||
DOL-ETA, unemployment insurance | 2,661,000 | ||
DOL, occupational safety and health | 586,500 | ||
Federal funds | 2,584,700 | ||
Special revenue funds: | |||
Asbestos abatement fund | 51,900 | ||
Corporation fees | 1,951,400 | ||
Michigan state housing development authority fees and charges | 670,000 | ||
Private occupational school license fees | 55,900 | ||
Radiological health fees | 294,800 | ||
Safety education and training fund | 792,200 | ||
Second injury fund | 277,600 | ||
Securities fees | 2,171,100 | ||
Self-insurers security fund | 151,600 | ||
Silicosis and dust disease fund | 115,000 | ||
Worker’s compensation administrative revolving fund | 91,100 | ||
State general fund/general purpose | $ | 3,196,400 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 103. WORKFORCE DEVELOPMENT | |||
Full-time equated classified positions | 233.0 | ||
23+ high school diploma program | $ | 2,000,000 | |
At-risk youth grants | 5,184,500 | ||
Community and worker economic transition office—FTEs | 10.0 | 2,250,000 | |
Going pro | 9,540,800 | ||
High school equivalency-to-school program | 250,000 | ||
Michigan office of rural prosperity—FTE | 1.0 | 2,299,400 | |
MiSTEM advisory council—FTEs | 3.0 | 665,300 | |
Office of future mobility and electrification | 1,500,000 | ||
Workforce development—FTEs | 219.0 | 439,083,700 | |
GROSS APPROPRIATION | $ | 462,773,700 | |
Appropriated from: | |||
Federal revenues: | |||
DAG, employment and training | 4,000,400 | ||
DED-OESE, GEAR-UP | 5,500,000 | ||
DED-OVAE, adult education | 20,000,000 | ||
DED-OVAE, basic grants to states | 19,000,000 | ||
DOL-ETA, workforce investment act | 173,488,600 | ||
DOL, federal funds | 106,336,100 | ||
Federal funds | 23,225,100 | ||
Social security act, temporary assistance to needy families | 63,698,800 | ||
Special revenue funds: | |||
Local revenues | 300,000 | ||
Private funds | 4,993,800 | ||
Contingent fund, penalty and interest | 22,143,900 | ||
Defaulted loan collection | 166,100 | ||
State general fund/general purpose | $ | 19,920,900 | |
Sec. 104. REHABILITATION SERVICES | |||
Full-time equated classified positions | 669.0 | ||
Bureau of services for blind persons—FTEs | 116.0 | $ | 30,272,000 |
Centers for independent living | 18,718,600 | ||
Michigan rehabilitation services—FTEs | 553.0 | 153,845,200 | |
Subregional libraries state aid | 451,800 | ||
GROSS APPROPRIATION | $ | 203,287,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 884,000 | ||
DED, vocational rehabilitation and independent living | 146,333,900 | ||
Supplemental security income | 8,588,600 | ||
Special revenue funds: | |||
Local - blind services | 100,000 | ||
Local - vocational rehabilitation match | 5,300,000 | ||
Private - blind services, private | 111,800 | ||
Private - gifts, bequests, and donations | 531,500 | ||
Michigan business enterprise program fund | 350,000 | ||
Rehabilitation service fees | 151,200 | ||
Second injury fund | 38,300 | ||
State general fund/general purpose | $ | 40,898,300 | |
Sec. 105. EMPLOYMENT SERVICES | |||
Full-time equated classified positions | 407.0 | ||
Bureau of employment relations—FTEs | 22.0 | $ | 4,674,000 |
Compensation supplement fund | 820,000 | ||
First responder presumed coverage claims | 6,500,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Insurance funds administration—FTEs | 21.0 | $ | 4,638,900 |
Michigan occupational safety and health administration—FTEs | 217.0 | 38,972,300 | |
Office of global Michigan—FTEs | 15.0 | 41,949,800 | |
Private and occupational distance learning—FTEs | 3.0 | 879,100 | |
Radiation safety section—FTEs | 26.0 | 4,159,200 | |
Wage and hour program—FTEs | 33.0 | 4,682,200 | |
Worker’s compensation board of magistrates—FTEs | 10.0 | 2,316,000 | |
Worker’s disability compensation agency—FTEs | 56.0 | 10,104,000 | |
Worker’s disability compensation appeals commission—FTEs | 4.0 | 359,200 | |
GROSS APPROPRIATION | $ | 120,054,700 | |
Appropriated from: | |||
Federal revenues: | |||
DOL, occupational safety and health | 16,433,600 | ||
HHS, mammography quality standards | 513,300 | ||
HHS, refugee assistance program fund | 38,419,100 | ||
Special revenue funds: | |||
Asbestos abatement fund | 870,100 | ||
Corporation fees | 12,303,600 | ||
Distance education fund | 380,400 | ||
First responder presumed coverage fund | 6,500,000 | ||
Private occupational school license fees | 498,700 | ||
Radiological health fees | 3,645,900 | ||
Safety education and training fund | 11,739,000 | ||
Second injury fund | 2,482,800 | ||
Securities fees | 11,238,200 | ||
Self-insurers security fund | 1,543,100 | ||
Silicosis and dust disease fund | 613,000 | ||
Worker’s compensation administrative revolving fund | 3,398,500 | ||
State general fund/general purpose | $ | 9,475,400 | |
Sec. 106. UNEMPLOYMENT INSURANCE AGENCY | |||
Full-time equated classified positions | 744.0 | ||
Unemployment insurance agency—FTEs | 736.0 | $ | 297,138,500 |
Unemployment insurance agency - advocacy assistance | 1,500,000 | ||
Unemployment insurance appeals commission—FTEs | 8.0 | 4,430,600 | |
GROSS APPROPRIATION | $ | 303,069,100 | |
Appropriated from: | |||
Federal revenues: | |||
DOL-ETA, unemployment insurance | 280,315,100 | ||
Special revenue funds: | |||
Contingent fund, penalty and interest | 22,754,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 107. COMMISSIONS | |||
Full-time equated classified positions | 23.0 | ||
Asian Pacific American affairs commission—FTE | 1.0 | $ | 224,500 |
Commission on Middle Eastern American Affairs—FTE | 1.0 | 215,100 | |
Hispanic/Latino commission of Michigan—FTE | 1.0 | 298,500 | |
Michigan community service commission—FTEs | 14.0 | 19,598,500 | |
Michigan women’s commission—FTEs | 2.0 | 1,545,100 | |
Prosperity bureau—FTEs | 4.0 | 911,800 | |
GROSS APPROPRIATION | $ | 22,793,500 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 18,184,400 | ||
Special revenue funds: | |||
Private funds | 1,551,100 | ||
State general fund/general purpose | $ | 3,058,000 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 108. INFORMATION TECHNOLOGY | ||
Information technology services and projects | $ | 30,750,900 |
GROSS APPROPRIATION | $ | 30,750,900 |
Appropriated from: | ||
Federal revenues: | ||
DED, vocational rehabilitation and independent living | 3,193,100 | |
DOL-ETA, unemployment insurance | 23,003,200 | |
DOL, occupational safety and health | 372,300 | |
Federal funds | 592,800 | |
Special revenue funds: | ||
Asbestos abatement fund | 35,300 | |
Corporation fees | 484,400 | |
Distance education fund | 20,700 | |
Private occupational school license fees | 82,400 | |
Radiological health fees | 155,900 | |
Safety education and training fund | 403,300 | |
Second injury fund | 180,700 | |
Securities fees | 1,206,200 | |
Self-insurers security fund | 125,600 | |
Silicosis and dust disease fund | 45,000 | |
State general fund/general purpose | $ | 850,000 |
Sec. 109. MICHIGAN STRATEGIC FUND | ||
Full-time equated classified positions | 130.0 | |
Arts and cultural program | $ | 3,700,000 |
Business attraction and community revitalization | 59,350,000 | |
Community college skilled trades equipment program | 4,600,000 | |
Entrepreneurship ecosystem | 15,650,000 | |
Facility for rare isotope beams | 7,300,000 | |
Job creation services—FTEs | 130.0 | 35,898,200 |
Lighthouse preservation program | 250,000 | |
Michigan office of defense and aerospace innovation | 4,000,000 | |
Pure Michigan | 17,000,000 | |
GROSS APPROPRIATION | $ | 147,748,200 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 3,000,000 | |
NFAH-NEA, promotion of the arts, partnership agreement | 1,050,000 | |
State historic preservation, national park service grants | 1,900,000 | |
Special revenue funds: | ||
Local promotion fund | 500,000 | |
Private - Michigan council for the arts fund | 200,000 | |
Private - special project advances | 200,000 | |
Private promotion fund | 500,000 | |
21st century jobs trust fund | 75,000,000 | |
Contingent fund, penalty and interest | 4,600,000 | |
Michigan lighthouse preservation fund | 250,000 | |
Michigan state housing development authority fees and charges | 4,818,600 | |
State brownfield redevelopment fund | 7,004,400 | |
State historic preservation office fees and charges | 509,200 | |
State general fund/general purpose | $ | 48,216,000 |
Sec. 110. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY | ||
Full-time equated classified positions | 318.0 | |
Community development block grants | $ | 47,000,000 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Housing and rental assistance—FTEs | 318.0 | 52,120,800 | |
Michigan housing and community development program | 50,000,000 | ||
MSHDA technology services and projects | 3,760,900 | ||
Payments on behalf of tenants | 166,860,000 | ||
Property management | 3,519,200 | ||
GROSS APPROPRIATION | $ | 323,260,900 | |
Appropriated from: | |||
Federal revenues: | |||
HUD, lower income housing assistance | 166,860,000 | ||
HUD-CPD, community development block grant | 49,773,300 | ||
Special revenue funds: | |||
Michigan housing and community development fund | 50,000,000 | ||
Michigan state housing development authority fees and charges | 56,627,600 | ||
State general fund/general purpose | $ | 0 | |
Sec. 111. STATE LAND BANK AUTHORITY | |||
Full-time equated classified positions | 9.0 | ||
State land bank authority—FTEs | 9.0 | $ | 6,412,400 |
GROSS APPROPRIATION | $ | 6,412,400 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 1,000,000 | ||
Special revenue funds: | |||
Land bank fast track fund | 3,385,000 | ||
State general fund/general purpose | $ | 2,027,400 | |
Sec. 112. ONE-TIME APPROPRIATIONS | |||
Arts and cultural grants | $ | 1,000,000 | |
Arts and cultural program | 8,685,200 | ||
Community and worker economic transition office | 250,000 | ||
Community development financial institutions fund grants | 5,000,000 | ||
Detroit right to counsel | 1,500,000 | ||
Emerging community grants | 2,000,000 | ||
Empowerment | 500,000 | ||
Focus: HOPE | 1,000,000 | ||
Food pantry support | 800,000 | ||
Going pro | 22,263,800 | ||
Habitat for humanity | 500,000 | ||
Helmets to hardhats | 250,000 | ||
Home repair grants | 1,228,500 | ||
Legislatively directed spending items | 28,013,700 | ||
Michigan black business alliance | 1,000,000 | ||
Michigan office of defense and aerospace innovation | 1,000,000 | ||
Michigan women forward | 750,000 | ||
Museum support | 1,500,000 | ||
North Rosedale Park | 500,000 | ||
Office of global Michigan | 500,000 | ||
Redford water infrastructure | 750,000 | ||
Reignite | 250,000 | ||
SER metro | 500,000 | ||
Sheet metal training center | 1,000,000 | ||
Starfish family services | 1,000,000 | ||
Wage and hour program | 1,000,000 | ||
Wayne metro | 800,000 | ||
Workforce and employer expansion | 5,000,000 | ||
GROSS APPROPRIATION | $ | 88,541,200 | |
Appropriated from: | |||
State general fund/general purpose | $ | 88,541,200 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $528,557,300.00 and state spending under part 1 from state sources to be paid to local units of government is $49,464,000.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY | ||
Arts and cultural program | $ | 1,200,000 |
At-risk youth grants | 5,184,500 | |
Going pro | 31,804,600 | |
Michigan rehabilitation services | 275,000 | |
Workforce development programs | 10,999,900 | |
TOTAL | $ | 49,464,000 |
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:
“Department” means the department of labor and economic opportunity and entities contained within its organization, including, but not limited to, the fund.
“Director” means the director of the department.
“FTE” means full-time equated.
“Fund”, unless the context clearly implies a different meaning, means the Michigan strategic fund.
“MEDC” means the Michigan economic development corporation, which is the public body corporate created under section 28 of article VII of the state constitution of 1963 and the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by contractual interlocal agreement effective April 5, 1999, between local participating economic development corporations formed under the economic development corporations act, 1974 PA 338, MCL 125.1601 to 125.1636, and the fund.
“MEGA” means the Michigan economic growth authority.
“MiSTEM” means Michigan science, technology, engineering, and mathematics.
“MSHDA” means the Michigan state housing development authority.
“PATH” means Partnership. Accountability. Training. Hope.
“Standard report recipients” means the senate and house appropriations subcommittees on labor and economic opportunity, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“STEM” means science, technology, engineering, and mathematics.
“USDOL” means the United States Department of Labor.
Sec. 204. The department 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:
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.
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.
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.
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 outside this state by classified and unclassified employees 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 of representatives appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
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, local revenues, and private revenues, including specific sources of state restricted revenues, federal revenues, local revenues, and private revenues.
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 the chairpersons of the senate and house of representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$30,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$560,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$2,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$11,000,000.00 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website described in subsection (1) on a quarterly basis.
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) 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 a local health officer.
Sec. 214. To the extent permissible under the management and budget act, 1984 PA 451, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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. 215. On a quarterly basis, the department or agency receiving appropriations in part 1 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 standard report recipients and the senate and house of representatives appropriations committees.
Sec. 216. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 217. 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 report must include reference to the public act that necessitates the policy change. 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. 218. 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. 221. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 222. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 223. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office must be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 224. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 225. (1) The department shall require, as a condition of each contract or subcontract, that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 226. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 227. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 228. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $39,647,300.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $35,759,400.00. Total appropriations for retiree health care legacy costs for the department are estimated at $3,887,900.00.
Sec. 229. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984, PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 230. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 231. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 301. General fund appropriations in part 1 must not be expended for items in cases where federal funding or private grant funding is available for the same expenditures.
Sec. 302. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended. The department may carry forward into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. The department shall report the amount and source of the funds to the standard report recipients not later than 10 business days after receiving any additional pass-through funds.
Sec. 303. Requirements under this part applicable to the fund and the fund’s activities apply regardless of whether the fund delegates its functions and authority to the MEDC.
Sec. 304. (1) Grants supported with private revenues received by the department are appropriated upon receipt and are available for expenditure by the department for purposes specified within the grant agreement and as permitted under state and federal law.
Not later than 10 days after the receipt of a private grant appropriated in subsection (1), the department shall notify the senate and house chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget director of the receipt of the grant, including the fund source, purpose, and amount of the grant.
The amount appropriated under subsection (1) must not exceed $1,500,000.00.
Not later than March 15, the department shall report to the standard report recipients the amount of private revenue generated in the previous fiscal year and the amount of private revenue carried forward into the current fiscal year.
Sec. 305. (1) The department may charge registration fees to attendees of informational, training, or special events that are sponsored by the department and related to activities that are under the department’s purview.
The fees under subsection (1) must reflect the costs for the department to sponsor the informational, training, or special events.
Revenue generated by the registration fees under subsection (1) is appropriated upon receipt and available for expenditure to cover the department’s costs of sponsoring informational, training, or special events.
Revenue generated by registration fees under this section in excess of the department’s costs of sponsoring informational, training, or special events must carry forward to the subsequent fiscal year and not lapse to the general fund.
The amount appropriated under subsection (3) must not exceed $500,000.00.
Not later than March 15, the department shall report to the standard report recipients on the amount of registration fees generated in the previous fiscal year and the amount of registration fees carried forward into the current fiscal year.
Sec. 306. (1) The department may sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents must revert to the department. In addition to the funds appropriated in part 1, these funds are available for expenditure when they are received by the department of treasury. This subsection applies only to R 418.10101 to R 418.101503 of the Michigan Administrative Code.
(2) Unexpended funds at the end of the fiscal year must carry forward to the subsequent fiscal year and not lapse to the general fund. The money carried forward under this section must be used as the first source of funds in the subsequent fiscal year.
(3) Not later than March 15, the department shall report to the standard report recipients the amount of revenue generated from the sale of documents produced and distributed by the department in the previous fiscal year and the amount of revenue generated from the sale of documents produced and distributed by the department carried forward into the current fiscal year.
Sec. 307. (1) If the revenue collected by the department for radiological health administration and projects from fees and collections exceeds the amount appropriated in part 1, the revenue must be carried forward into the subsequent fiscal year. The revenue carried forward under this section must be used as the first source of funds in the subsequent fiscal year.
(2) Not later than March 15, the department shall report to the standard report recipients the total amount of revenue from fees and collections for any radiological health administration and projects that was carried forward from the previous fiscal year.
Sec. 308. Funds appropriated in part 1 must not be used by a department, authority, or agency to purchase an ownership interest in a casino.
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Sec. 401. (1) Not later than March 15, MSHDA shall submit a report to the standard report recipients on the status of the authority’s housing production goals under all financing programs established or administered by the authority. The report must include all of the following:
Information on efforts to raise affordable multifamily and single-family housing production goals.
A summary of each MSHDA program that is intended to increase the supply of affordable multifamily and single-family housing.
An explanation of how programs summarized in subdivision (b) are utilized by the citizens of this state.
MSHDA’s status in obtaining its multifamily and single-family housing production goals.
(2) MSHDA shall not restrict eligibility in any financing program for housing units without a permanent foundation unless this restriction is required by the funding source.
Sec. 402. The funds appropriated in part 1 for the Michigan housing and community development program must be expended for projects as described in sections 58b and 58c of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458b and 125.1458c.
Sec. 403. (1) From the funds appropriated in part 1 for housing and rental assistance, not less than 2.0 FTE positions must work to the extent permissible with the department of health and human services on transition and supportive housing to support the transition to permanent housing with MSHDA.
(2) Not later than March 15, the department shall report to the standard report recipients the work that MSHDA has undertaken with the department, the fund, and the department of health and human services and any other department.
Sec. 405. (1) It is the intent of the legislature that the state budget director use the state budget director’s authority under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a, to lapse a total of $14,000,000.00 appropriated under 2022 PA 166, for work project number TW3235023.
(2) If the state budget director lapses work project number TW3235023, the lapsed funds shall be appropriated in addition to the funds appropriated in part 1 for grants to local land banks for blight removal or redevelopment projects. The department shall notify the standard report recipients if funds are appropriated under this subsection.
STATE LAND BANK AUTHORITY
Sec. 451. (1) In addition to the amounts appropriated in part 1, the state land bank authority may expend revenues received under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, for the purposes authorized by the act, including, but not limited to, the acquisition, lease, management, demolition, maintenance, or rehabilitation of real or personal property, payment of debt service for notes or bonds issued by the authority, and other expenses to clear or quiet title property held by the authority. The state land bank authority may establish partnerships with local land bank authorities.
Not later than March 15, the state land bank authority shall submit a report to the standard report recipients on the number of real properties acquired, leased, managed, demolished, maintained, or rehabilitated in the previous fiscal year and list any partnerships that the state land bank authority has with any local land bank authorities. The report must also include a list of any properties sold by or otherwise transferred from the state land bank authority in the previous fiscal year.
MICHIGAN STRATEGIC FUND
Sec. 501. The report required under section 9 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2009, must be transmitted not later than March 15.
Sec. 502. In addition to the appropriations in part 1, Travel Michigan may receive and expend private revenue related to the use of “Pure Michigan” and all other copyrighted slogans and images. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of this state as a travel destination. The funds are available for expenditure when they are received by the department of treasury. If the fund receives revenues from the use of “Pure Michigan”, the fund shall provide a report that lists the revenues by source received from the use of “Pure Michigan” and all other copyrighted slogans and images. The report must provide a detailed list of expenditures of revenues received under this section. The report must be provided to the standard report recipients not later than March 15.
Sec. 503. (1) Funds appropriated in part 1 for Pure Michigan must be used for the following purposes:
Conduction of market research regionally, nationally, and internationally for use in market campaigns.
Production of advertisements for the promotion of Michigan as a place to live, learn, build, work, play, and succeed.
Placement of advertisements that have a diverse representation in regional, national, and international market campaigns to promote Michigan as a state that welcomes all individuals and families.
Not more than 4.0% of the appropriation for administration of the program.
Matching marketing campaigns funded from the local promotion fund or private promotion fund.
Subject to the approval of the Michigan strategic fund board, the fund may contract any of the activities under subsection (1).
The fund may work in cooperation with local units of government, nonprofit entities, and private entities on Pure Michigan promotion campaigns. The fund shall include agreements prior to undertaking cooperative marketing campaigns.
The department shall provide an annual report to the standard report recipients not later than March 15 on the utilization of funds for eligible activities in subsection (1), including a breakdown by eligible use, efforts taken to broaden the scope of marketing activities to diverse populations, a breakdown of funds spent within this state and outside of this state, targeted marketing to encourage residents from other states to move to this state, and how much was expended on market research.
As prescribed by the legislature, funds appropriated to Pure Michigan must be used only for this state to market itself as a travel and tourist destination with the sole purpose of attracting new visitors and retaining former visitors. All of the following apply to marketing under this subsection:
Promotion may be made by print, television, radio, and social media.
The purpose of the advertisements under subdivision (a) must be to attract tourism and leisure travelers to this state.
Advertisements that incorporate the Pure Michigan Byways campaign satisfy the requirement under subdivision (b).
Each local visitor bureau can only receive dollars appropriated to Pure Michigan once per fiscal year. Sec. 504. (1) A local promotion fund is created in the department. The fund may receive funds from local units of government and nonprofit entities and deposit these funds into the local promotion fund. Funds received are available for expenditure for use in Pure Michigan promotion campaigns. The fund may maintain individual accounts for local units of government and nonprofit entities that deposit funds into the local promotion fund upon request from a local unit of government. As used in this subsection, “local unit
of government” includes cities, villages, townships, counties, and regional councils of government.
Local promotion funds appropriated in part 1 may be used for media production and placements, national and international marketing campaigns, and for other activities that promote Michigan as a place to live, work, and play.
Any unexpended or unencumbered balance must be disposed of in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.
The department shall provide a report to the standard report recipients not later than March 15 on any funds that have been generated by local units of government and how those funds have been expended.
Sec. 505. (1) A private promotion fund is created in the department. The fund may receive funds from private entities and deposit these funds into the private promotion fund. Funds received are available for expenditure for use in Pure Michigan promotion campaigns. The fund may maintain individual accounts for private entities that deposit funds into the private promotion fund upon request from a private entity.
Private promotion funds appropriated in part 1 may be used for media production and placements, national and international marketing campaigns, and for other activities that promote Michigan as a place to live, work, and play.
Any unexpended or unencumbered balance shall be disposed of in accordance with the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.
Sec. 506. (1) As a condition of receiving funds appropriated in part 1, the fund must provide a report of all approved amendments to projects for the immediately preceding year under sections 88r and 90b of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088r and 125.2090b. The report must provide a description of each amendment, by award, that includes, but is not limited to, the following:
The amended award amount relative to the prior award amount.
The amended number of committed jobs relative to the prior number of committed jobs.
The amended amount of qualified investment committed relative to the prior amount of qualified investment committed.
A description of any change in scope of the project.
A description of any change in project benchmarks, deadlines, or completion dates.
The reason or justification for the amendment approval.
(2) In addition to being posted online, the report must be distributed to the standard report recipients not later than March 15.
Sec. 507. (1) As a condition of receiving funds appropriated in part 1, the fund must request the following information from the MEDC:
Approved budget from the MEDC executive committee for the current fiscal year and actual budget expenditures for the previous fiscal years.
Expenditures and revenues as part of the current and previous year budgets, including the available fund balance for the current and previous fiscal years.
The total number of FTEs, by state and corporate status and whether the position is currently filled or unfilled.
A reporting of activities, programs, and grants consistent with the previous fiscal year budget.
A description of all subprograms funded with the business attraction and community revitalization line item.
(2) Information received by the fund under this section must be posted online and distributed to the standard report recipients not later than March 15.
Sec. 508. As a condition of receiving funds under part 1, any interlocal agreement entered into by the fund must include language that states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the MEDC will work cooperatively with that private organization in that local area.
Sec. 509. (1) From the funds appropriated in part 1, the department shall notify the standard report recipients no later than 45 days after the purchase of land or options on land and include in the notification the location of the land, information on the entity that sold the land, and the purchase price of the land or option on land.
If land or options on land are purchased under subsection (1), the fund shall provide a report that provides a list of all properties purchased, all options on land purchased, the location of the land purchased, and the purchase price if the fund purchases options on land or land. The report must be submitted to the standard report recipients not later than March 15.
Sec. 510. As a condition for receiving funds in part 1, not later than March 15, the fund shall provide a report for the previous fiscal year on the jobs for Michigan investment fund, created in section 88h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088h. The report must include, but is not limited to, all of the following:
A detailed listing of revenues, by fund source, to the jobs for Michigan investment fund. The listing must include the manner and reason for which the funds were appropriated to the jobs for Michigan investment fund.
A detailed listing of expenditures, by project, from the jobs for Michigan investment fund.
A fiscal year-end balance of the jobs for Michigan investment fund.
Sec. 511. (1) From the appropriations in part 1 to the fund and granted or transferred to the MEDC, any unexpended or unencumbered balance must be disposed of in accordance with the requirements in the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, unless carryforward authorization has been otherwise provided for.
Any encumbered funds, including encumbered funds subsequently unobligated, must be used for the same purposes for which funding was originally appropriated in this part and part 1.
For funds appropriated in part 1 to the fund, any carryforward authorization subsequently created through a work project must be preserved until a cash or accrued expenditure has been executed or the allowable work project time period has expired.
Sec. 512. (1) As a condition of receiving funds under part 1, the fund must ensure that the MEDC and the fund comply with all of the following:
The freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Annual audits of all financial records by the auditor general or the auditor general’s designee.
All reports required by law to be submitted to the legislature.
(2) If the MEDC is unable for any reason to perform duties under this part, the fund may exercise those duties. Sec. 513. As a condition for receiving the appropriations in part 1, any staff of the MEDC involved in private fund-raising activities must not be party to any decisions regarding the awarding of grants, incentives, or tax abatements from the fund, the critical industry program, the Michigan strategic site readiness program,
the MEDC, or the MEGA.
Sec. 514. (1) From the funds appropriated in part 1 for business attraction and community revitalization, not less than 25.0% must be used to provide grant or loan funding for business support services to small and medium-sized businesses, including small business federal grant match and programming costs, technical assistance, manufacturing and automation support services, the match on main program, and the public spaces community places program.
From the funds appropriated in part 1 for business attraction and community revitalization, not less than 19.0% must be used to award grants to small business support hubs and community incubators with the goal of increasing local economic development and community development. Grants may be used for the establishment, expansion, or operation of small business support hubs or community incubators that promote innovation and entrepreneurship, foster local growth, increase access to economic resources, or provide mentorship, training, integrated supports, technical assistance, or networking opportunities. Grantees shall be selected with preference to hubs located in geographically diverse areas that promote innovation and entrepreneurship in the state.
From the funds appropriated in part 1 for business attraction and community revitalization, not less than 30.0% must be used by the business development program to provide cash or loan assistance to small businesses.
From the funds appropriated in part 1 for business attraction and community revitalization, not less than 2.0% must be used to provide supplemental support to community development financial institutions in accordance with section 1002.
From the funds appropriated in part 1 for business attraction and community revitalization, not more than 4.0% may be used for the purposes of administering the programs and activities authorized under the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
All remaining funding for business attraction and community revitalization may be used to support the community revitalization program, and up to 7.0% of the total appropriation may be used to provide additional support to the business development program.
As used in this section:
“Community incubator” means a local hub, combined programming, or a facility designed to foster local growth and innovation by providing startups, small businesses, nonprofit organizations, and community initiatives with access to affordable workspace, resources, mentorship, training, technical assistance, and networking opportunities.
“Small business” means a small business as defined by the United States Small Business Administration.
Sec. 515. (1) The fund shall report to the standard report recipients on the status of the film incentives at the same time as it submits the annual report required under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455. The department of treasury shall provide the fund with the data necessary to prepare the report. Incentives included in the report shall include all of the following:
The tax credit provided under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455.
The tax credit provided under section 457 of the Michigan business tax act, 2007 PA 36, MCL 208.1457.
The tax credit provided under section 459 of the Michigan business tax act, 2007 PA 36, MCL 208.1459.
The amount of any tax credit claimed under former section 367 of the income tax act of 1967, 1967 PA 281.
Any tax credits provided for film and digital media production under the Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810.
Loans to an eligible production company or film and digital media private equity fund authorized under section 88d(3), (4), and (5) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088d.
The report must include all of the following information:
For each tax credit, the number of contracts signed, the projected expenditures qualifying for the credit, and the estimated value of the credits. For loans, the number of loans made under each section, the interest rate of those loans, the loan amount, the percent of the projected budget of each production financed by those loans, and the estimated interest earnings from the loan.
For credits authorized under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455, for productions completed by December 31, the expenditures of each production eligible for the credit that has filed a request for certificate of completion with the film office, broken down into expenditures for goods, services, or salaries and wages and showing separately expenditures in each local unit of government, including expenditures for personnel, whether or not they were made to a Michigan entity, and whether or not they were taxable under the laws of this state.
For loans, the report must include the number of loans that have been fully repaid, with principal and interest shown separately, and the number of loans that are delinquent or in default, and the amount of principal that is delinquent or is in default.
For each of the tax credit incentives and loan incentives listed in subsection (1), a breakdown for each project or production showing each of the following:
The number of temporary jobs created.
The number of permanent jobs created.
The number of persons employed in Michigan as a result of the incentive, on a full-time equated basis.
For any information not included in the report due to the provisions of section 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, the report shall do all of the following:
Indicate how the information would describe the commercial and financial operations or intellectual property of the company.
Attest that the information has not been publicly disseminated at any time.
Describe how disclosure of the information may put the company at a competitive disadvantage.
Any information not disclosed due to the provisions of section 455(6), 457(6), or 459(6) of the Michigan business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, must be presented at the lowest level of aggregation that would no longer describe the commercial and financial operations or intellectual property of the company.
As a condition of receiving funds in part 1, not later than March 15, the fund shall provide a report on the activities of the Michigan film and digital media office for the previous fiscal year to the standard report recipients. The report must include, but is not limited to, a listing of all projects the Michigan film and digital media office provided assistance on, a listing of the services provided for each project, and an estimate of investment leveraged.
Sec. 516. As a condition of receiving an award from the fund, each business incubator or accelerator that received an award from the fund must maintain and update a dashboard of indicators to measure the effectiveness of the business incubator and accelerator programs. Indicators must include the direct jobs created, new companies launched as a direct result of business incubator or accelerator involvement, businesses expanded as a direct result of business incubator or accelerator involvement, direct investment in client companies, private equity financing obtained by client companies, grant funding obtained by client companies, and other measures developed by the recipient business incubators and accelerators in conjunction with the MEDC. Dashboard indicators must be reported for the previous fiscal year and cumulatively, if available. Each recipient shall submit a copy of their dashboard indicators to the fund by March 1. The fund shall transmit the local reports not later than March 15.
Sec. 517. (1) From the appropriations in part 1, the Michigan arts and culture council shall administer an arts and cultural grant program that maintains an equitable geographic distribution of funding and utilizes past arts and cultural grant programs as a guideline for administering this program. The council shall do all of the following:
Not later than October 1, publish proposed application criteria, instructions, and forms for use by eligible applicants. The council shall provide at least a 2-week period for public comment before finalizing the application criteria, instructions, and forms.
Assess a nonrefundable application fee that may be applied for each application. Application fees must be deposited in the council for the arts fund and are appropriated for expenses necessary to administer the programs. These funds are available for expenditure when they are received and may be carried forward to the subsequent fiscal year.
Issue grants to public and private arts and cultural entities.
Not later than 1 business day after the award announcements, provide to each member of the legislature and the fiscal agencies a list of all grant recipients and the total award given to each recipient, sorted by county.
In addition to the information in subdivision (d), report on the number of applications received, number of grants awarded, total amount requested from applications received, and total amount of grants awarded.
(2) Up to 3.0% of the funds appropriated in part 1 for arts and cultural program may be expended for the administration of the grant program.
Sec. 518. (1) The general fund/general purpose funds appropriated in part 1 to the fund for business attraction and community revitalization must be transferred to the 21st century jobs trust fund per section 90b(3) of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090b.
(2) Funds transferred to the 21st century jobs trust fund under subsection (1) are appropriated and available for allocation as authorized in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
Sec. 519. For the funds appropriated in part 1 for business attraction and community revitalization, the fund shall report quarterly to the standard report recipients on the amount of funds considered appropriated, pre-encumbered, encumbered, and expended by current fiscal year appropriation and each work project for any previous fiscal years. The report must also include a listing of all previous appropriations for business attraction and community revitalization, or a predecessor, that were considered appropriated, pre- encumbered, encumbered, or expended that have lapsed back to the fund for any purpose. The report must be submitted to the standard report recipients.
Sec. 520. (1) The fund, in conjunction with the department of treasury, shall report not later than November 1 on the annual cost of the MEGA tax credits. The report must include for each year the board- approved credit amount, adjusted for credit amendments where applicable, and the actual and projected value of tax credits for each year from 1995 to the expiration of the credit program. For years for which credit claims are complete, the report must include the total of actual certificated credit amounts. For years that claims are still pending or not yet submitted, the report must include a combination of actual credits where available and projected credits. Credit projections must be based on updated estimates of employees, wages, and benefits for eligible companies.
(2) In addition to the report under subsection (1), the fund, in conjunction with the department of treasury, shall report to the standard report recipients not later than November 1 on the annual cost of all other certificated credits by program, for each year until the credits expire or can no longer be collected. The report must include estimates on the brownfield redevelopment credit, film credits, MEGA photovoltaic technology credit, MEGA polycrystalline silicon manufacturing credit, MEGA vehicle battery credit, and other certificated credits.
Sec. 521. As a condition of receiving appropriations in part 1, prior to authorizing the transfer of any previously authorized tax credit that would increase the liability to this state, the fund, on behalf of the fund’s board, must notify the standard report recipients of the transfer of any previously authorized tax credit that would increase the liability to this state not fewer than 30 days prior to the authorization of the tax credit transfer.
Sec. 522. (1) From the funds appropriated in part 1 for business attraction and community revitalization, the fund shall identify specific outcomes and performance measures, including, but not limited to, the following:
Total verified jobs created by the business attraction program during the previous fiscal year.
Total private investment obtained through the business attraction and community revitalization programs during the previous fiscal year.
Amount of private and public square footage created and reactivated through the community revitalization program during the previous fiscal year.
(2) The fund shall submit a report to the standard report recipients not later than March 15. The report must describe the specific outcomes and measures required in subsection (1) and provide the results and data related to these outcomes and measures for the previous fiscal year if related information is available for the previous fiscal year. The report must also contain a summary of any metrics used to evaluate the outcomes and performance of any programs.
Sec. 523. In addition to the funds appropriated in part 1, the funds collected by state historic preservation programs for document reproduction and services and application fees are appropriated for all expenses necessary to provide the required services. These funds are available for expenditure when they are received and may be carried forward into the succeeding fiscal year.
Sec. 524. Tax capture revenues collected in accordance with written agreements under the good jobs for Michigan program and transferred from the general fund for deposit into the good jobs for Michigan fund, and for both calculated payments from the good jobs for Michigan fund to authorized businesses and distributions to the fund for administrative expenses, are appropriated under the provisions of chapter 8D of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090g to 125.2090j.
Sec. 525. The department shall provide a report to the standard report recipients on March 15 that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit within the job creation services line item. The report must contain detailed information on expenditures and programs within the state historic preservation office, including a list of any entities that receive financial support from the state historic preservation office.
Sec. 526. (1) The funds appropriated in part 1 for Michigan office of defense and aerospace innovation shall be used by the Michigan strategic fund to protect and grow the defense and homeland security industry in this state by protecting this state’s current department of defense missions, infrastructure, and industry, including securing new missions and increasing defense and homeland security spending in this state. These funds may be used for, but are not limited to, the following activities:
Helping businesses in this state identify federal defense contract opportunities.
Providing technical assistance for bid responses to federal defense contracts.
Strengthening cybersecurity compliance at businesses in this state to qualify for federal defense contracts.
(2) Not later than March 15, the Michigan office of defense and aerospace innovation shall provide an annual report to the standard report recipients. The report must include, but is not limited to, all of the following:
A strategic plan for the organization.
An overview of the defense industry in this state, including identification of recent accomplishments and services provided to businesses in this state in the most recent year.
A list of expenditures used to fund memberships in organizations and costs associated with attending conferences and expositions in the previous fiscal year.
The most recent annual figures on direct domestic defense-related contracts and grants awarded to Michigan-based entities in the previous fiscal year.
A summary of contracts or defense industry business with international clients.
EMPLOYMENT SERVICES
Sec. 601. From the funds appropriated in part 1 for wage and hour program, the department shall continue to engage with employers and employees to enhance education and outreach, in accordance with the youth employment standards act, 1978 PA 90, MCL 409.101 to 409.124, 1978 PA 390, MCL 408.471 to 408.490, the improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945, the earned sick time act, 2018 PA 338, MCL 408.961 to 408.974, the human trafficking notification act, 2016 PA 62, MCL
752.1031 to 752.1040, and 2023 PA 10, MCL 408.1101 to 408.1126, and private right of action.
Sec. 602. (1) In addition to the funds appropriated in part 1, all funds necessary to pay approved claims and administrative costs incurred during this fiscal year, as allowed in the Christopher R. Slezak first responder presumed coverage fund created in section 405 of the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.405, are appropriated for the purposes authorized under section 405 of the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.405.
(2) The department shall provide a year-end report to the Michigan gaming control board, the department of treasury, and the state budget office that includes, but is not limited to, the total of all approved claims and administrative costs incurred as of September 30 of the current fiscal year.
WORKFORCE DEVELOPMENT
Sec. 701. The department shall administer the PATH training program in accordance with the requirements of section 407(d) of title IV of the social security act, 42 USC 607, the social welfare act, 1939 PA 280, MCL
400.1 to 400.119b, and all other applicable laws and regulations.
Sec. 702. (1) From the funds appropriated in part 1 for workforce development, the department may allocate funding for grants to nonprofit organizations that offer programs under the workforce innovation and opportunity act, 29 USC 3101 to 3361, for eligible youth that focus on apprenticeship readiness, pre- apprenticeship and apprenticeship activities, entrepreneurship, work-readiness skills, job shadowing, or financial literacy. Additionally, programs eligible for funding under this section must include the participation of local business partners. The department shall develop other appropriate eligibility requirements to ensure compliance with applicable federal rules and regulations.
(2) Not later than March 15, the department shall report at least all of the following:
Total grants expended under this section in the previous fiscal year.
The total number of students served from the grants appropriated under this section.
A list of all organizations and the amount each organization received from the funding appropriated under this section.
Sec. 703. From the funds appropriated in part 1, the department shall make available, in person or by telephone, 1 disabled veterans outreach program specialist or local veterans employment representative to Michigan works service centers, as resources permit, during hours of operation, and shall continue to make the appropriate placement of veterans and disabled veterans a priority.
Sec. 704. (1) In addition to the funds appropriated in part 1, any unencumbered and unrestricted funds allocated under the federal workforce innovation and opportunity act, 29 USC 3101 to 3361, or trade adjustment assistance funds available from previous fiscal years are appropriated for the purposes originally intended.
(2) The department shall report to the standard report recipients not later than March 15 on the amount, by fiscal year, of funds allocated under the federal workforce innovation and opportunity act, 29 USC 3101 to 3361, appropriated under this section.
Sec. 705. (1) The department shall publish data and reports on April 30 and October 30 on the department website concerning the status of Going pro funded in part 1. The report must include the following:
The number of awardees participating in the program and the names of those awardees organized by major industry group.
The amount of funding received by each awardee under the program.
The amount of funding leveraged from each awardee.
The training models established by each awardee.
The number of individuals enrolled in classroom training, on-the-job training, or new USDOL registered apprentices.
The number of qualified employees who completed the approved training.
The number of applications received and the number of grants awarded for each region.
The number of individuals hired and trained, the number of incumbent workers trained, and the number of USDOL registered apprentices.
Going pro expenditures by fiscal year. Active fiscal years must display projected expenditure data and closed fiscal years must display final expenditure data.
(2) The department shall expand workforce training and reemployment services to better connect workers to in-demand jobs and identify specific outcomes with performance metrics for this initiative, including, but not limited to, new apprenticeships, individuals to be hired and trained, current employees trained, training completed, employment retention rate at 6 months, and hourly wage at 6 months.
Sec. 706. To the extent consistent with sections 7 and 9 of the Going pro talent fund act, 2018 PA 260, MCL 408.157 and 408.159, the department shall administer the program as follows:
The department shall work cooperatively with grantees to maximize the amount of funds from part 1 that are available for direct training.
The department, workforce development partners, including regional Michigan works agencies, and employers shall collaborate and work cooperatively to prioritize and streamline the expenditure of the funds appropriated in part 1. The department shall ensure that Going pro provides a collaborative statewide network of workforce and employee skill development partners that addresses the employee talent needs throughout this state.
The department shall do all of the following:
Develop program goals and detailed guidance for prospective participants to follow to qualify under the program.
Post the program goals and detailed guidance on the department’s website and distribute the program goals and detailed guidance to workforce development partners, including local Michigan works agencies, not later than October 1.
Conduct periodic assessments of employer and employee needs that are evaluated on a regional basis.
Identify solutions and goals to be implemented to satisfy employer and employee needs.
Add scoring criteria that incentivize awards to new and diverse program applicants.
The department shall use not more than 2% of the total Going pro appropriation for administration of the program.
Not less than 5% of available funding must be reserved for businesses in talent fund priority industry sectors that submit competitive applications.
Allow the MiSTEM council to assist in processing grant applications.
Sec. 707. The funds appropriated in part 1 for MiSTEM advisory council must be used to support the staff for the MiSTEM network, and for administrative, training, and travel costs related to the MiSTEM council. The staff for the MiSTEM network shall do all of the following:
Serve as a liaison among and between the department, the department of lifelong education, advancement, and potential, the department of education, the MiSTEM council, the governor’s workforce development board, the MiSTEM regions, and any other relevant organization or entity in a manner that creates a robust statewide STEM culture, empowers STEM teachers, integrates business and education into the STEM network, and ensures high-quality STEM experiences for pupils.
Coordinate the implementation of a marketing campaign, including, but not limited to, a website that includes dashboards of outcomes, to build STEM awareness and communicate STEM needs and opportunities to pupils, parents, educators, and the business community.
Work with the department of education and the MiSTEM council to coordinate, award, and monitor MiSTEM state and federal grants to the MiSTEM network regions and conduct reviews of grant recipients, including, but not limited to, pupil experience and feedback.
Report to the governor, the legislature, and the MiSTEM council annually on the activities and performance of the MiSTEM network regions.
Coordinate recurring discussions and work with regional staff to ensure that a network or loop of feedback and best practices are shared, including funding, programming, professional learning opportunities, discussion of MiSTEM strategic vision, and regional objectives.
Coordinate major grant application efforts with the MiSTEM council to assist regional staff with grant applications on a local level. The MiSTEM council shall leverage private and nonprofit relationships to coordinate and align private funds in addition to funds appropriated under this section.
Train state and regional staff in the STEMworks rating system, in collaboration with the MiSTEM council and the Michigan department of education.
Hire MiSTEM network region staff in collaboration with the network region fiscal agent.
Sec. 708. (1) From the funds appropriated in part 1 for workforce development, the department shall provide a report on the status of workforce development not later than March 15 to the standard report recipients. The report must include the following:
The amount of funding allocated to each Michigan works agency and the total funding allocated to the workforce training programs statewide by fund source.
The number of participants enrolled in education or training programs by each Michigan works agency.
The average duration of training for training program participants by each Michigan works agency.
The number of participants enrolled in remedial education programs and the number of participants enrolled in literacy programs.
The number of participants enrolled in programs at 2-year institutions.
The number of participants enrolled in programs at 4-year institutions.
The number of participants enrolled in proprietary schools.
The number of participants enrolled in technical training programs.
The number of participants who completed an education or training program.
The number of participants who completed a training program and secured employment in a field related to their training.
The average wage earned by participants who completed a training program and secured employment within 1 year.
The actual revenues received by the fund source and fund appropriated for each discrete workforce development program area.
The average cost of training per individual served, with an average provided for participants at 2-year institutions, participants at 4-year institutions, participants at proprietary schools, and participants at technical training programs.
(2) Data collection for the report must be for the previous state fiscal year.
Sec. 710. (1) The funds appropriated in part 1 for 23+ high school diploma program must be awarded for a program to assist adults 23 years of age or older in obtaining high school diplomas and placement in career training programs.
For purposes of this section, an eligible program provider may be a public, nonprofit, or private accredited diploma-granting institution, but must have not less than 2 years of experience providing dropout recovery services in this state.
The department shall issue a request for qualifications for eligible program providers to participate in the program. To be considered a qualified program provider, the institution must offer all of the following:
Dropout reengagement services.
Academic intake assessments.
An integrated learning plan.
A course catalog that includes all graduation requirements.
Remediation coursework.
Academic resilience assessment and intervention.
Employability skills development.
Industry recognized credentials.
Credit for on-the-job training.
A robust support framework, including technology, social support, and academic support.
WorkKeys preparation.
The department shall announce qualified program providers not later than January 1 of the current fiscal year. Qualified program providers must start providing programming by February 1 of the current fiscal year.
The department shall reimburse qualified program providers for each month of satisfactory monthly progress as described in section 23a of the state school aid act of 1979, 1979 PA 94, MCL 388.1623a, at a rate of $500.00 per month. A payment shall be made to a qualified program provider for the completion of the following by a pupil:
$500.00 for the completion of an employability skills program equal to at least 1 unit of high school credit obtained through classroom or online instruction.
$250.00 for the attainment of an industry-recognized credential requiring up to 50 hours of training.
$500.00 for the attainment of an industry-recognized credential requiring 50 to 100 hours of training.
$750.00 for the attainment of an industry-recognized credential requiring more than 100 hours of training.
$1,000.00 for the attainment of a high school diploma.
$2,500.00 for placement in a job in an in-demand career pathway.
The department shall develop policies and guidelines to implement this section.
Sec. 711. The funds appropriated in part 1 for at-risk youth grants must be awarded to the Michigan franchise holder of the national Jobs for America’s Graduates program for the administration of the Jobs for Michigan’s Graduates program.
Sec. 712. (1) The funds appropriated in part 1 for the high school equivalency-to-school program must be used to purchase and distribute vouchers that cover the cost of high school equivalency testing and certification under this section. The department shall administer a Michigan high school equivalency-to- school program that covers the cost of taking a high school equivalency test free of charge for individuals who meet all of the following requirements:
The individual has not previously been administered a high school equivalency test free of charge under this section.
The individual meets at least 1 of the following requirements:
Prior to taking the high school equivalency test, the individual successfully completed a department- approved high school equivalency preparation program.
Prior to taking the high school equivalency test, the individual completed the official high school equivalency practice test and the individual’s score indicated that the individual is likely to pass.
A department-approved high school equivalency preparation program must include all of the following:
Instructional and tutorial assistances.
High school equivalency test practice.
Required attendance at program instructional sessions.
A curriculum that prepares students for opportunities in postsecondary education and the job market.
Information on potential postsecondary and career pathways.
Counseling on preparing for and applying to college.
Personal and job readiness skills development.
Comprehensive information on college costs and financial aid.
College and career assessments.
Computer-based instruction, practice, or remediation.
The department shall post online an announcement of the Michigan high school equivalency-to-school program, minimum standards for high school equivalency preparation program approval, and approval procedures.
The department shall do all of the following:
Develop procedures consistent with this section under which individuals can take the high school equivalency test without charge.
Provide program information for educators and students on the department website, including explanations of the procedures developed under subparagraph (a), and contact information for questions about the program.
Provide an estimate of the full-year cost of the program to the standard report recipients.
Not later than September 30, the department shall report on utilization of the high school equivalency incentive program to the standard report recipients, including numbers of high school equivalency certifications issued by location, year-to-date expenditures, and numbers of participants qualifying under subsection (1)(b)(i) or (ii), or both.
Sec. 713. (1) The department shall provide reporting regarding the interagency agreement with the department of health and human services, which concerns TANF funding to provide job readiness and welfare-to-work programming. The reporting must include specific outcome and performance reporting requirements, as described in this section. TANF funding provided to the department in the current fiscal
year is contingent on compliance with the data and reporting requirements described in this section. The department shall provide all of the following items for the previous year not later than January 1 of the current fiscal year:
An itemized spending report on TANF funding, including all of the following:
Direct services to clients.
Administrative expenditures.
The number of family independence program clients served through the TANF funding, including all of the following:
The number and percentage who obtained employment through Michigan Works!.
The number and percentage who fulfilled their TANF work requirement through other job readiness programming.
Average TANF spending per client.
The number and percentage of clients who were referred to Michigan Works! but did not receive a job or job readiness placement and the reasons why.
Not later than March 15 of the current fiscal year, the department shall provide to the senate and house appropriations subcommittees on health and human services and the standard report recipients an annual report on the following matters itemized by Michigan works agency:
The number of referrals to Michigan works job readiness programs.
The number of referrals to Michigan works job readiness programs who became a participant in the Michigan works job readiness programs.
The number of participants who obtained employment.
The cost per participant case.
As used in this section, “TANF” means temporary assistance for needy families as described in 42 USC 601 to 619.
Sec. 714. (1) The office of rural prosperity shall encourage and enable appropriate community advancements and improvements, including, but not limited to, all of the following:
Housing.
Infrastructure.
Education.
Workforce development.
Other activities that address needs uniquely present in rural areas of this state and assist in expansion of rural development.
(2) Not later than March 15, the office of rural prosperity shall submit a report to the standard report recipients that outlines the office’s activities, programs, and accomplishments in the previous fiscal year. To the extent possible, the report must also include information regarding the amount of subsequent grant funding that entities are able to secure after receiving assistance from the office of rural prosperity or an office of rural prosperity grant.
Sec. 715. (1) From the funds appropriated in part 1 for community and worker economic transition office, the department may hire employees and deploy capabilities to evaluate and address the impacts of economic transitions on workers, communities, and employers in sectors that include, but are not limited to, the auto, utility, manufacturing, and building trades sectors. Activities of the office may include developing transition mitigation strategies, conducting data analysis, coordinating across state and federal agencies, engaging stakeholders, and providing resource navigation support. The department shall develop and submit to the governor and the legislature a community and worker economic transition plan not later than December 31, 2025, as required under sections 7(3)(f) and 9(2) of the community and worker economic transition act, 2023 PA 232, MCL 408.917 and 408.919. No later than March 15, the department shall also submit an annual report on office activities and progress made on the transition plan to the standard report recipients and to the legislature, as required under section 7(5) of the community and worker economic transition act, 2023 PA 232, MCL 408.917.
(2) In the annual report submitted under subsection (1), the department shall include information on the mission statement, goals, metrics, and recommendations of the community and worker economic transition office.
Sec. 717. The department’s office of rural prosperity shall collaborate with the department of agriculture and rural development on the rural development fund grant program as part of this state’s coordinated strategy for achieving rural prosperity across this state.
UNEMPLOYMENT
Sec. 801. The unemployment insurance agency shall provide a report updated at least quarterly that includes, but is not limited to, fiscal year-to-date expenditures by division and program unit. The unemployment insurance agency shall transmit each quarterly report no later than 60 days after the end of each quarter.
Sec. 802. (1) From the funds appropriated in part 1, the department, on behalf of the unemployment insurance agency, shall provide a quarterly report to the standard report recipients not later than 60 days after the end of each quarter that includes, but is not limited to, the following:
The average number of unique claimants for the quarter.
The average number of eligible claimants with certification for the quarter.
The average number of claims paid for the quarter.
The total amount of standard unemployment insurance payments paid for the quarter.
The total amount of unemployment insurance tax generated for the quarter.
The balance of the Michigan unemployment trust fund at the end of the quarter.
The department shall include the same information required in subsection (1) for the previous 12 months. The department shall include the most recent quarterly report on the department’s webpage.
Sec. 803. From the funds appropriated in part 1, the department shall provide a quarterly report not later than 60 days after the end of each quarter that includes, but is not limited to, the following:
The number of new fraudulent and noncompliant cases that have been identified or issued by the unemployment insurance agency, classified by employer or claimant, during the quarter.
The total amount of penalties and interest issued on fraudulent and noncompliant cases during the quarter.
The total amount of penalties and interest dollars received during the quarter by employer or claimant.
The total amount of collectible penalties and interest still owed to this state by employer or claimant.
The number of fraudulent and noncompliant cases that have been appealed by an employer or claimant during the quarter.
Sec. 804. (1) The funds appropriated in part 1 for unemployment insurance agency must be used to staff unemployment insurance agency branch offices for in-person appointments for unemployment insurance agency claimant services.
(2) The department shall provide a biannual report to the standard report recipients not later than March 15 and September 30 that includes all of the following:
The number and location of in-person offices.
The average number of staff at each location over the previous 6 months.
The volume of in-person claimants served at each location in the previous 6 months.
For the previous 6 months, the average number of staff at each location where the unemployment insurance agency offers in-person appointments, the average number of staff assigned to offering virtual appointments, and the average number of staff assigned to offering telephone appointments.
For the previous 6 months, the volume of in-person claimants served at each location, the volume of claimants served through virtual appointments, and the volume of claimants served through telephone appointments.
Sec. 805. (1) Funds appropriated in part 1 for the unemployment insurance agency may be used by the unemployment insurance agency to increase capacity by an estimated 250 limited-term employees only if the unemployment insurance agency provides full-time, in-person services at existing unemployment insurance local offices.
(2) In addition to the 250 limited-term employees described in subsection (1), the unemployment insurance agency may increase capacity by up to 250 additional limited-term employees if all of the following occur:
The unemployment insurance agency provides full-time, in-person services at existing unemployment insurance local offices.
The number of claims received by the unemployment insurance agency increased by 20% or more in a month.
The unemployment insurance agency determines there is a need for additional limited-term employees. Sec. 806. (1) From the funds appropriated in part 1 for unemployment insurance agency, the department shall maintain customer service standards for employers and claimants making use of the various means by
which they can access the system.
(2) The department shall identify specific outcomes and performance metrics for this initiative, including, but not limited to, the following:
Unemployment benefit fund balance.
Process improvement - fiscal integrity.
Process improvement - determination timeliness.
Process improvement - determination quality.
Sec. 807. Funds earned or authorized by the USDOL in addition to the appropriation in part 1 for the unemployment insurance agency are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the standard report recipients of the purpose and amount of each grant award.
REHABILITATION SERVICES
Sec. 901. The Michigan rehabilitation services and bureau of services for blind persons shall work collaboratively with service organizations and government entities to identify allowable match dollars to secure available federal vocational rehabilitation funds.
Sec. 902. From the funds appropriated in part 1, the department shall provide an annual report on efforts taken to improve the Michigan rehabilitation services not later than March 15 to the standard report recipients. The report must include all of the following items:
Reductions and changes in administration costs and staffing.
Service delivery plans and implementation steps achieved.
Reorganization plans and implementation steps achieved.
Plans to integrate Michigan rehabilitative services programs into other services provided by the department.
Quarterly expenditures by major spending category.
Employment and job retention rates from both Michigan rehabilitation services and its nonprofit partners.
Success rate of each district in achieving the program goals.
An explanation of each program goal that is set for Michigan rehabilitation services.
Sec. 903. (1) From the funds appropriated in part 1 for Michigan rehabilitation services, the department shall allocate funding along with available federal match to support the provision of vocational rehabilitation services to eligible agricultural workers with disabilities. Authorized services shall assist agricultural workers with disabilities in acquiring or maintaining quality employment and independence.
(2) Not later than March 15, the department shall report to the standard report recipients on the total number of clients served and the total amount of federal matching funds obtained throughout the duration of the program.
Sec. 904. If the department is at risk of entering into an order of selection for services, the department shall notify the standard report recipients within 2 weeks of receiving notification.
Sec. 905. (1) Funds appropriated in part 1 for independent living must be used to support the general operations of centers for independent living in delivering mandated independent living services in compliance with federal rules and regulations, including 2 CFR 200, for the centers, by existing centers for independent living to serve underserved areas, and for projects to build the capacity of centers for independent living to deliver independent living services. Applications for the funds must be reviewed in accordance with criteria and procedures established by the department. Funds must be used in a manner consistent with the state plan for independent living. Services provided should assist people with disabilities to move toward self-sufficiency, including, but not limited to, support for accessing transportation and health care, obtaining employment, community living, nursing home transition, information and referral services, education, youth transition services, veterans, and stigma reduction activities and community education. This includes the independent living guide services that specifically focus on economic self-sufficiency.
(2) Not later than March 15 and in partnership with service providers, the department shall provide a report to the standard report recipients on direct customer and system outcomes and performance measures.
Sec. 906. Federal workforce innovation and opportunity vocational rehabilitation funds from prior years that are received in amounts in addition to those included in part 1 and that have already met state matching requirements are appropriated for the purposes intended. The department may carry forward into the succeeding fiscal year unexpended federal workforce innovation and opportunity vocational rehabilitation funds that do not require additional state matching funds.
Sec. 907. (1) The appropriation in part 1 for bureau of services for blind persons includes funds for case services. These funds may be used for tuition payments for blind clients.
(2) Revenue collected by the bureau of services for blind persons and from private and local sources that is unexpended at the end of the fiscal year must carry forward to the subsequent fiscal year.
Sec. 908. The bureau of services for blind persons may provide and enter into agreements to provide general services, training, meetings, information, special equipment, software, facility use, and technical consulting services to other principal executive departments, state agencies, local units of government, the judicial branch of government, other organizations, and patrons of department facilities. The department may charge fees for these services that are reasonably related to the cost of providing the services. In addition to the funds appropriated in part 1, funds collected by the department for these services are appropriated for all expenses necessary. The funds appropriated under this section are allotted for expenditure when they are received by the department of treasury.
Sec. 909. (1) The funds appropriated in part 1 for a regional or subregional library must not be released until a budget for that regional or subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities.
(2) To receive subregional state aid appropriated in part 1, a regional or subregional library’s fiscal agency must agree to maintain local funding support at the same level in the current fiscal year as in the fiscal agency’s preceding fiscal year. If a reduction in expenditures equally affects all agencies in a local unit of government that includes the regional or subregional library’s fiscal agency, the reduction must not be interpreted as a reduction in local support and must not disqualify a regional or subregional library from receiving state aid under part 1. If a reduction in income affects a library cooperative or district library that includes a regional or subregional library’s fiscal agency or a reduction in expenditures for the regional or subregional library’s fiscal agency, a reduction in expenditures for the regional or subregional library must not be interpreted as a reduction in local support and must not disqualify a regional or subregional library from receiving state aid under part 1.
COMMISSIONS
Sec. 951. From the funds appropriated in part 1, the office of global Michigan is to coordinate with any affiliated commissions established in statute or by executive order to produce a report by January 31. The report must be submitted to the standard report recipients and must include, but is not limited to, all of the following:
Total numbers of people with whom each commission directly interacts through programming.
Total number of public events that each commission conducted.
A description of the activities that the commissions initiated to promote cooperation between the commissions.
A list of any commissions that interact with the office of global Michigan.
The programmatic costs of each commission.
A list of all grant recipients.
The amount each grant recipient received.
Any grants awarded that relate to the mission statement and the goals of those grants.
Sec. 953. The office of global Michigan must submit a report to the standard report recipients not later than January 31. The report must include all of the following information:
The number of individuals served through each major program and activity.
The number of refugee arrivals, the job placement rate of those refugees actively receiving services under global Michigan grants, and the average wages and initial job placements for those refugees.
A list and description of the activities that the office has conducted to attract and retain international, advanced degree, and entrepreneurial talent.
A list of goals for the office and the metrics used to determine whether each goal is achieved.
ONE-TIME APPROPRIATIONS
Sec. 1001. (1) From the funds appropriated in part 1 for arts and cultural grants, $750,000.00 must be awarded to a cultural exchange network to support a music and arts festival that is free to the public.
(2) From the funds appropriated in part 1 for arts and cultural grants, $250,000.00 must be awarded to a program that supports folk and traditional arts and is based at Michigan State University.
Sec. 1002. (1) The funds appropriated in part 1 for community development financial institutions fund grants are transferred to the Michigan community development financial institutions fund created under this section. The Michigan community development financial institutions fund is created in the state treasury. All funds in the Michigan community development financial institutions fund, including funds unallocated from prior years, are appropriated for grants to eligible community development financial institutions under this section and related expenditures permitted under this section. The legislature finds and declares that the appropriation described in this section is for a public purpose, including promoting community economic revitalization and community development through community development financial institutions.
Not later than October 31, 2025, the Michigan strategic fund shall develop a grant application consistent with this section that is published and available on its publicly accessible website.
The application required under subsection (2) must include all of the following:
The name of the community development financial institution applying for a grant from the CDFI fund.
The location of the principal office of the applicant.
Documentation indicating whether the applicant is a Michigan CDFI or a multistate CDFI.
An indication of whether the applicant is or is not a depository institution.
The amount of the grant sought, not exceeding the maximum eligible amount of the grant under subsections (4) to (6).
If the community development financial institution is a depository institution, the net assets of the depository institution.
If the community development financial institution is not a depository institution, the amount of qualifying commitments made by the community development financial institution during the 3 applicant fiscal years preceding the fiscal year in which the application is submitted.
A description of the amount an applicant is eligible to apply for under subsections (4) to (6).
A description of the proposed use of the grant award by the applicant for eligible activities consistent with the requirements of this chapter, the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, and any other requirements applicable under federal law.
Documentation of the applicant’s certification as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201 by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703. The documentation required by this subdivision may include the list of community development financial institutions in good standing maintained and published by the federal fund.
A statement that the applicant is in compliance with all requirements applicable to the applicant under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.
A community development financial institution that is a depository institution is eligible for a grant award in the following amount:
Up to $253,000.00 if the depository institution has total net assets of less than $500,000,000.00.
Up to $380,000.00 if the depository institution has total net assets of $500,000,000.00 to
$999,999,999.99.
Up to $507,000.00 if the depository institution has total net assets of $1,000,000,000.00 to
$1,999,999,999.99.
Up to $633,000.00 if the depository institution has total net assets of $2,000,000,000.00 or more.
Except as otherwise provided in subsection (6), a community development financial institution that is not a depository institution is eligible for a grant award in the following amount:
Up to $127,000.00 if the community development financial institution made qualifying commitments in an amount that averaged less than $1,000,000.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.
Up to $380,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $1,000,000.00 to $3,999,999.99 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.
Up to $633,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $4,000,000.00 to $5,999,999.99 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.
Up to $887,000.00 if the community development financial institution made qualifying commitments in an amount that averaged from $6,000,000.00 to $9,999,999.99 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.
Up to $1,013,333.00 if the community development financial institution made qualifying commitments in an amount that averaged at least $10,000,000.00 per applicant fiscal year during the 3 fiscal years preceding the fiscal year in which an application for a grant is submitted.
A grant to a multistate CDFI that is not a depository institution under subsection (5) must not exceed
$633,000.00.
The Michigan strategic fund shall accept applications for a grant under this section until November 30, 2025. The Michigan strategic fund shall approve or deny a grant application within 49 days after the receipt of an administratively complete application as determined by the Michigan strategic fund. If the application complies with the requirements of this section, the Michigan strategic fund shall approve the award of the grant in the amount requested by the applicant. The Michigan strategic fund may deny a grant application submitted under this section only for the following reasons:
The applicant does not satisfy all of the requirements under this section.
Subject to subsection (9), there is insufficient money in the CDFI fund to pay the grant amount requested.
The applicant is not in compliance with applicable requirements under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.
If the Michigan strategic fund denies an application under subsection (7), the applicant may provide additional information to the Michigan strategic fund within 7 days after the notice of denial. The Michigan strategic fund shall review and reconsider the application and additional information within 28 days after the applicant provides additional information.
If there is an insufficient amount of money in the CDFI fund to pay the grants approved, the amount of each grant shall be reduced proportionately by the Michigan strategic fund based upon the amount of money available in the CDFI fund. If the amount of money available to pay grants approved for a round of grant applications exceeds the amount needed to pay the grant awards, the Michigan strategic fund may increase each grant awarded in that round in an amount proportionate to the total of all grant awards for that round.
Upon approval of an application, the Michigan strategic fund and the applicant shall sign a written grant agreement providing the terms of the grant agreement. A grant agreement must include all of the following:
A requirement that at least 80% of the grant award be used for financial products and financial services or expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement.
A restriction that no more than 10% of the grant award be used for technical assistance activities described in 12 CFR 1805.303.
A restriction that no more than 10% of the grant award be used for administration and operations.
A requirement that a grant award be committed under a loan agreement or funding agreement or disbursed by the recipient within 3 years after the date that the recipient receives the grant award.
A requirement that the entire amount of the grant award be expended within this state.
A requirement that the grant award recipient maintain its certification as a community development financial institution under 12 CFR 1805.201 while the grant agreement is in effect.
A requirement that the grant award recipient comply with all requirements applicable under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, while the agreement is in effect.
Provisions authorizing the Michigan strategic fund to enforce the terms of the grant agreement, including a requirement that a noncompliant recipient of a grant award may be required to repay the portion of the award not committed by the recipient pursuant to a permitted loan, program, or agreement. Money repaid under this subdivision must be deposited in the CDFI fund.
A requirement for the grant award recipient to report on activities consistent with the requirements of subsection (14).
If the grant agreement includes a grant of federal money, the grant agreement must require the recipient to comply with any requirements applicable to the use of the federal money.
A grant agreement may provide for the community development financial institution that is the recipient of a grant award to serve as an intermediary lender to another community development financial institution consistent with the purposes of this section if not prohibited by federal law applicable to the expenditure of any federal grant money.
If not prohibited by federal law applicable to the expenditure of any federal grant money, a grant agreement must permit a grant award recipient to assign the award to an affiliate and for the affiliate to assume the obligations of the grant award recipient if the affiliate satisfies all of the following:
Is a community development financial institution.
Is organized in the same manner as the grant award recipient.
Is controlled by the grant award recipient in 1 or both of the following ways:
The grant award recipient owns a majority of the stock of the affiliate.
A majority of the members of the board of the affiliate also are members of the board of the grant award recipient.
Except as otherwise provided in subsection (14), the Michigan strategic fund shall require the recipient of a grant award under this chapter to report annually to the Michigan strategic fund regarding its activities under this section beginning on the May 1 following the applicant fiscal year in which the grant award was received by the recipient. The Michigan strategic fund shall publish on its website a standard form for the report. Except as otherwise provided in subsection (14), the report must include all of the following information:
A copy of the recipient’s most recent confirmation of recertification as a community development financial institution issued by the community development financial institutions fund under 12 CFR 1805.201, which may include the list of community development financial institutions in good standing maintained and published by the federal fund.
A list of financial products and services provided during the prior applicant fiscal year that includes all of the following:
The name of each transaction.
A transition tracking number for each transaction.
The date of each transaction.
The amount of each transaction.
The total project cost for each transaction if other funding was involved.
The physical address of the borrower or customer for each transaction.
The census tract of the borrower or customer for each transaction.
An indication of whether the census tract in which the transaction is located is an eligible investment area.
A description of the projected economic impact of the transaction.
A description of any financial products or financial services provided.
A description of technical assistance provided during the prior applicant fiscal year.
A summary of expenditures for administration and operations provided during the prior applicant fiscal year that includes all of the following:
A description of administration and operations costs incurred.
Professional fees and expenses incurred.
A summary of any other eligible expenses for administration and operation.
A grant award recipient is not required to provide a report under this section for any applicant fiscal year in which it did not loan or otherwise commit or disburse grant award money. The Michigan strategic fund shall not include information in the report required under subsection (13) if information that otherwise would be included in a report under subsection (13) is either of the following:
Exempt from disclosure or confidential as proprietary business or financial information under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.
Exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
The Michigan strategic fund shall make all reasonable efforts to ensure that at least 10% of the funds appropriated under this section support businesses operated by underrepresented entrepreneurs or are allocated to community development financial institutions that primarily support underrepresented entrepreneurs.
Except as otherwise provided in subsection (3), the Michigan strategic fund may expend up to 4% of the appropriation provided from the CDFI fund for the costs it incurs in administering the programs and activities in this section.
Unexpended funds appropriated for community development financial institutions fund grants are designated as a work project appropriation. Unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for grant awards or other expenditures until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide grants to eligible community development financial institutions under this section.
All grants will be distributed in accordance with this section and the grant guidelines as part of the application process and grant agreements between the Michigan strategic fund and grant recipients.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date for the work project is September 30, 2027.
As used in this section:
“CDFI fund” means the Michigan community development financial institutions fund created in subsection (1).
“Community development financial institution” means that term as defined in section 103 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4702, but is limited to a community development financial institution that satisfies all of the following:
Is an entity that meets the eligibility requirements described in 12 CFR 1805.200.
Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201, by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703.
Maintains 1 or more physical offices within this state.
Employs 2 or more individuals at a physical office within this state, including employees of an affiliate of the community development financial institution that provides services to the community development financial institution.
Is a Michigan CDFI or a multistate CDFI.
“Depository institution” means any of the following:
A bank as that term is defined in section 3(a) of the federal deposit insurance act, 12 USC 1813.
A savings association as that term is defined in section 3(b) of the federal deposit insurance act, 12 USC 1813.
A credit union as that term is defined in section 102 of the credit union act, 2003 PA 215, MCL 490.102.
A depository institution holding company as that term is defined in 12 CFR 1805.104.
“Eligible activities” means activities described in 12 CFR 1805.301, and includes credit enhancements, loan loss reserves, equity investments, expenditures of money or commitments to expend money to reduce the interest rate otherwise applicable under a loan agreement or funding agreement, and grants related to these activities.
“Federal fund” means the federal community development financial institutions fund within the United States Department of Treasury.
“Financial products” means that term as defined in 12 CFR 1805.104.
“Financial services” means that term as defined in 12 CFR 1805.104.
“Michigan CDFI” means a community development financial institution that satisfies all of the following:
Is certified as a community development financial institution that meets the eligibility requirements under 12 CFR 1805.201, by the community development financial institutions fund established under section 104 of the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4703.
Is headquartered at an address in this state, as recognized by the federal fund.
Has a target market that includes this state, as recognized by the federal fund.
Serves 1 or more targeted populations located within this state.
“Multistate CDFI” means a community development financial institution that is not a Michigan CDFI but is a community development financial institution that committed under a loan agreement or other funding agreement at least $10,000,000.00 in financial products and financial services to a target market within this state under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719, during the 5 applicant fiscal years preceding the applicant in the current fiscal year in which an application for a grant is submitted.
“Qualifying commitment” means funding committed by a community development financial institution under a loan agreement or other funding agreement in target markets or targeted populations in this state that is either of the following:
Financial products or financial services committed under the Riegle community development and regulatory improvement act of 1994, Public Law 103-325, 12 USC 4701 to 4719.
An additional credit enhancement, loan loss reserve, or equity investment committed by the community development financial institution or an affiliate of the community development financial institution.
“Target market” means that term as defined in 12 CFR 1805.104.
“Targeted population” means that term as defined in 12 CFR 1805.104.
Sec. 1003. The funds appropriated in part 1 for Detroit right to counsel must be awarded to the city of Detroit in Wayne County to implement a right to counsel program for city tenants in eviction proceedings.
Sec. 1004. The funds appropriated in part 1 for emerging community grants must be allocated to provide grants to nonprofit organizations and community organizations that are dedicated to supporting emerging populations within this state. Grants may be used to support facility acquisitions, facility upgrades, economic development activities that support the organization’s community, and programming to support the organization’s community.
Sec. 1005. Funds appropriated in part 1 for empowerment plan must be awarded to Empowerment Plan, which is a nonprofit entity qualified under section 501(c)(3) of the internal revenue code, 26 USC 501, located in the city of Detroit in Wayne County.
Sec. 1006. Funds appropriated in part 1 for Focus: HOPE must be awarded to Focus: HOPE for education and workforce development programming, early childhood education, youth development, food assistance, or community empowerment and advocacy.
Sec. 1007. (1) From the funds appropriated in part 1 for food pantry support, $300,000.00 must be awarded to the Brightmoor Connection Food Pantry located in the city of Detroit in Wayne County to support the supply and operations of the food pantry.
(2) From the funds appropriated in part 1 for food pantry support, $500,000.00 must be awarded to Gleaners Community Food Bank located in the city of Detroit in Wayne County to support fresh food security network infrastructure.
Sec. 1008. Funds appropriated in part 1 for Habitat for Humanity must be awarded to the Michigan-based Habitat for Humanity to support statewide construction of affordable housing.
Sec. 1009. (1) Funds appropriated in part 1 for helmets to hardhats must be awarded to a national nonprofit program that connects national guard, reserve, retired, and transitioning active-duty military service members with skilled training and quality career opportunities in the construction industry. Grant funding must be used to recruit and assist veterans to transition into apprenticeship programs in this state, which may include wraparound services.
(2) The awardee under subsection (1) shall ensure that there is an online application process to the program. Sec. 1010. Funds appropriated in part 1 for home repair grants must be allocated to provide grants for home repairs and weatherization to homes with a household income not greater than 250% of the federal poverty level guidelines. Priority must be given to communities with the greatest housing and density stock.
Sec. 1011. (1) From the funds appropriated in part 1 for legislatively directed spending items,
$3,300,000.00 must be awarded to Sheridan Township in Calhoun County to support repairs to bridge structures 1383 and 1384 on 24 Mile Road.
From the funds appropriated in part 1 for legislatively directed spending items, $2,000,000.00 must be awarded to the city of Vassar in Tuscola County to support the construction of a new public safety building.
From the funds appropriated in part 1 for legislatively directed spending items, $250,000.00 must be awarded to the city of Utica Police Department in Macomb County to support the purchase of police equipment.
From the funds appropriated in part 1 for legislatively directed spending items, $2,000,000.00 must be awarded to the city of Rochester Hills in Oakland County for roadway infrastructure and a community gathering space at a community park.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Shelby Township in Oceana County for construction of a community pool.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Harbor Beach in Emmet County to support expansion of the North Park Campground.
From the funds appropriated in part 1 for legislatively directed spending items, $1,500,000.00 must be awarded to the Jackson County parks department to support improvements at The Cascades.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 shall be awarded to the city of Marysville in St. Clair County to support a project to replace a failing seawall at the water filtration plant.
From the funds appropriated in part 1 for legislatively directed spending items, $125,000.00 must be awarded to the city of Springfield in Calhoun County to support the construction of a carport for law enforcement vehicles.
From the funds appropriated in part 1 for legislatively directed spending items, $175,000.00 must be awarded to Common Ground, headquartered in the village of Bingham Farms, for response activities provided by the victim assistance program.
From the funds appropriated in part 1 for legislatively directed spending items, $300,000.00 must be awarded to the Hindu Community Relations Council of Michigan to support a statewide public safety and leadership education initiative for Hindu and Jain houses of worship.
From the funds appropriated in part 1 for legislatively directed spending items, $250,000.00 must be awarded to the Isabella County board of commissioners to support a feasibility study for construction of a northbound entrance ramp located near the intersection of US-127 business route and South Mission Road.
From the funds appropriated in part 1 for legislatively directed spending items, $800,000.00 must be awarded to Macomb County public works to support a 3-year field trial to test scalable management techniques for Microseira wollei benthic cyanobacteria muck.
From the funds appropriated in part 1 for legislatively directed spending items, $60,000.00 must be awarded to the department of transportation for safety enhancements, including, but not limited to, cabling and guardrail on M-53 in Washington Township in Macomb County.
From the funds appropriated in part 1 for legislatively directed spending items, $1,231,000.00 must be awarded to Southwest Shiawassee Emergency Services Alliance in Shiawassee County to support the purchase of 2 ambulances and associated equipment.
From the funds appropriated in part 1 for legislatively directed spending items, $32,000.00 must be awarded to the city of Albion in Calhoun County to support the cost of purchasing body-worn cameras for law enforcement officers and associated data management costs.
From the funds appropriated in part 1 for legislatively directed spending items, $600,000.00 must be awarded to Park Township in Ottawa County to support the purchase and remodeling of the former United States Coast Guard station in Park Township, so that it can be used by the Park Township Fire Department.
From the funds appropriated in part 1 for legislatively directed spending items, $609,000.00 must be awarded to the city of Bronson in Branch County for replacement of an ultraviolet disinfection system at the wastewater treatment facility.
From the funds appropriated in part 1 for legislatively directed spending items, $31,700.00 must be awarded to the Bronson Health Foundation to support sexual assault education programming.
From the funds appropriated in part 1 for legislatively directed spending items, $9,800,000.00 must be awarded to the Four Lakes Task Force for dam restoration activities.
From the funds appropriated in part 1 for legislatively directed spending items, $2,000,000.00 must be awarded to the city of Portage in Kalamazoo County to support a project to control stormwater runoff from US-131.
From the funds appropriated in part 1 for legislatively directed spending items, $200,000.00 must be awarded to the city of Cadillac in Wexford County to address culvert failures adjacent to Mitchell Street.
Sec. 1012. Funds appropriated in part 1 for Michigan black business alliance must be awarded to a nonprofit business alliance located in the city of Detroit in Wayne County to operate entrepreneur capital connection and technical assistance programs.
Sec. 1013. Funds appropriated in part 1 for Michigan women forward must be allocated to an organization that supports entrepreneurship and mentorship programs focused on women that is located in the city of Detroit in Wayne County. The funds must be used to support programming and expansion of the organization.
Sec. 1014. Funds appropriated in part 1 for North Rosedale Park must be allocated to a nonprofit park civic association located in the city of Detroit in Wayne County to support improvements to the community house space that includes elevator installation, playground improvements, fire suppression, outdoor sports facilities, and multiuse programming space.
Sec. 1015. Funds appropriated in part 1 for Redford water infrastructure must be awarded to Redford Township to construct a combined sewer overflow basin.
Sec. 1016. Funds appropriated in part 1 for Reignite must be awarded to a nonprofit organization that helps women consider careers in and connect with technology industries, to support programs aimed at connecting women in K-12 through postuniversity with careers in technology.
Sec. 1017. Funds appropriated in part 1 for SER metro must be awarded to a youth engagement and adult reengagement nonprofit center located in the city of Detroit in Wayne County for expansion of the center.
Sec. 1018. Funds appropriated in part 1 for sheet metal training center must be awarded to sheet metal apprenticeship training centers for infrastructure upgrades, technology enhancements, and to modernize or expand classroom and lab facilities.
Sec. 1019. Funds appropriated in part 1 for Starfish family services must be awarded to an early childhood education service provider with locations in the city of Detroit in Wayne County to provide high-quality services and to support facility infrastructure improvements.
Sec. 1020. Funds appropriated in part 1 for Wayne metro must be awarded to a nonprofit organization headquartered in the city of Detroit in Wayne County that operates community centers throughout Wayne County for structural improvements to a nonprofit community center.
Sec. 1021. Funds appropriated in part 1 for workforce and employer expansion must be used by the department to address current and future workforce needs. These funds may be used for any of the following:
Developing customized solutions to fill identified talent gaps in key industries.
To support statewide preapprenticeship and registered apprenticeship expansions in occupations critical to the economy of this state, assisting citizens of this state with obtaining industry credentials recognized by the United States Department of Labor.
Expanding existing or creating new employer-led collaboratives and other innovative sector strategies in key industries that support the creation of jobs.
ARTICLE 10
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of licensing and regulatory affairs for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 20.0 | |
Full-time equated classified positions | 1,793.0 | |
GROSS APPROPRIATION | $ | 626,006,900 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 30,192,600 | |
ADJUSTED GROSS APPROPRIATION | $ | 595,814,300 |
Federal revenues: | ||
Total federal revenues | 30,369,700 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 285,958,900 | |
State general fund/general purpose | $ | 279,485,700 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 20.0 | ||
Full-time equated classified positions | 103.0 | ||
Unclassified salaries—FTEs | 20.0 | $ | 3,083,500 |
Administrative services—FTEs | 69.0 | 8,070,700 | |
Executive director programs—FTEs | 23.0 | 3,454,400 | |
Property management | 6,924,200 | ||
Worker’s compensation | 72,000 | ||
Regulatory effectiveness office—FTEs | 11.0 | 1,700,200 | |
GROSS APPROPRIATION | $ | 23,305,000 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from MDIFS, accounting services | 150,000 | ||
Federal revenues: | |||
EPA, underground storage tanks | 30,700 | ||
HHS-Medicaid, certification of health care providers and suppliers | 380,000 | ||
HHS-Medicare, certification of health care providers and suppliers | 629,800 | ||
Special revenue funds: | |||
Aboveground storage tank fees | 94,300 | ||
Accountancy enforcement fund | 55,500 | ||
Boiler inspection fund | 293,100 | ||
Builder enforcement fund | 105,100 | ||
Construction code fund | 837,800 | ||
Corporation fees | 4,518,200 | ||
Elevator fees | 315,400 | ||
Fire alarm fees | 7,600 | ||
Fire safety standard and enforcement fund | 2,300 | ||
Fire service fees | 354,000 | ||
Fireworks safety fund | 59,700 | ||
Health professions regulatory fund | 1,890,100 | ||
Health systems fees | 216,900 | ||
Licensing and regulation fund | 857,100 | ||
Liquor license revenue | 292,400 | ||
Liquor purchase revolving fund | 3,163,200 | ||
Marihuana registry fund | 201,400 | ||
Marihuana regulation fund | 1,520,300 | ||
Marihuana regulatory fund | 655,200 | ||
Michigan unarmed combat fund | 5,800 | ||
Mobile home code fund | 262,200 | ||
Nurse professional fund | 41,200 | ||
PMECSEMA fund | 49,000 | ||
Property development fees | 7,800 | ||
Public utility assessments | 3,352,500 | ||
Real estate appraiser education fund | 2,800 | ||
Real estate education fund | 11,800 | ||
Real estate enforcement fund | 12,100 | ||
Refined petroleum fund | 153,100 | ||
Securities fees | 1,509,600 | ||
Securities investor education and training fund | 9,800 | ||
Security business fund | 7,100 | ||
Survey and remonumentation fund | 98,200 | ||
Tax tribunal fund | 825,300 | ||
Utility consumer representation fund | 54,700 | ||
State general fund/general purpose | $ | 271,900 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 103. PUBLIC SERVICE COMMISSION | |||
Full-time equated classified positions | 222.0 | ||
Public service commission—FTEs | 222.0 | $ | 41,910,800 |
GROSS APPROPRIATION | $ | 41,910,800 | |
Appropriated from: | |||
Federal revenues: | |||
DOT, gas pipeline safety | 2,671,500 | ||
Special revenue funds: | |||
Public utility assessments | 39,239,300 | ||
State general fund/general purpose | $ | 0 | |
Sec. 104. LIQUOR CONTROL COMMISSION | |||
Full-time equated classified positions | 148.0 | ||
Liquor licensing and enforcement—FTEs | 117.0 | $ | 18,176,300 |
Management support services—FTEs | 31.0 | 4,984,900 | |
GROSS APPROPRIATION | $ | 23,161,200 | |
Appropriated from: | |||
Special revenue funds: | |||
Direct shipper enforcement revolving fund | 317,900 | ||
Liquor control enforcement and license investigation revolving fund | 175,000 | ||
Liquor license fee enhancement fund | 76,400 | ||
Liquor license revenue | 8,514,300 | ||
Liquor purchase revolving fund | 14,077,600 | ||
State general fund/general purpose | $ | 0 | |
Sec. 105. OCCUPATIONAL REGULATION | |||
Full-time equated classified positions | 925.0 | ||
Bureau of community and health systems—FTEs | 162.0 | $ | 27,403,400 |
Bureau of construction codes—FTEs | 197.0 | 33,135,700 | |
Bureau of fire services—FTEs | 86.0 | 14,451,900 | |
Bureau of professional licensing—FTEs | 198.0 | 42,847,800 | |
Bureau of survey and certification—FTEs | 173.0 | 29,849,500 | |
Corporations, securities, and commercial licensing bureau—FTEs | 109.0 | 16,975,900 | |
GROSS APPROPRIATION | $ | 164,664,200 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
Federal revenues: | |||
DHS, fire training systems | 528,000 | ||
DOT, hazardous materials training and planning | 20,000 | ||
EPA, underground storage tanks | 820,600 | ||
HHS-Medicaid, certification of health care providers and suppliers | 9,201,600 | ||
HHS-Medicare, certification of health care providers and suppliers | 14,808,100 | ||
Special revenue funds: | |||
Aboveground storage tank fees | 343,700 | ||
Accountancy enforcement fund | 1,216,000 | ||
Adult foster care facilities licenses fund | 373,600 | ||
Boiler inspection fund | 3,046,500 | ||
Builder enforcement fund | 644,000 | ||
Construction code fund | 13,763,000 | ||
Corporation fees | 9,619,200 | ||
Division on deafness fund | 73,400 | ||
Elevator fees | 8,513,100 | ||
Fire alarm fees | 138,400 | ||
Fire safety standard and enforcement fund | 32,300 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Fire service fees | $ | 3,160,900 | |
Fireworks safety fund | 1,259,100 | ||
Health professions regulatory fund | 27,748,200 | ||
Health systems fees | 4,204,300 | ||
Licensing and regulation fund | 11,819,800 | ||
Liquor purchase revolving fund | 159,500 | ||
Marihuana regulatory fund | 500,000 | ||
Mobile home code fund | 2,141,400 | ||
Nurse aide registration fund | 1,692,400 | ||
Nurse professional fund | 1,968,000 | ||
PMECSEMA fund | 2,585,000 | ||
Property development fees | 192,600 | ||
Real estate appraiser education fund | 6,200 | ||
Real estate education fund | 604,000 | ||
Real estate enforcement fund | 759,700 | ||
Refined petroleum fund | 2,667,900 | ||
Securities fees | 5,405,200 | ||
Securities investor education and training fund | 503,900 | ||
Security business fund | 182,700 | ||
Survey and remonumentation fund | 910,600 | ||
State general fund/general purpose | $ | 33,051,300 | |
Sec. 106. CANNABIS REGULATORY AGENCY | |||
Full-time equated classified positions | 182.0 | ||
Cannabis regulatory agency—FTEs | 182.0 | $ | 33,691,300 |
GROSS APPROPRIATION | $ | 33,691,300 | |
Appropriated from: | |||
Special revenue funds: | |||
Industrial hemp licensing and registration fund | 296,200 | ||
Marihuana registry fund | 2,251,800 | ||
Marihuana regulation fund | 22,990,400 | ||
Marihuana regulatory fund | 8,152,900 | ||
State general fund/general purpose | $ | 0 | |
Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES | |||
Full-time equated classified positions | 172.0 | ||
Michigan office of administrative hearings and rules—FTEs | 172.0 | $ | 37,034,900 |
GROSS APPROPRIATION | $ | 37,034,900 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG revenues, administrative hearings and rules | 28,594,000 | ||
Special revenue funds: | |||
Construction code fund | 27,400 | ||
Corporation fees | 998,900 | ||
Health professions regulatory fund | 881,800 | ||
Health systems fees | 165,500 | ||
Licensing and regulation fund | 914,300 | ||
Liquor purchase revolving fund | 493,200 | ||
Marihuana regulation fund | 253,500 | ||
Marihuana regulatory fund | 98,900 | ||
Public utility assessments | 2,970,600 | ||
Securities fees | 1,048,600 | ||
State general fund/general purpose | $ | 588,200 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 108. COMMISSIONS | |||
Full-time equated classified positions | 41.0 | ||
Michigan indigent defense commission—FTEs | 21.0 | $ | 3,378,800 |
Michigan unarmed combat commission | 126,200 | ||
Michigan Tax Tribunal—FTEs | 20.0 | 4,213,900 | |
GROSS APPROPRIATION | $ | 7,718,900 | |
Appropriated from: | |||
Special revenue funds: | |||
Michigan unarmed combat fund | 126,200 | ||
Tax tribunal fund | 822,100 | ||
Corporations fees | 3,391,800 | ||
State general fund/general purpose | $ | 3,378,800 | |
Sec. 109. DEPARTMENT GRANTS | |||
Firefighter training grants | $ | 2,300,000 | |
Liquor law enforcement grants | 9,900,000 | ||
Marihuana operation and oversight grants | 3,000,000 | ||
Michigan indigent defense commission grants | 236,016,800 | ||
Remonumentation grants | 6,800,000 | ||
Utility consumer representation | 2,100,000 | ||
GROSS APPROPRIATION | $ | 260,116,800 | |
Appropriated from: | |||
Special revenue funds: | |||
Fireworks safety fund | 2,300,000 | ||
Liquor license revenue | 9,900,000 | ||
Local indigent defense reimbursement | 300,000 | ||
Marihuana regulation fund | 3,000,000 | ||
Survey and remonumentation fund | 6,800,000 | ||
Utility consumer representation fund | 2,100,000 | ||
State general fund/general purpose | $ | 235,716,800 | |
Sec. 110. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 27,803,800 | |
GROSS APPROPRIATION | $ | 27,803,800 | |
Appropriated from: | |||
IDG revenues, administrative hearings and rules | 1,448,600 | ||
Federal revenues: | |||
DOT, gas pipeline safety | 152,600 | ||
EPA, underground storage tanks | 99,900 | ||
HHS-Medicaid, certification of health care providers and suppliers | 385,100 | ||
HHS-Medicare, certification of health care providers and suppliers | 641,800 | ||
Special revenue funds: | |||
Aboveground storage tank fees | 34,500 | ||
Accountancy enforcement fund | 1,600 | ||
Boiler inspection fund | 387,500 | ||
Construction code fund | 1,331,900 | ||
Corporation fees | 5,800,700 | ||
Elevator fees | 505,400 | ||
Fire safety standard and enforcement fund | 3,500 | ||
Fire service fees | 542,700 | ||
Fireworks safety fund | 74,800 | ||
Health professions regulatory fund | 3,270,400 | ||
Health systems fees | 366,200 | ||
Industrial hemp licensing and registration fund | 4,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Licensing and regulation fund | $ | 941,700 |
Licensing license revenue | 235,400 | |
Liquor purchase revolving fund | 4,796,800 | |
Marihuana registry fund | 193,600 | |
Marihuana regulation fund | 1,231,500 | |
Marihuana regulatory fund | 553,000 | |
Michigan unarmed combat fund | 6,800 | |
Mobile home code fund | 205,000 | |
Nurse aide registration fund | 7,000 | |
PMECSEMA fund | 68,500 | |
Public utility assessments | 2,038,000 | |
Real estate appraiser education fund | 1,000 | |
Real estate education fund | 4,800 | |
Refined petroleum fund | 235,200 | |
Securities fees | 465,600 | |
Securities investor education and training fund | 6,100 | |
Survey and remonumentation fund | 75,400 | |
Tax tribunal fund | 208,500 | |
State general fund/general purpose | $ | 1,478,700 |
Sec. 111. ONE-TIME APPROPRIATIONS | ||
Bureau of fire services - smoke detectors | $ | 1,000,000 |
Cannabis regulatory agency social equity program | 1,000,000 | |
Michigan saves | 3,000,000 | |
Urban search and rescue | 1,000,000 | |
Real Estate Continuing Education | 400,000 | |
Accounting Continuing Education | 200,000 | |
GROSS APPROPRIATION | $ | 6,600,000 |
Appropriated from: | ||
Special revenue funds: | ||
Marihuana regulation fund | 1,000,000 | |
Real estate education fund | 400,000 | |
Accountancy enforcement fund | 200,000 | |
State general fund/general purpose | $ | 5,000,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 from state sources under part 1 is $565,444,600.00 and state spending from state sources to be paid to local units of government is $258,016,800.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS | ||
Firefighter training grants | $ | 2,300,000 |
Liquor law enforcement grants | 9,900,000 | |
Marihuana operation and oversight grants | 3,000,000 | |
Michigan indigent defense commission grants | 236,016,800 | |
Remonumentation grants | 6,800,000 | |
TOTAL | $ | 258,016,800 |
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:
“Department” means the department of licensing and regulatory affairs.
“DHS” means the United States Department of Homeland Security.
“Director” means the director of the department.
“DOT” means the United States Department of Transportation.
“EPA” means the United States Environmental Protection Agency.
“FOIA” means the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
“FTE” means full-time equated.
“HHS” means the United States Department of Health and Human Services.
“IDG” means interdepartmental grant.
“MDIFS” means the Michigan department of insurance and financial services.
“PMECSEMA” means pain management education and controlled substances electronic monitoring and antidiversion.
“Standard report recipients” means the senate and house of representatives subcommittees on the department, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“Subcommittees” means the senate and house appropriations subcommittees with jurisdiction over the budget for the department.
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:
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.
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.
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.
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, each department and agency receiving appropriations in part 1 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 in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’s budget. The department or agency shall submit the report to the standard report recipients and to the house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 208. Not later than December 15, the state budget office shall prepare and submit a report that provides for 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 the chairpersons of the senate and house of representatives appropriations committees.
Sec. 209. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$25,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$200,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this part under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 210. (1) A department or agency 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 each department or agency:
Fiscal-year-to-date expenditures by category.
Fiscal-year-to-date expenditures by appropriation unit.
Fiscal-year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
Sec. 211. 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. 212. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations under part 1 shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department or agency 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. 213. 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 standard report recipients and the senate and house appropriations committees.
Sec. 214. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 215. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
(2) The department shall comply with requirements set by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
(3) The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 216. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal or state guidelines.
Sec. 217. 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 report must include reference to the public act that necessitates the change. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.
Sec. 218. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
(2) The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
(3) As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services, in partnership with the Social Security Administration.
Sec. 219. (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 a local health officer.
Sec. 220. 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. 221. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 222. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $27,633,000.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $24,923,300.00. Total appropriations for retiree health care legacy costs for the department are estimated at $2,709,700.00.
Sec. 223. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 224. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 225. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 226. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 227. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 250. The department shall submit a report to the standard report recipients by September 30 detailing any expenditure of funds for a television or radio production that was made to a third-party vendor in the fiscal year ending September 30, 2026. The report must include the following information for each expenditure:
Total amount of the expenditure.
Fund source for the expenditure.
Name of any vendor that created the production and the amount paid to each vendor.
Purpose of the production.
Sec. 251. From the funds appropriated in part 1, the department shall post on a publicly accessible website a report describing materials that department employees and contractors are required to review or complete as part of their mandatory training, including mandatory examinations, surveys, audio or visual recordings, and reading materials.
Sec. 252. (1) The department may charge registration fees to attendees of informational, training, or special events that are sponsored by the department and related to activities under the department’s purview.
The registration fees must reflect the costs for the department to sponsor the informational, training, or special events.
Revenue generated by the registration fees is appropriated on receipt and may be expended by the department to cover the department’s costs of sponsoring informational, training, or special events.
Revenue generated by registration fees in excess of the department’s costs of sponsoring informational, training, or special events carries forward to the subsequent fiscal year and does not lapse to the general fund.
The amount appropriated under subsection (3) must not exceed $1,000,000.00.
Sec. 253. The department may provide to interested entities otherwise unavailable customized listings of nonconfidential information, such as the names and addresses of licensees, in the department’s possession. The department may establish and collect a reasonable fee to provide this service. Revenue generated from this service is appropriated on receipt and must be used to offset the expenses of the service. Any balance of this revenue collected and unexpended at the end of the fiscal year lapses to the appropriate restricted fund. Sec. 254. (1) The department shall sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents reverts to the department. In addition to the funds appropriated in part 1, funds received by the department under this subsection may be expended by
the department upon receipt by the department of treasury. This subsection applies for only the following:
Corporation and securities division documents, reports, and papers required or permitted by law in accordance with section 1060(6) of the business corporation act, 1972 PA 284, MCL 450.2060.
The Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303.
The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2350; the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101
to 450.3192; and the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703.
Construction code manuals.
Copies of transcripts from administrative law hearings.
In addition to the funds appropriated in part 1, funds appropriated for the department under sections 57, 58, and 59 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.257, 24.258, and 24.259, and section 203 of the legislative council act, 1986 PA 268, MCL 4.1203, are appropriated for all expenses necessary to provide for the cost of publication and distribution.
Unexpended funds at the end of the fiscal year carry forward to the subsequent fiscal year and do not lapse to the general fund.
Sec. 255. (1) Grants supported with private revenues received by the department are appropriated on receipt and may be expended by the department for the purposes specified within the grant agreement and as permitted under state and federal law.
Not later than 10 days after the receipt of a private grant appropriated in subsection (1), the department shall notify the chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget office of the receipt of the grant, including the fund source, purpose, and amount of the grant.
The amount appropriated under subsection (1) must not exceed $4,000,000.00.
Sec. 256. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits. Not later than February 1, the department shall report on fees collected from credit card payments for licenses, fees, and permits in the previous year.
Sec. 257. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass- through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended for the federal pass-through funds. Not later than 14 days after the receipt of federal pass-through funds, the department shall notify the chairpersons of the subcommittees, the senate and house fiscal agencies, and the state budget office of pass-through funds appropriated under this section.
Sec. 258. (1) Not later than December 31, the department shall submit a report that pertains to licensing and regulatory programs overseen by the following agencies:
Liquor control commission.
Bureau of fire services.
Corporations, securities, and commercial licensing bureau.
Bureau of professional licensing.
The report under subsection (1) must be in a format that is consistent between the agencies listed in subsection (1) and must provide, but is not limited to, the following information for the previous fiscal year, as applicable, for each agency:
Revenue generated by and expenditures disbursed for each regulatory product.
Revenue generated, by regulatory product or regulated activity.
The renewal cycle and amount of each fee charged.
Number of initial applications.
Number of initial applications denied.
Number of license renewals.
Average amount of time to approve or deny completed applications.
Number of examinations proctored for initial applications.
A description of the types of complaints received.
A description of the process used to resolve complaints.
Number of complaints received.
Number of complaints investigated.
Number of complaints closed with no action.
Number of complaints resulting in administrative actions or citations.
Average amount of time to complete investigations.
Number of enforcement actions, including license revocations, suspensions, and fines.
A description of the types of enforcement actions taken against licensees.
Number of administrative hearing adjudications.
An agency listed in subsection (1)(a) or (b) shall report by regulated activity and an agency listed in subsection (1)(c) or (d) shall report by regulatory product or regulated activity, or both.
As used in this section:
“Regulated activity” means the particular activities, entities, facilities, and industries regulated by the agencies specified in subsection (1).
“Regulatory product” means each occupation, profession, trade, or program, which includes licensure, certification, registration, inspection, review, permitting, approval, or any other regulatory service provided by the agencies specified in subsection (1) for each regulated activity.
Sec. 259. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 280. (1) The attorney general support fund is created within the department of treasury.
Any unexpended funds in the attorney general support fund created in this section shall be carried forward and are available for expenditure under this section.
Funds may be spent from the attorney general support fund only on appropriation, or legislative transfer pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
The state treasurer may receive money or other assets from any source for deposit into the attorney general support fund. The state treasurer shall direct the investment of the attorney general support fund. The state treasurer shall credit to the attorney general support fund interest and earnings from the attorney general support fund.
Funds in the attorney general support fund at the close of the fiscal year remain in the attorney general support fund and do not lapse to the general fund.
The department is the administrator of the fund for auditing purposes.
From fees authorized under section 1060 of the business corporation act, 1972 PA 284, MCL 450.2060,
$8,000,000.00 is appropriated to the attorney general support fund.
From the attorney general support fund created in subsection (1), $8,000,000.00 is appropriated.
PUBLIC SERVICE COMMISSION
Sec. 301. (1) The public service commission administers the low-income energy assistance grant program on behalf of the Michigan department of health and human services via an interagency agreement. Funds supporting the grant program are appropriated to the department upon the awarding of grants and may be expended for grant payments and administrative-related expenses incurred in the operation of the grant program.
(2) No later than March 30, the public service commission shall submit a report to the standard report recipients based on the grants administered, including:
Median annual household income for recipients of the grant.
Number of grants administered in each county of this state.
Sec. 302. (1) From the funds appropriated in part 1, the Michigan public service commission shall conduct at least 4 public hearings in this state. Subject to the requirements of this section, if there is a city in this state with a population between 195,000 and 700,000 according to the most recent federal decennial census, a public hearing required under this section must be conducted in that city.
(2) Not later than September 30, the Michigan public service commission shall submit a report to the standard report recipients that details the outcomes of the public hearings required under this section and summarizes the public comments that were received during the public hearings.
Sec. 303. (1) From the funds appropriated in part 1 for the Michigan public service commission, the department shall designate 1 FTE to assist consumers with utility issues, utility disruption, or outages.
(2) On a monthly basis, the commission shall make the following available on its website:
The average electric rates for commission-regulated electric utilities.
A comparison of monthly residential electric bills for commission-regulated electric utilities.
The power supply cost recovery factors for all commission-regulated electric utilities.
The natural gas rates for commission-regulated natural gas utilities.
The gas cost recovery factors for commission-regulated natural gas utilities.
Monthly reliability data for commission-rate-regulated electric utilities.
The number of utility consumers assisted by the commission for utility disruption, outages, and other utility issues.
The number of formal complaints received in the month.
LIQUOR CONTROL COMMISSION
Sec. 401. (1) From the funds appropriated in part 1 from the direct shipper enforcement revolving fund, the liquor control commission shall expend the funds as required under section 203(11) of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1203, to investigate and audit unlawful direct shipments of wine by unlicensed wineries and retailers, with priority directed toward unlicensed out-of-state retailers and third-party marketers. In addition to other investigative methods, the commission shall use shipping records available to the commission under section 203(21) of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1203, to assist with the effort to investigate and audit unlawful direct shipments of wine by unlicensed wineries and retailers. The liquor control commission shall refer all identified unlicensed out-of-state retailers and third-party marketers to the attorney general.
Not later than February 1, the liquor control commission shall provide a report to the legislature and the standard report recipients that details the commission’s activities to investigate and audit the illegal shipping of wine and the results of the activities. The report must include all of the following:
Work hours spent, specific actions performed, and the number of full-time equated positions dedicated to identifying and stopping unlicensed out-of-state retailers, third-party marketers, and wineries that ship illegally in Michigan.
General overview of expenditures associated with efforts to identify and stop unlicensed out-of-state retailers, third-party marketers, and wineries that ship illegally in this state.
Number of out-of-state entities found to have illegally shipped wine into this state and total number of 750 ml bottles, number of cases with 750 ml bottles, number of liters, number of gallons, or weight of illegally shipped wine. These items must be itemized by total number of retailers and total number of wineries.
Suggested areas of focus on how to address direct shipper enforcement and illegal importation in the future.
Number of unlicensed out-of-state entities found to have illegally shipped wine into this state that were identified with the shipping records described in subsection (1).
Number of notices sent under subsection (3).
From the funds appropriated in part 1 from the direct shipper enforcement revolving fund, the liquor control commission shall send a notice to each unlicensed out-of-state entity found to have illegally shipped wine into this state. The notice must include all of the following statements:
That shipping wine into this state by unlicensed out-of-state retailers and third-party marketers is illegal, and wineries shipping into this state must obtain a direct shipper license.
That under section 909 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1909, making unlawful shipments of wine into this state may be a felony punishable by imprisonment for not more than 4 years or a fine of not more than $5,000.00, or both.
That the matter has been referred to the attorney general.
OCCUPATIONAL REGULATION
Sec. 501. The department shall not expend the funds appropriated under this part and part 1 for the bureau of fire services unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees are charged according to the following fee schedule:
Operation and maintenance inspection fee
Facility type Facility size Fee
Hospitals Any $8.00 per bed
Facility type Facility size Fee
Nursing Homes Any $5.00 per bed
Facility type Facility size Fee
Homes for the Aged Any $5.00 per bed
Facility type Facility size Fee
Adult Foster Care Greater than 6 residents $5.00 per bed Plan review and construction inspection fees for
hospitals and schools
Project cost range Fee
$101,000.00 or less minimum fee of $155.00
$101,001.00 to $1,500,000.00 $1.60 per $1,000.00
$1,500,001.00 to $10,000,000.00 $1.30 per $1,000.00
$10,000,001.00 or more $1.10 per $1,000.00
or a maximum fee of $60,000.00. Sec. 502. The funds collected by the department for licenses, permits, and other elevator regulation fees under the Michigan Administrative Code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year carry forward
to the subsequent fiscal year.
Sec. 503. Not later than February 15, the department shall submit a report to the standard report recipients that provides all of the following information:
The number of veterans who were separated from service in the Armed Forces of the United States with an honorable character of service or under honorable conditions (general) character of service, individually or if the veteran holds a majority interest of a corporation or limited liability company, that were exempted from paying licensure, registration, filing, or any other fees collected under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau during the previous fiscal year.
The specific fees and total amount of revenue exempted under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau during the previous fiscal year.
The actual costs of providing licensing and other regulatory services to veterans exempted from paying licensure, registration, filing, or any other fees during the previous fiscal year and a description of how the actual costs were calculated.
The estimated amount of revenue that will be exempted under each licensure or regulatory program administered by the bureau of construction codes, the bureau of professional licensing, and the corporations, securities, and commercial licensing bureau in both the current and subsequent fiscal years and a description of how the exempted revenue was estimated.
Sec. 504. Revenue collected by the department for the bureau of community and health systems from fees and collections that exceeds the amount appropriated in part 1, the revenue must be carried forward into the subsequent fiscal year. The revenue carried forward under this section must be used as the first source of funds in the subsequent fiscal year.
Sec. 505. (1) To defray the costs associated with responding to false final inspection appointments and to discourage the practice of calling for final inspections when a project is incomplete or noncompliant with a plan of correction previously provided by the bureau of fire services, the bureau of fire services may assess a fee of not more than $500.00 for responding to a second or subsequent confirmed false inspection appointment. Fees collected under this section must be deposited into the restricted account described in section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, and explicitly identified within the statewide integrated governmental management applications system.
(2) Not later than September 30, the department shall submit a report to the standard report recipients that provides all of the following:
The amount of the fee assessed under subsection (1).
The number of fees assessed and issued per region.
The cost allocation for the work performed and reduced as a result of this section.
Any recommendations for consideration by the legislature.
Sec. 506. Not later than November 30, the department shall submit a report to the standard report recipients on the Michigan automated prescription system. The report must include, but is not limited to, all of the following:
The total number of licensed health professionals registered to the Michigan automated prescription system.
The total number of dispensers registered to the Michigan automated prescription system.
The total number of prescribers using the Michigan automated prescription system.
The total number of dispensers using the Michigan automated prescription system.
The total number of cases related to overprescribing, overdispensing, and drug diversion where the department took administrative action because of information and data generated from the Michigan automated prescription system.
The total number of hospitals, doctor’s offices, pharmacies, and other health facilities that have integrated the Michigan automated prescription system into the facility’s electronic health records systems.
The total number of delegate users registered to the Michigan automated prescription system.
The department’s recommendations for electronic health integration and optimizing data interpretation for the purpose of advancing utilization practices.
Sec. 507. (1) From the funds appropriated in part 1 for bureau of construction codes, not less than
$900,000.00 must be allocated for additional inspections and enforcement activities related to the carnival- amusement safety act of 1966, 1966 PA 225, MCL 408.651 to 408.670, and the ski area safety act of 1962, 1962 PA 199, MCL 408.321 to 408.344.
(2) Not later than March 30, the department shall submit a report to the standard report recipients that details the allocation of funds under this section. The report must include an itemized listing of how the funds were used.
Sec. 508. (1) Funds remaining in the homeowner construction lien recovery fund are appropriated to the department for payment of court-ordered homeowner construction lien recovery fund judgments entered before August 23, 2010. Subject to available funds, the payment of final judgments must be made in the order in which the final judgments were entered and began accruing interest.
(2) No later than September 30, the department shall transmit a report to the standard report recipients that details the revenue sources for the fund.
Sec. 509. From the funds appropriated in part 1 for the bureau of fire services, in accordance with the requirements under section 21c of the fire prevention code, 1941 PA 207, MCL 29.21c, the bureau shall perform or work in cooperation with local units of government to perform inspections at places of public assembly that pose the highest risk to occupants for injury or fatality based on the size, density, or the nature of activities performed within the facility.
Sec. 510. From the funds appropriated in part 1 for bureau of survey and certification, the department shall submit a report pertaining to bureau activities, including surveys and investigations of nursing homes, hospitals, and acute continuing care providers to the standard report recipients not later than March 30.
CANNABIS REGULATORY AGENCY
Sec. 601. Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all marihuana programs administered by the cannabis regulatory agency. This report must include, but is not limited to, all of the following information for the previous fiscal year regarding the marihuana programs under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967:
The number of initial applications received, by license category.
The number of initial applications approved and the number of initial applications denied, by license category.
The average amount of time, from receipt to approval or denial, to process an initial application, by license category.
The number of renewal applications approved, by license category and by county.
The number of renewal applications received, by license category and by county, if applicable.
The number of renewal applications denied, by license category and by county.
The average amount of time, from receipt to approval or denial, to process a renewal application, by license category, if applicable.
The percentage of initial applications not approved or denied within the time requirements established in the respective act, by license category, if applicable.
The percentage of renewal applications not approved or denied within the time requirements established in the respective act, by license category, if applicable.
The total amount collected from application fees or established regulatory assessment and the specific fund the amount is deposited into, by license category.
The registered names and addresses of all facilities licensed under each act, by license category and by county.
The number of complaints received pertaining to each act, by license type or regulatory activity.
A description of the types of complaints received.
A description of the process used to resolve complaints.
The number of investigations opened pertaining to each license category.
The number of investigations closed pertaining to each license category.
The average amount of time to complete investigations pertaining to each license category.
The number of enforcement actions pertaining to each license category.
A description of the types of enforcement actions taken against licensees.
The number of administrative-hearing adjudications pertaining to each license type.
A list of the fees charged for license applications, license renewals, and registry cards.
The costs of administering the licensing program under each act.
Sec. 602. From the funds appropriated in part 1, the cannabis regulatory agency shall post on a publicly accessible website a list of all of the following:
The number of investigative reports that identify violations of the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, or violations of administrative rules promulgated under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.
The number of investigative reports that identify suspected marihuana product that does not have the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by law.
The number of complaints filed by the public with the agency that concern either of the following:
Marihuana product that does not have the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by law.
Unlicensed commercial production or sale of delta-8 THC.
The number and outcome of all agency disciplinary proceedings initiated against any licensee subject to the reports or complaints in subdivisions (a), (b), and (c).
The number of reports the agency referred to the department of state police or other appropriate law enforcement agency.
For any licensee subject to disciplinary proceedings initiated by the agency:
Name of the licensee.
Description of the allegation.
Complaint type.
Process used to resolve the allegation.
Name of the law enforcement agency the allegation was referred to, including the date of the referral.
Current license status and whether or not the license was suspended, surrendered, or revoked.
Fines or other penalties issued.
The number of licenses suspended, surrendered, or revoked.
Sec. 603. (1) Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all hemp programs administered by the cannabis regulatory agency. The report must include, but is not limited to, all of the following:
The total amount of fees collected by the cannabis regulatory agency from regulatory and licensing activities related to hemp and hemp processor-handlers.
The total cost of administering hemp regulatory and licensing programs.
The total number of hemp processor-handlers licensed in this state, by county.
A list and description of any fees that the cannabis regulatory agency assesses on hemp processor- handler licensees.
(2) Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all hemp programs administered by the cannabis regulatory agency. The report must include, but is not limited to, all of the following:
The total amount of fees collected by the cannabis regulatory agency from regulatory and licensing activities related to hemp and hemp processor-handlers.
The total cost of administering hemp regulatory and licensing programs.
The total number of hemp processor-handlers in this state, by county.
A list and description of any fees that the cannabis regulatory agency assesses on hemp processor- handler licensees.
The number of inspections conducted per year and the result of each inspection.
The number of hemp license applications and hemp license approvals per year.
Sec. 604. The cannabis regulatory agency shall not exhibit undue partiality toward or bias against any licensee.
COMMISSIONS
Sec. 801. If Byrne formula grant funding is awarded to the Michigan indigent defense commission created under section 5 of the Michigan indigent defense commission act, 2013 PA 93, MCL 780.985, the Michigan indigent defense commission may receive and expend Byrne formula grant funds as an interdepartmental grant from the department of state police. The Michigan indigent defense commission may receive and expend federal grant funds from the United States Department of Justice.
Sec. 802. From the funds appropriated in part 1, not later than March 1, the Michigan indigent defense commission shall submit a report to the standard report recipients on all of the following information:
The incremental costs associated with the standard development process, the compliance plan process, and the collection of data from all indigent defense systems and attorneys providing indigent defense. The Michigan indigent defense commission shall place particular emphasis on the costs that may be avoided after standards are developed and compliance plans are in place.
A detailed explanation of the total cost calculation for each indigent defense standard and juvenile indigent defense standard for which grant recipients are receiving state grant funding. This explanation must include a comprehensive itemization of the types of costs included for each standard.
An itemized listing of how much funding each grant recipient is receiving for each indigent defense standard and juvenile indigent defense standard.
An explanation of the specific causal factors associated with any increase or decrease of Michigan indigent defense commission grant funding from the fiscal year 2023-2024 level.
Sec. 803. From the funds appropriated in part 1 for Michigan indigent defense commission grants, it is the intent of the legislature that the Michigan indigent defense commission begin the statutory process of developing and implementing minimum standards for youth defense services. This process would include the planning and determining needs under the Michigan indigent defense commission act, 2013 PA 93, MCL 780.981 to 780.1003.
Sec. 804. From the funds appropriated in part 1, the Michigan indigent defense commission shall notify the standard report recipients not more than 60 days after the adoption of any new indigent defense standard. The notification must include an estimated cost projection to fund the adopted indigent defense standard for the initial and subsequent fiscal years.
Sec. 805. A grant distributed by the Michigan indigent defense commission must not be used by an indigent defense system to support any construction expenses for a new structure. This section does not prohibit expenditures for renovations to existing structures, if such a renovation is part of an indigent criminal defense system’s approved compliance plan.
GRANTS
Sec. 901. (1) From the funds appropriated in part 1 for marihuana operation and oversight grants, the department shall expend the funds for grants to counties for education and outreach programs that relate to the Michigan medical marihuana program and the adult-use marihuana program, in accordance with section 6(l) of the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26426, and section 14 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27964. The grant funds may be generated from application and license fees authorized under section 8(1)(b) of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27958. The grants must be distributed proportionately based on the number of registry identification cards issued to or renewed for the residents of each county that applied for a grant under subsection (2). For the purposes of this subsection, operation and oversight grants are for education, communication, and outreach regarding the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967. Grants provided under this section must not be used for law enforcement purposes.
Not later than December 1, the department shall post a listing of potential grant funds available to each county on the department’s website. In addition, the department shall work collaboratively with counties regarding the availability of the grant funds. A county that requests grant funds shall apply on a form developed by the department and available on the department’s website. The form must contain the county’s specific projected plan for use of the grant funds and its agreement to maintain all records and to submit documentation to the department to support the use of the grant funds.
To be eligible to receive a grant under subsection (1), a county shall apply not later than January 1 and submit a report to the department not later than September 15 on how the grant was expended. The department shall submit a report to the standard report recipients not later than October 15 of the subsequent fiscal year that details the grant amounts by recipient and the reported uses of the grants in the previous fiscal year and details the calculation for the amount for which each county was eligible.
Sec. 902. (1) The funds appropriated in part 1 for firefighter training grants must be expended only for payments to counties to reimburse organized fire departments for firefighter training and other activities required under the firefighters training council act, 1966 PA 291, MCL 29.361 to 29.377.
If the funds appropriated in part 1 for firefighter training grants are expended by the firefighters training council created under section 3 of the firefighters training council act, 1966 PA 291, MCL 29.363, for payments to counties under section 14 of the firefighters training council act, 1966 PA 291, MCL 29.374, all of the following apply to the extent otherwise permissible by law:
The funds appropriated in part 1 for firefighter training grants must be allocated in accordance with section 14(2) of the firefighters training council act, 1966 PA 291, MCL 29.374.
If the funds allocated to any county under subdivision (a) are less than $5,000.00, the funds allocated to each county under subdivision (a) must be adjusted to provide for a minimum payment of $5,000.00 to each county.
Not later than February 1, the department shall submit a financial report to the standard report recipients that identifies all of the following information for the previous fiscal year:
The amount of the payments that would be made to each county if the distribution formula described in section 14(2) of the firefighters training council act, 1966 PA 291, MCL 29.374, would have been utilized to allocate the total amount appropriated in part 1 for firefighter training grants.
The amount of the payments approved by the firefighters training council for allocation to each county.
The amount of the payments actually expended or encumbered within each county.
A description of any other payments or expenditures made under the authority of the firefighters training council.
The amount of payments approved for allocations to counties that was not expended or encumbered and lapsed back to the fireworks safety fund.
ONE-TIME APPROPRIATIONS
Sec. 1001. (1) From the funds appropriated in part 1 for bureau of fire services – smoke detectors, the bureau of fire services shall purchase and distribute sealed-battery smoke detectors to the residents of this state. The bureau of fire services may purchase smoke detectors with additional capabilities for individuals with physical or psychological conditions that require an accommodative technology.
(2) Not later than September 30, the department shall submit a report to the standard report recipients that contains all of the following information:
The number of smoke detectors that the bureau of fire services purchased.
The per-unit price that the bureau paid for the smoke detectors.
An itemized list of all cities, villages, or townships that received smoke detectors and the number of smoke detectors distributed to each city, village, or township.
Sec. 1002. (1) From the funds appropriated in part 1 for Michigan Saves, the Michigan public service commission may award a $1,500,000.00 grant to Michigan Saves to conduct a grant program for clean energy improvement and on-site wastewater system replacement or repair. Michigan Saves should grant funds to individuals or small businesses within the state who have a history of having difficulty obtaining traditional capital or households with a combined income not exceeding 300% of the federal poverty level and where businesses indicate a state of financial need or vulnerability. The amount granted to a single individual or business cannot exceed $100,000.00.
(2) From the funds appropriated in part 1 for Michigan Saves, the Michigan public service commission may award a $1,500,000.00 grant to a nonprofit green bank with experience in leveraging energy-efficiency and renewable energy improvements, for the purpose of making such loans more affordable for Michigan families, businesses, and public entities. Grant funds may be used to support a loan loss reserve fund or other comparable financial instrument to further leverage private investment in clean energy improvements.
Sec. 1003. From the funds appropriated in part 1 for real estate continuing education, the bureau of professional licensing must expend the funds for grants to the Michigan Realtors Association to approve and track real estate continuing education in this state.
Sec. 1004. From the funds appropriated in part 1 for Accounting Continuing Education, the bureau of professional licensing must expend not less than $200,000.00 for grants to the Michigan Association of CPAs for the maintenance and operation of the continuing professional education tracker and web portal.
Sec. 1005. Funds appropriated in part 1 for urban search and rescue must be distributed by the bureau of fire services to support activities by the Michigan Task Force 1 in response to emergencies and other situations that require technical rescue expertise and equipment.
Sec. 1006. From the funds appropriated in part 1 for the cannabis regulatory agency social equity program, the cannabis regulatory agency shall further develop the program established under section 8(1)(j) of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27958, with all of the following goals:
To encourage and increase participation in the social equity program, with particular focus to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement.
To establish a minimum number of licensees that are participating in the social equity program.
To consider the area median income of a community in designating communities that have been disproportionately impacted by marihuana prohibition and enforcement.
ARTICLE 11
DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL 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 classified positions | 342.0 | ||
GROSS APPROPRIATION | $ | 662,243,200 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 0 | ||
ADJUSTED GROSS APPROPRIATION | $ | 662,243,200 | |
Federal revenues: | |||
Total federal revenues | 457,769,900 | ||
Special revenue funds: | |||
Total private revenues | 1,000,000 | ||
Total other state restricted revenues | 1,880,000 | ||
State general fund/general purpose | $ | 201,593,300 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 37.0 | ||
Unclassified salaries—FTEs | 6.0 | $ | 1,029,500 |
Executive direction and operations—FTEs | 37.0 | 7,352,200 | |
Property management | 268,800 | ||
Worker’s compensation | 3,000 | ||
GROSS APPROPRIATION | $ | 8,653,500 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 1,277,700 | ||
State general fund/general purpose | $ | 7,375,800 | |
Sec. 103. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 1,004,100 | |
GROSS APPROPRIATION | $ | 1,004,100 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 223,700 | ||
State general fund/general purpose | $ | 780,400 | |
Sec. 104. OFFICE OF EARLY CHILDHOOD EDUCATION | |||
Full-time equated classified positions | 233.0 | ||
Child care licensing and regulation—FTEs | 167.0 | $ | 29,987,600 |
Child development and care contracted services | 22,900,000 | ||
Child development and care external support | 11,028,800 | ||
Child development and care public assistance | 543,312,000 | ||
Head start collaboration office—FTE | 1.0 | 426,600 | |
Office of great start operations—FTEs | 65.0 | 17,818,500 | |
Tri-share child care program | 3,400,000 | ||
GROSS APPROPRIATION | $ | 628,873,500 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 454,947,800 | ||
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 | $ | 172,359,400 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 105. OFFICE OF EDUCATION PARTNERSHIPS | |||
Full-time equated classified positions | 21.0 | ||
Before- and after-school administration—FTEs | 2.0 | $ | 371,200 |
Camp licensing unit—FTEs | 7.0 | 700,300 | |
Family and community engagement—FTEs | 12.0 | 2,383,200 | |
GROSS APPROPRIATION | $ | 3,454,700 | |
Appropriated from: | |||
Federal revenues: | |||
Federal revenues | 1,320,700 | ||
Special revenue funds: | |||
Adult foster care facilities licenses fund | 42,900 | ||
State general fund/general purpose | $ | 2,091,100 | |
Sec. 106. OFFICE OF HIGHER EDUCATION | |||
Full-time equated classified positions | 51.0 | ||
Michigan Indian tuition waiver—FTE | 1.0 | $ | 159,700 |
Student financial assistance programs—FTEs | 50.0 | 9,597,700 | |
GROSS APPROPRIATION | $ | 9,757,400 | |
Appropriated from: | |||
Special revenue funds: | |||
Michigan merit award trust fund | 1,270,800 | ||
State general fund/general purpose | $ | 8,486,600 | |
Sec. 107. ONE-TIME APPROPRIATIONS | |||
Child development and care public assistance | $ | 3,500,000 | |
College success fund and student wraparound supports | 1,000,000 | ||
Community college workforce initiative | 240,000 | ||
Dual enrollment | 3,500,000 | ||
Ensuring access to postsecondary opportunities | 260,000 | ||
Michigan center for adult college success | 1,000,000 | ||
Michigan center for civic education | 1,000,000 | ||
GROSS APPROPRIATION | $ | 10,500,000 | |
Appropriated from: | |||
State general fund/general purpose | $ | 10,500,000 | |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $203,473,300.00 and total state spending under part 1 from state sources to be paid to local units of government is $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 | $ | 500,000 |
TOTAL | $ | 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:
“Department” means the department of lifelong education, advancement, and potential.
“DHHS” means the Michigan department of health and human services.
“Director” means the director of the department.
“FTE” means full-time equated position in the classified service of this state.
“IDG” means interdepartmental grant.
“Standard report recipients” means the senate and house appropriations subcommittee on the department, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“Task force” means the dual enrollment task force created under section 706.
Sec. 204. The department 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:
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.
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.
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.
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 outside this state by classified and unclassified employees 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 house of representatives and senate appropriations committees. The report must include all of the following information:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 area. The state budget office shall submit the report to the standard report recipients and to the chairpersons of the senate and house of representatives 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.
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.
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.
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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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. 214. (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. 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 of each department receiving appropriations in part 1 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 receiving appropriations in part 1 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. 217. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 218. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 220. 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 report must include reference to the public act that necessitates the policy change. 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. 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. 224. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $5,536,600.00. From this amount, total department appropriations for pension-related legacy costs are estimated at $4,993,700.00. Total department appropriations for retiree health care legacy costs are estimated at $542,900.00.
Sec. 225. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 226 (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on timesheets were actually worked.
The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80 percent or higher, subject to market conditions.
The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 227. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 228. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 230. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 231. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 232. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount and source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 233. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed
to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
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:
Establish or partner with family engagement centers across this state to increase parent and guardian involvement in their child’s education.
Ensure translation and interpretation services are available and implemented pursuant to department guidance.
Partner with intermediate school districts to assist in getting information and resources to their constituent districts.
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:
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.
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.
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.
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:
Postsecondary education costs, including a comparison to national and regional averages.
Student enrollment.
Degree completion.
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.
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.
Promote, track, and provide resources to increase completion of the free application for federal student aid.
From the funds appropriated in part 1, the department shall meet, at a minimum, the following transparency requirements:
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.
Maintain a link on the department’s website to find data submitted by postsecondary institutions through higher education institutional data inventory.
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.
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. 705. The funds appropriated in part 1 for dual enrollment payments for an eligible student enrolled in a state-approved nonpublic school shall be distributed as provided under 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, in a form and manner as determined by the department.
Sec. 706. (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.
Members of the task force must include the following 7 individuals:
The director of the department or the director’s designated representative.
The chairs of the senate and house of representatives appropriations subcommittees on the department’s budget or a designated representative of each of the individuals described in this subdivision.
The senate majority leader or a designated representative of the senate majority leader.
The speaker of the house of representatives or a designated representative of the speaker of the house of representatives.
Two members of the public appointed by the governor of this state.
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.
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.
The task force is dissolved on September 30, 2026.
The duties of the task force includes all of the following:
Developing strategies to align state-level postsecondary initiatives, including dual enrollment, with broader statewide education efforts.
Assessing and recommending improvements to oversight and data collection for dual enrollment programs to ensure consistency and accessibility across this state.
Exploring the potential role of the department’s office of higher education in managing dual enrollment and postsecondary credit opportunities.
Recommending 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.
Proposing statewide goals for dual enrollment participation and completion.
Developing recommendations for improving course transferability between institutions to maximize student credit recognition.
Identifying potential incentives for schools, colleges, and universities to expand dual enrollment opportunities and meet statewide participation goals.
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.
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 that are at risk of lapsing back to the federal government. The department may do this only if all of the following criteria are met:
The funds are at risk of lapsing back to the federal government by the end of the current fiscal year.
The department plans to expend the funds through a 1-time rate increase to providers.
The department makes the request to receive and expend the grant funds to the state budget director not less than 30 days before the expenditure of the funds.
If the average cases over a 3-month period in the child development and care program result in the current projected fiscal year 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:
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.
The department plans to expend the funds through an ongoing rate increase to providers for the remainder of the fiscal year.
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.
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.
The department may withdraw the intent to expend the funds under subsection (2) or (3) by notifying the state budget director in writing.
Sec. 1003. (1) From the funds appropriated in part 1 for child development and care contracted services, the department shall create a report 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 section is due by April 1 and must contain at least all of the following information:
Total funding appropriated to contracts for the early childhood comprehensive systems planning by this state during the previous fiscal year.
The amount of funding for each grant awarded.
The grant recipients.
The activities funded by each grant.
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 joint report that includes, but is not limited to, the following:
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.
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.
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.
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.
Information on the child care licensing process, including, but not limited to, all of the following:
The number of initial applications, initial applications denied, license renewals, and licenses allowed to expire, aggregated by license type.
The average amount of time to approve or deny completed applications and a description of the most common reasons applications are denied.
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.
The number of complaints received, investigated, determined to be unsubstantiated, and that result in disciplinary action or rule violations.
The number of administrative hearing adjudications.
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.
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.
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 joint report on the department website and send the joint 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. This shall 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,
$1,500,000.00 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.
Not later than 10 days after the receipt of a private revenues appropriated in subsection (1), the department shall notify the standard report recipients of the receipt of the funds, including source, purpose, and amount.
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.
The department shall establish and support tri-share regional facilitator hubs and statewide services.
The department must create benchmarks for regional facilitator hubs receiving appropriated funding.
Any child care facilitator receiving funds under this section must be a nonprofit, limited liability company, C-corporation, S-corporation, or a sole proprietor.
Child care facilitator hubs may use funds to enroll in the tri-share child care program families living in Wisconsin but who have a parent or caregiver who are employed in Michigan. A child care provider providing care for a family described in this subsection must be licensed in Michigan.
ONE-TIME APPROPRIATIONS
Sec. 1101. From the one-time appropriation in part 1 for child development and care public assistance, the department shall begin to initiate the development of requirements to meet federal provider payment compliance provisions.
Sec. 1102. From the funds appropriated in part 1 for college success fund and student wraparound supports, the department shall provide not more than $500,000.00 to support hunger-free campus activities, and not more than $500,000.00 to deliver re-enrollment initiatives for Michigan citizens with some college and no degree for the purpose of reengaging learners to increase the number of Michigan adults completing postsecondary degrees or credentials in this state. The remainder of the funds must be awarded through competitive grants to support implementation of best practices to improve student retention and completion of postsecondary degrees.
Sec. 1103. From the funds appropriated in part 1, the Michigan Center for Adult College Success must continue to improve adult postsecondary enrollment and completion under the Michigan reconnect grant act, 2020 PA 84, MCL 390.1701 to 390.1709.
Sec. 1104. From the funds appropriated in part 1 for ensuring access to postsecondary opportunities, the department may expend up to $260,000.00 for public outreach to raise awareness among men of postsecondary opportunities to address disparities in postsecondary credential attainment by men.
Sec. 1105. From the funds appropriated in part 1 for community college workforce initiative, the department may expend up to $240,000.00 to convene a workgroup that will document and publish a statewide approach for small and medium size employers to obtain workforce training and other resources for their employees at community colleges.
Sec. 1106. From the funds appropriated in part 1 for Michigan Center for Civic Education, the department shall allocate $1,000,000.00 to the Michigan Center for Civic Education, a 501(C)3 nonprofit organization that works to improve law-related and civic education for youth through various engagement programs.
ARTICLE 12
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of military and veterans affairs for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 9.0 | |
Full-time equated classified positions | 967.0 | |
GROSS APPROPRIATION | $ | 290,166,300 |
Total interdepartmental grants and intradepartmental transfers | 101,800 | |
ADJUSTED GROSS APPROPRIATION | 290,064,500 | |
Federal revenues: | ||
Total federal revenues | 148,840,000 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 100,000 | |
Total other state restricted revenues | 12,953,500 | |
State general fund/general purpose | $ | 128,171,000 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 102. MILITARY | |||
Full-time equated unclassified positions | 9.0 | ||
Full-time equated classified positions | 422.5 | ||
Unclassified salaries—FTEs | 9.0 | $ | 1,878,100 |
Headquarters and armories—FTEs | 103.0 | 23,056,200 | |
Michigan youth challeNGe academy—FTEs | 68.0 | 10,441,800 | |
Military family relief fund | 150,000 | ||
Military retirement | 2,585,600 | ||
Military training sites and support facilities—FTEs | 240.0 | 46,533,200 | |
National Guard operations | 600,500 | ||
Michigan National Guard member benefit fund—FTEs | 11.5 | 11,244,800 | |
Starbase grant | 2,322,000 | ||
GROSS APPROPRIATION | $ | 98,812,200 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG - state police | 101,800 | ||
Federal revenues: | |||
DOD - DOA - NGB | 64,391,600 | ||
Federal counternarcotics revenues | 100,000 | ||
Special revenue funds: | |||
Private donations | 90,000 | ||
Billeting fund | 1,377,800 | ||
Military family relief fund | 150,000 | ||
Morale, welfare, and recreation fund | 100,000 | ||
Rental fund | 187,500 | ||
Test project fund | 100,000 | ||
State general fund/general purpose | $ | 32,213,500 | |
Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY | |||
Full-time equated classified positions | 61.0 | ||
County veteran service grants—FTEs | 2.0 | $ | 4,255,500 |
Michigan veterans affairs agency administration—FTEs | 49.0 | 8,381,300 | |
Veterans trust fund administration—FTEs | 8.0 | 1,185,200 | |
Veterans trust fund grants | 2,500,000 | ||
Veterans service grants—FTEs | 2.0 | 4,255,500 | |
GROSS APPROPRIATION | $ | 20,577,500 | |
Appropriated from: | |||
Federal revenues: | |||
DVA - VHA | 753,400 | ||
Special revenue funds: | |||
Private donations | 10,000 | ||
Michigan veterans trust fund | 3,685,200 | ||
Veterans license plate fund | 50,000 | ||
State general fund/general purpose | $ | 16,078,900 | |
Sec. 104. MICHIGAN VETERANS FACILITY AUTHORITY | |||
Full-time equated classified positions | 483.5 | ||
Chesterfield Township home for veterans—FTEs | 110.0 | $ | 34,663,700 |
D.J. Jacobetti home for veterans—FTEs | 179.0 | 26,342,500 | |
Grand Rapids home for veterans—FTEs | 176.0 | 39,801,000 | |
Information technology services and projects | 1,738,100 | ||
Michigan veteran homes administration—FTEs | 18.0 | 4,920,500 | |
Veterans cemetery—FTEs | 0.5 | 133,100 | |
GROSS APPROPRIATION | $ | 107,598,900 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
Federal revenues: | ||
DVA - VHA | $ | 43,346,800 |
HHS - HCFA, Medicare, hospital insurance | 1,345,300 | |
HHS - HCFA title XIX, Medicaid | 8,745,000 | |
Special revenue funds: | ||
Income and assessments | 6,303,000 | |
State general fund/general purpose | $ | 47,858,800 |
Sec. 105. CAPITAL OUTLAY | ||
Armory maintenance | $ | 1,000,000 |
Land and acquisitions | 1,000,000 | |
Special maintenance - National Guard | 30,000,000 | |
Special maintenance - veterans homes | 500,000 | |
GROSS APPROPRIATION | $ | 32,500,000 |
Appropriated from: | ||
Federal revenues: | ||
DOD - DOA - NGB | 30,000,000 | |
Special revenue funds: | ||
Michigan National Guard construction fund | 1,000,000 | |
State general fund/general purpose | $ | 1,500,000 |
Sec. 106. INFORMATION TECHNOLOGY | ||
Information technology services and projects | $ | 677,700 |
GROSS APPROPRIATION | $ | 677,700 |
Appropriated from: | ||
Federal revenues: | ||
DOD - DOA - NGB | 157,900 | |
State general fund/general purpose | $ | 519,800 |
Sec. 107. ONE-TIME APPROPRIATIONS | ||
Selfridge Air National Guard base | $ | 26,000,000 |
Veterans nonprofit improvement grants | 4,000,000 | |
GROSS APPROPRIATION | $ | 30,000,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 30,000,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $141,124,500.00 and state spending under part 1 from state sources to be paid to local units of government is $4,178,000.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS | ||
County veteran service grants | $ | 4,041,500 |
Michigan veterans affairs agency administration | 90,000 | |
Military training sites and support facilities | 46,500 | |
TOTAL | $ | 4,178,000 |
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:
“CMS” means the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services.
“Department” means the department of military and veterans affairs.
“DHHS” means the department of health and human services.
“Director” means the director of the department.
“FTE” means full-time equated position in the classified service of this state.
“IDG” means interdepartmental grant.
“MVAA” means the Michigan veterans affairs agency created by Executive Reorganization Order No. 2013-2, MCL 32.92.
“MVFA” means the Michigan veterans’ facility authority created under section 3 of the Michigan veterans’ facility authority act, 2016 PA 560, MCL 36.103.
“MVH” means the Michigan veteran homes as that term is defined in the Michigan veterans’ facility authority act, 2016 PA 560, MCL 36.102.
“MYCA” means the Michigan youth challeNGe academy.
“Standard report recipients” means the senate and house appropriations subcommittees on the department budget, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“USDVA” means the United States Department of Veterans Affairs.
“USDVA-VHA” means the USDVA Veterans Health Administration.
“VSO” means veterans service organization.
“Veterans’ facility” means that term as defined in section 2 of the Michigan veterans’ facility authority act, 2016 PA 560, MCL 36.102.
“Work project” means that term as defined in section 404 of the management and budget act, 1984 PA 431, MCL 18.1404, and that meets the criteria in section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a.
Sec. 204. The 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 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:
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.
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.
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.
Sec. 206. The department shall not take disciplinary action against an employee of the department or a state agency for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department or agency 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 and each agency receiving appropriations part 1 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 or agency’s budget. The department or agency 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:
The dates of each travel occurrence.
The total transportation and related expenses of each travel occurrence and the proportion funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 transmit 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
$8,600,000.00 for federal contingency authorization. These funds 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,100,000.00 for state restricted contingency authorization. These funds 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$250,000.00 for local contingency authorization. These funds 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$100,000.00 for private contingency authorization. These funds 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. (1) The department or agency 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 or each agency:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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) 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 a local health officer.
Sec. 214. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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 or agency receiving appropriations in part 1 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 standard report recipients and to the senate and house appropriations committees.
Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 220. 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 report must include reference to the public act that necessitates the policy change. 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. 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. Funds appropriated in part 1 for capital outlay must be carried forward at the end of the fiscal year consistent with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.
Sec. 224. If the department intends to sell any department real property, the department shall submit notification of that intent to the standard report recipients 60 days before the public announcement of that intention.
Sec. 225. The department shall provide biannual reports that include the following data:
A list of all major work projects, including a status report of each project.
The department’s financial status, featuring a report of budgeted versus actual expenditures by part 1 line item, including a year-end projection of budget requirements.
The number of active employees at the close of the reporting period by job classification and departmental branch of service.
Sec. 226. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 227. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 229. By April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 233. (1) The department shall maximize utilization of the department’s in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 234. (1) The department shall require as a condition of each contract or subcontract that a prequalified contractor or prequalified subcontractor agrees to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require the contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services, in partnership with the Social Security Administration.
Sec. 235. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 236. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $11,475,400.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $10,350,100.00. Total appropriations for retiree health care legacy costs for the department are estimated at $1,125,300.00.
Sec. 237. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The department shall submit the report to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 239. The department shall provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 240. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
MILITARY
Sec. 301. (1) Not later than October 30, the department shall report a list of the current unclassified positions, which shall include the official titles and responsibilities of each position.
(2) Upon the department being granted a request for an additional unclassified employee position from the civil service commission, or for any substantive changes to the duties of an existing unclassified employee position, the department shall report on these changes within 15 days.
Sec. 302. (1) The department shall operate and maintain National Guard armories and implement a system to measure the condition and adequacy of those armories.
(2) Not later than January 15, the department shall evaluate armories and submit an annual report on the status of the armories that includes the following information:
An assessment of the grounds and facilities of each armory to objectively measure and determine the current facility condition and capability to support authorized manpower, unit training, and operations.
Recommendations for the placement of new armories, the relocation or consolidation of existing armories, or a change in the mission of units assigned to armories to ideally position the National Guard in current or projected population centers.
Recommendations for the enhanced use of armories to facilitate family support programs during deployments.
An analysis of the feasibility, potential costs, and benefits of use of armories shared with other local, state, or federal agencies to improve responses to local emergencies as well as the community support provided to armories.
An investment strategy and proposed funding amounts in a prioritized project list to correct the most critical facility shortfalls across the inventory of armories in this state.
A review of the status of construction activities and expenditures of the armory modernization project funded in section 107 of article 10 of 2022 PA 166 and section 104 of 2022 PA 194.
Sec. 303. (1) The department shall maintain the MYCA to provide values, skills, education, and self- discipline instruction for at-risk youth as provided under 32 USC 509.
The department shall take steps to recruit candidates to the MYCA from economically disadvantaged areas, including those with low-income and high-unemployment backgrounds.
The department shall partner with the DHHS to identify youth who may be eligible for MYCA from those youth served by DHHS services programs. The department shall give these eligible youth priority for enrollment.
The department shall maintain the MYCA to graduate at least the target number of graduates consistent with the state’s cooperative agreement with the National Guard Bureau regarding program operations.
The department shall monitor individual academic success as measured by the number of individuals who have received a general equivalency diploma, high school diploma, or high school credit recovery or by the improvement of tests of adult basic education scores, or both.
Any unexpended and unencumbered private donations to support the MYCA at the close of this fiscal year do not lapse to the general fund and must be carried forward to the subsequent fiscal year.
Sec. 304. (1) Not later than January 15, the department shall provide a report on the revenues, expenditures, and fund balance of the military family relief fund. The department shall itemize expenditures in the report by purpose, including, but not limited to, for advertising and assistance grants. The report must also include information on the number of applications for assistance received, approved, and denied for the previous fiscal year.
From the funds appropriated in part 1, the department shall provide outreach to the Michigan families of members of the reserve component of the Armed Forces of the United States called into active duty on the availability of assistance through the military family relief fund.
As used in this section, “military family relief fund” means the military relief fund created in section 3 of the military family relief fund act, 2004 PA 363, MCL 35.1213.
Sec. 305. (1) The department shall do all of the following:
Provide Army and Air National Guard forces, when directed, for state and local emergencies and in support of national military requirements.
Operate and maintain Army National Guard training facilities, including Fort Custer and Camp Grayling.
Maintain a system that measures the condition and adequacy of air facilities using both quality and functionality criteria.
Operate and maintain Air National Guard air bases, including Selfridge Air National Guard base, Battle Creek Air National Guard base, and Alpena combat readiness training center.
(2) Not later than March 1, the department shall report the following information for the previous calendar year:
The apportioned and assigned strength of the Michigan Army National Guard.
The apportioned and assigned strength of the Michigan Air National Guard.
Recruiting, retention, and attrition data, including measurement against stated performance goals, for the Michigan Army National Guard.
Recruiting, retention, and attrition data, including measurement against stated performance goals, for the Michigan Air National Guard.
Sec. 306. (1) The billeting fund is created within the state treasury.
The state treasurer shall deposit money and other assets received from any source into the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
All of the fees and other revenues generated from the operation of the chargeable transient quarters program must be deposited in the fund.
Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
The department is the administrator of the fund for auditing purposes.
The department shall expend money from the fund to support program operations and the maintenance and operations of the chargeable transient quarters program as appropriated in part 1.
Not later than January 15, the department shall submit an annual report of operations and expenditures regarding the fund for the previous fiscal year.
Sec. 307. (1) From the funds appropriated in part 1 for Michigan National Guard member benefit program, the department shall maintain a Michigan National Guard tuition assistance program as provided under the Michigan National Guard tuition assistance act, 2014 PA 259, MCL 32.431 to 32.434. The Michigan National Guard tuition assistance program must do all of the following:
Bolster military readiness by increasing recruitment and retention of Michigan Army and Air National Guard members.
Fill federally authorized strength levels for the state.
Improve the Michigan Army and Air National Guard’s competitive draw from other military enlistment options in the state.
Enhance the ability of the Michigan Army and Air National Guard to compete for guard members and federal dollars with surrounding states.
Increase the pool of eligible candidates within the Michigan Army and Air National Guard to become commissioned officers.
The department shall make efforts to increase the number of National Guard members who have received a credential or are still enrolled in the Michigan National Guard tuition assistance program after their initial term of enlistment. To evaluate the effectiveness of the program, the department shall monitor the number of new recruits and new reenlistments and the percentage of those who become participants in the program to determine whether the percentage of authorized Michigan Army and Air National Guard strength obtained and retained is competitive in comparison with the neighboring army and air national guards from Illinois, Indiana, Ohio, and Wisconsin.
Not later than March 1, the department shall provide a report on the Michigan National Guard tuition assistance program. The report must include, but is not limited to, the following information for the previous fiscal year:
The number of guard members, spouses, children, and dependents that received tuition assistance, broken down by the number of each type of recipient.
The educational institutions from which those guard members, spouses, children, and dependents received education or training under the program, broken down by the number of each type of recipient and each type of educational or training program for which tuition assistance was received.
The total amount of financial assistance received by each educational institution.
The total funds expended on the program for financial assistance for each type of recipient and each type of educational or training program.
The total funds expended on the program for administrative costs of the department.
For each FTE position appropriated in part 1 for the Michigan National Guard tuition assistance program, a description of the position’s functions, assigned responsibilities, and, if applicable, the length of time that the position has been vacant.
The total number of applications for tuition assistance approved and denied.
The number of guard members, spouses, children, and dependents receiving tuition assistance who successfully completed an educational or training program for which tuition assistance was received.
A description of each educational or training program offered through the Michigan National Guard tuition assistance program.
A list of any educational institutions and training programs removed from eligibility and the rationale for that removal.
An explanation of any identified barriers to the successful utilization of the program, or other unmet needs of the program and applicable proposals for legislative action to address those barriers and needs.
Sec. 308. The department shall maintain the starbase program at Air National Guard facilities, as provided under 10 USC 2193b, to improve the knowledge, skills, and interest of students, primarily in the fifth grade, in math, science, and technology. The starbase program is to specifically target minority and at-risk students for participation.
Sec. 309. (1) The National Guard test projects fund is created within the state treasury.
The state treasurer shall deposit money and other assets received from any source into the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
All of the fees and other revenues generated from the operation of the test projects program shall be deposited in the fund.
Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
The department is the administrator of the fund for auditing purposes.
Money in the fund shall be available for expenditure for the support of program operations as appropriated in part 1.
Sec. 310. (1) The morale, welfare, and recreation fund is created within the state treasury.
The state treasurer shall deposit money and other assets received from any source into the fund. The state treasurer shall direct the investment of money in the fund and shall credit interest and earnings from the investments to the fund.
The department is the administrator of the fund for auditing purposes.
All of the fees and other revenues generated from the operation of the morale, welfare, and recreation program must be deposited in the morale, welfare, and recreation fund. Money in the fund is available for expenditure for the support of program operations as appropriated in part 1.
Money remaining in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
Sec. 311. (1) The National Guard facilities rental fund is created in the state treasury.
The state treasurer shall deposit money and other assets received from any source into the fund. The state treasurer shall direct the investment of money in the fund and shall credit interest and earnings from the investments to the fund.
All of the fees and other revenues generated from the operation of the National Guard facilities rental program must be deposited in the fund.
Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
The department is the administrator of the fund for auditing purposes.
Money in the fund is available for expenditure for the support of program operations as appropriated in part 1.
Sec. 312. Not later than February 1, the department shall provide the report required under section 251(7) of the Michigan military act, 1967 PA 150, MCL 32.651.
Sec. 313. The Michigan Army National Guard and Air National Guard shall work to provide a culture that is free of sexual assault, through an environment of prevention, education and training, response capability, victim support, reporting procedures, and appropriate accountability that enhances the safety and well-being of all guard members.
Sec. 314. (1) From the funds appropriated in part 1 for Michigan National Guard member benefit fund, the department shall create and administer a Tricare premium reimbursement program.
The department may reimburse eligible members for a premium paid for any of the following:
Individual coverage under the Tricare dental program.
Individual coverage through the Tricare reserve select program.
The department shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as necessary, to implement and administer the Tricare premium reimbursement program created in subsection (1).
As used in this section:
“Eligible member” means a member of the Michigan National Guard who is eligible for coverage under the Tricare dental program or the Tricare reserve select program and meets any other eligibility criteria established by the department.
“Tricare dental program” means a voluntary dental health insurance plan for eligible members who are not on active duty and are not covered by a traditional assistance management program, an existing health insurance program through an employer, or a private market plan.
“Tricare reserve select program” means a voluntary health insurance plan for eligible members who are not on active duty and are not covered by a traditional assistance management program, an existing health insurance program through an employer, or a private market plan.
Sec. 315. (1) From the funds appropriated in part 1 for Michigan National Guard member benefit fund, the department shall create and administer a child care assistance program as provided under the Michigan National Guard child care assistance act.
To receive assistance under the child care assistance program, an eligible member must submit an application to the department. If there is sufficient money in the Michigan National Guard member benefit fund, the department shall approve, subject to the limitations under subsection (3), an application to cover the amount of child care assistance requested in the application if either of the following applies:
The eligible member is a single parent.
The eligible member’s spouse is also an eligible member.
The department shall issue a stipend at a rate established annually by the department to each eligible member who applies and is approved for child care assistance under the program. The department shall determine the amount of child care assistance that may be provided under this subsection for each fiscal year. The amount of child care assistance determined by the department under this subsection applies to all eligible members who apply and are approved under the program. The department shall not approve child care assistance for more than 12 hours a day for weekend drills and annual training and for not more than 39 days a year.
The department shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as necessary to implement and administer the child care assistance program.
Not later than March 1, the department shall provide a report on the child care assistance program. The report must include, but is not limited to, the following information:
The number of eligible members receiving child care assistance under the program, broken down by service branch and including the amount of the stipend issued, and the total number of National Guard members by service branch.
The number of children for whom a stipend was paid and the associated number of hours paid broken down by service branch.
The hourly rate paid.
The total funds expended on the program for child care stipends.
The total funds expended on the program for administrative costs of the department.
Any other pertinent information, as determined by the department, on the program’s operations and administration.
As used in this section:
“Child care assistance program” or “program” means the child care assistance program created under the Michigan National Guard child care assistance act.
“Eligible member” means that term as defined in section 2 of the Michigan National Guard child care assistance act.
Sec. 316. (1) The general fund/general purpose funds appropriated in part 1 for the Michigan National Guard member benefit fund must be deposited into the restricted Michigan National Guard member benefit fund. All funds in the restricted Michigan National Guard member benefit fund are appropriated and available for expenditure to support the Michigan National Guard’s tuition assistance program, Tricare premium reimbursement program, and childcare assistance program.
(2) As used in this section, “Michigan National Guard member benefit fund” means the Michigan National Guard member benefit fund created in section 3 of the Michigan National Guard member benefit fund act.
MICHIGAN VETERANS AFFAIRS AGENCY
Sec. 404. (1) Money privately donated to the department for the MVAA in excess of the appropriation in part 1 is appropriated and available for expenditure for the benefit and life enrichment of veterans and for the purpose designated by the private source, if specified and in compliance with this section.
Any unexpended and unencumbered private donations to support the MVAA at the close of this fiscal year do not lapse to the general fund and must be carried forward to the subsequent fiscal year.
Not later than January 15, the department must submit a report that provides an itemized listing of private donations received by the department for the MVAA for the previous fiscal year and the purpose for which the funds will be, or were, expended, if known. In addition to the annual report required under this subsection, if a donation described under this section is $10,000.00 or greater, the department must submit a report within 14 calendar days after receiving that donation providing the amount of the donation and the purpose for which the funds will be expended, if known.
Sec. 405. (1) The Michigan veterans’ trust fund board together with the MVAA shall provide emergency grants for disbursement from the Michigan veterans’ trust fund, as provided under the following program authorities:
Sections 37, 38, and 39 of article IX of the state constitution of 1963.
1946 (1st Ex Sess) PA 9, MCL 35.602 to 35.610.
R 35.1 to R 35.7 of the Michigan Administrative Code.
R 35.621 to R 35.623 of the Michigan Administrative Code.
(2) Not later than January 15 , the MVAA shall provide a detailed report of the Michigan veterans’ trust fund that includes, for the previous fiscal year, the following information:
Details concerning the methodology of allocations and the selection of emergency grant program authorized agents.
A description of how the emergency grant program is administered in each county.
A detailed breakdown of the Michigan veterans’ trust fund expenditures for the emergency grant program, including the amount distributed to each county for operating costs, administrative costs and emergency grants.
Expenditures for state operating costs and administrative costs.
The number of approved emergency grant applications, by category of assistance, and the number of denied applications, by reason of denial.
A description of the MVAA’s efforts to reduce program administrative costs and maintain the Michigan veterans’ trust fund corpus at or above its original amount of $50,000,000.00.
The overall financial status of the Michigan veterans’ trust fund, including revenues and year-end balance.
Expenditures for program partnerships, delineated by organization, and expenditures for any other program initiatives.
Sec. 406. The MVAA shall do all of the following:
Provide outreach services to Michigan veterans to advise them on the benefits to which they are entitled, as provided under Executive Reorganization Order No. 2013-2, MCL 32.92.
Develop and operate an outreach program that communicates benefit eligibility information to at least 50% of Michigan’s population of veterans, as assessed by annual census estimates, with a goal of reaching 100% and enabling 100% to access benefit information online.
Communicate veteran benefit information pertaining to the Michigan military family relief fund, Michigan veterans’ trust fund, and USDVA health, financial, and memorial benefits to which veterans are entitled.
Fulfill requests for military discharge certificates (DD-214) upon request.
Not later than January 15, submit a report providing, to the extent known, data on the estimated number of homeless veterans, by county, in this state.
Not later than January 1, submit a report on the percentage of Michigan veterans contacted through its outreach programs, with a goal of 90%, and report that percentage on the status of outreach.
Sec. 408. From the funds appropriated in part 1, the MVAA shall provide for the regional coordination of services and do all of the following:
Coordinate with veteran benefit counselors throughout a specified region.
Coordinate services with all state departments and agencies.
Coordinate with regional workforce and economic development agencies.
Coordinate activities among local foundations, nonprofit organizations, and community groups to improve accessibility, enrollment, and utilization of the array of health care, education, employment assistance, and quality of life services provided at the local level.
Work with MVAA service officers, county veteran counselors, VSO service officers, and other service providers to increase awareness of available mental health care resources and support services veterans may be eligible to receive.
Coordinate with the DHHS to identify Medicaid recipients who are veterans and who may be eligible for federal veterans health care benefits or other benefits, to the extent that the identification does not violate applicable confidentiality requirements.
Collaborate with the department of corrections to create and maintain a process by which prisoners can obtain a copy of their DD-214 form or other military discharge documentation if necessary.
Ensure that all MVAA service officers and VSO service officers receive appropriate training in processing applications for benefits payable to veterans due to military sexual trauma, post-traumatic stress disorder, depression, anxiety, substance use disorder, or other mental health issues.
Sec. 410. (1) The MVAA shall provide claims processing services to Michigan veterans in support of benefit claims submitted to the USDVA for the health, financial, and memorial benefits for which they are eligible. The MVAA shall report annually on the number of benefit claims, by type, submitted to the USDVA by MVAA and maintain the staffing and resources necessary to process a minimum of 500 claims per year.
The MVAA shall develop and implement a process to ensure that all county veterans counselors receive the training and accreditation necessary to provide quality services to veterans and shall report information annually on the number and percentage of county veterans counselors trained by the MVAA, and the number and percentage who received funding from the MVAA to attend training, with an overall goal of 100% of county veterans counselors trained.
From the funds appropriated in part 1 for MVAA, the MVAA is authorized to expend up to $100,000.00 to hire legal services to represent veterans benefit cases before federal court to maintain accreditation under 38 CFR 14.628(d)(1)(iv).
Sec. 411. (1) From the funds appropriated in part 1 for veterans service grants, the MVAA shall establish, administer, and award competitive grants to 1 or more congressionally chartered VSOs or a coalition of VSOs. The MVAA shall award grants to support efforts to connect veterans and their dependents with federal compensation and pension benefits and state veterans’ benefits, including emergency grants through the Michigan veterans’ trust fund and other local or nonprofit assistance that may be available to veterans and their dependents. The MVAA shall establish a competitive grant process that satisfies all of the following:
Utilizes a service provision model to provide services across the state and can be tracked regionally to ensure that veterans and their dependents in this state, including those within tribal communities, are provided with services, advocacy, and outreach as close to the communities in which they live as possible.
Ensures that grantees are providing adequate veteran services and advocacy, through in-person and virtual meetings, that enables the organization to meet performance goals established in the grant agreement.
Fosters innovative and transformative approaches and techniques for the grantee to use when providing services, advocacy, and outreach for veterans and their dependents.
Requires grantees to use an MVAA-designated internet-based claims data system to manage caseloads. License fees associated with the claims data system described in this subdivision are considered an allowable expenditure and may be reimbursed with grant funds.
Requires grantees, in coordination with the MVAA, to provide services to incarcerated veterans who are within 1 year of their earliest release date.
Ensures that each grantee is issued performance goals.
Ensures that each grantee expends grant awards as prescribed in the grant agreement.
Requires each grantee to report not less than quarterly on all of the following:
An accounting for all grant fund expenditures.
The number and type of claims originated and submitted by the grantee to the USDVA.
The number and type of claims originated by an organization other than the grantee and submitted by the grantee to the USDVA.
The services provided to veterans and their dependents.
Progress in achieving monthly performance benchmark goals.
Ensures that each grantee is issued monthly performance benchmark goals that each grantee must aim to achieve and require each grantee to report to the MVAA, in order to ensure that benchmark goals are being achieved, or on target to be achieved, in the fiscal year.
The MVAA shall do all of the following:
Follow all generally accepted accounting principles in accordance with sections 141 and 485 of the management and budget act, 1984 PA 431, MCL 18.1141 and 18.1485.
When establishing, modifying, or amending the competitive grant process described in subsection (1), consult and collaborate with congressionally chartered VSOs in the state, or a coalition of VSOs, and other stakeholders to ensure a comprehensive approach to providing services, advocacy, and outreach to veterans and their dependents.
Provide notice to current grantees of any MVAA-proposed modifications or amendments to the competitive grant process and provide those grantees with an opportunity to respond through written communication.
Assess the accuracy rate of claims reported by grantees.
Review and audit grantees’ expenditure of grant funds to ensure compliance with the grant agreement, as provided under section 470 of the management and budget act, 1984 PA 431, MCL 18.1470.
Not later than January 15, the MVAA shall provide a report summarizing grant activities for the previous fiscal year, including the amount of expenditures, number of service and advocacy hours, number of claims for benefits submitted by type of claim, and other information deemed appropriate by the MVAA.
From the funds appropriated in part 1 for veterans service grants, $214,000.00 must be allocated to cover necessary administrative and implementation costs incurred by the MVAA.
The unexpended funds appropriated in part 1 for veterans service grants are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and must be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to administer and award competitive grants to 1 or more congressionally chartered VSOs or a coalition of VSOs.
The project will be accomplished by state employees and grantees.
The tentative completion date is September 30, 2027.
Sec. 413. (1) The funds appropriated in part 1 for county veteran service grants must be deposited into the restricted county veteran service fund created in section 3a of 1953 PA 192, MCL 35.623a. All available funds in the restricted county veteran service fund are appropriated and available for expenditure as provided by law.
From the restricted county veteran service fund created in section 3a of 1953 PA 192, MCL 35.623a,
$214,000.00 must be allocated to the MVAA to cover necessary administrative and implementation costs incurred by the MVAA.
The MVAA shall provide a report not later than January 15 that includes the following information for the previous fiscal year:
A list of counties that received a grant under this section and details concerning the methodology of allocations, including, but not limited to, all program information distributed by the MVAA to counties and any applicable timelines and deadlines imposed by the MVAA.
The base, per capita, and total amounts of grant funding each county received under section 3a(6) of 1953 PA 192, MCL 35.623a, including any amount of funding provided under the emergent need relief program pursuant to section 3a(10) of 1953 PA 192, MCL 35.623a.
A summary of each county’s expenditures of grant funding.
The amount of any unexpended grant funding disbursed to the counties that has been recovered and returned to the county veteran service fund.
The balance of the county veteran service fund at the close of the fiscal year.
A list of counties that have requested funds in the current fiscal year, the amount requested by each county, and the total of these amounts.
A list of counties that did not request funds in the current fiscal year.
The amount of any funds recovered by the MVAA through the MVAA’s finding of misused grant funds.
An explanation of any obstacles or reasons for counties not applying for or spending their eligible amount of grant funding.
The amount expended by the MVAA for grant administration and implementation costs.
Details concerning the methodology of allocations and the selection of emergency grant program authorized agents.
The MVAA shall notify the legislature not later than 30 days after any changes, alterations, or modifications are made to the amount of grant funding awarded to a county under section 3a of 1953 PA 192, MCL 35.623a.
On a quarterly and annual basis, but not more than quarterly, a county that receives grant funding under section 3a of 1953 PA 192, MCL 35.623a, shall submit a report to the MVAA that includes, but is not limited to, all of the following:
A line-item accounting of all expenditures made using grant funds, including, but not limited to, salaries, training, outreach, equipment, transportation, and operational expenses.
A breakdown of the number of veterans served using grant funds, including the number of veterans assisted, the types of services provided, and the number and types of claims submitted.
A comparison of the costs associated with delivering services or products to veterans to the amount of grant funding spent on delivering those services or products.
A verification of county match funding, including documentation that the county has maintained at least 70% of the funding level from the previous fiscal year for veteran services.
A description of how county expenditures align with the intended outcomes of the county veteran service grant program, including any challenges or deviations from planned activities.
A certification, signed by the county veteran service officer and a county fiscal officer, affirming that all expenditures comply with county veteran service grant conditions and applicable law.
A county that receives grant funding under section 3a of 1953 PA 192, MCL 35.623a, shall use the grant funding only for allowable expenditures. As used in this subsection, “allowable expenditures” means any of the following:
Payroll and salaries.
Staff onboarding and training.
Office space.
Information technology and equipment.
Sec. 415. Not later than January 15, the MVAA shall submit a report that includes all of the following:
An analysis on the scope of homelessness among the state’s veteran population, including the estimated number of homeless veterans, by county.
Challenges to securing housing for homeless veterans.
Recommendations for future long-term partnerships between the Michigan state housing development authority, the MVAA, municipalities, and nonprofit organizations that could assist in eliminating homelessness among veterans in this state. Recommendations under this subdivision must minimize additional costs to local units of government.
Activities of the MVAA in the previous fiscal year to support homeless veterans or eliminate homelessness among veterans.
Sec. 416. From the funds appropriated in part 1, the department may partner with the DHHS to facilitate and administer a program to contract with or provide grants to local health care providers to accelerate the clinical research and deployment of promising investigational treatments for suicide prevention that have been granted breakthrough therapy designation by the United States Food and Drug Administration and are eligible for expanded access as defined by the United States Food and Drug Administration, specifically for the treatment of post-traumatic stress disorder, major depressive disorder, or treatment-resistant depression in veterans of the United States military and first responders.
MICHIGAN VETERANS’ FACILITY AUTHORITY
Sec. 501. (1) Money privately donated to the MVH, the MVFA, or a veterans’ facility in excess of the appropriation in part 1 is appropriated and is available for expenditure for the benefit and life enrichment of resident members and for the purpose designated by the private source, if specified and in compliance with this section.
(2) Any unexpended or unencumbered private donations to support the MVH, the MVFA, or a veterans facility at the close of the fiscal year do not lapse to the general fund and must be carried forward to the subsequent fiscal year.
(3) Not later than January 15, the MVH must submit a report that provides an itemized listing of the private donations received by the MVH, the MVHA, or a veterans facility and the purpose for which the funds will be, or were, expended, if known. In addition to the annual report required under this subsection, if the MVH, the MVFA, or a veterans’ facility receives a private donation that is $10,000.00 or greater, the MVH must submit a report within 14 calendar days after receiving that donation providing the amount of the donation and the purpose for which the funds are to be expended, if known.
Sec. 502. (1) From the funds appropriated in part 1, the MVH and the MVFA shall provide compassionate and quality nursing care services at each veterans’ facility in this state so that resident members can achieve their highest potential of wellness, independence, self-worth, and dignity. The MVFA and the MVH shall provide nursing care services to veterans in accordance with federal standards and report the results of the annual USDVA and CMS surveys and certification as proof of compliance.
(2) Appropriations in part 1 for a veterans’ facility shall not be used for any purpose other than expenses related to the operations of the veterans’ facility.
Sec. 503. All contractors providing health care services at a veterans’ facility shall provide services in a manner that complies with applicable USDVA and CMS regulations for state veterans’ homes and skilled nursing facilities, any rules governing the operation of nursing homes licensed in this state, and any training and education requirements associated with staff licensure or certification.
Sec. 504. (1) The MVFA shall report and investigate all complaints of abuse or neglect at a veterans’ facility in compliance with USDVA and CMS regulations for state veterans’ homes and skilled nursing facilities. The MVFA shall report on a bimonthly basis the following information:
A description of the process by which resident members and others may file complaints of alleged abuse or neglect at a veterans’ facility.
Summary statistics on the number and general nature of complaints of abuse or neglect.
Summary statistics on the final disposition of complaints of abuse or neglect received.
(2) The MVFA shall display in high-traffic areas throughout the veterans’ facility the process by which visitors, resident members, and staff of the veterans’ facility may register complaints.
Sec. 505. The MVH shall do the following regarding member care:
Provide board-certified psychiatric care for all resident members with mental health disorders in order to ensure that those resident members receive needed services in a professional and timely manner.
Provide all resident members and staff a safe and secure environment.
Ensure that the veterans’ facility effectively develops, executes, and monitors all comprehensive care plans in accordance with federal regulations and the veterans’ facility’s internal policies, with a goal that a comprehensive care plan is fully developed for all resident members.
Sec. 506. The MVH shall establish and implement internal controls regarding all of the following:
The use and management of food, maintenance, and pharmaceutical and medical supply inventories.
Calculating resident member maintenance assessments in order to accurately calculate resident member maintenance assessments for each billing cycle and ensure that all past due resident member maintenance assessments are addressed within 30 days.
Monetary donations and donated goods.
The handling of resident member funds to ensure the release of funds within 15 calendar days upon the resident member leaving the home and to ensure that a representative of a resident member is provided a full accounting of that resident member’s funds within 30 calendar days after the death of that resident member.
Financial reporting and accounting.
Sec. 507. (1) The MVH shall post on its website the following:
All policies adopted by the MVFA and the veterans’ facility related to the administrative operations of the veterans’ facility.
The agenda and minutes of public meetings of the MVFA board.
The MVH shall provide a report with copies of each veterans’ facility’s USDVA State Veteran Home quarterly report. These quarterly reports shall also be posted on the MVH website and these reports must include statistics and information that demonstrates the performance of MVH compared to available state and national veterans’ homes or nursing homes.
Not later than January 15, the MVH shall provide a report on the following:
Census data for each veterans’ facility, including information on level of care, service era of its resident members, payer source, and average income and assessment rate.
Per patient daily care hours provided by each veterans’ facility, by level of care.
The MVH shall provide a bimonthly report on the financial status of each veterans’ facility and central MVFA/MVH administration. Information shall include, but not be limited to, actual year-to-date and projected year-end revenues and expenditures, by fund source.
The MVH shall provide a report on the results of any annual or for-cause survey conducted by any entity with oversight over the veterans’ facility and any corresponding corrective action plan. This information shall also be made available publicly through the MVH website.
In addition to the information required under section 12(1) of the Michigan veterans’ facility authority act, 2016 PA 560, MCL 36.112, not later than January 31, the MVFA shall provide a report detailing the strategies and actions taken to maximize revenues from non-general fund sources and cost savings strategies. Sec. 508. In addition to the funds appropriated in part 1, private revenues held by the MVH on a nonfiduciary basis for a resident member of a veterans’ facility are appropriated to pay medical expenses, member assessments, and other expenses incurred by that resident member. Any unexpended or unencumbered private revenues held on a nonfiduciary basis by the MVH at the close of the fiscal year do
not lapse to the general fund and must be carried forward into the subsequent fiscal year.
Sec. 509. Not later than January 15 , the MVFA shall provide a report on the construction, operation, and finances of the new Marquette veterans home funded in article 14 of 2022 PA 166.
Sec. 510. Except as otherwise provided by law, any unexpended and unencumbered federal revenues received by the MVFA do not lapse to the state general fund and must be carried forward into the subsequent fiscal year.
Sec. 511. The department, with the approval of the state budget office, is authorized to realign federal revenues sources of the MVFA. This realignment of federal fund sourcing must not produce a gross increase or decrease in the total authorization for the individual MVFA line-item appropriations. The department shall provide a quarterly report to the standard report recipients on actions taken under this section.
CAPITAL OUTLAY
Sec. 601. (1) The department shall provide for the acquisition and disposition of National Guard armories, facilities, and lands as provided under sections 368, 382, and 382a of the Michigan military act, 1967 PA 150, MCL 32.768, 32.782, and 32.782a.
(2) The department shall provide a listing of property sales and acquisitions annually.
Sec. 602. (1) The appropriations for armory maintenance and special maintenance - National Guard must be expended in accordance with the requirements of sections 302 and 305 and must be expended according to the maintenance priorities of the department to repair and modernize military training sites and support facilities, including armories.
(2) Not later than January 15, the department shall provide a report providing information on the status, projected costs, and projected completion date of current and planned special maintenance projects at the armories and other National Guard facilities funded from capital outlay appropriations made in part 1 and in previous fiscal years.
Sec. 603. (1) The appropriations for special maintenance – veterans’ facility must be expended in accordance with the requirements of section 502 and must be expended according to the maintenance priorities of the MVFA to repair and modernize the state’s veterans’ facility, which may include physical plant expansions, renovations, or enhancements, and other projects designed to enhance the quality of life and medical care of resident members.
(2) Not later than January 15, the MVH shall provide a report providing information on the status, projected costs, and projected completion date of current and planned special maintenance projects at each veterans’ facility funded from capital outlay appropriations made in part 1 and in previous fiscal years.
ONE-TIME APPROPRIATIONS
Sec. 701. Funds appropriated in part 1 for Selfridge Air National Guard Base must be used to support costs of complying with air installation compatible use zone program recommendations, including, but not limited to, both of the following:
Capital improvements necessary to shift the runway to the north and repair airfield and non-airfield features of the base and surrounding community impacted by the shift.
Infrastructure projects repairing roadways, vehicle access to the base and museum, stormwater drain and culvert repairs and modernization, force protection features, and airfield features.
Sec. 702. (1) From the funds appropriated in part 1 for veterans nonprofit improvement grants, the MVAA shall create and operate a competitive grant program that provides grants not to exceed $300,000.00 to nonprofit organizations that provide, or assist in providing, services to veterans residing in this state. The MVAA shall award grants to support efforts to improve or upgrade facilities that are owned by the nonprofit organization requesting the grant. Priority must be given to applicants with demonstrable deterioration in infrastructure, as evidenced by facility condition assessments, safety inspection reports, code violations, or deferred maintenance records. Additional priority is given to applicants that can demonstrate increased liability exposure resulting from facility disrepair, including documented legal claims, insurance notices, incident reports, or other evidence of potential harm to staff, residents, or visitors. Further priority shall be given to applicants that serve a higher volume of veterans on an ongoing basis, as demonstrated by program enrollment records, service logs, or other verifiable documentation of veteran engagement. Grant funding must be used to support costs related to improving or upgrading facilities owned by the nonprofit organization requesting the grant.
The MVAA shall require a nonprofit organization requesting a grant described in subsection (1) to submit a grant application. The grant application required under this subsection must include, but is not limited to, an itemized list of the facilities and proposed improvements to those facilities, broken down by the subunit of the nonprofit organization that operates the facilities, if applicable.
From the funds appropriated in part 1 for veterans nonprofit improvement grants, $300,000.00 must be allocated to cover necessary administrative and implementation costs incurred by the MVAA.
Not later than January 15, the MVAA shall provide a report summarizing grant activities for the fiscal year ending September 30, 2026 and shall include the following information for each grant issued under this grant program:
The name of each grant recipient.
The amount of the grant provided.
The street address of each facility for which grant funds were expended under this section.
A brief summary of grant expenditures, broken down by each grant recipient.
As used in this section:
“Facility” means a building or structure and a building’s or structure’s grounds, approaches, services, and appurtenances that are owned by a nonprofit organization, including, but not limited to, office buildings, recreational structures, garages, warehouses, parking lots, or any other framework or project situated on a parcel owned by a nonprofit organization.
“Nonprofit organization” means a statewide chapter organization that satisfies the requirements to be exempt from taxation under section 501(c)(19) of the internal revenue code of 1986, 26 USC 501.
ARTICLE 13 DEPARTMENT OF NATURAL RESOURCES
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of natural resources for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF NATURAL RESOURCES | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 2,509.2 | ||
GROSS APPROPRIATION | $ | 543,194,300 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 208,100 | ||
ADJUSTED GROSS APPROPRIATION | $ | 542,986,200 | |
Federal revenues: | |||
Total federal revenues | 100,214,800 | ||
Special revenue funds: | |||
Total local revenues | 0 | ||
Total private revenues | 7,609,200 | ||
Total other state restricted revenues | 362,152,800 | ||
State general fund/general purpose | $ | 73,009,400 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 149.1 | ||
Unclassified salaries—FTEs | 6.0 | $ | 993,600 |
Accounting service center | 1,729,700 | ||
Executive direction—FTEs | 11.6 | 2,409,400 | |
Finance and operations—FTEs | 112.5 | 19,646,800 | |
Gifts and pass-through transactions | 5,003,600 | ||
Legal services—FTEs | 4.0 | 720,000 | |
Minerals management—FTEs | 17.0 | 2,962,900 | |
Natural resources commission | 77,100 | ||
Office of public lands—FTEs | 4.0 | 1,481,800 | |
Property management | 3,573,500 | ||
GROSS APPROPRIATION | $ | 38,598,400 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG, land acquisition services-to-work orders | 208,100 | ||
Federal revenues: | |||
Federal funds | 833,600 | ||
Special revenue funds: | |||
Private funds | 5,003,600 | ||
Deer habitat reserve | 168,800 | ||
Forest development fund | 4,736,200 | ||
Forest land user charges | 8,100 | ||
Forest recreation account | 55,300 | ||
Game and fish protection account | 8,540,000 | ||
Land exchange facilitation and management fund | 4,560,500 | ||
Local public recreation facilities fund | 229,200 | ||
Marine safety fund | 901,400 | ||
Michigan natural resources trust fund | 1,696,400 | ||
Michigan state parks endowment fund | 4,403,400 | ||
Nongame wildlife fund | 14,100 | ||
Off-road vehicle safety education fund | 700 | ||
Off-road vehicle trail improvement fund | 323,900 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Public use and replacement deed fees | $ | 30,600 | |
Recreation improvement account | 89,200 | ||
Snowmobile registration fee revenue | 51,200 | ||
Snowmobile trail improvement fund | 133,400 | ||
Sportsmen against hunger fund | 500 | ||
State park improvement account | 2,237,200 | ||
Turkey permit fees | 81,200 | ||
Waterfowl fees | 3,400 | ||
Waterways account | 942,800 | ||
Wildlife resource protection fund | 44,800 | ||
State general fund/general purpose | $ | 3,300,800 | |
Sec. 103. DEPARTMENT INITIATIVES | |||
Full-time equated classified positions | 21.0 | ||
Great Lakes restoration initiative | $ | 2,904,500 | |
Invasive species prevention and control—FTEs | 21.0 | 5,943,800 | |
GROSS APPROPRIATION | $ | 8,848,300 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 2,904,500 | ||
State general fund/general purpose | $ | 5,943,800 | |
Sec. 104. COMMUNICATION AND CUSTOMER SERVICES | |||
Full-time equated classified positions | 142.8 | ||
Cultural resource management—FTEs | 5.5 | $ | 1,022,600 |
Marketing and outreach—FTEs | 95.3 | 17,673,400 | |
Michigan historical center—FTEs | 42.0 | 6,838,300 | |
Michigan wildlife council | 1,400,000 | ||
GROSS APPROPRIATION | $ | 26,934,300 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 3,369,200 | ||
State park improvement, federal | 322,200 | ||
Special revenue funds: | |||
Forest development fund | 176,100 | ||
Forest recreation account | 18,800 | ||
Game and fish protection account | 9,202,800 | ||
Land exchange facilitation and management fund | 52,200 | ||
Marine safety fund | 40,400 | ||
Michigan historical center operations fund | 1,219,800 | ||
Michigan state parks endowment fund | 121,800 | ||
Nongame wildlife fund | 12,200 | ||
Off-road vehicle trail improvement fund | 120,200 | ||
Recreation passport fees | 667,300 | ||
Snowmobile registration fee revenue | 21,500 | ||
Snowmobile trail improvement fund | 106,700 | ||
Sportsmen against hunger fund | 250,000 | ||
State park improvement account | 4,362,500 | ||
Waterways account | 166,400 | ||
Wildlife management public education fund | 1,400,000 | ||
Youth hunting and fishing education and outreach fund | 45,200 | ||
State general fund/general purpose | $ | 5,259,000 | |
Sec. 105. WILDLIFE MANAGEMENT | |||
Full-time equated classified positions | 210.5 | ||
Natural resources heritage—FTEs | 9.0 | $ | 661,800 |
Wildlife management—FTEs | 201.5 | 47,995,900 | |
GROSS APPROPRIATION | $ | 48,657,700 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Appropriated from: | |||
Federal revenues: | |||
Federal funds | $ | 26,642,700 | |
Special revenue funds: | |||
Private funds | 315,700 | ||
Cervidae licensing and inspection fees | 85,100 | ||
Deer habitat reserve | 1,824,600 | ||
Forest development fund | 280,800 | ||
Game and fish protection account | 13,152,500 | ||
Nongame wildlife fund | 483,300 | ||
Pheasant hunting license fees | 175,000 | ||
Turkey permit fees | 1,099,800 | ||
Waterfowl fees | 114,100 | ||
State general fund/general purpose | $ | 4,484,100 | |
Sec. 106. FISHERIES MANAGEMENT | |||
Full-time equated classified positions | 208.5 | ||
Aquatic resource mitigation—FTEs | 2.0 | $ | 737,200 |
Fish production—FTEs | 59.0 | 11,173,300 | |
Fisheries resource management—FTEs | 147.5 | 24,084,200 | |
GROSS APPROPRIATION | $ | 35,994,700 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 12,315,800 | ||
Special revenue funds: | |||
Private funds | 136,700 | ||
Fisheries settlement | 737,100 | ||
Game and fish protection account | 21,576,600 | ||
Invasive species fund | 100 | ||
State general fund/general purpose | $ | 1,228,400 | |
Sec. 107. LAW ENFORCEMENT | |||
Full-time equated classified positions | 298.0 | ||
Body cameras for conservation officers—FTEs | 5.0 | $ | 860,700 |
General law enforcement—FTEs | 293.0 | 55,577,700 | |
GROSS APPROPRIATION | $ | 56,438,400 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 7,065,800 | ||
Special revenue funds: | |||
Cervidae licensing and inspection fees | 53,400 | ||
Forest development fund | 45,400 | ||
Forest recreation account | 72,800 | ||
Game and fish protection account | 20,180,300 | ||
Marine safety fund | 3,034,300 | ||
Michigan state parks endowment fund | 71,400 | ||
Off-road vehicle safety education fund | 175,400 | ||
Off-road vehicle trail improvement fund | 3,837,200 | ||
Snowmobile registration fee revenue | 726,800 | ||
State park improvement account | 72,800 | ||
Waterways account | 21,700 | ||
Wildlife resource protection fund | 1,176,700 | ||
State general fund/general purpose | $ | 19,904,400 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 108. PARKS AND RECREATION DIVISION | |||
Full-time equated classified positions | 1,092.0 | ||
Forest recreation and trails—FTEs | 87.0 | $ | 11,513,600 |
MacMullan Conference Center—FTEs | 15.0 | 1,267,800 | |
Michigan conservation corps | 500,100 | ||
Recreational boating—FTEs | 182.0 | 24,547,600 | |
State parks—FTEs | 808.0 | 103,410,300 | |
GROSS APPROPRIATION | $ | 141,239,400 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 144,200 | ||
Michigan state waterways fund, federal | 2,129,600 | ||
Special revenue funds: | |||
Private funds | 428,300 | ||
Forest recreation account | 6,029,500 | ||
MacMullan Conference Center account | 1,267,800 | ||
Michigan state parks endowment fund | 11,496,300 | ||
Off-road vehicle safety education fund | 8,000 | ||
Off-road vehicle trail improvement fund | 2,255,300 | ||
Pure Michigan trails fund | 100 | ||
Recreation improvement account | 590,700 | ||
Recreation passport fees | 220,300 | ||
Snowmobile registration fee revenue | 17,200 | ||
Snowmobile trail improvement fund | 2,050,000 | ||
State park improvement account | 87,412,400 | ||
State park improvement account - Belle Isle subaccount | 875,000 | ||
Waterways account | 22,444,600 | ||
State general fund/general purpose | $ | 3,870,100 | |
Sec. 109. MACKINAC ISLAND STATE PARK COMMISSION | |||
Full-time equated classified positions | 17.0 | ||
Historical facilities system—FTEs | 13.0 | $ | 1,721,500 |
Mackinac Island State Park operations—FTEs | 4.0 | 137,800 | |
GROSS APPROPRIATION | $ | 1,859,300 | |
Appropriated from: | |||
Special revenue funds: | |||
Mackinac Island State Park fund | 1,715,700 | ||
Mackinac Island State Park operation fund | 137,800 | ||
State general fund/general purpose | $ | 5,800 | |
Sec. 110. FOREST RESOURCES DIVISION | |||
Full-time equated classified positions | 356.5 | ||
Forest management and timber market development—FTEs | 219.5 | $ | 50,616,400 |
Wildfire protection—FTEs | 137.0 | 23,222,200 | |
GROSS APPROPRIATION | $ | 73,838,600 | |
Appropriated from: | |||
Federal revenues: | |||
Federal funds | 6,101,100 | ||
Federal national forest timber fund | 9,114,700 | ||
Special revenue funds: | |||
Private funds | 1,624,900 | ||
Commercial forest fund | 26,000 | ||
Fire equipment fund | 668,700 | ||
Forest development fund | 42,679,300 | ||
Forest land user charges | 247,500 | ||
Game and fish protection account | 842,300 | ||
Waterways account | 55,000 | ||
State general fund/general purpose | $ | 12,479,100 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 111. GRANTS | ||
Dam management grant program | $ | 350,000 |
Deer habitat improvement partnership initiative | 200,000 | |
Federal - clean vessel act grants | 400,000 | |
Federal - forest stewardship grants | 2,000,000 | |
Federal - rural community fire protection | 1,050,000 | |
Federal - urban forestry grants | 900,000 | |
Fisheries habitat improvement grants | 1,250,000 | |
Grants to communities - federal oil, gas, and timber payments | 3,450,000 | |
Grants to counties - marine safety | 3,074,700 | |
National recreational trails | 3,911,600 | |
Nonmotorized trail development and maintenance grants | 200,000 | |
Off-road vehicle safety training grants | 60,000 | |
Off-road vehicle trail improvement grants | 6,340,500 | |
Recreation improvement fund grants | 916,800 | |
Recreation passport local grants | 2,000,000 | |
Snowmobile law enforcement grants | 380,100 | |
Snowmobile local grants program | 7,090,400 | |
Trail easements | 700,000 | |
Wildlife habitat improvement grants | 1,502,500 | |
GROSS APPROPRIATION | $ | 35,776,600 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 13,279,000 | |
Special revenue funds: | ||
Private funds | 100,000 | |
Deer habitat reserve | 200,000 | |
Game and fish protection account | 2,752,500 | |
Local public recreation facilities fund | 2,000,000 | |
Marine safety fund | 1,407,300 | |
Off-road vehicle safety education fund | 60,000 | |
Off-road vehicle trail improvement fund | 6,340,500 | |
Permanent snowmobile trail easement fund | 700,000 | |
Recreation improvement account | 916,800 | |
Snowmobile registration fee revenue | 380,100 | |
Snowmobile trail improvement fund | 7,090,400 | |
State general fund/general purpose | $ | 550,000 |
Sec. 112. INFORMATION TECHNOLOGY | ||
Information technology services and projects | $ | 10,729,400 |
GROSS APPROPRIATION | $ | 10,729,400 |
Appropriated from: | ||
Special revenue funds: | ||
Commercial forest fund | 2,100 | |
Deer habitat reserve | 61,600 | |
Forest development fund | 1,567,700 | |
Forest land user charges | 23,900 | |
Forest recreation account | 43,900 | |
Game and fish protection account | 3,858,900 | |
Land exchange facilitation and management fund | 30,600 | |
Marine safety fund | 165,200 | |
Michigan natural resources trust fund | 24,600 | |
Michigan state parks endowment fund | 1,357,600 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Nongame wildlife fund | $ | 30,500 |
Off-road vehicle safety education fund | 10,400 | |
Off-road vehicle trail improvement fund | 38,400 | |
Pure Michigan trails fund | 100 | |
Recreation improvement account | 49,200 | |
Snowmobile registration fee revenue | 11,600 | |
Snowmobile trail improvement fund | 75,500 | |
Sportsmen against hunger fund | 600 | |
State park improvement account | 1,516,200 | |
Turkey permit fees | 33,800 | |
Waterfowl fees | 3,300 | |
Waterways account | 507,500 | |
Wildlife resource protection fund | 42,100 | |
Youth hunting and fishing education and outreach fund | 2,000 | |
State general fund/general purpose | $ | 1,272,100 |
Sec. 113. CAPITAL OUTLAY | ||
(1) RECREATIONAL LANDS AND INFRASTRUCTURE | ||
Federal - land and water conservation fund payments | $ | 12,900,000 |
Off-road vehicle trail development and maintenance | 3,000,000 | |
Snowmobile trail development and maintenance | 1,000,000 | |
State game and wildlife area infrastructure | 1,500,000 | |
State parks repair and maintenance | 21,200,000 | |
Wetland restoration, enhancement, and acquisition | 1,000,000 | |
GROSS APPROPRIATION | $ | 40,600,000 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 14,025,000 | |
Special revenue funds: | ||
Game and fish protection account | 375,000 | |
Michigan state parks endowment fund | 4,600,000 | |
Off-road vehicle trail improvement fund | 3,000,000 | |
Recreation passport fees | 15,100,000 | |
Snowmobile trail improvement fund | 1,000,000 | |
State general fund/general purpose | $ | 2,500,000 |
(2) WATERWAYS BOATING PROGRAM | ||
Local boating infrastructure maintenance and improvements | $ | 3,400,000 |
State boating infrastructure maintenance | 8,067,400 | |
GROSS APPROPRIATION | $ | 11,467,400 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 1,667,400 | |
Michigan state waterways fund, federal | 300,000 | |
Special revenue funds: | ||
Waterways account | 9,500,000 | |
State general fund/general purpose | $ | 0 |
Sec. 114. ONE-TIME APPROPRIATIONS | ||
Full-time equated classified positions | 13.8 | |
Elberta waterfront community conservation project | $ | 1,750,000 |
Fish production one-time | 2,800,000 | |
Ice storm wildfire protection | 2,000,000 | |
Nature awaits one-time—FTEs | 13.8 | 2,011,800 |
Reforestation | 2,200,000 | |
Removal and repair of high-hazard dams | 1,450,000 | |
GROSS APPROPRIATION | $ | 12,211,800 |
Appropriated from: | ||
State general fund/general purpose | $ | 12,211,800 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 from state sources under part 1 is $435,162,200.00 and total state spending under part 1 from state sources to be paid to local units of government is $10,596,800.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF NATURAL RESOURCES | ||
Dam management grant program | $ | 175,000 |
Fisheries habitat improvement grants | 125,000 | |
Grants to counties – marine safety | 1,407,300 | |
Invasive species prevention and control | 2,385,200 | |
Local boating infrastructure maintenance and improvements | 3,400,000 | |
Nonmotorized trail development and maintenance grants | 100,000 | |
Off-road vehicle safety training grants | 60,000 | |
Off-road vehicle trail improvement grants | 1,204,400 | |
Recreation improvement fund grants | 916,800 | |
Recreation passport local grants | 2,000,000 | |
Snowmobile law enforcement grants | 380,100 | |
Wildlife habitat improvement grants | 150,300 | |
TOTAL | $ | 10,596,800 |
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:
“Department” means the department of natural resources.
“Director” means the director of the department.
“FTE” means full-time equated.
“IDG” means interdepartmental grant.
“Standard report recipients” means the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 204. The department 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. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this part, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
Sec. 206. 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:
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.
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.
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.
Sec. 207. 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. 208. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, each department and agency receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel outside this state by classified and unclassified employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’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:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 of representatives appropriations committees.
Sec. 210. In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$5,000,000.00 for state restricted contingency authorization. These funds 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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 the 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 the chairpersons of the senate and house appropriations committees.
Sec. 213. (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. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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. 215. On a quarterly basis, the department or agency receiving appropriations in part 1 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 the standard report recipients.
Sec. 216. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
(2) The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
(3) The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 217. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 218. 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 report must include reference to the public act number. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules. Sec. 219. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized
to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 220. 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. 222. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 223. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 224. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $30,101,500.00. From this amount, total department appropriations for pension-related legacy costs are estimated at $27,149,700.00. Total department appropriations for retiree health care legacy costs are estimated at $2,951,800.00.
Sec. 225. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 226. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 227. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 228. Not later than November 15, the department must disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount and source of funding received, the purpose for which funding was expended, and the amount of any remaining funds, if any. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 229. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 230. (1) In addition to the money appropriated in part 1, there is appropriated, from the following state restricted funds and accounts of the Michigan conservation and recreation legacy fund, the following amounts to the following departments and officers:
Department of technology, management, and budget:
Game and fish protection account | $ | 659,600 |
Waterways account | 177,200 | |
State park improvement account | 158,300 | |
Forest development fund (b) Department of attorney general: Game and fish protection account | $ | 354,600 687,600 |
Waterways account 153,600
(c) Legislative auditor general:
Game and fish protection account | $ | 38,000 |
Waterways account (d) Department of treasury: Game and fish protection account Waterways account | $ | 13,700 3,621,700 486,800 |
Michigan natural resources trust fund 3,289,700
(2) In addition to the money appropriated in part 1, there is appropriated from the following state restricted funds to the civil service commission the amount calculated for each fund pursuant to section 5 of article XI of the state constitution of 1963:
Michigan conservation and recreation legacy fund.
Forest development fund.
Michigan natural resources trust fund.
Michigan state parks endowment fund.
Michigan nongame fish and wildlife trust fund.
Sec. 231. Pursuant to section 43703(3) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.43703, there is appropriated from the Michigan game and fish protection trust fund to the game and fish protection account of the Michigan conservation and recreation legacy fund,
$6,000,000.00 for the fiscal year ending September 30, 2026.
Sec. 232. The department may contract with or provide grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1. As used in this section, contracts and grants include, but are not limited to, contracts and grants for research, wildlife and fisheries management, forest management, invasive species monitoring and control, and natural- resource-related programs.
Sec. 233. (1) The department may accept monetary and nonmonetary gifts, bequests, donations, contributions, or grants from any private or public source to support, in whole or in part, a departmental function or program. The department shall expend or use such gifts, bequests, donations, contributions, or grants for the purposes designated by the private or public source, if the purpose is specified.
(2) Amounts remaining from revenue collected by the department under this section that are unexpended and unencumbered must not lapse to the general fund but must be carried forward to the subsequent fiscal year.
Sec. 234. Funds appropriated in part 1 must not be expended for utility scale solar or wind development projects.
COMMUNICATION AND CUSTOMER SERVICES
Sec. 240. (1) In addition to supporting the existing archeological responsibilities of the department within the Michigan History Center, the funds appropriated in part 1 for cultural resource management and cultural resource management one-time shall be utilized to establish an ongoing process of increased consultation with known lineal descendants and officials of Native American tribes on whose aboriginal lands a planned archeological activity will occur or an inadvertent discovery has been made. The consultation shall address the identification, treatment, and disposition of Native American cultural items.
(2) The department is encouraged to, whenever possible, repatriate or transfer from its collections Native American cultural items, including human remains, funerary objects, sacred objects, and objects of cultural patrimony, to the lineal descendants and to Native American tribes described in subsection (1). DEPARTMENT INITIATIVES
Sec. 251. From the amounts appropriated in part 1 for invasive species prevention and control, the department shall allocate not less than $2,400,000.00 for grants for the prevention, detection, eradication, and control of invasive species.
Sec. 252. (1) In addition to the funds appropriated in part 1, revenue deposited in the invasive species fund created in section 41311 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.41311, is appropriated and may be expended for invasive species immediate response efforts.
(2) The department shall annually notify the house and senate appropriations subcommittees on natural resources and the house and senate fiscal agencies of any expenditure of funds appropriated under subsection (1).
Sec. 253. The department shall not utilize any funding in part 1 on legal services against hunting operations concerning swine.
Sec. 254. The department shall not prohibit an individual from feeding birds or wildlife within 300 feet of a residence if feed quantity totals less than 2 gallons.
Sec. 255. State lands managed by the department shall be identified as department-managed public lands or publicly owned lands.
Sec. 256. In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$30,000,000.00 for state restricted contingency authorization if legislation is enacted to address the negative impact of inflation on the purchasing power of hunting and fishing license sales revenue. Amounts appropriated under this section 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. 257. The department shall prioritize right-of-way permits or easements for construction or maintenance of broadband facilities on state land and shall not require a centerline survey as a condition of the road right-of-way permit or easement if the applicant can provide detailed engineering plans and if the broadband facilities are contained completely in the right-of-way. If the broadband provider secures a road right-of-way permit to construct or maintain broadband facilities required by the municipal, county, or state entity that owns or controls the public road, the department shall not require the broadband provider to obtain a permit or easement if the broadband facility is contained completely within the road right-of-way. If installation of broadband facilities cannot be contained completely within the right-of-way and requires placement of the infrastructure on public lands, an easement will be required, and a certified survey may be required. If installation of broadband facilities being placed in the road right-of-way requires utilization of public lands, a permit may be required.
DEPARTMENT SUPPORT SERVICES
Sec. 302. The department may charge land acquisition projects appropriated for the fiscal year ending September 30, 2026, and for prior fiscal years, a standard percentage fee to recover actual costs, and may use the revenue derived to fund the land acquisition service charges provided for in part 1.
Sec. 303. As appropriated in part 1, the department may charge both application fees and transaction fees related to the exchange or sale of state-owned land or rights in land authorized by part 21 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.2101 to 324.2165. To the extent consistent with part 21, fees shall be set by the director at a rate that allows the department to recover its costs for providing these services.
Sec. 304. In addition to the funds appropriated in part 1, the department may receive and expend money from state restricted sources to pay vendor costs associated with administering sales of carbon offset credits. COMMUNICATION AND CUSTOMER SERVICES
Sec. 408. By December 1, the department shall submit to the senate and house appropriations subcommittees on natural resources a report on all land transactions approved by the natural resources commission in the prior fiscal year. For each land transaction, the report shall include the size of the parcel, the county and municipality in which the parcel is located, the dollar amount of the transaction, the fund source affected by the transaction, and whether the transaction is by purchase, public auction, transfer, exchange, or conveyance.
FISHERIES MANAGEMENT
Sec. 501. Funds appropriated in part 1 for fisheries resource management must not be used to designate the Little Manistee River as a natural river, as defined in part 305 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.30501 to 324.30515.
PARKS AND RECREATION DIVISION
Sec. 701. The department must provide the choice to opt in to purchasing a recreation passport.
FOREST RESOURCES DIVISION
Sec. 802. From the funds appropriated in part 1, the department shall, by January 1, prepare and submit to the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, and the standing committees of the senate and house with primary responsibility for natural resources issues a report on all of the following:
The number of acres of state forestland prepared for timber harvesting in the prior fiscal year.
The number of acres of state forestland timber sold in the prior fiscal year.
The amount of revenue generated by the timber sale and harvesting of state land in the prior fiscal year. Sec. 803. In addition to the money appropriated in part 1, the department may receive and expend money from federal sources to provide response to wildfires and hazard incidents as required by a compact with the federal government. If additional expenditure authorization is required, the department shall so notify the state budget office. The department shall notify the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittees subcommittee on agriculture and rural development and natural resources, and the house and senate fiscal agencies by November 15 of the
expenditures under this section during the prior fiscal year.
Sec. 807. (1) In addition to the funds appropriated in part 1, there is appropriated from the disaster and emergency contingency fund up to $800,000.00 to cover department costs related to any disaster as defined in section 2 of the emergency management act, 1976 PA 390, MCL 30.402.
Funds appropriated under subsection (1) shall not be expended unless the state budget director recommends the expenditure and the department notifies the house and senate committees on appropriations. By December 1 each year, the department shall provide a report to the senate and house fiscal agencies and the state budget office on the use of the disaster and emergency contingency fund during the prior fiscal year.
If Federal Emergency Management Agency (FEMA) reimbursement is approved for costs paid from the disaster and emergency contingency fund, the federal revenue shall be deposited into the disaster and emergency contingency fund.
GRANTS
Sec. 1001. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 for grants to communities - federal oil, gas, and timber payments and that do not require additional state matching funds are appropriated for the purposes intended. By November 30, the department shall report to the senate appropriations subcommittee on agriculture and natural resources, the house appropriations subcommittee on agriculture and rural development and natural resources, the senate and house fiscal agencies, and the state budget director on all amounts appropriated under this section during the prior fiscal year.
CAPITAL OUTLAY
Sec. 1103. The appropriations in part 1 for capital outlay shall be carried forward at the end of the fiscal year consistent with section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.
ONE-TIME APPROPRIATIONS
Sec. 1201. The unexpended funds appropriated in part 1 for ice storm wildfire protection are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to enhance fire suppression resources for Michigan due to increased fire risk from the northern Michigan ice storm.
The project will be accomplished by utilizing state employees, contracts, or both.
The total estimated cost of the project is $2,000,000.00.
The tentative completion date is September 30, 2029.
Sec. 1202. The unexpended funds appropriated in part 1 for reforestation are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for the reforestation of state forest lands impacted by the northern Michigan ice storm.
The project will be accomplished by utilizing state employees, contracts, or both.
The total estimated cost of the project is $2,200,000.00.
The tentative completion date is September 30, 2029.
ARTICLE 14 DEPARTMENT OF STATE POLICE
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of state police for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF STATE POLICE | |||
APPROPRIATION SUMMARY | |||
Full-time equated unclassified positions | 7.0 | ||
Full-time equated classified positions | 3,569.0 | ||
GROSS APPROPRIATION | $ | 964,186,600 | |
Interdepartmental grant revenues: | |||
Total interdepartmental grants and intradepartmental transfers | 29,030,200 | ||
ADJUSTED GROSS APPROPRIATION | $ | 935,156,400 | |
Federal revenues: | |||
Total federal revenues | 101,314,700 | ||
Special revenue funds: | |||
Total local revenues | 5,035,600 | ||
Total private revenues | 35,000 | ||
Total other state restricted revenues | 190,336,000 | ||
State general fund/general purpose | $ | 638,435,100 | |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 7.0 | ||
Full-time equated classified positions | 124.0 | ||
Unclassified salaries—FTEs | 7.0 | $ | 1,338,200 |
Department services—FTEs | 39.0 | 10,133,000 | |
Departmentwide | 48,324,700 | ||
Executive direction—FTEs | 46.0 | 8,950,000 | |
Mobile office and system support—FTEs | 39.0 | 7,437,400 | |
GROSS APPROPRIATION | $ | 76,183,300 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of transportation, state trunkline fund | 41,100 | ||
IDG from department of treasury, casino gaming fees | 423,700 | ||
IDG, training academy charges | 207,700 | ||
IDT, auto theft funds | 1,500 | ||
IDT, truck safety funds | 54,700 | ||
Federal revenues: | |||
DHS | 32,400 | ||
DOJ | 12,800 | ||
DOJ, interest bearing | 9,900 | ||
DOT | 262,600 | ||
Federal indirect funds | 2,516,300 | ||
Special revenue funds: | |||
Local funds - AFIS fees | 100 | ||
Local funds - LEIN fees | 800 | ||
Local funds - reimbursed services | 300 | ||
Local funds - school bus revenue | 7,200 | ||
Auto theft prevention fund | 31,200 | ||
Criminal justice information center service fees | 2,703,500 | ||
Drunk driving prevention and training fund | 3,200 | ||
Forensic science reimbursement fees | 52,000 | ||
Hazardous materials training center fees | 50,900 | ||
Highway safety fund | 268,600 | ||
Marihuana regulatory fund | 267,400 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Michigan justice training fund | $ | 3,700 | |
Michigan merit award trust fund | 16,500 | ||
Motor carrier fees | 355,700 | ||
Narcotics-related forfeiture revenue | 400 | ||
Nuclear plant emergency planning reimbursement | 23,900 | ||
Precision driving track fees | 800 | ||
Reimbursed services | 300 | ||
Secondary road patrol and training fund | 100 | ||
Sex offenders registration fund | 800 | ||
State forensic laboratory fund | 90,400 | ||
State police administrator and coordinator 911 fund | 25,800 | ||
State police service fees | 400 | ||
State services fee fund | 216,300 | ||
Tobacco tax revenue | 117,300 | ||
Traffic law enforcement and safety fund | 498,600 | ||
Truck driver safety fund | 1,600 | ||
Vehicle sales proceeds | 650,000 | ||
State general fund/general purpose | $ | 67,232,800 | |
Sec. 103. LAW ENFORCEMENT SERVICES | |||
Full-time equated classified positions | 622.0 | ||
Biometrics and identification—FTEs | 60.0 | $ | 12,267,700 |
Criminal justice information center—FTEs | 154.0 | 29,906,500 | |
Forensic science—FTEs | 281.0 | 51,715,800 | |
Grants and community services—FTEs | 46.0 | 24,775,500 | |
Office of school safety—FTEs | 6.0 | 1,392,800 | |
State 911 administration—FTEs | 5.0 | 1,150,500 | |
Training operations—FTEs | 70.0 | 16,507,300 | |
GROSS APPROPRIATION | $ | 137,716,100 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of state | 418,900 | ||
IDG from department of transportation, state trunkline fund | 776,400 | ||
IDG, training academy charges | 2,827,300 | ||
Intradepartmental transfers | 750,000 | ||
Federal revenues: | |||
DOJ | 15,284,900 | ||
DOJ, interest bearing | 4,018,100 | ||
DOT | 2,659,600 | ||
Special revenue funds: | |||
Local funds - SRMS fees | 919,200 | ||
Private donations | 20,000 | ||
Auto theft prevention fund | 9,008,800 | ||
Criminal justice information center service fees | 25,604,000 | ||
Drunk driving prevention and training fund | 670,100 | ||
Forensic science reimbursement fees | 1,023,700 | ||
Motor carrier fees | 145,600 | ||
Precision driving track fees | 346,900 | ||
Sex offenders registration fund | 396,100 | ||
State forensic laboratory fund | 767,600 | ||
State police administrator and coordinator 911 fund | 1,150,500 | ||
State services fee fund | 8,335,900 | ||
Student safety fund | 250,000 | ||
Traffic crash revenue | 588,300 | ||
State general fund/general purpose | $ | 61,754,200 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 104. MICHIGAN COMMISSION ON LAW ENFORCEMENT STANDARDS | |||
Full-time equated classified positions | 27.0 | ||
In-service training—FTEs | 7.0 | $ | 13,271,100 |
Justice training grants | 10,000,000 | ||
Public safety officers benefit fund—FTE | 1.0 | 303,000 | |
Standards and training—FTEs | 19.0 | 4,060,800 | |
Training only to local units | 855,000 | ||
GROSS APPROPRIATION | $ | 28,489,900 | |
Appropriated from: | |||
Federal revenues: | |||
DOJ | 280,200 | ||
Special revenue funds: | |||
Law enforcement officers training fund | 25,300 | ||
Marihuana regulatory fund | 3,390,100 | ||
Michigan justice training fund | 10,000,000 | ||
Private security licensing fees | 5,000 | ||
Retired law enforcement officer safety fund | 25,000 | ||
Secondary road patrol and training fund | 855,000 | ||
State general fund/general purpose | $ | 13,909,300 | |
Sec. 105. FIELD SERVICES | |||
Full-time equated classified positions | 2,153.0 | ||
Investigative services—FTEs | 148.5 | $ | 44,262,500 |
Post operations—FTEs | 2,004.5 | 468,866,700 | |
GROSS APPROPRIATION | $ | 513,129,200 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of transportation, state trunkline fund | 2,100 | ||
IDG from department of treasury, casino gaming fees | 6,907,500 | ||
IDT, auto theft funds | 1,163,200 | ||
Federal revenues: | |||
DOJ | 4,689,000 | ||
DOT | 2,152,000 | ||
Forfeiture revenue | 544,100 | ||
Reimbursed services, federal investigations | 4,077,500 | ||
Special revenue funds: | |||
Local funds - reimbursed services | 1,259,000 | ||
Bottle bill enforcement fund | 786,100 | ||
Highway safety fund | 10,524,700 | ||
Marihuana regulation fund | 3,447,000 | ||
Marihuana regulatory fund | 2,703,400 | ||
Michigan merit award trust fund | 866,400 | ||
Narcotics-related forfeiture revenue | 1,548,400 | ||
Nonnarcotic forfeiture revenue | 50,600 | ||
Rental of department aircraft | 900 | ||
State police service fees | 6,444,000 | ||
State services fee fund | 1,028,600 | ||
Tobacco tax revenue | 5,687,900 | ||
Traffic law enforcement and safety fund | 36,164,200 | ||
Trooper school recruitment fund | 5,073,900 | ||
State general fund/general purpose | $ | 418,008,700 | |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 106. SPECIALIZED SERVICES | |||
Full-time equated classified positions | 643.0 | ||
Commercial vehicle enforcement—FTEs | 211.0 | $ | 40,483,400 |
Emergency management and homeland security—FTEs | 64.0 | 17,399,800 | |
Hazardous materials programs—FTEs | 25.0 | 23,675,000 | |
Highway safety planning—FTEs | 25.0 | 20,554,000 | |
Intelligence operations—FTEs | 229.0 | 36,790,200 | |
Secondary road patrol program—FTE | 1.0 | 15,008,600 | |
Special operations—FTEs | 88.0 | 21,909,500 | |
GROSS APPROPRIATION | $ | 175,820,500 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of transportation, state trunkline fund | 12,761,100 | ||
IDG from department of treasury, public safety answer point training 911 fund | 100,000 | ||
Intradepartmental transfers | 2,074,300 | ||
Federal revenues: | |||
DHS | 32,287,700 | ||
DOT | 31,527,200 | ||
Special revenue funds: | |||
Local funds - school bus revenue | 1,897,300 | ||
Private donations | 15,000 | ||
Bottle bill enforcement fund | 230,000 | ||
Criminal justice information center service fees | 472,200 | ||
Hazardous materials training center fees | 749,700 | ||
Marihuana regulation fund | 257,100 | ||
Marihuana regulatory fund | 390,000 | ||
Motor carrier fees | 9,202,900 | ||
Nuclear plant emergency planning reimbursement | 2,448,800 | ||
Reimbursed services | 1,855,100 | ||
Rental of department aircraft | 51,500 | ||
Secondary road patrol and training fund | 15,008,600 | ||
State police dispatch operator 911 fund | 681,900 | ||
Truck driver safety fund | 3,976,100 | ||
State general fund/general purpose | $ | 59,834,000 | |
Sec. 107. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 30,347,600 | |
GROSS APPROPRIATION | $ | 30,347,600 | |
Appropriated from: | |||
Interdepartmental grant revenues: | |||
IDG from department of transportation, state trunkline fund | 364,700 | ||
IDG from department of treasury, casino gaming fees | 122,800 | ||
IDG, training academy charges | 11,500 | ||
Intradepartmental transfers | 21,700 | ||
Federal revenues: | |||
DHS | 119,400 | ||
DOJ | 580,400 | ||
DOT | 260,600 | ||
Special revenue funds: | |||
Local funds - AFIS fees | 80,000 | ||
Local funds - LEIN fees | 851,300 | ||
Local funds - school bus revenue | 20,400 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Auto theft prevention fund | $ | 6,200 |
Criminal justice information center service fees | 10,439,900 | |
Drunk driving prevention and training fund | 3,600 | |
Forensic science reimbursement fees | 76,500 | |
Highway safety fund | 92,400 | |
Marihuana regulatory fund | 773,700 | |
Michigan merit award trust fund | 3,400 | |
Motor carrier fees | 420,500 | |
Nuclear plant emergency planning reimbursement | 12,800 | |
Sex offenders registration fund | 228,400 | |
State forensic laboratory fund | 113,000 | |
State police administrator and coordinator 911 fund | 7,200 | |
State police dispatch operator 911 fund | 68,900 | |
State services fee fund | 84,400 | |
Tobacco tax revenue | 21,400 | |
Traffic crash revenue | 246,900 | |
Traffic law enforcement and safety fund | 119,500 | |
State general fund/general purpose | $ | 15,196,100 |
Sec. 108. ONE-TIME APPROPRIATIONS | ||
Cold case investigations | $ | 600,000 |
Law enforcement training for communicating with limited English speaking communities and those deaf and hard of hearing | 500,000 | |
Michigan public safety critical incident mapping grant | 400,000 | |
Trooper recruit schools | 1,000,000 | |
GROSS APPROPRIATION | $ | 2,500,000 |
Appropriated from: | ||
Special revenue funds: | ||
State general fund/general purpose | $ | 2,500,000 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for fiscal year ending September 30, 2026, total state spending under part 1 from state sources is $828,771,100.00 and total state spending under part 1 from state sources to be paid to local units of government is $37,371,900.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF STATE POLICE | ||
In-service training | $ | 10,616,900 |
Justice training grants | 10,000,000 | |
Law enforcement communication training | 500,000 | |
Michigan public safety critical incident mapping grant | 400,000 | |
Secondary road patrol program | 15,000,000 | |
Training only to local units | 855,000 | |
TOTAL | $ | 37,371,900 |
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:
“AFIS” means the automated fingerprint identification system.
“CJIS” means Criminal Justice Information Systems.
“Department” means the department of state police.
“DHS” means the United States Department of Homeland Security.
“Director” means the director of the department.
“DNA” means deoxyribonucleic acid.
“DOJ” means the United States Department of Justice.
“DOT” means the United States Department of Transportation.
“FTE” means full-time equated position in the classified service of this state.
“IDG” means interdepartmental grant.
“LEIN” means the law enforcement information network.
“MCOLES” means the Michigan commission on law enforcement standards created in section 3 of the Michigan commission on law enforcement standards act, 1965 PA 203, MCL 28.603.
“SIGMA” means the statewide integrated governmental management application.
“SRMS” means the state records management system.
“Standard report recipients” means the senate and house appropriations subcommittees on state police, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
Sec. 204. The department 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:
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.
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.
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.
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, each department and agency receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. 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 or agency’s budget. The department or agency 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:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportion funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
Sec. 208. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the particular department, board, commission, officer, or institution.
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 area. 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
$2,000,000.00 for federal contingency authorization. Amounts appropriated 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$4,000,000.00 for state restricted contingency authorization. Amounts appropriated 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. (1) 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:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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) 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 a local health officer.
Sec. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 shall take all reasonable steps to ensure that 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 geographically disadvantaged business enterprises for services or supplies, or both. As used in this section, “geographically disadvantaged business enterprises” means that term as defined in Executive Directive No. 2023-01.
Sec. 215. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
(2) The department shall comply with requirements set forth by the office of the state employer on in- person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
(3) The department shall adhere to civil service rules and regulations that state the standard biweekly work period for a full-time employee in the classified service of this state is the equivalent of 80.0 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed-upon business hours.
Sec. 216. On a quarterly basis, the department or agency receiving appropriations in part 1 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 standard report recipients and to the senate and house appropriations committees.
Sec. 217. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 218. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 220. 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 report must include reference to the public act that necessitates the policy change. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.
Sec. 221. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
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. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 224. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $170,365,800.00. From this amount, total appropriations for pension-related legacy costs for the department are estimated at $130,016,600.00. Total appropriations for retiree health care legacy costs for the department are estimated at $40,349,200.00.
Sec. 225. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 226. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 227. Not later than November 15, the department shall disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 228. The department shall submit a biannual report on the performance metrics cited or information required to be reported in this part, reasons for nonachievement of metric targets, and proposed corrective actions.
Sec. 229. (1) It is the intent of the legislature that the department shall take all steps necessary to protect the data and privacy of citizens who are not the focus of a departmental investigation and to protect personal information from unauthorized access or misuse. The protection required under this subsection includes, but is not limited to, all of the following:
Requiring vendors or service providers to protect data shared with them.
Ensuring that when personal data is collected, but no longer utilized by the department, that reasonable steps be taken to securely destroy records containing personal information when it is to be discarded so that the information is rendered indecipherable and is not sold for marketing or other purposes.
(2) The department shall provide written notification to any data subject whose sensitive personal information is accessed or acquired by an unauthorized person.
Sec. 230. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation.
Sec. 231. (1) The department may accept monetary and nonmonetary gifts, bequests, donations, contributions, or grants from any private or public source to support, in whole or in part, a departmental function or program. The department shall expend or use the gifts, bequests, donations, contributions, or grants accepted under this subsection for the purposes designated by the private or public source, if the purpose is specified.
Revenue collected by the department under this section that is unexpended and unencumbered must not lapse to the general fund but must be carried forward to the subsequent fiscal year.
Private revenues received under this section that exceed the appropriations in part 1 are appropriated and may be received and expended by the department for the purposes for which the funds are received.
If additional authorization is approved in SIGMA by the state budget office under this section, the department shall notify the senate and house appropriations subcommittees on state police and the senate and house fiscal agencies within 10 days after the approval. The notification must include the amount and funding source of the additional authorization, the date of the approval, and the projected use of the funds to be expended.
Sec. 232. (1) Federal revenues authorized by and available from the federal government in excess of the appropriations in part 1 are appropriated and may be received and expended by the department for purposes authorized under state law and subject to federal requirements. The total amount of federal revenues that may be received and expended under this section and section 704(3) must not exceed $750,000,000.00.
The department shall notify the standard report recipients before expending federal revenues received and appropriated under subsection (1).
If additional authorization is approved in SIGMA by the state budget office under this section, the department shall notify the senate and house appropriations subcommittees on state police and the senate and house fiscal agencies within 10 days after the approval. The notification must include the amount and funding source of the additional authorization, the date of its approval, and the projected use of the funds to be expended.
DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. The department shall notify the standard report recipients when it recommends to close or consolidate any state police post. The notification must include a local and state impact study of the proposed post closure or consolidation.
Sec. 302. If the department presents a plan to the state employer to privatize, the department shall submit a complete project plan to the standard report recipients. The plan must include the criteria under which the privatization initiative will be evaluated. The evaluation must be completed and submitted to the standard report recipients within 30 months.
Sec. 303. (1) When the department provides contractual services to a local unit of government, the department shall be reimbursed for all costs incurred in providing the services.
The department shall define service cost models for those services requiring reimbursement.
Contractual services provided to an entity other than a local unit of government may be provided by department personnel, but only on an overtime basis outside the normal work schedule of the personnel. All costs incurred in providing the services are eligible for reimbursement.
This section does not apply to services provided to state agencies.
Revenues received for contractual or reimbursed services in excess of the appropriations in part 1 are appropriated and may be received and expended by the department for the purposes for which the funds are received.
If additional authorization is approved in SIGMA by the state budget office under this section, the department shall notify the senate and house appropriations subcommittees on state police and the senate and house fiscal agencies within 10 days after the approval. The notification must include the amount and funding source of the additional authorization, the date of its approval, and the projected use of the funds to be expended.
Sec. 304. The department may establish and collect fees for publications, videos, conferences, workshops, and related materials. Fees collected under this section must be used to offset expenditures for costs of the publications, videos, workshops, conferences, and related materials. The department shall not collect fees under this section that exceed the cost of the expenditures.
Sec. 305. A law enforcement officer funded under part 1 shall not be required to issue a predetermined or specified number of citations for violations of the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, or of a local ordinance that substantially corresponds to the provisions of the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, including parking or standing violations. A law enforcement officer’s performance evaluation system must not require a predetermined or specified number of citations to be issued.
Sec. 306. From the funds appropriated in part 1, the director shall establish and maintain local headquarters in various places, and may do so by agreement, lease, or otherwise, as provided under section 7 of 1935 PA 59, MCL 28.7.
LAW ENFORCEMENT SERVICES
Sec. 401. (1) The department shall develop and deliver professional, innovative, and quality training that supports the enforcement and public safety efforts of the criminal justice community.
The department shall provide performance data, as provided under section 228, for days of training being conducted by the academy.
From the funds appropriated in part 1 for training operations, the department may provide or obtain the following training:
Training that directly relates to the individual’s job description and role within the department.
Professional development training.
Training that provides the individual with the ability to seek expanded opportunities within the department.
Advanced education training.
Not later than January 1, the department shall submit a report to the standard report recipients and to the senate and house appropriations committees that includes the following information about the funds appropriated in part 1 for training operations:
The training courses that the department’s employees completed.
If a training course is developed by the department, a description of that course’s curriculum and its purpose.
The number of the department’s employees who have received and completed training pursuant to this section.
The department shall distribute and review course evaluations to ensure that quality training is provided. Sec. 402. (1) In accordance with applicable state and federal laws and regulations, the department shall maintain and ensure compliance with CJIS databases and applications in the support of public safety and law
enforcement communities.
The department shall improve the accuracy, timeliness, and completeness of criminal history information by conducting a minimum of 30 outreach activities targeted to criminal justice agencies. The department shall report the number of these outreach activities conducted, as provided under section 228.
The department shall provide for the compilation of crime statistics consistent with the uniform crime reporting (UCR) program and the national incident-based report system (NIBRS).
The department shall provide for the compilation and evaluation of traffic crash reports and the maintenance of the state accident data collection system.
The department shall make individual traffic crash reports available for a fee of $15.00 per incident. The department may also sell an extract of electronic traffic crash data for a fee of $0.25 per incident, provided that the name, address, and any other personal identifying information have been excluded.
By March 1, the department shall submit a report to the standard report recipients detailing the number of traffic crash reports provided, the amount of revenue collected, and all expenditures incurred for activities under subsection (5) in the preceding fiscal year. The report must include an analysis of whether revenue from department activities under subsection (5) is sufficient to offset all costs incurred for those activities and must provide information regarding any deficit or surplus of revenue.
In accordance with applicable state and federal laws and regulations, the department shall provide for the maintenance and dissemination of criminal history records and juvenile records, including to the extent necessary to exchange criminal history records information with the Federal Bureau of Investigation and other states through the interstate identification index, the National Crime Information Center, and other federal CJIS databases and indices.
The department shall, in accordance with applicable state and federal laws, provide for the maintenance of records, including criminal history records regarding firearms licensure, as provided under 1927 PA 372, MCL 28.421 to 28.435.
The department shall provide information on the number of background checks processed through the internet criminal history access tool (ICHAT), as provided in section 228.
The following unexpended and unencumbered revenues deposited into the criminal justice information center service fees must not lapse to the general fund, but must be carried forward into the subsequent fiscal year:
Fees for fingerprinting and criminal record checks and name-based criminal record checks under 1935 PA 120, MCL 28.271 to 28.274.
Fees for application and licensing for initial and renewal concealed pistol licenses under 1927 PA 372, MCL 28.421 to 28.435.
Fees for searching, copying, and providing public records under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Revenue from other sources, including, but not limited to, investment and interest earnings.
Unexpended and unencumbered revenue generated by state records management system fees must not lapse to the general fund, but must be carried forward into the subsequent fiscal year.
Sec. 403. (1) The department shall provide forensic testing and analysis/profiling of DNA evidence to aid in law enforcement investigations in this state.
The department shall ensure its ability to maintain accreditation by a federally designated accrediting agency, as provided under 34 USC 12592.
The department shall provide forensic science services with an average turnaround time of 55 days, assuming an annual caseload volume commensurate with the average annual caseload received by the forensic science division during the preceding 5 fiscal years, and shall work to achieve a goal of a 30-day average turnaround time across all forensic science disciplines.
The department shall provide the following data as provided in section 228:
The average turnaround time for processing forensic evidence across all disciplines.
Forensic laboratory staffing levels, including scientists in training, and vacancies.
The number of backlogged cases in each discipline.
Sec. 404. (1) The biometrics and identification division shall maintain and manage the automated biometric identification system, statewide network of agency photographs, and combined offender DNA index system biometric databases.
The department shall provide data on the number of 10-print and palm-print submissions to the database, as provided in section 228.
The department shall maintain the staffing and resources necessary to have a 28-day average wait time for scheduling a polygraph examination, assuming an annual caseload received commensurate with the average annual caseload received during the preceding 5 fiscal years, with a goal of achieving a 15-day average wait time.
If changes are made to the department’s protocol for retaining and purging DNA analysis samples and records, the department shall post a copy of the protocol changes on the department’s website.
Sec. 405. Not later than December 1, the department shall submit a report to the standard report recipients that includes, but is not limited to, all of the following information:
Sexual assault kit analysis backlog at the beginning of the previous fiscal year.
The number of sexual assault kits collected or submitted for analysis during the previous fiscal year.
The number of sexual assault kits analyzed and the number of associated DNA profiles created and uploaded during the previous fiscal year.
Sexual assault kit analysis backlog at the end of the previous fiscal year.
The average turnaround time to analyze sexual assault kits and to create and upload associated DNA profiles for the previous fiscal year.
Sec. 406. The department shall provide administrative support for the following grant and community service programs:
The operations of the automobile theft prevention authority.
Administration of the Edward Byrne memorial justice assistance program and other grant programs, including the department’s community policing efforts.
Administration of the office of school safety.
Administration and outreach of the OK2SAY program.
Sec. 407. Not later than March 30, the office of school safety shall provide a school safety report to the legislature and the senate and house fiscal agencies that must include reports of all of the following:
The incidents of school violence or threats reported to the state police by local law enforcement or local school districts, or received through the Michigan incident crime report (MICR).
OK2SAY-based incidences and activities.
Based upon an evaluation of school safety incidents, recommendations on best practices and other safety measures to ensure school safety in this state.
Sec. 408. (1) The department shall make an organized, strategic effort to recruit, onboard, train, and outfit trooper school candidates and other new employees using the funds appropriated in part 1.
The department shall submit a report to the standard report recipients within 60 days of the conclusion of any trooper, motor carrier, or state properties security recruit school. The report must include all of the following:
The number of veterans and the number of MCOLES-certified police officers who were admitted to and the number who graduated from the recruit school.
The total number of recruits who were admitted to the recruit school, the number of recruits who graduated from the recruit school, and the location at which each of these recruits is assigned.
The department may use the funds appropriated in part 1 that represent attrition savings to offset the cost of recruiting efforts described under subsection (1).
The unexpended and unencumbered general fund/general purpose funds appropriated in part 1 for training operations must not lapse to the general fund at the end of the fiscal year but must be deposited into the trooper recruit school fund created under section 819b of the Michigan vehicle code, 1949 PA 300, MCL 257.819b.
Sec. 409. (1) From the funds appropriated in part 1, the department shall, in collaboration with the department of civil rights and MCOLES, provide the following training to local police departments or officers free of charge:
Diversity and cultural awareness and competency.
Conflict management.
Use of force on vulnerable individuals, including children, individuals with disabilities, individuals with unmet mental health needs, individuals under the influence of substances, and pregnant individuals.
Mental health and wellness for law enforcement officers.
The training provided under subsection (1) may be offered online in order to facilitate easy access and may be given by department staff, contractors, or external vendors.
On a quarterly basis, the department shall submit a report to the standard report recipients on the number of officers, by police department, that received training under this section.
Sec. 410. The department, in collaboration with the department of health and human services and the department of education, shall advise on initiatives in schools and other educational organizations that include, but are not limited to, training for educators, teachers, and other personnel in school settings for all of the following:
Utilization of trauma-informed practices.
Age-appropriate education and information on human trafficking.
Age-appropriate education and information on sexual abuse prevention.
Sec. 411. Based on the availability of federal funding and demonstrated need, as indicated by applications submitted to the state court administrative office, the department shall provide $1,500,000.00 in Byrne justice assistance grant program funding to the judiciary by interdepartmental grant.
MICHIGAN COMMISSION ON LAW ENFORCEMENT STANDARDS
Sec. 501. (1) MCOLES shall establish standards for the selection, employment, training, education, licensing, and licensure revocation of all law enforcement officers and provide the basic law enforcement training curriculum for law enforcement training academy programs statewide.
MCOLES shall maintain staffing and resources necessary to update law enforcement standards within 120 days of the enactment date of any new public acts that affect MCOLES.
From the funds appropriated in part 1, MCOLES, by March 1, shall submit a report to the standard report recipients that includes a summary of MCOLES activities during the prior calendar year. The report required under this subsection must include, but is not limited to, both of the following:
An account of the distribution of training funds administered by MCOLES.
A list of recipients that received training funds under subdivision (a) and the amount received by each recipient and for what purpose it was used.
Sec. 502. The general fund/general purpose funds appropriated in part 1 for public safety officers benefit fund must be deposited into the public safety officers benefit fund created in section 3 of the public safety officers benefit act, 2004 PA 46, MCL 28.633. The general fund/general purpose funds appropriated in part 1 for public safety officers benefit fund and deposited into the public safety officers benefit fund in accordance with section 3 of the public safety officers benefit act, 2004 PA 46, MCL 28.633, and this section must be used to increase the $25,000.00 benefit payment made to a recipient who dies or is permanently and totally disabled during the fiscal year under section 4 of the public safety officers benefit act, 2004 PA 46, MCL 28.634, to $50,000.00. All funds in the public safety officers benefit fund are appropriated and available for expenditure in accordance with section 3 of the public safety officers benefit act, 2004 PA 46, MCL 28.633.
Sec. 503. Funds appropriated in part 1 for in-service training must be deposited into the law enforcement officers training fund created in section 11(7) of the Michigan commission on law enforcement standards act, 1965 PA 203, MCL 28.611. All funds in the law enforcement officers training fund are appropriated and available for expenditure to support the implementation of required annual in-service training standards for all licensed law enforcement officers, in accordance with rules promulgated under section 11(2) of the Michigan commission on law enforcement standards act, 1965 PA 203, MCL 28.611.
FIELD SERVICES
Sec. 601. (1) Department enlisted personnel who are employed to enforce traffic laws as provided in section 629e of the Michigan vehicle code, 1949 PA 300, MCL 257.629e, are not prohibited from responding to crimes in progress or other emergency situations and are responsible for making every effort to protect all residents of this state.
The department shall maintain the staffing and resources necessary to continually work to enhance traffic safety throughout this state and shall dedicate a minimum of 455,200 hours to statewide patrol. The department shall work to improve public safety efforts within distressed cities by enhancing data analysis capabilities and identifying crime trends and areas with high occurrence of crime.
The department shall report on the number of residence checks of registered sex offenders conducted, as provided under section 228.
Sec. 602. (1) The department shall identify and apprehend criminals through criminal investigations in this state.
The department shall maintain the staffing and resources necessary to provide a comparable number of hours investigating crimes as the average annual number provided during the preceding 5 fiscal years.
The department shall maintain the staffing and resources necessary to annually meet or exceed a case clearance rate of 62%.
The department shall provide training opportunities to local law enforcement partners with the goal of increasing their knowledge of gambling laws, legal issues, opioid-related investigations, and other emerging law enforcement issues.
The department shall maintain the staffing and resources necessary to investigate the average annual number of opioid-related investigations conducted by multijurisdictional task forces and hometown security teams during the preceding 5 fiscal years. The department shall work to enhance investigative and drug interdiction efforts by enhancing data analysis capabilities and linking investigations among multijurisdictional task forces and hometown security teams.
Sec. 603. (1) The department shall provide protection to this state, its economy, welfare, and vital state- sponsored programs through the prevention and suppression of organized smuggling of untaxed tobacco products in this state, through enforcement of the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436, and other laws pertaining to combating criminal activity in this state, and by maintaining a tobacco tax enforcement unit.
(2) The department shall submit an annual report on December 1 to the standard report recipients and to the senate and house appropriations subcommittees on general government that details expenditures and activities related to tobacco tax enforcement for the previous fiscal year.
Sec. 604. The department shall provide fire investigation training and investigative assistance to public safety agencies in this state.
Sec. 605. From the funds appropriated in part 1, the department shall make an organized, strategic effort to recruit trooper school candidates and other new employees that mirror the diverse racial, religious, and cultural backgrounds that make up the communities in this state.
SPECIALIZED SERVICES
Sec. 701. (1) The department shall operate the Michigan intelligence operations center for homeland security as this state’s primary federally designated fusion center to receive, analyze, gather, and disseminate threat-related information among federal, state, local, tribal, and private sector partners.
The department shall ensure public safety by providing public and private sector partners with timely and accurate information regarding critical information key resource threats, as reported to or discovered by the Michigan intelligence operations center for homeland security, and shall increase public awareness on how to report suspicious activity through website or telephone communications.
The department shall maintain the staffing and resources necessary to support the cyber section, including the Michigan cyber command center, the computer crimes unit, and the internet crimes against children task force. The department shall maintain the staffing and resources necessary to complete the average annual number of cases completed by the computer crimes unit during the preceding 5 fiscal years. The computer crimes unit shall pursue process improvement initiatives to effectively utilize staff resources in providing investigatory assistance and evidentiary analysis for law enforcement and criminal justice agencies statewide. The department shall maintain the staffing and resources necessary to complete the average annual casework that the Michigan cyber command center completed during the preceding 5 fiscal years.
The department shall maintain the staffing and resources necessary to provide digital forensic analysis services with a goal of decreasing backlogs of digital forensic analysis cases annually until the department maintains a 60-day turnaround time.
Sec. 702. (1) The department shall provide specialized services in support of, and to enhance, local, state, and federal law enforcement operations within this state, in accordance with all applicable state and federal laws and regulations.
The department shall maintain the staffing and resources necessary to provide training to maintain readiness to respond appropriately to at least the average annual number of requests for specialty services which occurred during the preceding 5 fiscal years.
The canine unit shall be available for call out statewide 100% of the time.
The bomb squad unit shall be available for call out statewide 100% of the time.
The emergency support teams shall be available for call out statewide 100% of the time.
The marine services team shall be available for call out statewide 100% of the time.
Aviation services shall be available for call out statewide 100% of the time, unless prohibited by weather or unexpected mechanical breakdowns.
The department shall maintain the staff and resources necessary to provide security services at the State Capitol Complex facilities, the State Secondary Complex, and other state-owned or leased properties, as provided under section 6c of 1935 PA 59, MCL 28.6c. The department shall also maintain the staff and
resources necessary to respond to emergencies at the State Capitol Complex, State Secondary Complex, House Office Building, Binsfeld Office Building, Townsend Parking Ramp, Roosevelt Parking Ramp, and other areas as directed. The department shall maintain a goal of annually conducting 35,000 property inspections of state owned and leased facilities.
Sec. 703. (1) The department shall maintain commercial vehicle regulation, school bus inspections, and enforcement activities, including enforcement of requirements concerning size, weight, and load restrictions; operating authority; registration; fuel taxes; transportation of hazardous materials; new entrant operations; commercial driver licenses; and inspections pursuant to the federal motor carrier assistance program.
The department shall maintain the staffing and resources necessary to meet inspection goals consistent with the department’s federal motor carrier assistance program activities.
Revenue collected under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.42, must be expended in accordance with that act. Unexpended and unencumbered revenues must not lapse to the general fund but must be carried forward into the subsequent fiscal year.
Sec. 704. (1) The department shall coordinate the mitigation, preparation, response, and recovery activities of municipal, county, state, and federal governments, and other governmental entities, for all hazards, disasters, and emergencies.
The state director of emergency management may expend money appropriated under part 1 to call on any agency or department of this state or any resource of this state to protect life or property or to provide for the health or safety of the population in any area of this state in which the governor proclaims a state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421. The state director of emergency management may expend the amounts the director considers necessary to accomplish these purposes. The director shall submit to the state budget director, as soon as possible, a complete report of all actions taken under the authority of this section. The report must contain, as a separate item, a statement of all money expended that is not reimbursable from federal funding. The state budget director shall review the expenditures and submit recommendations to the legislature in regard to any possible need for a supplemental appropriation.
In addition to the funds appropriated in part 1, the department may receive and expend money from local, private, federal, or state sources for the purpose of providing emergency management training to local or private interests and for the purpose of supporting emergency preparedness, response, recovery, and mitigation activity. If additional expenditure authorization in SIGMA is approved by the state budget office under this section, the department and the state budget office shall notify the senate and house appropriations subcommittees on state police and the senate and house fiscal agencies within 10 days after the approval. The notification must include the amount and source of the additional authorization, the date of its approval, and the projected use of the funds to be expended under the authorization. The total amount of federal revenues that may be received and expended under this section and section 232 must not exceed
$750,000,000.00.
The department shall foster, promote, and maintain partnerships to protect this state and homeland from all hazards.
The department shall maintain the staffing and resources necessary to do all of the following:
Serve approximately 105 local emergency management preparedness programs and 88 local emergency planning committees in this state.
Operate and maintain the state’s emergency operations center and provide command and control in support of emergency response services.
Maintain readiness, including training and equipment to respond to civil disorders and natural disasters commensurate with the capabilities of fiscal year 2010-2011.
Perform hazardous materials response training.
The department shall conduct a minimum of 3 training sessions to enhance safe response in the event of natural or manmade incidents, emergencies, or disasters.
In addition to the funds appropriated in part 1, there is appropriated from the disaster and emergency contingency fund an amount necessary to cover costs related to any disaster or emergency as defined in the emergency management act, 1976 PA 390, MCL 30.401 to 30.421. Funds must be expended as provided under sections 18 and 19 of the emergency management act, 1976 PA 390, MCL 30.418 and 30.419, and R 30.51 to R 30.61 of the Michigan Administrative Code.
If, in a particular month, expenditures are made from the disaster and emergency contingency fund, the department shall submit a report for that month to the senate and house fiscal agencies detailing the purpose of the expenditures. The monthly report required under this subsection must be submitted within 30 days after the end of the month during which funds from the disaster and emergency contingency fund were expended.
The department shall track and report on a biannual basis, as provided in section 228 of this part, the status of the department’s assessment of critical infrastructure vulnerabilities, including the protection status of critical infrastructure items identified by the assessment. The department is not required to report any information that could compromise the security of any critical infrastructure.
Revenue collected by the department under this section for the emergency management and homeland security training center that is unexpended and unencumbered at the end of the fiscal year must not lapse to the general fund, but must be carried forward into the subsequent fiscal year.
Sec. 705. The department shall provide for the planning, administration, and implementation of highway traffic safety programs to save lives and reduce injuries on roads in this state, in partnership with other public and private organizations.
Sec. 706. (1) Funds appropriated in part 1 for the secondary road patrol program must be used to provide grants to sheriffs under the secondary road patrol program described under section 76 of 1846 RS 14, MCL 51.76.
(2) The sheriffs’ duties under the secondary road patrol program, as outlined in section 76(2) of 1846 RS 14, MCL 51.76, are to do all of the following:
Patrol and monitor traffic violations.
Enforce the criminal laws of this state, violations of which are observed by or brought to the attention of the sheriff’s department while patrolling and monitoring secondary roads.
Investigate accidents involving motor vehicles.
Provide emergency assistance to persons on or near a highway or road the sheriff is patrolling and monitoring.
Sec. 707. The department shall serve as an active liaison between the department of technology, management, and budget and state, local, regional, and federal public safety agencies on matters pertaining to the Michigan public safety communications system and shall report user issues to the department of technology, management, and budget.
ONE-TIME APPROPRIATIONS
Sec. 801. (1) From the funds appropriated in part 1 for cold case investigations, the department shall create and administer a competitive grant program that provides grants not to exceed $200,000.00 to Michigan universities that operate a cold case program. As used in this section, “cold case program” means an academic program administered by a university that provides, but is not limited to, workforce development training related to criminal investigation tactics, forensic science and law, and review of cold homicide and missing persons cases.
The department shall not approve a grant application under this section if a university does not satisfy either of the following:
The university has operated a cold case program with the department for over a year as of October 1, 2024.
The university will begin a cold case program with the department not later than October 1, 2026.
Funds disbursed under this section must be used only for programmatic and operational expenses of the university’s cold case program.
Sec. 802. (1) From the funds appropriated in part 1 for law enforcement training for communication with limited English speaking communities and those deaf and hard of hearing, the department grants and community services division shall create and administer a block grant program to support training provided by an entity holding an oral transliteration certificate. The oral transliteration certificate must be held by an officer, board member, or principal of the entity and must be held for at least 1 year. Any training course provided for under this section must be certified by the International Accreditors for Continuing Education and Training. The purpose of the grant is to train officers to better assist in their communication with members of the public who experience a language barrier or may be hard of hearing or deaf.
The unexpended funds appropriated in part 1 for law enforcement training for communication with limited English speaking communities and those deaf and hard of hearing 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 for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.145a:
The purpose of the project is the training of law enforcement officers.
The project will be accomplished by utilizing contracts with service providers.
The estimated cost of this project is $500,000.00.
The tentative completion date for the work project is September 30, 2029.
The department may use the funds appropriated in part 1 for law enforcement training for communicating with limited English speaking communities and those deaf and hard of hearing for costs associated with the administration and oversight of the block grant program.
Sec. 803. (1) From the funds appropriated in part 1 for Michigan public safety critical incident mapping grant, the department shall create and administer a competitive grant program to assist counties in their development of critical incident mapping. An individual grant to a county must not exceed $25,000.00 and a county is only eligible to only receive up to 3 individual grants.
A county that is awarded a grant under this section shall only use the funds only to implement critical incident mapping that satisfies all of the following:
Is compatible with platforms and applications used by local, state, and federal public safety officials.
Does not require the purchase of additional software for use.
Is provided in a printable format.
Is verified for accuracy through a walk-through of a building and grounds.
Is oriented true north.
Includes accurate floor plan information overlaid on current aerial imagery of a building.
Includes site-specific labeling that matches the structure of the building, including room labels, hallway names, external door or stairwell numbers, locations of hazards, key utility locations, key boxes, automated external defibrillators, and trauma kits.
Includes site-specific labeling that matches the building grounds, including parking areas, athletic fields, surrounding roads, and neighboring properties.
Includes a gridded overlay with x/y coordinates.
Includes information that best assists first responders in an emergency, including, but not limited to, the following information:
Building numbers.
Floors.
Suite designations.
Room numbers.
Other available relevant location information for each building.
The department shall make grant payments to counties under this section on a schedule as determined by the department.
ARTICLE 15
STATE TRANSPORTATION DEPARTMENT PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the state transportation department for the fiscal year ending September 30, 2026, from the following funds:
DEPARTMENT OF TRANSPORTATION | ||
APPROPRIATION SUMMARY | ||
Full-time equated unclassified positions | 6.0 | |
Full-time equated classified positions | 3,202.3 | |
GROSS APPROPRIATION | $ | 7,889,495,800 |
Total interdepartmental grants and intradepartmental transfers | 4,366,200 | |
ADJUSTED GROSS APPROPRIATION | $ | 7,885,129,600 |
Federal revenues: | ||
Total federal revenues | 2,329,605,500 | |
Special revenue funds: | ||
Total local revenues | 87,448,500 | |
Total private revenues | 20,500,000 | |
Total other state restricted revenues | 5,447,575,600 | |
State general fund/general purpose | $ | 0 |
Sec. 102. DEBT SERVICE | ||
Airport safety and protection plan | $ | 3,618,200 |
Blue Water Bridge fund | 3,320,300 | |
Economic development | 234,300 | |
Local bridge fund | 77,300 | |
State trunkline | 333,554,100 | |
GROSS APPROPRIATION | $ | 340,804,200 |
Appropriated from: | ||
Blue Water Bridge fund | 3,320,300 | |
Economic development fund | 234,300 | |
Local bridge fund | 77,300 | |
State aeronautics fund | 3,618,200 | |
State trunkline fund | 333,554,100 | |
State general fund/general purpose | $ | 0 |
For Fiscal Year Ending Sept. 30, 2026 | |||
Sec. 103. INTERDEPARTMENTAL GRANTS | |||
CTF grant to civil service commission | $ | 225,300 | |
CTF grant to department of attorney general | 111,500 | ||
CTF grant to department of technology, management, and budget | 40,300 | ||
CTF grant to department of treasury | 54,900 | ||
CTF grant to legislative auditor general | 48,500 | ||
MTF grant to department of environment, Great Lakes, and energy | 2,202,200 | ||
MTF grant to department of state for collection of revenue and fees | 20,000,000 | ||
MTF grant to department of treasury | 3,761,300 | ||
MTF grant to legislative auditor general | 393,900 | ||
SAF grant to civil service commission | 140,000 | ||
SAF grant to department of attorney general | 196,400 | ||
SAF grant to department of technology, management, and budget | 28,600 | ||
SAF grant to department of treasury | 72,200 | ||
SAF grant to legislative auditor general | 38,100 | ||
STF grant to civil service commission | 7,160,100 | ||
STF grant to department of attorney general | 2,236,500 | ||
STF grant to department of state police | 13,945,400 | ||
STF grant to department of technology, management, and budget | 1,235,100 | ||
STF grant to department of treasury | 167,000 | ||
STF grant to legislative auditor general | 914,900 | ||
GROSS APPROPRIATION | $ | 52,972,200 | |
Appropriated from: | |||
Comprehensive transportation fund | 480,500 | ||
Michigan transportation fund | 26,357,400 | ||
State aeronautics fund | 475,300 | ||
State trunkline fund | 25,659,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 104. DEPARTMENTAL ADMINISTRATION AND SUPPORT | |||
Full-time equated unclassified positions | 6.0 | ||
Full-time equated classified positions | 310.3 | ||
Unclassified salaries—FTE positions | 6.0 | $ | 993,200 |
Asset management council | 2,299,900 | ||
Business support services—FTEs | 75.0 | 13,174,900 | |
Commission audit—FTEs | 29.3 | 4,929,800 | |
Economic development and enhancement programs—FTEs | 11.0 | 1,897,500 | |
Finance, contracts, and support services—FTEs | 195.0 | 28,214,200 | |
Property management | 9,682,100 | ||
Worker’s compensation | 1,720,000 | ||
GROSS APPROPRIATION | $ | 62,911,600 | |
Appropriated from: | |||
IDG for accounting service center user charges | 4,366,200 | ||
Comprehensive transportation fund | 1,884,400 | ||
Economic development fund | 413,800 | ||
Michigan transportation fund | 5,080,600 | ||
State aeronautics fund | 746,500 | ||
State trunkline fund | 50,420,100 | ||
State general fund/general purpose | $ | 0 | |
Sec. 105. INFORMATION TECHNOLOGY | |||
Information technology services and projects | $ | 42,299,500 | |
GROSS APPROPRIATION | $ | 42,299,500 | |
Appropriated from: | |||
Federal aid - transportation programs | 520,500 | ||
Blue Water Bridge fund | 58,500 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Comprehensive transportation fund | $ | 238,200 | |
Economic development fund | 39,400 | ||
Michigan transportation fund | 311,200 | ||
State aeronautics fund | 185,700 | ||
State trunkline fund | 40,946,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 106. TRANSPORTATION PLANNING | |||
Full-time equated classified positions | 144.0 | ||
Planning services—FTEs | 144.0 | $ | 45,371,600 |
Grants to regional planning councils | 488,800 | ||
GROSS APPROPRIATION | $ | 45,860,400 | |
Appropriated from: | |||
Federal aid - transportation programs | 26,000,000 | ||
Comprehensive transportation fund | 359,900 | ||
Michigan transportation fund | 11,338,200 | ||
State aeronautics fund | 30,800 | ||
State trunkline fund | 8,131,500 | ||
State general fund/general purpose | $ | 0 | |
Sec. 107. DESIGN AND ENGINEERING SERVICES | |||
Full-time equated classified positions | 1,657.3 | ||
Business services—FTEs | 47.8 | 11,846,500 | |
Program development and delivery—FTEs | 1,046.5 | 135,554,900 | |
System operations management—FTEs | 563.0 | 119,754,200 | |
GROSS APPROPRIATION | $ | 267,155,600 | |
Appropriated from: | |||
Federal aid - transportation programs | 23,529,800 | ||
Comprehensive transportation fund | 187,100 | ||
Michigan transportation fund | 19,624,800 | ||
State trunkline fund | 223,813,900 | ||
State general fund/general purpose | $ | 0 | |
Sec. 108. HIGHWAY MAINTENANCE | |||
Full-time equated classified positions | 908.7 | ||
State trunkline operations—FTEs | 908.7 | $ | 503,716,400 |
GROSS APPROPRIATION | $ | 503,716,400 | |
Appropriated from: | |||
State trunkline fund | 503,716,400 | ||
State general fund/general purpose | $ | 0 | |
Sec. 109. ROAD AND BRIDGE PROGRAMS | |||
Cities and villages | $ | 989,893,600 | |
County road commissions | 1,790,859,100 | ||
Grants to local programs | 33,000,000 | ||
Local agency wetland mitigation bank fund | 2,000,000 | ||
Local bridge program | 126,417,100 | ||
Local federal aid and road and bridge construction | 428,999,800 | ||
Movable bridge fund | 6,309,000 | ||
Rail grade crossing | 3,000,000 | ||
Rail grade crossing - surface improvements | 3,000,000 | ||
State trunkline federal aid and road and bridge construction | 1,851,212,700 | ||
Rail grade separation fund | 40,000,000 | ||
GROSS APPROPRIATION | $ | 5,274,691,300 | |
Appropriated from: | |||
Federal aid - transportation programs | 1,744,266,200 | ||
For Fiscal Year Ending Sept. 30, 2026 | |||
Local funds | $ | 30,003,500 | |
Private funds | 10,000,000 | ||
Blue Water Bridge fund | 32,757,700 | ||
Local bridge fund | 26,417,100 | ||
Michigan transportation fund | 2,135,501,700 | ||
State trunkline fund | 463,185,100 | ||
Neighborhood road fund | 832,560,000 | ||
State general fund/general purpose | $ | 0 | |
Sec. 110. BLUE WATER BRIDGE | |||
Full-time equated classified positions | 47.0 | ||
Blue Water Bridge operations—FTEs | 47.0 | $ | 7,908,600 |
GROSS APPROPRIATION | $ | 7,908,600 | |
Appropriated from: | |||
Blue Water Bridge fund | 7,908,600 | ||
State general fund/general purpose | $ | 0 | |
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT | |||
Forest roads | 5,000,000 | ||
Rural county primary | 10,547,600 | ||
Rural county urban system | 2,500,000 | ||
Targeted industries/economic development | 24,595,300 | ||
Urban county congestion | 10,547,600 | ||
GROSS APPROPRIATION | $ | 53,190,500 | |
Appropriated from: | |||
Economic development fund | 53,190,500 | ||
State general fund/general purpose | $ | 0 | |
Sec. 112. AERONAUTICS SERVICES | |||
Full-time equated classified positions | 48.0 | ||
Air service program | 50,000 | ||
Aviation services—FTEs | 48.0 | 7,848,300 | |
GROSS APPROPRIATION | $ | 7,898,300 | |
Appropriated from: | |||
State aeronautics fund | 7,898,300 | ||
State general fund/general purpose | $ | 0 | |
Sec. 113. PUBLIC TRANSPORTATION SERVICES | |||
Full-time equated classified positions | 46.0 | ||
Passenger transportation services—FTEs | 46.0 | $ | 7,410,900 |
GROSS APPROPRIATION | $ | 7,410,900 | |
Appropriated from: | |||
Federal aid - transportation programs | 2,000,000 | ||
Comprehensive transportation fund | 5,410,900 | ||
State general fund/general purpose | $ | 0 | |
Sec. 114. LOCAL BUS TRANSIT | |||
Local bus operating | $ | 271,607,300 | |
Nonurban operation/capital | 41,123,000 | ||
GROSS APPROPRIATION | $ | 312,730,300 | |
Appropriated from: | |||
Federal aid - transportation programs | 39,123,000 | ||
Local funds | 2,000,000 | ||
Comprehensive transportation fund | 271,607,300 | ||
State general fund/general purpose | $ | 0 | |
Sec. 115. INTERCITY PASSENGER | |||
Full-time equated classified positions | 41.0 | ||
Detroit/Wayne County Port Authority | $ | 600,000 | |
Freight property management | 1,300,000 | ||
For Fiscal Year Ending Sept. 30, 2026 | ||
Intercity services | $ | 10,189,700 |
Marine passenger service | 20,559,100 | |
Office of rail—FTEs | 41.0 | 7,485,900 |
Rail operations and infrastructure | 149,388,500 | |
GROSS APPROPRIATION | $ | 189,523,200 |
Appropriated from: | ||
Federal aid - transportation programs | 54,362,700 | |
Local funds | 760,000 | |
Private funds | 4,500,000 | |
Comprehensive transportation fund | 120,807,400 | |
Intercity bus equipment fund | 45,400 | |
Michigan transportation fund | 2,211,800 | |
Rail freight fund | 6,000,000 | |
State trunkline fund | 835,900 | |
State general fund/general purpose | $ | 0 |
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT | ||
Municipal credit program | $ | 2,000,000 |
Service initiatives | 20,992,300 | |
Specialized services | 30,342,700 | |
Transit capital | 247,793,500 | |
Van pooling | 400,000 | |
Infrastructure projects authority fund | 65,000,000 | |
GROSS APPROPRIATION | $ | 366,528,500 |
Appropriated from: | ||
Federal aid - transportation programs | 169,803,300 | |
Local funds | 37,185,000 | |
Private funds | 4,000,000 | |
Comprehensive transportation fund | 90,540,200 | |
Neighborhood road fund | 65,000,000 | |
State general fund/general purpose | $ | 0 |
Sec. 117. CAPITAL OUTLAY | ||
(1) BUILDINGS AND FACILITIES | ||
Salt storage buildings and containment control | $ | 3,000,000 |
Special maintenance, remodeling, and additions | 5,000,500 | |
GROSS APPROPRIATION | $ | 8,000,500 |
Appropriated from: | ||
State trunkline fund | 8,000,500 | |
State general fund/general purpose | $ | 0 |
(2) AIRPORT IMPROVEMENT PROGRAMS | ||
Airport safety, protection and improvement program | $ | 189,045,000 |
Detroit Metropolitan Wayne County Airport | 13,020,000 | |
IIJA airport infrastructure grants | 115,000,000 | |
GROSS APPROPRIATION | $ | 317,065,000 |
Appropriated from: | ||
Federal aid - transportation programs | 270,000,000 | |
Local funds | 17,500,000 | |
Private funds | 2,000,000 | |
Qualified airport fund | 13,020,000 | |
State aeronautics fund | 14,545,000 | |
State general fund/general purpose | $ | 0 |
Sec. 118. ONE-TIME APPROPRIATIONS | ||
Road user charge study and pilot program | 7,650,000 | |
Maritime and port fund | 5,294,700 | |
Railroad heritage preservation program | 5,294,700 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Non-motorized public transportation/trails | $ | 5,294,700 |
Deposit to state aeronautics fund general aviation | 5,294,700 | |
GROSS APPROPRIATION | $ | 28,828,800 |
Appropriated from: | ||
Comprehensive transportation fund | 21,178,800 | |
Michigan transportation fund | 7,650,000 | |
State general fund/general purpose | $ | 0 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026
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 $5,447,575,600.00 and state spending under part 1 from state sources to be paid to local units of government is $3,384,739,600.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
STATE TRANSPORTATION DEPARTMENT | ||
Grants to regional planning councils | $ | 488,800 |
Cities and villages | 989,893,600 | |
County road commissions | 1,790,859,100 | |
Grants to local programs | 33,000,000 | |
Local bridge program | 126,417,100 | |
Local agency wetland mitigation | 2,000,000 | |
Movable bridge | 3,154,500 | |
Rail grade crossing | 1,500,000 | |
Rail grade surface crossing improvements | 3,000,000 | |
Forest roads | 5,000,000 | |
Rural county primary | 10,547,600 | |
Rural county urban system | 2,500,000 | |
Target industries/economic redevelopment | 15,249,100 | |
Urban county congestion | 10,547,600 | |
Air service program | 50,000 | |
Local bus operating | 271,607,300 | |
Detroit/Wayne County Port Authority | 600,000 | |
Marine passenger service | 2,000,000 | |
Municipal credit program | 2,000,000 | |
Service initiatives | 7,288,300 | |
Specialized services | 13,000,000 | |
Transit capital | 70,782,700 | |
Airport safety, protection, and improvement program | 10,233,900 | |
Detroit Metropolitan Wayne County Airport | 13,020,000 | |
Total payments to local units of government | $ | 3,384,739,600 |
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:
“CTF” means comprehensive transportation fund.
“Department” means the state transportation department.
“DOT-FHWA” means DOT, Federal Highway Administration.
“FTE” means full-time equated.
“IDG” means interdepartmental grant.
“IIJA” means the infrastructure investment and jobs act, 2021, Public Law 117-58.
“MTF” means Michigan transportation fund.
“SAF” means state aeronautics fund.
“Standard report recipients” means the senate and house appropriations subcommittees on transportation, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.
“STF” means state trunkline fund.
Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement shall include transmission of reports via email to the recipients identified for each reporting requirement, or it shall include placement of 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:
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.
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.
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.
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, each department and agency receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel outside this state by classified and unclassified employees in the previous fiscal year that was funded in whole or in part with funds appropriated in the department’s or agency’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:
The dates of each travel occurrence.
The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.
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 programs 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
$500,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$40,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$1,000,000.00 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.
In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$11,000,000.00 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. (1) A department or agency 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 each department or agency:
Fiscal year-to-date expenditures by category.
Fiscal year-to-date expenditures by appropriation unit.
Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.
(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.
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. 214. (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 a local health officer.
Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 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 or 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 or agency receiving appropriations in part 1 shall report on the number of FTE positions in pay status by civil service classification, including a comparison by line item of the number of FTE positions authorized from funds appropriated in part 1 to the actual number of FTE 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. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state law and 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. 220. 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 report must include a reference to the public act that necessitates the policy change. The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.
Sec. 222. Not later than 6 months after the state budget office issues work project letters, the department shall submit an annual report that summarizes all work project accounts. The report must include all of the following:
A list of all work project accounts.
The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.
The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.
Sec. 226. (1) The department shall maximize utilization of its in-person state workforce. The department shall prioritize occupancy utilization of office space for each division within the department. Employees with job responsibilities that require the employees to serve in their capacities outside of an office shall be monitored each pay period to ensure all work hours reported on the timesheet were actually worked.
The department shall comply with requirements set by the office of the state employer on in-person work and utilization and occupancy rates of state buildings to ensure in-person work is optimized and occupancy rates are 80% or higher, subject to market conditions.
The department shall adhere to the rules and regulations of civil service, which state that the standard biweekly work period for a full-time employee in the classified service is the equivalent of 80 hours of work. The department shall establish policies and processes to ensure all employees are working their jobs during agreed on business hours.
Sec. 227. A department or agency required to submit a report under this part shall make each report readily accessible to the public and conspicuously post each required report in a single archivable location on the department’s or agency’s Michigan.gov website not later than the due date required for each report. In addition to placing all reports required in the current fiscal year on the department’s or agency’s website, the department or agency shall maintain on its website all reports placed on the website from previous fiscal years posted by fiscal year in the same single archivable location.
Sec. 228. (1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agrees to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.
The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall submit a report to the standard report recipients not later than March 1 that describes the processes it has developed and implemented under this section.
As used in this section, “E-Verify” means an internet-based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.
Sec. 232. The department must provide an annual report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:
Affect the operations of the department, including reductions in federal revenue.
Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.
Create a regulatory gap that could negatively impact the public.
Sec. 234. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $41,805,400.00. From this amount, total department appropriations for pension-related legacy costs are estimated at $37,705,900.00. Total department appropriations for retiree health care legacy costs are estimated at $4,099,500.00.
Sec. 235. Not later than April 1, the department shall provide to the standard report recipients a copy of its annual strategic plan prepared in compliance with section 363 of the management and budget act, 1984 PA 431, MCL 18.1363. The plan must include the mission, vision, goals, strategies, and performance measures of the department.
Sec. 236. The department shall report on any court settlement that may require further legislative review of state statutory programs or regulations.
Sec. 237. Not later than November 15, the department must disclose on a publicly accessible website private and other third-party funds received by the department in the previous fiscal year. The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.
Sec. 239. (1) Not later than 30 days after enactment of this act, the legislature shall provide to the department and the state budget director a list of legislatively directed spending items, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
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.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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.
Disburse the grant money 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.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
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 money expended by the grant recipient, as determined by the department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
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.
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 audit 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The department shall include in the report the most comprehensive information the department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money 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, which may include referral for criminal investigation. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. The department may establish a fee schedule and collect fees sufficient to cover the costs to issue the permits that the department is authorized by law to issue on request, unless otherwise stipulated by law. All permit fees are nonrefundable application fees and must be credited to the appropriate fund to recover the direct and indirect costs of receiving, reviewing, and processing the requests.
Sec. 304. If, as a requirement of bidding on a highway project, the department requires a contractor to submit financial or proprietary documentation as to how the bid was calculated, the department shall keep that bid documentation confidential and shall not disclose that bid documentation other than to a department representative without the contractor’s written consent. The department may disclose the bid documentation if necessary to address or defend a claim by a contractor.
Sec. 306. (1) The amounts appropriated in part 1 to support tax and fee collection, law enforcement, and other program services provided to the department and to transportation funds by other state departments must be expended from transportation funds pursuant to annual contracts between the department and those other state departments. The contracts must be executed before the expenditure or obligation of those funds. The contracts must provide, but are not limited to, the following data applicable to each state department:
Estimated costs to be recovered from transportation funds.
Description of services provided to the department and/or transportation funds and financed with transportation funds.
Detailed cost allocation methods appropriate to the type of services being provided and the activities financed with transportation funds.
(2) Not later than 2 months after publication of the state of Michigan annual comprehensive financial report, each state department receiving funding pursuant to an interdepartment contract with the department shall submit a written report to the department, the state budget director, the senate and house fiscal agencies, and the auditor general stating by spending authorization account the amount of estimated funds contracted with the department, the amount of funds expended, the amount of funds returned to the transportation funds, and any unreimbursed transportation-related costs incurred but not billed to transportation funds.
Sec. 307. Before March 1, the department shall provide to the legislature, the state budget director, and the senate and house fiscal agencies its rolling 5-year plan listing by county or by county road commission all highway construction projects for the fiscal year and all expected projects for the ensuing fiscal years.
Sec. 309. (1) Notwithstanding any other law, a state contract for a pavement marking project or for the purchase of materials for a pavement marking project must include in the contract a requirement that, in any yellow water-based paint product procured, all yellow pigments permanently incorporated in the material must be manufactured in the United States according to the rules of origin under the United States-Mexico- Canada agreement, Public Law 116-113.
(2) It is the intent of the legislature to use cement manufactured in the United States according to the rules of origin under the United States-Mexico-Canada agreement, Public Law 116-113.
Sec. 310. The department shall post in a timely manner copies of the agenda, approved minutes, and audio recording of state transportation commission meetings.
Sec. 311. (1) The department shall prepare a report on all of the following:
CRRSAA – highway infrastructure – local bridge bundling initiative established in section 113(2) of article 14 of 2021 PA 87.
Local bridge bundling initiative established in section 118 of article 15 of 2023 PA 119.
The report must identify the status of bridge projects selected, funds expended under the program, and funds remaining.
The report shall be submitted to the standard report recipients on or before March 30, 2026.
Sec. 312. By March 31, the department shall report to the senate and house appropriations subcommittees on transportation, the senate and house fiscal agencies, and the state budget office on the utilization of department properties, including, but not limited to, salt storage facilities, garages, and regional offices.
Sec. 313. (1) From funds appropriated in part 1, the department may increase a state infrastructure bank program and grant or loan funds in accordance with regulations of the state infrastructure bank program of the United States Department of Transportation. The department shall administer the state infrastructure bank for the purpose of providing a revolving, self-sustaining resource for financing transportation infrastructure projects.
In addition to funds provided in subsection (1), money received by this state as federal grants, repayment of state infrastructure bank loans, or other reimbursement or revenue received by this state as a result of projects funded by the program and interest earned on that money must be deposited in the revolving state infrastructure bank fund and must be available for transportation infrastructure projects. At the close of the fiscal year, any unencumbered funds remaining in the state infrastructure bank fund remain in the fund and carry forward into the succeeding fiscal year.
The department shall prepare a report on the status of the state infrastructure bank and submit the report to the standard report recipients on or before December 31, 2025. The report must include all of the following:
The balance in the state infrastructure bank on September 30, 2025, including a breakdown of the balance by cash and cash equivalents, outstanding loans, and balance available for loan to local agencies.
A breakdown of the state infrastructure loan balance by amounts originating from federal sources and the amounts originating from nonfederal sources.
A list of outstanding loans by agency, original loan amount, project description, loan term, and amount outstanding.
Sec. 314. (1) The MI contracting opportunity loan fund is created within the state treasury.
Funds deposited into the MI contracting opportunity loan fund originally created in section 1003 of article 15 of 2024 PA 121 or money received by the state as repayment of loans or interest earned on loan funds is appropriated and shall be available for future loans.
At the close of the fiscal year, any unencumbered funds remaining in the fund shall be carried forward into the succeeding fiscal year.
Sec. 315. The department shall use any additional funds in the moveable bridge fund to cover other costs for any required local federal bridge load analysis, inspection, or other local federal mandate.
Sec. 383. (1) The department shall prepare a report on the use of department-owned aircraft during the fiscal year ending September 30, 2025. With respect to each department-owned aircraft, the report must include all of the following:
Total hours of usage.
Description of specific flights, including dates of travel, names of passengers, including state agency, university, or local government affiliation, travel origin and destination, and total estimated costs associated with the air travel.
The department shall submit the report as required under section 205 no later than February 1, 2026.
The department shall maintain a system for recovering the cost of operating department-owned aircraft through charges to aircraft users.
Sec. 384. (1) Except as otherwise provided in subsection (2), the department shall not obligate this state to expend any state transportation revenue for construction planning or construction of the Gordie Howe International Crossing or a renamed successor. In addition, except as provided in subsection (2), the department shall not commit this state to any new contract related to the construction planning or construction of the Gordie Howe International Crossing or a renamed successor that would obligate this state to expend any state transportation revenue. An expenditure for staff resources used in connection with project activities that is subject to full and prompt reimbursement from Canada is not considered an expenditure of state transportation revenue.
If the legislature enacts specific enabling legislation for the construction of the Gordie Howe International Crossing or a renamed successor, subsection (1) does not apply once the enabling legislation goes into effect.
Sec. 385. (1) The department shall submit monthly reports to the standard report recipients, the speaker of the house of representatives, the house of representatives minority leader, the senate majority leader, and the senate minority leader on all of the following:
All expenditures made by this state related to the Gordie Howe Bridge.
All reimbursements made by Canada under section 384(1) of this part to this state for expenditures for staff resources used in connection with project activities.
All eminent domain and condemnation powers used, the related real estate involved in any governmental taking, the price paid for those properties, and the beneficiary’s name or associated corporation.
(2) The department shall submit the initial report required under subsection (1) on or before December 1. The initial report must cover the prior fiscal year.
Sec. 388. From the funds appropriated in part 1, the department shall not expend any state funds or other resources in support of federal United States Department of Transportation grant 693JJ22440000Y430MI24A0815.
Sec. 389. (1) Within 30 days after entering into a long-term agreement with a private contractor, a public agency, or a partnership between 1 or more private contractors or public agencies, the department shall notify the state budget director, the senate and house appropriations subcommittees on transportation, and the senate and house fiscal agencies of the agreement, including the subject of the agreement, the term of the agreement, and financial obligations under the agreement.
(2) As used in this section, “long-term agreement” means an agreement that obligates the department for a period of 5 years or more and that actually or contingently obligates the department to make payments over the contract period of $10,000,000.00 or more.
Sec. 394. The department and local road agencies shall make the preservation of their existing road networks a funding priority.
Sec. 395. From the funds appropriated in part 1 for state trunkline federal aid road and bridge construction, the department may expend up to $10,000,000.00 on highway maintenance activities to support safety- related, high-priority, and other deferred routine maintenance needs on the state trunkline network.
Sec. 398. The department shall continue to work to eliminate fatalities and serious injuries on the state trunkline network and shall maintain the Toward Zero Deaths statewide safety campaign.
Sec. 399. In developing its state trunkline road and bridge construction program, the department shall prioritize spending on capital preventative maintenance.
MICHIGAN TRANSPORTATION FUND
Sec. 501. The money received under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.42, and not appropriated to the department of licensing and regulatory affairs or the department of state police is deposited in the Michigan transportation fund.
Sec. 503. (1) At the close of the fiscal year, funds appropriated in part 1 for the transportation economic development program shall lapse to the transportation economic development fund.
At the close of the fiscal year, funds appropriated in part 1 for the local bridge program shall carry forward and are appropriated for the purposes defined in section 10(5) of 1951 PA 51, MCL 247.660.
Interest earned in the transportation economic development fund and local bridge fund shall remain in the respective funds and shall be allocated to the respective programs based on actual interest earned at the end of each fiscal year.
In addition to the funds appropriated in part 1, the transportation economic development fund and local bridge fund may receive federal, local, or private funds or restricted source funds such as interest earnings. These funds are appropriated for projects that are consistent with the purposes of the respective funds.
None of the funds statutorily dedicated to the transportation economic development fund and local bridge fund shall be diverted to other projects.
Sec. 504. Funds from the Michigan transportation fund must be distributed to the comprehensive transportation fund, the economic development fund, the recreation improvement fund, and the state trunkline fund, in accordance with this part and part 1 and part 711 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101 to 324.71108, and may only be used as specified in this part and part 1, 1951 PA 51, MCL 247.651 to 247.675, and part 711 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.71101 to 324.71108.
STATE TRUNKLINE FUND
Sec. 604. At the close of the fiscal year, any unencumbered and unexpended balance in the state trunkline fund remains in the state trunkline fund and carries forward and is appropriated for federal aid road and bridge programs for projects contained in the annual state transportation program.
TRANSIT AND RAIL RELATED FUNDS
Sec. 701. The department shall establish an intercity bus equipment and facility fund as a subsidiary fund within the comprehensive transportation fund created under section 10b of 1951 PA 51, MCL 247.660b. Proceeds received by this state from the sale of state-owned intercity bus equipment must be credited to the intercity bus equipment and facility fund for the purchase and repair of intercity bus equipment, as appropriated. Security deposits not returned to a lessee of state-owned intercity bus equipment under terms of the lease agreement must be credited to the intercity bus equipment and facility fund for the repair of intercity bus equipment, as appropriated. Money received by the department from lease payments for state- owned intercity bus equipment, and facility maintenance charges under terms of leases of state-owned intercity facilities, must be credited to the intercity bus equipment and facility fund for the purchase and repair of intercity bus equipment or for the maintenance and rehabilitation of state-owned intercity facilities, as appropriated. At the close of the fiscal year, any funds remaining in the intercity bus equipment and facility fund remain in the fund and are carried forward into the succeeding fiscal year.
Sec. 702. Money that is received by this state as repayment for loans made for rail or water freight capital projects, and as a result of the sale of property or equipment used or projected to be used for rail or water freight projects must be deposited in the rail freight fund created by section 17 of the state transportation preservation act of 1976, 1976 PA 295, MCL 474.67. At the close of the fiscal year, any funds remaining in the rail freight fund remain in the fund and are carried forward into the succeeding fiscal year.
Sec. 704. From the funds appropriated in part 1, the department shall prepare and transmit a report that provides detail regarding the department’s obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure. The report shall include a breakdown of the appropriation by program, year-to-date obligations under each program itemized by project, and an estimate of future obligations under each program itemized by project for the remainder of the fiscal year. The report shall also include a listing of all active rail related federal grants. The initial report shall be submitted to the standard report recipients on or before March 1. The department also shall update and resubmit a final report on or before September 30. Sec. 705. After receiving notification from a railroad company pursuant to section 8 of the state transportation preservation act of 1976, 1976 PA 295, MCL 474.58, the department shall immediately notify the senate and house appropriations subcommittees on transportation and the state budget office that the
railroad company has filed with the appropriate governmental agencies for abandonment of a line.
Sec. 707. (1) Before March 1, 2026, the department shall provide to the legislature, the state budget office, and the senate and house fiscal agencies its rail strategic plan. The strategic plan must include, but is not limited to, a rolling 5-year rail plan and a summary of the department’s obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure.
The rolling 5-year rail plan must include, but is not limited to, all of the following:
A listing by county of all rail infrastructure projects on rail lines within this state utilizing state funds, and the estimated cost of each project.
The actual or projected state expenditures for operation of passenger rail service.
The actual or projected state expenditures for maintenance of passenger service rail lines.
The period of the rolling 5-year rail plan must include the fiscal year ending September 30, 2026 and the immediately following 4 fiscal years.
The summary of the department’s obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure must include a breakdown of the appropriation by program, year-to- year obligations under each program itemized by project, and an estimate of future obligations under each program itemized by project for the remainder of the fiscal year.
From the funds appropriated in part 1 for rail operation and infrastructure, not less than $20,000,000.00 must be allocated for the support of rail-related economic development projects and rail freight system preservation projects.
Sec. 720. It is the intent of the legislature that all transit agencies in this state should strive to achieve a farebox recovery rate of not less than 6%.
Sec. 721. The part 1 appropriation for maritime and port fund must be credited to the maritime and port facility assistance fund created in section 7 of the maritime and port facility assistance grant program act, 2022 PA 159, MCL 120.157
Sec. 723. The part 1 appropriation for nonmotorized public transportation/trails shall be used to establish and maintain a system of trails in this state for nonmotorized use.
Sec. 724. The part 1 appropriation for deposit to state aeronautics fund general aviation shall be credited to the state aeronautics fund created in the aeronautics code of the state of Michigan, 1945 PA 327, MCL
259.1 to 259.208 and used for capital improvements and air service improvements at general aviation airports in this state.
Sec. 735. For the fiscal year ending September 30, 2026, the appropriation to a street railway pursuant to section 10e(22) of 1951 PA 51, MCL 247.660e, is $0.
Sec. 753. From the funds appropriated in part 1 for the railroad heritage preservation program, the department shall establish a railroad heritage preservation program to provide funding to organizations for the promotion of railroading in this state with a focus on Michigan railroad history. The department shall administer the program as a competitive grant program. Applicants must be qualified tax exempt organizations under section 501(c)(3) of the internal revenue code of 1986, 26 USC 501. Grants must be awarded only for capital infrastructure repair or rehabilitation.
AERONAUTICS FUND
Sec. 801. Except as otherwise provided in section 903 of this part for capital outlay, at the close of the fiscal year, any unobligated and unexpended balance in the state aeronautics fund created in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208, lapses to the state aeronautics fund and may be appropriated by the legislature in the immediately succeeding fiscal year.
Sec. 802. From the funds appropriated in part 1 for aviation services, the department shall retain and maintain air service between Marquette and Lansing with priority service as follows:
Emergencies.
Routine travel for elected state officials.
Other uses.
CAPITAL OUTLAY
Sec. 901. (1) From federal-state-local project appropriations contained in part 1 for the purpose of assisting political entities and subdivisions of this state in the construction and improvement of publicly used airports and landing fields within this state, the state transportation department may permit the award of contracts on behalf of units of local government for the authorized locations not to exceed the indicated amounts, of which the state allocated portion must not exceed the amount appropriated in part 1.
Political entities and subdivisions shall provide not less than 5% of the cost of any project under this section, unless a total nonfederal share less than 10% is otherwise specified in federal law. State money must not be allocated until local money is allocated. State money for any 1 project must not exceed 1/3 of the total appropriation in part 1 from state funds for airport improvement programs.
The Michigan aeronautics commission may take those steps necessary to match federal money available for airport construction and improvement within this state and to meet the matching requirements of the federal government. Whether acting alone or jointly with another political subdivision or public agency or with this state, a political subdivision or public agency of this state shall not submit to any agency of the federal government a project application for airport planning or development unless it is authorized in this part and part 1 and the project application is approved by the governing body of each political subdivision or public agency making the application and by the Michigan aeronautics commission.
Sec. 903. The appropriations in part 1 for capital outlay are carried forward at the end of the fiscal year consistent with the provisions of section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.
ONE-TIME APPROPRIATIONS
Sec. 1005. (1) No later than December 31, 2025, the department shall begin a road usage charge study and pilot program as described in this section. The total cost of the road usage charge study and pilot program must not exceed $7,650,000.00.
No later than 90 days after the effective date of this act, the department must create a road usage charge technical advisory committee. All of the following apply to the technical advisory committee:
Meetings of the technical advisory committee must be held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
The purpose of the technical advisory committee is to guide the development and evaluation of a road usage charge study and pilot program to assess the potential and positive and negative findings for mileage- based revenue collection for this state’s roads and highways as an alternative to the fuel tax system.
The technical advisory committee may include members of the department, private industry, and interested stakeholders.
The technical advisory committee must study road usage charge alternatives to the fuel tax. The technical advisory committee must gather public comment on issues and concerns related to the road usage charge study and pilot program and must make recommendations to the director on the design of a road usage charge study to test alternative road usage charge approaches. The technical advisory committee may also make recommendations on the criteria to be used to evaluate the road usage charge study.
The technical advisory committee shall consult with highway users and transportation stakeholders, including representatives of vehicle users, vehicle manufacturers, and fuel distributors, as part of its duties under subdivision (d).
It is the intent of the legislature that the road usage charge study and pilot program be completed by December 31, 2026 and the department must prepare and submit a report of its finding based on the results of the road usage charge study and pilot program to the governor, the senate and house appropriations committees, the senate and house subcommittees on transportation, the senate and house fiscal agencies, the technical advisory committee, and the public. The report must also be available on the department’s website.
Funds appropriated in part 1 for road user charge study and pilot program shall be expended for a road usage charge study and pilot program and are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to fund a road usage charge study and pilot program.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $7,650,000.00.
The tentative completion date is December 31, 2026.
As used in this section, “technical advisory committee” means the road usage charge technical advisory committee.
ARTICLE 16
SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2024-2025 PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the various state departments and agencies, the judicial branch, and the legislative branch for the fiscal year ending September 30, 2025, from the following funds:
APPROPRIATION SUMMARY | ||
Full-time equated classified positions | 8.0 | |
GROSS APPROPRIATION | $ | 2,570,902,400 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 1,101,300 | |
ADJUSTED GROSS APPROPRIATION | $ | 2,569,801,100 |
Federal revenues: | ||
Total federal revenues | 1,358,630,300 | |
Special revenue funds: | ||
Total local revenues | 1,123,900 | |
Total private revenues | 2,185,800 | |
Total other state restricted revenues | 453,471,000 | |
ARP – HCBS match revenue – state general fund/general purpose | $ | 54,894,000 |
State general fund/general purpose | $ | 699,496,100 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 102. DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 1,000,000 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 1,000,000 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 1,000,000 | |
State general fund/general purpose | $ | 0 |
(2) FOOD SAFETY AND ANIMAL HEALTH | ||
Food safety and quality assurance | $ | 1,000,000 |
GROSS APPROPRIATION | $ | 1,000,000 |
Appropriated from: | ||
Special revenue funds: | ||
Dairy and food safety fund | 1,000,000 | |
State general fund/general purpose | $ | 0 |
Sec. 103. DEPARTMENT OF ATTORNEY GENERAL | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 62,000 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 62,000 | |
ADJUSTED GROSS APPROPRIATION | $ | 0 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 0 |
(2) ATTORNEY GENERAL OPERATIONS | ||
Operations | $ | 62,000 |
GROSS APPROPRIATION | $ | 62,000 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG from MDSP, Michigan justice training fund | 62,000 | |
State general fund/general purpose | $ | 0 |
Sec. 104. DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 175,704,000 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 175,704,000 |
Federal revenues: | ||
Total federal revenues | 154,822,200 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 20,725,000 | |
State general fund/general purpose | $ | 156,800 |
For Fiscal Year Ending Sept. 30, 2026 | ||
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | ||
Executive direction | $ | 2,281,000 |
Local community grants | 129,104,400 | |
GROSS APPROPRIATION | $ | 131,385,400 |
Appropriated from: | ||
Federal revenues: | ||
Inflation reduction act | 131,385,400 | |
State general fund/general purpose | $ | 0 |
(3) WATER RESOURCES DIVISION | ||
Federal - Great Lakes remedial action plan grants | $ | 1,080,000 |
Great Lakes restoration initiative | 18,061,800 | |
Water resource programs | 1,675,000 | |
GROSS APPROPRIATION | $ | 20,816,800 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 5,500,000 | |
Inflation reduction act | 700,000 | |
Infrastructure investment and jobs act fund | 14,616,800 | |
State general fund/general purpose | $ | 0 |
(4) REMEDIATION AND REDEVELOPMENT DIVISION | ||
Contaminated site remediation and redevelopment programs | $ | 15,000,000 |
GROSS APPROPRIATION | $ | 15,000,000 |
Appropriated from: | ||
Special revenue funds: | ||
Clean Michigan initiative, response activities | 15,000,000 | |
State general fund/general purpose | $ | 0 |
(5) MATERIALS MANAGEMENT DIVISION | ||
Energy programs | $ | 7,305,000 |
Material management programs | 400,000 | |
GROSS APPROPRIATION | $ | 7,705,000 |
Appropriated from: | ||
Federal revenues: | ||
Inflation reduction act | 1,980,000 | |
Special revenue funds: | ||
Energy efficiency and renewable energy revolving loan fund | 5,325,000 | |
Environmental pollution prevention fund | 400,000 | |
State general fund/general purpose | $ | 0 |
(6) ONE-TIME APPROPRIATIONS | ||
Americorps and office of climate and energy | $ | 796,800 |
GROSS APPROPRIATION | $ | 796,800 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 640,000 | |
State general fund/general purpose | $ | 156,800 |
Sec. 105. DEPARTMENT OF HEALTH AND HUMAN SERVICES | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 1,143,415,700 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 727,200 | |
ADJUSTED GROSS APPROPRIATION | $ | 1,142,688,500 |
Federal revenues: | ||
Total federal revenues | 202,896,000 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Special revenue funds: | ||
Total local revenues | $ | 1,123,900 |
Total private revenues | 1,435,800 | |
Total other state restricted revenues | 386,331,700 | |
ARP – HCBS match revenue – state general fund/general purpose | $ | 54,894,000 |
State general fund/general purpose | $ | 496,007,100 |
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | ||
Demonstration projects | $ | (7,070,800) |
Demonstration projects | 7,070,800 | |
Property management | 1,643,700 | |
GROSS APPROPRIATION | $ | 1,643,700 |
Appropriated from: | ||
Federal revenues: | ||
Social security act, temporary assistance for needy families | 0 | |
Capped federal revenues | 0 | |
Total other federal revenues | 378,100 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
State general fund/general purpose | $ | 1,265,600 |
(3) CHILD SUPPORT ENFORCEMENT | ||
Child support enforcement operations | $ | 3,424,700 |
GROSS APPROPRIATION | $ | 3,424,700 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 3,424,700 | |
State general fund/general purpose | $ | 0 |
(4) COMMUNITY SERVICES AND OUTREACH | ||
Community services block grant | $ | 11,330,600 |
Homeless programs | 277,800 | |
GROSS APPROPRIATION | $ | 11,608,400 |
Appropriated from: | ||
Federal revenues: | ||
Capped federal revenues | 11,330,600 | |
Total other federal revenues | 277,800 | |
State general fund/general purpose | $ | 0 |
(5) CHILDREN’S SERVICES AGENCY - CHILD WELFARE | ||
Adoption subsidies | $ | (352,400) |
Child care fund | 3,389,600 | |
Children’s trust fund | 128,700 | |
Foster care payments | 23,371,500 | |
Guardianship assistance program | 151,700 | |
GROSS APPROPRIATION | $ | 26,689,100 |
Appropriated from: | ||
Federal revenues: | ||
Social security act, temporary assistance for needy families | (593,900) | |
Capped federal revenues | 128,700 | |
Total other federal revenues | 2,230,500 | |
Special revenue funds: | ||
Local funds - county chargeback | 1,497,600 | |
State general fund/general purpose | $ | 23,426,200 |
For Fiscal Year Ending Sept. 30, 2026 | ||
(6) PUBLIC ASSISTANCE | ||
Family independence program | $ | (5,384,900) |
Food assistance program benefits | (625,818,000) | |
State disability assistance payments | (440,600) | |
State supplementation | (406,900) | |
GROSS APPROPRIATION | $ | (632,050,400) |
Appropriated from: | ||
Federal revenues: | ||
Social security act, temporary assistance for needy families | (4,176,000) | |
Total other federal revenues | (625,818,000) | |
Special revenue funds: | ||
Child support collections | (732,900) | |
Public assistance recoupment revenue | 198,300 | |
Supplemental security income recoveries | 456,800 | |
State general fund/general purpose | $ | (1,978,600) |
(7) LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES | ||
Nutrition education | $ | 23,000,000 |
GROSS APPROPRIATION | $ | 23,000,000 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 23,000,000 | |
State general fund/general purpose | $ | 0 |
(8) DISABILITY DETERMINATION SERVICES | ||
Disability determination operations | $ | (1,643,700) |
GROSS APPROPRIATION | $ | (1,643,700) |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | (1,478,200) | |
State general fund/general purpose | $ | (165,500) |
(9) BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL PROJECTS | ||
Community substance use disorder prevention, education, and treatment | $ | 565,800 |
Family support subsidy | (7,100) | |
GROSS APPROPRIATION | $ | 558,700 |
Appropriated from: | ||
Federal revenues: | ||
Social security act, temporary assistance for needy families | (7,100) | |
Special revenue funds: | ||
Total other state restricted revenues | 565,800 | |
State general fund/general purpose | $ | 0 |
(10) BEHAVIORAL HEALTH SERVICES | ||
Autism services | $ | 96,359,100 |
Certified community behavioral health clinic demonstration | 28,288,700 | |
Health homes | (178,700) | |
Healthy Michigan plan - behavioral health | 62,923,200 | |
Medicaid mental health services | 237,459,800 | |
Medicaid substance use disorder services | (3,332,200) | |
GROSS APPROPRIATION | $ | 421,519,900 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 310,210,000 | |
Special revenue funds: | ||
Total local revenues | (246,900) | |
Total other state restricted revenues | 14,539,500 | |
State general fund/general purpose | $ | 97,017,300 |
For Fiscal Year Ending Sept. 30, 2026 | ||
(11) STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES | ||
Caro Regional Mental Health Center - psychiatric hospital - adult | $ | 4,800,000 |
Center for forensic psychiatry | 800,000 | |
Kalamazoo Psychiatric Hospital - adult | 2,600,000 | |
Walter P. Reuther Psychiatric Hospital - adult, children, and adolescents | (4,200,000) | |
GROSS APPROPRIATION | $ | 4,000,000 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total other state restricted revenues | 4,000,000 | |
State general fund/general purpose | $ | 0 |
(12) HEALTH AND HUMAN SERVICES POLICY AND INITIATIVES | ||
Domestic violence prevention and treatment | $ | 893,800 |
GROSS APPROPRIATION | $ | 893,800 |
Appropriated from: | ||
Federal revenues: | ||
Capped federal revenues | 893,800 | |
State general fund/general purpose | $ | 0 |
(13) EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND LABORATORY | ||
Emergency medical services program | $ | 750,000 |
Epidemiology administration | 500,000 | |
Laboratory services | 1,227,200 | |
GROSS APPROPRIATION | $ | 2,477,200 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG from department of environment, Great Lakes, and energy | 727,200 | |
Federal revenues: | ||
Total other federal revenues | 1,250,000 | |
Special revenue funds: | ||
Total other state restricted revenues | 500,000 | |
State general fund/general purpose | $ | 0 |
(14) LOCAL HEALTH AND ADMINISTRATIVE SERVICES | ||
Essential local public health services | $ | 5,000,000 |
Local health services | 300,000 | |
GROSS APPROPRIATION | $ | 5,300,000 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 300,000 | |
Special revenue funds: | ||
Total local revenues | 5,000,000 | |
State general fund/general purpose | $ | 0 |
(15) FAMILY HEALTH SERVICES | ||
Dental programs | $ | 380,800 |
Immunization program | (779,000) | |
GROSS APPROPRIATION | $ | (398,200) |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 380,800 | |
Special revenue funds: | ||
Total other state restricted revenues | (779,000) | |
State general fund/general purpose | $ | 0 |
For Fiscal Year Ending Sept. 30, 2026 | ||
(16) CHILDREN’S SPECIAL HEALTH CARE SERVICES | ||
Bequests for care and services | $ | 300,000 |
Children’s special health care services administration | 450,000 | |
Medical care and treatment | 100,035,200 | |
GROSS APPROPRIATION | $ | 100,785,200 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 60,170,400 | |
Special revenue funds: | ||
Total private revenues | (8,700) | |
Total other state restricted revenues | 139,000 | |
State general fund/general purpose | $ | 40,484,500 |
(17) AGING SERVICES | ||
Community services | $ | 0 |
GROSS APPROPRIATION | $ | 0 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | (221,600) | |
State general fund/general purpose | $ | 221,600 |
(18) HEALTH AND AGING SERVICES ADMINISTRATION | ||
Health services administration | $ | 2,837,000 |
GROSS APPROPRIATION | $ | 2,837,000 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 1,418,500 | |
State general fund/general purpose | $ | 1,418,500 |
(19) HEALTH SERVICES | ||
Adult home help services | $ | 2,414,100 |
Ambulance services | 162,500 | |
Auxiliary medical services | (366,300) | |
Dental services | 10,514,300 | |
Federal Medicare pharmaceutical program | (761,300) | |
Federally qualified health centers | (102,704,100) | |
Health plan services | 197,949,800 | |
Healthy Michigan plan | (49,416,100) | |
Home health services | 758,800 | |
Hospice services | 13,393,900 | |
Hospital services and therapy | 38,458,000 | |
Integrated care organizations | 12,262,200 | |
Long-term care services | 226,763,000 | |
Maternal and child health | 6,593,900 | |
Medicaid home- and community-based services waiver | 57,584,100 | |
Medicare premium payments | 88,171,400 | |
Personal care services | (803,100) | |
Pharmaceutical services | 12,429,900 | |
Physician services | (18,933,600) | |
Plan first | 50,200 | |
Program of all-inclusive care for the elderly | 3,569,600 | |
Recuperative care | 100 | |
School-based services | 6,119,100 | |
Special Medicaid reimbursement | 21,120,100 | |
Transportation | (4,388,800) | |
GROSS APPROPRIATION | $ | 520,941,700 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | $ | 346,138,800 |
Special revenue funds: | ||
Total local revenues | (5,120,100) | |
Total private revenues | 1,444,500 | |
Total other state restricted revenues | 117,444,200 | |
State general fund/general purpose | $ | 61,034,300 |
(20) INFORMATION TECHNOLOGY | ||
Bridges information system | $ | 5,610,500 |
Information technology services and projects | (5,610,500) | |
GROSS APPROPRIATION | $ | 0 |
Appropriated from: | ||
Federal revenues: | ||
Capped federal revenues | 0 | |
Total other federal revenues | 6,700 | |
Special revenue funds: | ||
Total local revenues | (6,700) | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 0 |
(21) ONE-TIME APPROPRIATIONS | ||
ARP - home- and community-based services projects fund | $ | 54,894,000 |
ARP - strengthen public health infrastructure, workforce, data system | 9,962,900 | |
Federal COVID emerging infections program | 2,688,500 | |
Federal COVID epidemiology and laboratory capacity | 61,000,000 | |
Health services grants | 13,000,000 | |
Medicaid health plan services | 100,000,000 | |
Prenatal and infant support program | 250,000,000 | |
State psychiatric DSH disallowance | 160,283,200 | |
GROSS APPROPRIATION | $ | 651,828,600 |
Appropriated from: | ||
Federal revenues: | ||
Total other federal revenues | 73,651,400 | |
Special revenue funds: | ||
Total other state restricted revenues | 250,000,000 | |
ARP – HCBS match revenue – state general fund/general purpose | $ | 54,894,000 |
State general fund/general purpose | $ | 273,283,200 |
Sec. 106. JUDICIARY | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 328,300 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 12,100 | |
ADJUSTED GROSS APPROPRIATION | $ | 316,200 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 271,100 | |
State general fund/general purpose | $ | 45,100 |
(2) JUSTICES’ AND JUDGES’ COMPENSATION | ||
Circuit court judges’ state base salaries | $ | 202,500 |
Circuit court judicial salary standardization | 68,600 | |
Judges’ retirement system defined contributions | 24,400 | |
OASI, social security | 20,700 | |
GROSS APPROPRIATION | $ | 316,200 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
Special revenue funds: | ||
Court fee fund | 271,100 | |
State general fund/general purpose | $ | 45,100 |
(3) ONE-TIME APPROPRIATIONS | ||
Status offender pilot program | $ | 12,100 |
GROSS APPROPRIATION | $ | 12,100 |
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDG from department of health and human services | 12,100 | |
State general fund/general purpose | $ | 0 |
Sec. 107. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY | ||
(1) APPROPRIATION SUMMARY | ||
Full-time equated classified positions | 8.0 | |
GROSS APPROPRIATION | $ | 287,810,700 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 287,810,700 |
Federal revenues: | ||
Total federal revenues | 146,840,400 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 2,500,000 | |
State general fund/general purpose | $ | 138,470,300 |
(2) WORKFORCE DEVELOPMENT | ||
Community and worker economic transition office | $ | 22,653,100 |
Michigan office of rural prosperity | 350,000 | |
GROSS APPROPRIATION | $ | 23,003,100 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 23,003,100 | |
State general fund/general purpose | $ | 0 |
(3) REHABILITATION SERVICES | ||
Michigan rehabilitation services | $ | 35,000,000 |
GROSS APPROPRIATION | $ | 35,000,000 |
Appropriated from: | ||
Federal revenues: | ||
DED, vocational rehabilitation and independent living | 35,000,000 | |
State general fund/general purpose | $ | 0 |
(4) EMPLOYMENT SERVICES | ||
Full-time equated classified positions | 8.0 | |
First responder presumed coverage claims | $ | 2,500,000 |
Wage and hour program—FTEs | 8.0 | 0 |
GROSS APPROPRIATION | $ | 2,500,000 |
Appropriated from: | ||
Special revenue funds: | ||
First responder presumed coverage fund | 2,500,000 | |
State general fund/general purpose | $ | 0 |
(5) ONE-TIME APPROPRIATIONS | ||
Community development block grant - disaster recovery | $ | 43,570,000 |
Community enhancement grants | 12,900,000 | |
Legislatively directed spending items | 120,000,000 | |
For Fiscal Year Ending Sept. 30, 2026 | ||
Michigan rehabilitation services | $ | 9,467,300 |
Michigan Works! skills scholarships | (1,000,000) | |
Michigan Works! skills scholarships | 1,000,000 | |
Transmission siting and economic development program | 35,800,000 | |
Unemployment insurance agency | 5,570,300 | |
GROSS APPROPRIATION | $ | 227,307,600 |
Appropriated from: | ||
Federal revenues: | ||
DED, vocational rehabilitation and independent living | 9,467,300 | |
Federal funds | 35,800,000 | |
HUD-CPD, community development block grant | 43,570,000 | |
State general fund/general purpose | $ | 138,470,300 |
Sec. 108. LEGISLATURE | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 6,000,000 |
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 6,000,000 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 6,000,000 |
(2) ONE-TIME APPROPRIATIONS | ||
Senate | $ | 3,000,000 |
House of representatives | 3,000,000 | |
GROSS APPROPRIATION | $ | 6,000,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 6,000,000 |
Sec. 109. DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 5,453,600 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 5,453,600 |
Federal revenues: | ||
Total federal revenues | 3,053,600 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 2,400,000 | |
State general fund/general purpose | $ | 0 |
(2) OCCUPATIONAL REGULATION | ||
Bureau of construction codes | $ | 5,453,600 |
GROSS APPROPRIATION | $ | 5,453,600 |
Appropriated from: | ||
Federal revenues: | ||
DOE-OEERE, multiple grants | 3,053,600 | |
Special revenue funds: | ||
Mobile home code fund | 2,400,000 | |
State general fund/general purpose | $ | 0 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 110. DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 38,267,100 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 38,267,100 |
Federal revenues: | ||
Total federal revenues | 37,517,100 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 750,000 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 0 |
(2) OFFICE OF EARLY CHILDHOOD EDUCATION | ||
Child development and care public assistance | $ | 37,517,100 |
Office of great start operations | 750,000 | |
GROSS APPROPRIATION | $ | 38,267,100 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 37,517,100 | |
Special revenue funds: | ||
Private foundations | 750,000 | |
State general fund/general purpose | $ | 0 |
(3) ONE-TIME APPROPRIATIONS | ||
After-school programming extension | $ | (300,000) |
After-school programming extension | 300,000 | |
GROSS APPROPRIATION | $ | 0 |
Appropriated from: | ||
State general fund/general purpose | $ | 0 |
Sec. 111. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 0 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 0 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 0 |
(2) MILITARY | ||
National Guard tuition assistance fund | $ | (4,547,300) |
GROSS APPROPRIATION | $ | (4,547,300) |
Appropriated from: | ||
State general fund/general purpose | $ | (4,547,300) |
(3) CAPITAL OUTLAY | ||
MVFA - land and acquisitions | $ | 4,547,300 |
GROSS APPROPRIATION | $ | 4,547,300 |
Appropriated from: | ||
State general fund/general purpose | $ | 4,547,300 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Sec. 112. DEPARTMENT OF NATURAL RESOURCES | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 40,030,700 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 40,030,700 |
Federal revenues: | ||
Total federal revenues | 3,917,500 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 21,500,000 | |
State general fund/general purpose | $ | 14,613,200 |
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT | ||
Finance and operations | $ | 380,400 |
GROSS APPROPRIATION | $ | 380,400 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 380,400 | |
State general fund/general purpose | $ | 0 |
(3) COMMUNICATION AND CUSTOMER SERVICE | ||
Michigan historical center | $ | 209,300 |
GROSS APPROPRIATION | $ | 209,300 |
Appropriated from: | ||
Federal funds | 209,300 | |
State general fund/general purpose | $ | 0 |
(4) WILDLIFE MANAGEMENT | ||
Wildlife management | $ | 500,000 |
GROSS APPROPRIATION | $ | 500,000 |
Appropriated from: | ||
Special revenue funds: | ||
Game and fish protection fund | 500,000 | |
State general fund/general purpose | $ | 0 |
(5) FISHERIES MANAGEMENT | ||
Fisheries resource management | $ | 1,100,000 |
GROSS APPROPRIATION | $ | 1,100,000 |
Appropriated from: | ||
Special revenue funds: | ||
Game and fish protection fund | 1,100,000 | |
State general fund/general purpose | $ | 0 |
(6) FOREST RESOURCES DIVISION | ||
Forest management and timber market development | $ | 827,800 |
GROSS APPROPRIATION | $ | 827,800 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 827,800 | |
State general fund/general purpose | $ | 0 |
(7) RECREATIONAL LANDS AND INFRASTRUCTURE | ||
Dam infrastructure projects | $ | 2,500,000 |
Fisheries infrastructure | 1,400,000 | |
State game and wildlife area infrastructure | 1,000,000 | |
State parks repair and maintenance | 15,000,000 | |
GROSS APPROPRIATION | $ | 19,900,000 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
Special revenue funds: | ||
Game and fish protection fund | $ | 4,900,000 |
Park improvement fund | 15,000,000 | |
State general fund/general purpose | $ | 0 |
(8) ONE-TIME APPROPRIATIONS | ||
Arctic Grayling fish passage | $ | 2,500,000 |
Decree negotiations | 613,200 | |
Northern Michigan ice storm | 14,000,000 | |
GROSS APPROPRIATION | $ | 17,113,200 |
Appropriated from: | ||
Federal revenues: | ||
Federal funds | 2,500,000 | |
State general fund/general purpose | $ | 14,613,200 |
Sec. 113. DEPARTMENT OF STATE | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 9,583,500 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 9,583,500 |
Federal revenues: | ||
Total federal revenues | 9,583,500 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 0 |
(2) ELECTION REGULATION | ||
Help America vote act | $ | 9,583,500 |
GROSS APPROPRIATION | $ | 9,583,500 |
Appropriated from: | ||
Federal revenues: | ||
Help America vote act - election security | 9,583,500 | |
State general fund/general purpose | $ | 0 |
Sec. 114. DEPARTMENT OF STATE POLICE | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 855,546,800 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 300,000 | |
ADJUSTED GROSS APPROPRIATION | $ | 855,246,800 |
Federal revenues: | ||
Total federal revenues | 800,000,000 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 16,793,200 | |
State general fund/general purpose | $ | 38,453,600 |
(2) LAW ENFORCEMENT SERVICES | ||
Biometrics and identification | $ | 1,100,000 |
Criminal justice information center | 3,000,000 | |
Forensic science | 3,800,000 | |
Grants and community services | 3,250,000 | |
Training operations | 300,000 | |
GROSS APPROPRIATION | $ | 11,450,000 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Appropriated from: | ||
Interdepartmental grant revenues: | ||
IDT, Michigan justice training fund | $ | 300,000 |
Special revenue funds: | ||
Auto theft prevention fund | 3,250,000 | |
Criminal justice information center service fees | 4,100,000 | |
State services fee fund | 3,800,000 | |
State general fund/general purpose | $ | 0 |
(3) FIELD SERVICES | ||
Post operations | $ | 31,096,800 |
GROSS APPROPRIATION | $ | 31,096,800 |
Appropriated from: | ||
Special revenue funds: | ||
Highway safety fund | 715,200 | |
Traffic law enforcement and safety fund | 1,928,000 | |
State general fund/general purpose | $ | 28,453,600 |
(4) SPECIALIZED SERVICES | ||
Emergency management and homeland security | $ | 800,000,000 |
Secondary road patrol program | 3,000,000 | |
GROSS APPROPRIATION | $ | 803,000,000 |
Appropriated from: | ||
Federal revenues: | ||
DHS | 800,000,000 | |
Special revenue funds: | ||
Secondary road patrol and training fund | 3,000,000 | |
State general fund/general purpose | $ | 0 |
(5) ONE-TIME APPROPRIATIONS | ||
Disaster and emergency contingency fund | $ | 10,000,000 |
GROSS APPROPRIATION | $ | 10,000,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 10,000,000 |
Sec. 115. STATE TRANSPORTATION DEPARTMENT | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 5,750,000 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 5,750,000 |
Federal revenues: | ||
Total federal revenues | 0 | |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 0 | |
State general fund/general purpose | $ | 5,750,000 |
(2) ONE-TIME APPROPRIATIONS | ||
Critical infrastructure projects | $ | 5,750,000 |
GROSS APPROPRIATION | $ | 5,750,000 |
Appropriated from: | ||
State general fund/general purpose | $ | 5,750,000 |
Sec. 116. DEPARTMENT OF TREASURY | ||
(1) APPROPRIATION SUMMARY | ||
GROSS APPROPRIATION | $ | 1,950,000 |
Interdepartmental grant revenues: | ||
Total interdepartmental grants and intradepartmental transfers | 0 | |
ADJUSTED GROSS APPROPRIATION | $ | 1,950,000 |
For Fiscal Year Ending Sept. 30, 2026 | ||
Federal revenues: | ||
Total federal revenues | $ | 0 |
Special revenue funds: | ||
Total local revenues | 0 | |
Total private revenues | 0 | |
Total other state restricted revenues | 1,950,000 | |
State general fund/general purpose | $ | 0 |
(2) REVENUE SHARING | ||
City, village, and township revenue sharing | $ | (333,547,300) |
City, village, and township revenue sharing | 333,547,300 | |
County revenue sharing | (291,111,400) | |
County revenue sharing | 291,111,400 | |
GROSS APPROPRIATION | $ | 0 |
Appropriated from: | ||
Special revenue funds: | ||
Sales tax | 0 | |
State general fund/general purpose | $ | 0 |
(3) ONE-TIME APPROPRIATIONS | ||
Local prosecutor support grants | $ | (16,750,000) |
Local prosecutor support grants | 16,750,000 | |
GROSS APPROPRIATION | $ | 0 |
Appropriated from: | ||
State general fund/general purpose | $ | 0 |
(4) BUREAU OF STATE LOTTERY | ||
Lottery operations | $ | 1,950,000 |
GROSS APPROPRIATION | $ | 1,950,000 |
Appropriated from: | ||
Special revenue funds: | ||
State lottery fund | 1,950,000 | |
State general fund/general purpose | $ | 0 |
GENERAL SECTIONS
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, total state spending under part 1 from state sources is $1,207,861,100.00 and state spending under part 1 from state sources to be paid to local units of government is $262,996,600.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY | ||
Executive direction | $ | 2,281,000 |
Local community grants | 129,104,400 | |
Subtotal | $ | 131,385,400 |
DEPARTMENT OF HEALTH AND HUMAN SERVICES | ||
Autism services | $ | 32,137,300 |
Certified community behavioral health clinic demonstration | 4,516,800 | |
Child care fund | 3,103,400 | |
Healthy Michigan plan – behavioral health | 6,205,400 | |
Medicaid mental health services | 69,791,200 | |
Medicaid substance use disorder services | (3,332,200) | |
Subtotal | $ | 112,421,900 |
JUDICIARY | ||
Circuit court judicial salary standardization | $ | 68,600 |
OASI, social security | 20,700 | |
Subtotal | $ | 89,300 |
For Fiscal Year Ending Sept. 30, 2026 | ||
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY | ||
Michigan office of rural prosperity | $ | 350,000 |
Subtotal | $ | 350,000 |
DEPARTMENT OF STATE POLICE | ||
Disaster and emergency contingency fund | $ | 10,000,000 |
Secondary road patrol program | 3,000,000 | |
Subtotal | $ | 13,000,000 |
STATE TRANSPORTATION DEPARTMENT | ||
Critical infrastructure projects | $ | 5,750,000 |
Subtotal | $ | 5,750,000 |
TOTAL | $ | 262,996,600 |
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. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this article, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds for the particular department, board, commission, officer, or institution.
Sec. 204. As a condition of receiving funds under section 358, 463, 464, 465, 466, 467, 468, 469, 470, or 526, a grant recipient must agree to decline, not apply for, or not in any other way receive any funds the grant recipient may otherwise qualify for under section 517, 1019, 1050a, 1050b, 1051, 1053a, 1053b, or 1054 of article 9 of 2024 PA 121, if the funds appropriated under those sections of 2024 PA 121 were appropriated for a substantially similar purpose as the purposes described under section 358, 463, 464, 465, 466, 467, 468,
469, 470, or 526.
Sec. 205. (1) Not later than 30 days after enactment of this act, the legislature shall provide to each department for which appropriations are made under this act and the state budget director a list of legislatively directed spending items related to that department, which may be referred to in this section as grants or direct appropriation grants, funded in part 1 consistent with the house or senate rules and this section. The list must include all information and documents pertaining to the funded items as publicly disclosed in accordance with the house or senate rules and this section.
Notwithstanding any other conditions or requirements for direct appropriation grants, the applicable department shall perform, at a minimum, at least all of the following activities to administer the grants described in subsection (1):
Establish a process to review, complete, and execute a grant agreement with a grant recipient. The applicable department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.
Verify to the extent possible that a grant recipient is a not-for-profit entity and will use funds as publicly disclosed and for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.
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 applicable 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.
Disburse the grant money 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 applicable department, to verify that expenditures were made in accordance with the project purpose.
If the state budget director determines that information provided by the grantee does not meet the disclosure requirements, that the grant will be used to pay a tax lien, delinquent tax, or other obligation owed to this state, or that the grant will create a conflict of interest, the applicable department shall not release the grant money to the grantee. Money that is not released under this subdivision lapses at the end of the fiscal year. There is not a conflict of interest if the sponsoring legislator certifies that the sponsoring legislator’s immediate family members, legislative staff members that have worked for the sponsoring legislator within the past 2 years, and the sponsoring legislator do not have a direct or indirect pecuniary interest in the legislatively directed spending item.
An executed grant agreement under this section between the applicable department and a grant recipient must include at least all of the following:
All necessary identifying information for the grant recipient, including any tax and financial information necessary for the applicable department to administer grant money under this section.
A description of the project for which the grant money will be expended, including tentative timelines and the estimated budget. Project budget must include how all grant money will be used and must indicate if any grant money will be provided to a third party or subrecipient. The applicable 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 state treasury any interest in excess of $1,000.00 earned on the grant money while unexpended and in possession of the grantee.
Unless otherwise specified in department policy, a 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.
A requirement for reporting by the grant recipient to the applicable department and the legislative sponsor that provides the status of the project and an accounting of all money expended by the grant recipient, as determined by the applicable department.
A clawback provision that allows the department of treasury to recoup or otherwise collect any grant money that is declined, unspent, or otherwise misused.
The documents publicly disclosed under subsection (1).
If appropriate to improve the administration or oversight of a grant described in subsection (1), the applicable department may adopt a memorandum of understanding with another state department to perform the required duties under this section.
A grant recipient shall respond to all reasonable information requests from the applicable 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 audit as determined by the applicable 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 authorized to bind the grant recipient that the requirements of this subsection will be met.
The grant recipient shall expend all grant money awarded and complete all projects not later than September 30, 2030. If at that time any unexpended money remains, the grant recipient shall return that money to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2026, the applicable department shall return money associated with the grant to the state treasury.
Any grant money that is awarded to a state department is appropriated in that department for the purpose of the intended grant.
Except as otherwise provided in subsection (9), beginning March 15 of the current fiscal year, the applicable department 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 money allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The applicable department shall update the report and post the updated report in a publicly accessible location on its website not later than June 15 of the current fiscal year and again not later than September 15 of the current fiscal year. The applicable department shall include in the report the most comprehensive information the applicable department has available at the time of posting for grants awarded.
If the state budget office determines that it is more efficient for the state budget office to compile all affected departments’ information and post a report of the compiled information rather than the report required under subsection (8) being posted by individual departments, the state budget office may compile that information across all affected departments and post the compiled report and any updates on the same time schedule as identified in subsection (8).
If the applicable department reasonably determines that the money allocated for an executed grant agreement under this section was misused or that use of the money was misrepresented by the grant recipient, the applicable department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols, which may include referral for criminal investigation.
As used in this section, “applicable department” means the department responsible for administering a legislatively directed spending item funded under part 1.
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY
Sec. 301. The unexpended funds appropriated in part 1 for executive direction are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to remove and replace lead service lines.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $826,000.00.
The tentative completion date is September 30, 2026.
Sec. 302. The unexpended funds appropriated in part 1 for federal - Great Lakes remedial action plan grants are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to clean up and remediate emerging contaminants.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $1,080,000.00.
The tentative completion date is September 30, 2026.
Sec. 303. The unexpended funds appropriated in part 1 for Great Lakes restoration initiative are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to replace 4 undersized culverts in the Au Sable River system.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $5,500,000.00.
The tentative completion date is September 30, 2026.
Sec. 304. The unexpended funds appropriated in part 1 for Great Lakes restoration initiative are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to preserve and protect natural water habitats.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 305. The unexpended funds appropriated in part 1 for water resource programs are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to preserve and protect this state’s coastlines.
The project will be accomplished by utilizing state employees, contracts with service providers, or grants.
The total estimated cost of the project is $1,300,000.00.
The tentative completion date is September 30, 2026.
Sec. 306. The unexpended funds appropriated in part 1 for water resource programs are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to improve oversight of high-risk dams and perform dam owner outreach.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $375,000.00.
The tentative completion date is September 30, 2026.
Sec. 307. The unexpended funds appropriated in part 1 for energy programs are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to build vehicle infrastructure along Lake Michigan.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2026.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Sec. 351. (1) The department of health and human services may accept monetary and nonmonetary gifts, bequests, donations, contributions, or grants from any private or public source to support, in whole or in part, a departmental function or program. The department of health and human services shall expend or use such gifts, bequests, donations, contributions, or grants for the purposes designated by the private or public source, if the purpose is specified.
In the demonstration projects line item, private revenue collected by the department of health and human services and amounts remaining in the fund under this section that are unexpended and unencumbered must not lapse to the general fund but must be carried forward to the subsequent fiscal year.
Sec. 352. The department of health and human services shall issue payments to Medicaid health plans implementing the capitation rates referenced in the state of Michigan department of health and human services actuarial rate certification report dated October 10, 2024.
Sec. 353. The unexpended funds appropriated in part 1 for nutrition education are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to facilitate nutrition education programs aimed at food assistance recipients.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $23,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 354. (1) The ARP - home- and community-based services projects fund exists within the state treasury.
The state treasurer shall direct the investment of the ARP - home- and community-based services projects fund. Interest and earnings from the investment of money deposited in the ARP - home- and community-based services projects fund must be deposited in the general fund.
The ARP HCBS match revenue - state general fund/general purpose appropriated in part 1 for ARP - home- and community-based services projects fund must be deposited into the ARP - home- and community- based services projects fund.
Money in the ARP - home- and community-based services projects fund at the close of the fiscal year remains in the ARP - home- and community-based services projects fund and does not lapse to the general fund.
From the ARP - home- and community-based services projects fund, the department of health and human services shall expend money in the ARP - home- and community-based services projects fund, along with any federal match, on activities to enhance, expand, or strengthen home- and community-based services pursuant to section 9817 of the federal American rescue plan act of 2021, Public Law 117-2, as follows:
$16,100,000.00 is allocated and appropriated, along with any federal match for these funds, for adult home help respite services.
$5,440,000.00 is allocated and appropriated, along with any federal match for these funds, for home- and community-based services eligibility expansion.
$27,592,900.00 is allocated and appropriated, along with any federal match for these funds, for long- term care independent options counseling.
$160,958,200.00 is allocated and appropriated, along with any federal match for these funds, for direct care worker training, credentialing, recruitment, support, and retention.
$1,051,800.00 is allocated and appropriated, along with any federal match for these funds, for supported employment.
$20,000,000.00 is allocated and appropriated, along with any federal match for these funds, for program of all-inclusive care for the elderly (PACE) infrastructure.
$1,789,500.00 is allocated and appropriated, along with any federal match for these funds, for MI Choice presumptive eligibility.
$10,000,000.00 is allocated and appropriated, along with any federal match for these funds, to reimburse providers of supportive housing services for eligible direct services. These funds must be used for services to individuals living in supportive housing who need additional supports to maintain employment and stability, and currently homeless individuals moving into supportive housing with rental support. The funds must be prioritized to households whose children are at risk of being placed in out-of-home care, households who are working toward reunification with children who are out of home, and youth aging out of the foster care system.
$100,000.00 is allocated and appropriated, along with any available federal match for these funds, for 1-time provider stabilization and recovery support payments to eligible home- and community-based providers.
$2,600,000.00 is allocated and appropriated, along with any available federal match for these funds, for a high-cost participant financial support pilot.
$8,957,100.00 is allocated and appropriated, along with any available federal match for these funds, for MI Choice and community transition service infrastructure.
If any appropriation authority for ARP - home- and community-based services projects remains after the completion of the projects listed in subsection (5), the department of health and human services may expend remaining funds, and any available federal matching funds, for direct care worker training, credentialing, recruitment, support, and retention initiatives and additional 1-time provider stabilization and recovery support payments to eligible home- and community-based providers. The department of health and human services shall notify the senate and house appropriations committees and the senate and house appropriations subcommittees on health and human services of any expenditures made under this subsection. The notification must include a list of projects and their amounts as well as any other pertinent information.
Unexpended funds appropriated in subsection (5) for ARP - home- and community-based services projects fund are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to enhance, expand, or strengthen home- and community-based services and supports pursuant to section 9817 of the federal American rescue plan act of 2021, Public Law 117-2.
The project will be accomplished by utilizing state employees or contracts with service providers, or both.
The total estimated cost of the project is $590,589,500.00.
The tentative completion date is September 30, 2029.
The department of health and human services shall provide written notification to the senate and house of representatives appropriations committees, the senate and house fiscal agencies, and the senate and house of representatives policy offices at least 5 business days prior to implementing any changes to the approved spending plan for the home- and community-based services provided under section 9817 of the federal American rescue plan act of 2021, Public Law 117-2.
By February 1, the department of health and human services shall submit a comprehensive report to the senate and house of representatives appropriations committees, the senate and house fiscal agencies, and the senate and house of representatives policy offices detailing the use of all home- and community-based services (HCBS) funds received under section 9817 of the federal American rescue plan act of 2021, Public Law 117-2. The report must include, but is not limited to, all of the following:
Total funds received and total expenditures by fiscal year.
Expenditures by category and by vendor or grantee.
Program accomplishments and progress.
Any unspent balances and projected future spending.
A list of active contracts and grants associated with home- and community-based services (HCBS) funding. Sec. 355. (1) From the funds appropriated in part 1 for ARP - strengthen public health infrastructure, workforce, data system, the department of health and human services shall expend $9,962,900.00 in federal
funds to support data modernization and improve critical public health infrastructure.
(2) Unexpended funds appropriated in part 1 for ARP - strengthen public health infrastructure, workforce, data system are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. All of the following are in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to improve data modernization and infrastructure for public health.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The estimated cost of the project is $9,962,900.00.
The tentative completion date is September 30, 2026.
Sec. 356. (1) From the funds appropriated in part 1 for federal COVID emerging infections program, the department shall expend $2,688,500.00 in federal funds to improve immunization record collection and data analysis and to update information technology systems.
Unexpended funds appropriated in part 1 for federal COVID emerging infections program are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to improve data systems, analysis, and collection.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The estimated cost of the project is $2,688,500.00.
The tentative completion date is September 30, 2026.
Sec. 357. (1) From the funds appropriated in part 1 for federal COVID epidemiology and laboratory capacity, the department of health and human services shall expend $61,000,000.00 in federal funds for epidemiology and laboratory capacity for infectious diseases.
(2) Unexpended funds appropriated in part 1 for federal COVID epidemiology and laboratory capacity are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to assist with infectious diseases epidemiology and laboratory capacity.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The estimated cost of the project is $61,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 358. (1) From the funds appropriated in part 1 for health services grants, $13,000,000.00 must be awarded to McLaren Northern Michigan for the purpose of renovating an existing emergency department to support mental health intake. This may include, but is not limited to, emergency unit safe rooms for behavioral health patients and an emergency psychiatric assessment, treatment, and healing (EmPATH) unit. Any established EmPATH unit shall provide immediate access to an emergency psychiatrist, and staff shall be trained for the needs of EmPATH unit patients.
(2) The unexpended funds appropriated in part 1 for health services grants are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to renovate an existing emergency department to support mental health intake.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $13,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 359. (1) The funds appropriated in part 1 for Medicaid health plan services are available to the department of health and human services to reimburse Medicaid health plans for any costs associated with actuarially sound capitated rates, amended capitated rates, accruals, or account payables that exceed other funds appropriated in part 1.
(2) The unexpended funds appropriated in part 1 for Medicaid health plan services are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to financially support actuarially sound capitated rates for Medicaid health plans.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $100,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 360. (1) From the funds appropriated in part 1 for prenatal and infant support program, the department of health and human services shall allocate $250,000,000.00 from the Healthy Michigan fund created in section 5953 of the public health code, 1978 PA 368, MCL 333.5953, to a 4-year university located in a county with a population between 284,000 and 285,000, according to the most recent federal decennial census, for an established program that has demonstrated improvements in the health and economic stability of households with expectant mothers and very young children.
The department of health and human services shall execute a grant agreement with the grantee that is consistent with the department’s standard grant requirements.
Unexpended funds appropriated in part 1 for prenatal and infant support program are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to improve health and economic stability by providing unconditional allowances to expecting mothers and households that meet program eligibility requirements with at least 1 child who is less than 1 year of age in participating geographic regions.
The project will be accomplished by utilizing contracts with service providers.
The total estimated cost of the project is $250,000,000.00.
The tentative completion date is September 30, 2029.
Sec. 361. The unexpended funds appropriated in part 1 for state psychiatric DSH disallowance are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to pay the second and third year of a 4-year repayment plan back to the federal government for state psychiatric disproportionate share hospital payments that the state inappropriately claimed prior to 2007.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $160,283,200.00.
The tentative completion date is September 30, 2026.
JUDICIARY
Sec. 401. (1) From the funds appropriated in part 1 for status offender pilot program, the state court administrative office, under direction and supervision of the supreme court, shall establish a grant program to award 5 eligible courts with grants for innovative, community-based diversion programs and services that work solely with youth for whom the court receives a complaint, referral, or petition for what is alleged to be a status offense. The state court administrative office may partner with the department of health and human services and the Michigan committee on juvenile justice to identify and award grants to not more than 5 Michigan courts.
(2) Unexpended funds appropriated in part 1 for status offender pilot program are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for selected courts to divert youth charged or alleged to have committed a status offense away from the juvenile court system.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $512,100.00.
The tentative completion date is September 30, 2026.
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 451. Unexpended funds appropriated in part 1 for community and worker economic transition office are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide grants to auto suppliers that are going through an industry transition.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $22,653,100.00.
The tentative completion date is September 30, 2026.
Sec. 452. Unexpended funds appropriated in part 1 for Michigan office of rural prosperity are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to provide grants in support of community facility projects in rural communities.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $350,000.00.
The tentative completion date is September 30, 2026.
Sec. 453. (1) From the funds appropriated in part 1 for legislatively directed spending items, $2,119,000.00 must be awarded to Allband Communications in Curran to assist with local matching requirements for the rural utility service reconnect program.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to American Legion Devereaux post 141 in Livingston County to support infrastructure improvements at the post.
From the funds appropriated in part 1 for legislatively directed spending items, $2,537,600.00 must be awarded to the Barry County road commission to support the removal and replacement of a road and river crossing on Brown Road over the Little Thornapple River in Woodland Township.
From the funds appropriated in part 1 for legislatively directed spending items, $920,000.00 must be awarded to Blendon Township in Ottawa County to address water security and water infrastructure needs.
From the funds appropriated in part 1 for legislatively directed spending items, $737,000.00 must be awarded to the Calhoun County Sheriff’s Office to support taser system upgrades for the Calhoun County Sheriff’s Office, Albion Department of Public Safety, and Marshall Police Department.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Charlevoix Township in Charlevoix County to support the purchase of a replacement aerial platform fire truck.
From the funds appropriated in part 1 for legislatively directed spending items, $4,400,000.00 must be awarded to the city of Davison in Genesee County to support road infrastructure repairs.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Flat Rock in Wayne County to support the purchase of a fire truck.
From the funds appropriated in part 1 for legislatively directed spending items, $900,000.00 must be awarded to the city of Ishpeming in Marquette County to support the purchase of a fire truck.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Marine City in St. Clair County for development and upgrades at Guy Community Center.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the city of Monroe in Monroe County for a grade separation at the CSX rail crossing on West Elm Avenue.
From the funds appropriated in part 1 for legislatively directed spending items, $1,500,000.00 must be awarded to the city of Rockwood in Wayne County to support improvements at the wastewater treatment facility.
From the funds appropriated in part 1 for legislatively directed spending items, $2,100,000.00 must be awarded to the city of Sterling Heights in Macomb County to support the purchase of a fire truck.
From the funds appropriated in part 1 for legislatively directed spending items, $2,000,000.00 must be awarded to the Grand Rapids Art Museum to support infrastructure repairs and upgrades.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the Jackson Interfaith Shelter in Jackson County to support construction of additional shelter space and facilities.
From the funds appropriated in part 1 for legislatively directed spending items, $1,935,000.00 must be awarded to Kawkawlin Township in Bay County for infrastructure to address flooding on South Linwood Beach Road.
From the funds appropriated in part 1 for legislatively directed spending items, $1,800,000.00 must be awarded to the Kent County Youth Agricultural Association to support the development of the Grand Agricultural Center of West Michigan.
From the funds appropriated in part 1 for legislatively directed spending items, $100,000.00 must be awarded to Kirtland Community College to support a timber harvester simulator.
From the funds appropriated in part 1 for legislatively directed spending items, $2,410,400.00 must be awarded to the Lake Mitchell sewer authority in Wexford County for infrastructure repairs.
From the funds appropriated in part 1 for legislatively directed spending items, $3,000,000.00 must be awarded to Lake Superior Community Partnership in Marquette County to support strengthened air service and infrastructure investment at Marquette Sawyer Regional Airport.
From the funds appropriated in part 1 for legislatively directed spending items, $2,500,000.00 must be awarded to Macomb Township in Macomb County for creation of a boulevard and associated infrastructure.
From the funds appropriated in part 1 for legislatively directed spending items, $1,320,000.00 must be awarded to Mecosta County for improvements to the Harding Road Bridge.
From the funds appropriated in part 1 for legislatively directed spending items, $2,500,000.00 must be awarded to the Oakland-Macomb interceptor drain drainage district in Macomb County to support construction of a new odor and corrosion control facility and associated costs.
From the funds appropriated in part 1 for legislatively directed spending items, $400,000.00 must be awarded to Shelby Township in Oceana County to support a project to provide a turning lane on M-20.
From the funds appropriated in part 1 for legislatively directed spending items, $900,000.00 must be awarded to Springfield Charter Township in Oakland County to support the installation of high-capacity community fire protection wells throughout the township.
From the funds appropriated in part 1 for legislatively directed spending items, $421,000.00 must be awarded to the Troy school district in Oakland County to support projects to improve traffic flow at Smith Middle School.
Sec. 454. (1) From the funds appropriated in part 1 for legislatively directed spending items, $2,000,000.00 must be awarded to the Ingham County Land Bank located in Ingham County to support downpayment assistance, home rehabilitations, foreclosure prevention services, and the development of affordable and workforce housing.
From the funds appropriated in part 1 for legislatively directed spending items, $600,000.00 must be awarded to the city of Mason in Ingham County to purchase a tanker truck and fire equipment.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the Ann Arbor Community Foundation for philanthropic initiatives aligned to its mission. Funds awarded under this subsection may be utilized by the recipient to issue subgrants to nonprofit organizations that will enhance community and public health, and lead to improved health outcomes. To ensure prompt execution, the department of labor and economic opportunity may award all funds described under this section to the grant recipient on execution of a grant agreement. As part of the grant agreement, the department of labor and economic opportunity may require the recipient to provide a report on the use of funds awarded and any related outcomes.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Grand Rapids African American Health Institute located in the city of Grand Rapids in Kent County to support community engagement, research, and education.
From the funds appropriated in part 1 for legislatively directed spending items, $900,000.00 must be awarded to Mel Trotter Ministries located in the city of Grand Rapids in Kent County to support services for those experiencing hunger and homelessness.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Mosaic Counseling in the city of Grand Rapids in Kent County to support counseling services.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the Kent School Services Network located in Kent County to support the community school model in the county.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 must be allocated to the Michigan sentencing commission created in section 34a of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.34a, to support the activities of the Michigan sentencing commission.
From the funds appropriated in part 1 for legislatively directed spending items, $150,000.00 must be awarded to the Living and Learning Center located in the city of Northville in Oakland County to support individuals with disabilities.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the Oakland County Health Network located in the city of Pontiac in Oakland County to support infrastructure improvements.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Oakland County to support temporary housing.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be allocated by the Michigan state police to reimburse local law enforcement agencies for the cost of serving personal protection orders.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Gleaners Community Food Bank to support fresh food security network infrastructure.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Genesis HOPE located in the city of Detroit in Wayne County to support infrastructure improvements and senior programming.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the city of Flint in Genesee County to support improvements to the Haskell Community Center.
From the funds appropriated in part 1 for legislatively directed spending items, $1,250,000.00 must be awarded to the Saint Mark Community Outreach Center to support services for mental health, youth programming, and food distribution.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Taylor in Wayne County to purchase municipal equipment and provide recreation infrastructure improvements.
From the funds appropriated in part 1 for legislatively directed spending items, $200,000.00 must be awarded to the city of Ecorse in Wayne County to support park infrastructure improvements at Dora Gaines Park.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of St. Clair Shores in Macomb County to support nautical mile enhancements.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Chesterfield Township in Macomb County for a facilities building at Brandenburg Park.
From the funds appropriated in part 1 for legislatively directed spending items, $1,700,000.00 must be awarded to the city of Grosse Pointe Park in Wayne County to support the Schaap Performing Arts Center.
From the funds appropriated in part 1 for legislatively directed spending items, $404,000.00 must be awarded to the city of Manchester in Washtenaw County to support infrastructure improvements at an industrial park.
From the funds appropriated in part 1 for legislatively directed spending items, $140,000.00 must be awarded to the Ypsilanti Historical Society located in Washtenaw County to support museum infrastructure improvements.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Trinity Health in Washtenaw County to support the Food is Medicine program.
From the funds appropriated in part 1 for legislatively directed spending items, $130,000.00 must be awarded to the city of Eastpointe in Macomb County to support the purchase of fire equipment.
From the funds appropriated in part 1 for legislatively directed spending items, $800,000.00 must be awarded to Roseville Community Schools to renovate science facilities.
From the funds appropriated in part 1 for legislatively directed spending items, $40,000.00 must be awarded to Big Brothers Big Sisters of Southwest Michigan located in Kalamazoo County to support facility improvements.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the Douglass Community Association located in the city of Kalamazoo in Kalamazoo County to support ADA upgrades and technology improvements.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the city of Kalamazoo in Kalamazoo County to support the purchase of fire turnout gear.
From the funds appropriated in part 1 for legislatively directed spending items, $85,000.00 must be awarded to the city of Huntington Woods in Oakland County to support HVAC upgrades.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 must be awarded to Say Detroit located in Wayne County to support out of school time programming.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the Detroit Police Athletic League to support youth and community development programs.
From the funds appropriated in part 1 for legislatively directed spending items, $1,500,000.00 must be awarded to the Lighthouse of Oakland County located in Oakland County to support homelessness prevention and services.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Livonia in Wayne County to support the bridge widening component of the nonmotorized transportation infrastructure improvement project.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the Inkster Cultural Center located in the city of Inkster in Wayne County to support operations.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 must be awarded to Schoolcraft Community College to support improvements to the masonry apprenticeship center.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must support the Huron Waterloo pathways initiative in Washtenaw County to support nonmotorized pathways.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Ann Arbor in Washtenaw County to support the Treeline Conservancy program and urban trail connections.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 must be awarded to the city of Jackson in Jackson County to provide improvements to the Ella Sharp Park trail.
From the funds appropriated in part 1 for legislatively directed spending items, $950,000.00 must be awarded to Goodwill to support the Goodwill Flip the Script program.
From the funds appropriated in part 1 for legislatively directed spending items, $800,000.00 must be awarded to the Michigan State Housing Development Authority for blight remediation and redevelopment costs in support of an affordable housing project in the city of Owosso in Shiawassee County.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Ingham County to support an engineering study and county water infrastructure projects.
From the funds appropriated in part 1 for legislatively directed spending items, $350,000.00 must be awarded to Shiawassee County to support the Shiawassee County animal control.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to Care Free Medical located in Ingham County for facility improvements and to provide services.
From the funds appropriated in part 1 for legislatively directed spending items, $900,000.00 must be awarded to support improvements to the public safety dispatch center located in the city of Warren in Macomb County.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Sterling Heights in Macomb County to support improvements to the police training center.
From the funds appropriated in part 1 for legislatively directed spending items, $1,301,000.00 must be awarded to the city of Allen Park in Wayne County to support the purchase of fire equipment and fire trucks.
From the funds appropriated in part 1 for legislatively directed spending items, $1,500,000.00 must be awarded to Bloomfield Township in Oakland County to support the purchase of police equipment and vehicles.
From the funds appropriated in part 1 for legislatively directed spending items, $2,500,000.00 must be awarded to the city of Hazel Park in Oakland County to support the purchase of fire equipment and trucks.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Beyond Basics located in the city of Farmington in Oakland County to support literacy and tutoring programs.
From the funds appropriated in part 1 for legislatively directed spending items, $300,000.00 shall be used to upgrade information technology hardware and software to enable the Michigan department of state to exchange data with a qualified international bridge or tunnel operator that enters into a tolling enforcement agreement with the Michigan department of state.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the Center for Civil Justice located in the city of Flint to provide legal and technical assistance to low-income individuals and to pursue impact litigation that protects low-income and marginalized populations.
Sec. 455. (1) From the funds appropriated in part 1 for legislatively directed spending items, $3,000,000.00 must be awarded to Ypsilanti Downtown Development Authority to support efforts to replace the Cross Street bridge.
From the funds appropriated in part 1 for legislatively directed spending items, $1,200,000.00 must be awarded to Michigan Professional Fire Fighters Union in Trenton to organize a functional training seminar.
From the funds appropriated in part 1 for legislatively directed spending items, $300,000.00 must be awarded to Freedom River in Brighton to establish a state-of-the-art facility that provides comprehensive wellness services for veterans and their families.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Cass Lakeside Community Association in West Bloomfield Township to help repair the Algonquin Avenue Bridge.
From the funds appropriated in part 1 for legislatively directed spending items, $210,000.00 must be awarded to the city of Wayne to support upgrades at Atwood Park.
From the funds appropriated in part 1 for legislatively directed spending items, $300,000.00 must be awarded to the city of Livonia to support the repair of a pavilion in Rotary Park.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Launch Michigan in Lansing to support their work to improve student outcomes.
From the funds appropriated in part 1 for legislatively directed spending items, $750,000.00 must be awarded to Ingham County to support the repair of the Lake Lansing dam.
From the funds appropriated in part 1 for legislatively directed spending items, $810,000.00 must be awarded to Greater Grand Rapids Chamber Foundation in Grand Rapids to help provide housing and support services for individuals.
From the funds appropriated in part 1 for legislatively directed spending items, $10,000,000.00 must be awarded to the city of Midland to support flood mitigation.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to the city of Romulus to support the purchase of a fire truck.
From the funds appropriated in part 1 for legislatively directed spending items, $500,000.00 must be awarded to the city of St. Clair Shores Public Library to support facility renovations and improvement project.
From the funds appropriated in part 1 for legislatively directed spending items, $3,000,000.00 must be awarded to the city of Mount Clemens to support efforts to replace lead service lines.
From the funds appropriated in part 1 for legislatively directed spending items, $1,200,000.00 must be awarded to the Saginaw County Road Commission to support the construction of on-site buildings and updates necessary to meet minimum environmental compliance regulations.
From the funds appropriated in part 1 for legislatively directed spending items, $1,100,000.00 must be awarded to the city of Lathrup Village to support the replacement of a water main.
From the funds appropriated in part 1 for legislatively directed spending items, $1,000,000.00 must be awarded to Special Olympics Michigan in Grand Rapids to support efforts to expand the Michigan Unified Champion Schools program across the state.
From the funds appropriated in part 1 for legislatively directed spending items, $380,000.00 must be awarded to Canton Township to support the Michigan Avenue Innovation Network.
From the funds appropriated in part 1 for legislatively directed spending items, $10,000,000.00 must be awarded to Wayne County Department of Public Services to support the bridge replacement project on West Road in Trenton.
From the funds appropriated in part 1 for legislatively directed spending items, $3,000,000.00 must be awarded to Muskegon County to support the redevelopment of blighted sites into housing.
From the funds appropriated in part 1 for legislatively directed spending items, $250,000.00 must be awarded to Diversified Community Services, Inc. in Detroit to support afterschool and summer programming in Wayne County.
Sec. 456. Unexpended funds appropriated in part 1 for legislatively directed spending items are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purposes for each of the projects are itemized in sections 453, 454, and 455 of this part.
The projects will be accomplished by utilizing state employees, contracts with service providers, or both, or through grants.
The total estimated cost of the projects is $120,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 457. Unexpended funds appropriated in part 1 for community development block grant - disaster recovery are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support disaster recovery and resiliency efforts.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $43,570,000.00.
The tentative completion date is September 30, 2026.
Sec. 458. Unexpended funds appropriated in part 1 for transmission siting and economic development program are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to establish apprenticeship programs for the utility industry, provide for weatherization of homes, and develop and leverage existing training programs for energy infrastructure workers.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $35,800,000.00.
The tentative completion date is September 30, 2026.
Sec. 459. In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed
$154,100,000.00 for state restricted contingency authorization for the department of labor and economic opportunity. These funds 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. 460. All funds received in the prevailing wage fund created in section 25a of 2023 PA 10, MCL 408.1125a, are appropriated for the purposes allowable under 25a of 2023 PA 10, MCL 408.1125a.
Sec. 461. In addition to the funds appropriated in part 1, federal HUD-CPD community development block grant funding is appropriated to complete all program activities from prior program years ending with the 2022 program allocation per Executive Reorganization Order No. 2023-1, MCL 125.1999. These funds may be expended for the community development block grant program and administration of the program.
Sec. 462. Federal workforce innovation and opportunity vocational rehabilitation funding from prior years that is received in amounts in addition to those included in part 1 and that has already met state matching requirements is appropriated for the purposes intended. The department of labor and economic opportunity may carry forward into the succeeding fiscal year unexpended federal workforce innovation and opportunity vocational rehabilitation funding that does not require additional state matching funds.
Sec. 463. (1) From the funds appropriated in part 1 for community enhancement grants, $1,000,000.00 shall be awarded to a railroad history museum located in the city of Durand to support property improvements.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support property improvements to a railway history museum.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $1,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 464. (1) From the funds appropriated in part 1 for community enhancement grants, $1,000,000.00 must be awarded to the Concert of Colors to support a diversity, music, and arts festival that is free to the public.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support a diversity, music, and arts festival that is free to the public.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $1,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 465. (1) From the funds appropriated in part 1 for community enhancement grants, $1,000,000.00 shall be awarded to the city of Grosse Pointe Farms to support a seawall project.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support a seawall project.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $1,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 466. (1) From the funds appropriated in part 1 for community enhancement grants, $3,000,000.00 shall be awarded to St. Lukes Community Center in the city of Flint to support infrastructure improvements at the center or another facility owned or operated by the center.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support infrastructure improvements.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $3,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 467. (1) From the funds appropriated in part 1 for community enhancement grants, $4,000,000.00 must be awarded to the Jewish Federation of Detroit to implement community safety measures.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to implement community safety measures.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $4,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 468. (1) From the funds appropriated in part 1 for community enhancement grants, $1,900,000.00 must be awarded to the city of Cadillac. Funds must be used for permanent or temporary repairs to a failed culvert system, as well as other repairs that are necessary due to failure of the culvert system.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for permanent or temporary repairs to a failed culvert system, or other repairs necessary due to failure of the culvert system.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $1,900,000.00.
The tentative completion date is September 30, 2026.
Sec. 469. (1) From the funds appropriated in part 1 for community enhancement grants, $1,000,000.00 shall be awarded to Washtenaw County for road improvements.
Unexpended funds appropriated in part 1 for community enhancement grants and allocated in this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for road improvements.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $1,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 470. (1) Funds appropriated in part 1 for Michigan Works! skills scholarship must be made available to Michigan works agencies to provide residents of this state with tuition assistance to obtain an industry- recognized credential or certification in a high-demand occupation that aligns with this state’s goal of increasing the percentage of working-age adults with a skill certificate or college degree to 60% by 2030.
In order to qualify for tuition assistance under this section, an individual must satisfy all of the following requirements:
Be a resident of this state.
Be 21 years of age or older.
Be a United States citizen or an alien qualified to receive public benefits.
Be 1 of the following:
An asset limited, income constrained employee.
Unemployed.
Underemployed.
A dislocated worker.
An adult receiving public assistance.
An adult in need of a high school diploma or equivalent.
An adult living in a distressed community or an opportunity zone.
A member of another underrepresented population.
A Michigan works agency that receives funding under this section shall provide necessary reporting data to the department of labor and economic opportunity in alignment with the federal workforce innovation and opportunity act, Public Law 113-128, reporting requirements.
It is the intent of the legislature that the industry-recognized credentials received in conjunction with this section are intended to lead to employment at or above the asset limited, income constrained, employed level for the county in which the resident lives.
A Michigan works agency that receives funding under this section shall work with the department of labor and economic opportunity to provide information and coordinate on how these funds work with other Michigan reconnect-eligible credential programs to ensure that applicants are aware of all their training options and that the program is not duplicative of other training programs.
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
Sec. 501. (1) The department of licensing and regulatory affairs may hire up to 4.0 limited-term employees to support enhanced investigation and enforcement activity related to unlicensed mobile home parks.
(2) Unexpended funds appropriated in part 1 for the bureau of construction codes are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support enhanced investigation and enforcement activity related to unlicensed mobile home parks.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $2,400,000.00.
The tentative completion date of the project is September 30, 2026.
DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL
Sec. 526. (1) From the funds appropriated in part 1 for after-school programming extension, the department of lifelong education, advancement, and potential shall allocate $300,000.00 to Centro Multicultural la Familia, which lowers barriers to postsecondary education for disadvantaged youth and works with local program affiliates in different regions of this state.
(2) Any unexpended funds appropriated in part 1 for after-school programming extension are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to lower barriers to postsecondary education for disadvantaged youth for the duration of the work project.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The estimated cost of the project is $300,000.00.
The tentative completion date of the project is September 30, 2026.
DEPARTMENT OF NATURAL RESOURCES
Sec. 551. Unexpended funds appropriated in part 1 for Arctic Grayling fish passage are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year
and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to replace road-stream crossings on state forest lands.
The project will be accomplished by utilizing state employees, contracts with service providers, or grants.
The total estimated cost of the project is $2,500,000.00.
The tentative completion date is September 30, 2026.
Sec. 552. The unexpended funds appropriated in part 1 for Northern Michigan ice storm are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for the reforestation of state forest lands impacted by the Northern Michigan ice storm.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $14,000,000.00.
The tentative completion date is September 30, 2026.
Sec. 553. From the funds appropriated in part 1, the department of natural resources may increase capacity by a total of 9.0 limited-term employees to facilitate the installation of high-speed internet infrastructure on department-managed lands.
DEPARTMENT OF STATE
Sec. 601. Unexpended funds appropriated in part 1 for help America vote act are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for election security initiatives in accordance with applicable law, including, but not limited to, the consolidated appropriations act, 2020, Public Law 116-93, and the further consolidated appropriations act, 2024, Public Law 118-47, as authorized in section 101 of the help America vote act of 2002, 52 USC 20901, and any other applicable federal and state rules and regulations. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is to support election security initiatives, including, but not limited to, election equipment upgrades, security and testing of voting systems, and election operation enhancements.
The project will be accomplished by utilizing state employees, contracts with service providers, or both.
The total estimated cost of the project is $9,583,500.00.
The tentative completion date is September 30, 2026.
DEPARTMENT OF STATE POLICE
Sec. 651. General fund/general purpose funds appropriated in part 1 for disaster and emergency contingency fund shall be deposited into the disaster and emergency contingency fund created in section 18 of the emergency management act, 1976 PA 390, MCL 30.418.
DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET
Sec. 701. Proceeds received by this state through litigation against, or bankruptcy proceedings involving, Wellpath Holdings and its affiliated companies or Grand Prairie Health Care Services shall be used to reimburse ambulance service providers that are owed payment by Wellpath Holdings and its affiliated companies or Grand Prairie Health Care Services for services provided to the department of corrections during the years of 2023 and 2024. The amounts payable under this section shall be reduced by the amount of funds an ambulance service provider receives through litigation against, or bankruptcy proceedings involving, Wellpath Holdings and its affiliated companies or Grand Prairie Health Care Services. If, subsequent to payment provided by this state, an ambulance service provider receives payment for services from Wellpath Holdings and its affiliated companies or Grand Prairie Health Care Services, the amount recovered must be remitted to this state.
STATE TRANSPORTATION DEPARTMENT
Sec. 751. The state transportation department may hire up to 2.0 full-time employees to support the implementation of various aeronautics programs included in 2023 PA 119 and 2024 PA 121.
Sec. 752. (1) From the funds appropriated in part 1 for critical infrastructure projects, $750,000.00 must be allocated to Van Buren Charter Township for intersection safety improvements.
(2) Unexpended funds appropriated in part 1 for critical infrastructure projects and allocated under this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for intersection safety improvements.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $750,000.00.
The tentative completion date is September 30, 2026.
Sec. 753. (1) From the funds appropriated in part 1 for critical infrastructure projects, $5,000,000.00 must be allocated to Wayne County for a rail grade separation project.
(2) Unexpended funds appropriated in part 1 for critical infrastructure projects and allocated under this section are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
The purpose of the project is for a rail grade separation project.
The project will be accomplished by utilizing state employees, contracts with services providers, or both.
The estimated cost of the project is $5,000,000.00.
The tentative completion date is September 30, 2026.
DEPARTMENT OF TREASURY
Sec. 801. Revenue from the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436, related to counties with a population of more than 2,000,000 according to the 2000 federal decennial census is appropriated and must be distributed in accordance with section 12(2)(e) of the tobacco products tax act, 1993 PA 327, MCL 205.432.
Sec. 802. (1) Funds appropriated in part 1 for city, village, and township revenue sharing are for grants to cities, villages, and townships and must be distributed as provided in this section.
From the first $299,126,400.00 appropriated in part 1 for city, village, and township revenue sharing, each city, village, or township shall receive an amount equal to 100% of the revenue sharing payment for which the city, village, or township would have been eligible to receive under section 952 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952 of article 5 of 2023 PA 119 was satisfied.
The remaining amount appropriated in part 1 for city, village, and township revenue sharing after the distributions under subsection (2) must be distributed as follows:
1/3 shall be distributed as taxable value payments as provided under subsection (4).
1/3 must be distributed as unit type population payments as provided under subsection (5).
1/3 must be distributed as yield equalization payments as provided under subsection (6).
A taxable value payment must be made to each city, village, and township, determined as follows:
Determine the per capita taxable value for each city, village, and township by dividing the taxable value of that city, village, or township by the population of that city, village, or township.
Determine the statewide per capita taxable value by dividing the total taxable value of all cities, villages, and townships by the total population of all cities, villages, and townships.
Determine the per capita taxable value ratio for each city, village, and township by dividing the statewide per capita taxable value by the per capita taxable value for that city, village, or township.
Determine the adjusted taxable value population for each city, village, and township by multiplying the per capita taxable value ratio as determined under subdivision (c) for that city, village, or township by the population of that city, village, or township.
Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all cities, villages, and townships.
Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
Determine the taxable value payment for each city, village, and township by multiplying the result under subdivision (f) by the adjusted taxable value population for that city, village, or township.
A unit type population payment must be made to each city, village, and township, determined as follows:
Determine the unit type population weight factor for each city, village, and township as follows:
For a township with a population of 5,000 or less, 1.0.
For a township with a population of more than 5,000 but less than 10,001, 1.2.
Except as otherwise provided in subparagraph (xix), for a township with a population of more than 10,000 but less than 20,001, 1.44.
For a township with a population of more than 20,000 but less than 40,001, 4.32.
For a township with a population of more than 40,000 but less than 80,001, 5.18.
For a township with a population of more than 80,000, 6.22.
For a village with a population of 5,000 or less, 1.5.
For a village with a population of more than 5,000 but less than 10,001, 1.8.
For a village with a population of more than 10,000, 2.16.
For a city with a population of 5,000 or less, 2.5.
For a city with a population of more than 5,000 but less than 10,001, 3.0.
For a city with a population of more than 10,000 but less than 20,001, 3.6.
For a city with a population of more than 20,000 but less than 40,001, 4.32.
For a city with a population of more than 40,000 but less than 80,001, 5.18.
For a city with a population of more than 80,000 but less than 160,001, 6.22.
For a city with a population of more than 160,000 but less than 320,001, 7.46.
For a city with a population of more than 320,000 but less than 640,001, 8.96.
For a city with a population of more than 640,000, 10.75.
For a township that has a population of not less than 10,000 and provides documentation to the department of treasury that the township provides for or makes available all of the following, the unit type population weight factor for a city with the same population:
Fire services.
Police services on a 24-hour basis either through contracting for or directly employing personnel.
Water services to 50% or more of its residents.
Sewer services to 50% or more of its residents.
Determine the adjusted unit type population for each city, village, and township by multiplying the unit type population weight factor for that city, village, or township as determined under subdivision (a) by the population of the city, village, or township.
Determine the total statewide adjusted unit type population, which is the sum of the adjusted unit type population for all cities, villages, and townships.
Determine the unit type population payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted unit type population as determined under subdivision (c).
Determine the unit type population payment for each city, village, and township by multiplying the result under subdivision (d) by the adjusted unit type population for that city, village, or township.
A yield equalization payment must be made to each city, village, and township in an amount that is sufficient to provide the guaranteed tax base for a local tax effort but not to exceed 0.02. The payment must be determined as follows:
The guaranteed tax base is the maximum combined state and local per capita taxable value that can be guaranteed in a state fiscal year to each city, village, and township for a local tax effort, not to exceed 0.02, if an amount equal to the amount described in subsection (3)(c) is distributed to cities, villages, and townships whose per capita taxable value is below the guaranteed tax base.
The full yield equalization payment to each city, village, and township is the product of the amounts determined under subparagraphs (i) and (ii):
An amount greater than zero that is equal to the difference between the guaranteed tax base determined in subdivision (a) and the per capita taxable value of the city, village, or township.
The local tax effort of the city, village, or township, not to exceed 0.02, multiplied by the population of that city, village, or township.
For purposes of this section, any city, village, or township that completely merges with another city, village, or township must be treated as a single entity so that when determining the eligible city, village, and township revenue sharing payment under section 952 of article 5 of 2023 PA 119 for the combined single entity, the city, village, and township revenue sharing amount that each of the merging local units of government was eligible to receive under section 952 of article 5 of 2023 PA 119 is summed.
Sec. 803. (1) Cities, villages, and townships receiving a payment under section 802(2) and counties receiving a payment under section 804(2) shall receive 1/6 of their total payment on the last business day of October, December, February, April, June, and August. On the last business day of February 2025, cities, villages, and townships receiving a payment under section 802(3) and counties receiving a payment under section 804(3) shall receive 50% of the estimated payment to be received under section 802(3) or 804(3), as applicable. On the last business day of June 2025, cities, villages, and townships receiving a payment under section 802(3) and counties receiving a payment under 804(3) shall receive any remaining payment calculated under section 802(3) or 804(3), as applicable.
Payments distributed under section 802 or section 804 may be withheld in accordance with sections 17a and 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.
If a city, village, or township that receives a payment under section 802 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the city, village, or township must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under
section 802 and the amount the city, village, or township would have been eligible to receive under section 952 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952 of article 5 of 2023 PA 119 was satisfied. A city, village, or township that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
If a county that receives a payment under section 804 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the county must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under section 804 and the amount the county would have been eligible to receive under section 952(3) and section 955 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952(3) and section 955 of article 5 of 2023 PA 119 was satisfied. A county that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
Sec. 804. (1) The funds appropriated in part 1 for county revenue sharing are for grants to counties and must be distributed as provided in this section.
From the first $261,069,700.00 appropriated in part 1, each county shall receive an amount equal to 100% of the revenue sharing payment for which the county would have been eligible to receive under section 952(3) and section 955 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under sections 952 and 955 of article 5 of 2023 PA 119 was satisfied.
From the remaining amount appropriated in part 1 for county revenue sharing after the distributions under subsection (2), a taxable value payment must be made to each county, determined as follows:
Determine the per capita taxable value for each county by dividing the taxable value of that county by the population of that county.
Determine the statewide per capita taxable value by dividing the total taxable value of all counties by the total population of all counties.
Determine the per capita taxable value ratio for each county by dividing the statewide per capita taxable value by the per capita taxable value for that county.
Determine the adjusted taxable value population for each county by multiplying the per capita taxable value ratio as determined under subdivision (c) for that county by the population of that county.
Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all counties.
Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
Determine the taxable value payment for each county by multiplying the result under subdivision (f) by the adjusted taxable value population for that county.
Sec. 805. (1) From the funds appropriated in part 1 for local prosecutor support grants, the department of treasury shall award grants to eligible offices of county prosecutors to reduce the average caseloads per attorney. An office of a county prosecutor is eligible for a grant if the office meets all of the following requirements:
The office receives, at a minimum, the same amount of funding from the county in fiscal year 2024- 2025 as the office received from the county in fiscal year 2023-2024.
The county in which the office is located is 1 of the 15 counties with the highest violent crime rate per 1,000 residents as determined for each county by dividing subparagraph (i) by subparagraph (ii) and then multiplying the result by 1,000:
The total violent crime incidents reported for the county, as determined by the most recent annual crime report published by the department of state police that is available as of April 1 of the previous state fiscal year.
The total population of the county according to the most recent federal decennial census.
The office applies for a grant in a form and manner determined by the department of treasury and includes with its application a proposed budget designating that grant proceeds will be used to support only costs that reduce the average caseload per attorney.
The office submits a report that includes, at a minimum, the current number of staff, the average caseload per attorney, and the local funding that supports the office.
(2) Grants must be awarded to each qualifying office. The amount of the grant award to an office under subsection (1) must be the greater of the following, adjusted in accordance with subsection (3) or (4) if applicable:
The amount received under section 991 of article 5 of 2023 PA 119.
An amount equal to the product of $7.50 multiplied by the population of the county in which the office is located according to the most recent federal decennial census.
If any grant money remains after determining the initial grant award amounts under subsection (2), each qualifying office must be awarded an additional amount determined by dividing the remaining amount of money available by the sum of the populations of each county in which a qualifying office is located and then multiplying the result by the population of the individual county in which the qualifying office is located.
If the total amount appropriated for the local prosecutor support grants does not support the full grant amounts determined under subsection (2), then the grant amount determined under subsection (2) for each qualifying office must be reduced. The amount of the reduction must be determined by dividing the total amount determined under subsection (2) that exceeds the available appropriation by the sum of the populations of each county in which a qualifying office is located and then multiplying the result by the population of the individual county in which the qualifying office is located.
The department of treasury shall not use any of the funds appropriated under this section for administration. The department of treasury shall submit a report to the senate and house appropriations subcommittees on general government, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office by August 31 that includes all of the following information:
A list of all of the counties in which an office that received a grant under this section is located.
The information required under subsection (1)(d).
If an additional amount is awarded under subsection (3), the additional amount awarded to each qualifying office under subsection (3).
If a reduction occurs under subsection (4), the amount of the reduction under subsection (4) for each qualifying office.
The total amount awarded to each qualifying office under this section.
As used in this section:
“Office” means an office of a county prosecutor.
“Qualifying office” means an office that meets all of the requirements of subsection (1).
Sec. 806. A term that is defined in the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921, has the same meaning when used in sections 802, 803, and 804 of this part.
REPEALERS
Sec. 1101. Sections 949f, 952, 954, and 955 of article 5 of 2024 PA 121 are repealed.
Sec. 1102. Section 993 of article 5 of 2024 PA 121 is repealed.
Sec. 1103. Section 1028 of article 9 of 2024 PA 121 is repealed.
Sec. 1104. Section 1102 of article 11 of 2024 PA 121 is repealed.
Sec. 1105. Section 1201 of article 13 of 2024 PA 121 is repealed.
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies, the judicial branch, and the legislative branch for the fiscal years ending September 30, 2025 and September 30, 2026; to provide for certain conditions on appropriations; to provide for the expenditure of the appropriations; and to repeal acts and parts of acts.
Ann Bollin Sarah Anthony
Matt Maddock Sean McCann
Alabas Farhat Jon Bumstead
Conferees for the House Conferees for the Senate The question being on the adoption of the conference report,
The first conference report was adopted, a majority of the members serving voting therefor, as follows:
Roll Call No. 258 | Yeas—31 | |||
Anthony | Daley | Johnson | Santana | |
Bayer | Damoose | Klinefelt | Shink | |
Brinks | Geiss | Lauwers | Singh | |
Bumstead | Hauck | McBroom | Theis | |
Camilleri | Hertel | McCann | Victory | |
Cavanagh | Hoitenga | McMorrow | Webber | |
Chang | Huizenga | Moss | Wojno | |
Cherry | Irwin | Polehanki | ||
Albert Lindsey Nesbitt Runestad Bellino
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Senator Singh moved that the Senate proceed to consideration of the following bill:
The motion prevailed.
The following bill was read a third time:
A bill to make, supplement, and adjust appropriations for certain capital outlay projects and the department of natural resources for the fiscal year ending September 30, 2025; to provide for expenditure of the appropriations; and to prescribe certain conditions for the appropriations.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 259 | Yeas—35 | |||
Albert | Cherry | Johnson | Runestad | |
Anthony | Daley | Klinefelt | Santana | |
Bayer Bellino | Damoose Geiss | Lauwers Lindsey | Shink Singh | |
Brinks | Hauck | McCann | Theis | |
Bumstead Camilleri | Hertel Hoitenga | McMorrow Moss | Victory Webber | |
Cavanagh | Huizenga | Nesbitt | Wojno | |
Chang | Irwin | Polehanki | ||
Nays—1 | ||||
McBroom |
Outman
In The Chair: Cherry
The question being on concurring in the committee recommendation to give the bill immediate effect, The recommendation was concurred in, 2/3 of the members serving voting therefor.
The Senate agreed to the title of the bill.
Senator McBroom, under his constitutional right of protest (Art. 4, Sec. 18), protested against the passage of House Bill No. 4392 and moved that the statement he made during the discussion of the bill be printed as his reasons for voting “no.”
The motion prevailed.
Senator McBroom’s statement is as follows:
This bill, like so many I’ve seen before, is once again utilizing our trust fund to purchase enormous amounts of land across this state. And particularly, again, a large amount of land in the Upper Peninsula of Michigan. While many of these lands are certainly worthy of protection and worthy of the opportunity to be kept away from development, the truth of the matter is for more than ten years now, the state of Michigan has had a requirement placed on it to enact a comprehensive land management strategy, a strategy which the department has failed to enact. While they have certainly offered us several opportunities to adopt a very broad and sweeping generalization of what they’d like to do, where we basically say they can do whatever they want, they have not actually provided us a comprehensive land management plan that has been approved by the Legislature as the law requires.
Until that time happens, I cannot stand idly by and allow the department to just continue to purchase more and more land. Where does it end? When will it end? How much land is enough for them to have, and while many of you come here from areas of the state where you openly say, I’d love to have more state land, and, My people would love to have more state land, you got one member here who’s got all of it and can’t seem to get any consideration. Certainly be nice if we could just include freedom for the U.P. and go away and leave you all alone. You can have all the state land you want down here. Meanwhile, we just keep buying more land in the U.P. and telling the people of the U.P., well, there goes your tax base. There goes your opportunity for more growth. There goes more places for you to live.
This is a really ridiculous ongoing battle that nobody seems to care about, and certainly our Department of Natural Resources seems to care the least about, and that’s why I’ll vote “no” today and recommend everyone else do so as well.
Senators Irwin and McBroom asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.
The motion prevailed.
Senator Irwin’s first statement is as follows:
I just want to alert my fellow members that this legislation unfortunately has been amended to add politically-motivated boilerplate. This is a bad idea. The Michigan Natural Resources Trust Fund has long been an asset for our state that operates without political interference from the Legislature. What happened in the House was that a political line opposing wind and solar energy development was added into the legislation and regardless of whether that idea has majority support in this Legislature today, I want to warn my colleagues that this is a dangerous precedent. What’s next? Are we going to start interfering in which properties get bought? Where is that going to become an annual fight here in the Legislature? Are we going to start second guessing the land management decisions of the DNR here in the Legislature when the
Constitution has already set up the Natural Resources Commission and the structure for that to happen? Are we going to start adding other political boilerplate and demands to the Michigan Natural Resources Trust Fund going forward? How would folks say—right now on our public lands that they’re not currently being used for wind and solar development, but they are being used for other energy development. We’ve got thousands of acres that have oil and gas development on them. We’ve got mining operations that are happening on public lands. We’re logging a million cords of lumber from our public lands every day. Is that going to be an issue that now comes to the Legislature every time we want to have this previously nonpolitical process of the Michigan Natural Resources Trust Fund move forward? I hope not.
I’m going to be voting for this measure. I think it’s important that we continue to enjoy the benefits of the Michigan Natural Resources Trust Fund, but I want to warn my colleagues that this is a dangerous road to make this process more and more and more political. We’ve seen how that can slow things down, how that can drag this Legislature to a halt on things that we should be able to agree on, and I’m scared that we’re adding that into the process now on the Michigan Natural Resources Trust Fund, when this is something that has been nonpolitical and bipartisan, and without interference from legislators trying to score political points for the entire time I’ve been in this Legislature—really for the entire time I’ve been alive. So let’s try to clean this up. Let’s try to do right by the citizens and not play political games with the trust fund.
Senator McBroom’s statement is as follows:
I would simply like to clarify that this is political and it’s full of political projects. It’s full of opportunities for members to go home and trumpet how wonderful it is that they got some sort of project. It’s been political from the day it started, and to pretend that somehow it’s not been political simply because some board that’s politically appointed that has political people on it is making those decisions, I think it’s just very much not in line with what’s actually happening. It’s a very political process, and it’s always been a political process, and certainly us being involved doesn’t help it be any less political, but it’s never not been political.
Senator Irwin’s second statement is as follows:
It should be an uncomplicated point that everything we do is political and it reminds me of when folks are saying, Well, government shouldn’t pick winners and losers. That’s what we do. Let’s grow up. We’re picking winners and losers here. Everything we do is political. But that doesn’t mean that things can be more or less political. That doesn’t change the point I’m trying to make here today, which is that as soon as the Legislature starts monkeying around with these on the floor and in committees, picking one industry over another, it’s polluting a process with politics more than it needs to be—and that’s why I think it’s wrong.
Senator Singh moved that the Senate recess subject to the call of the Chair. The motion prevailed, the time being 1:19 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Cherry. Senator Singh moved that the Senate proceed to consideration of the following bill:
The motion prevailed.
1:36 a.m.
The following bill was read a third time:
A bill to amend 1967 PA 281, entitled “Income tax act of 1967,” by amending sections 12, 30, 36, 607,
695, and 805 (MCL 206.12, 206.30, 206.36, 206.607, 206.695, and 206.805), sections 12, 607, and 805 as
amended by 2024 PA 177, sections 30 and 695 as amended by 2023 PA 4, and section 36 as amended by 2011 PA 38; and to repeal acts and parts of acts.
The question being on the passage of the bill, Senator Lindsey offered the following amendments:
Amend page 16, line 1, by striking out all of subdivision (gg) and inserting:
“(gg) For tax years beginning after December 31, 2024, to the extent deducted in determining adjusted gross income and the deduction under section 174A of the internal revenue code on the taxpayer’s federal income tax return for the same tax year exceeds $1,000,000.00, add back an amount equal to that excess.”.
Amend page 27, line 29, by striking out all of subdivision (i) and inserting:
Amend page 29, line 19, after “168(k)” by striking out the comma and “168(n), and 174A” and inserting “and 168(n)”.
Amend page 29, line 29, by striking out all of subdivision (c).
Amend page 33, following line 19, by inserting:
“Sec. 623. (1) Except as otherwise provided in this part, there is levied and imposed a corporate income tax on every taxpayer with business activity within this state or ownership interest or beneficial interest in a flow-through entity that has business activity in this state unless prohibited by 15 USC 381 to 384. The corporate income tax is imposed on the corporate income tax base, after allocation or apportionment to this state, at the rate of 6.0%.
The corporate income tax base means a taxpayer’s business income subject to the following adjustments, before allocation or apportionment, and the adjustment in subsection (4) after allocation or apportionment:
Add interest income and dividends derived from obligations or securities of states other than this state, in the same amount that was excluded from federal taxable income, less the related portion of expenses not deducted in computing federal taxable income because of sections 265 and 291 of the internal revenue code.
Add all taxes on or measured by net income including the tax imposed under this part to the extent that the taxes were deducted in arriving at federal taxable income including any direct or indirect allocated share of taxes paid by a flow-through entity under part 4.
Add any carryback or carryover of a net operating loss to the extent deducted in arriving at federal taxable income.
To the extent included in federal taxable income, deduct dividends and royalties received from persons other than United States persons and foreign operating entities, including, but not limited to, amounts determined under section 78 of the internal revenue code or sections 951 to 965 of the internal revenue code.
Except as otherwise provided under this subdivision, to the extent deducted in arriving at federal taxable income, add any royalty, interest, or other expense paid to a person related to the taxpayer by ownership or control for the use of an intangible asset if the person is not included in the taxpayer’s unitary business group. The addition of any royalty, interest, or other expense described under this subdivision is not required to be added if the taxpayer can demonstrate that the transaction has a nontax business purpose, is conducted with arm’s-length pricing and rates and terms as applied in accordance with sections 482 and 1274(d) of the internal revenue code, and 1 of the following is true:
The transaction is a pass through of another transaction between a third party and the related person with comparable rates and terms.
An addition would result in double taxation. For purposes of this subparagraph, double taxation exists if the transaction is subject to tax in another jurisdiction.
An addition would be unreasonable as determined by the state treasurer.
The related person recipient of the transaction is organized under the laws of a foreign nation which has in force a comprehensive income tax treaty with the United States.
To the extent included in federal taxable income, deduct interest income derived from United States obligations.
Eliminate all of the following:
Income from producing oil and gas to the extent included in federal taxable income.
Expenses of producing oil and gas to the extent deducted in arriving at federal taxable income.
For a qualified taxpayer, eliminate all of the following:
Income derived from a mineral to the extent included in federal taxable income.
(ii) Expenses related to the income deductible under subparagraph (i) to the extent deducted in arriving at federal taxable income.
For purposes of subsection (2), the business income of a unitary business group is the sum of the business income of each person included in the unitary business group less any items of income and related deductions arising from transactions including dividends between persons included in the unitary business group.
Deduct any available business loss incurred after December 31, 2011. As used in this subsection, “business loss” means a negative business income taxable amount after allocation or apportionment. For purposes of this subsection, a taxpayer that acquires the assets of another corporation in a transaction described under section 381(a)(1) or (2) of the internal revenue code may deduct any business loss attributable to that distributor or transferor corporation. The business loss shall be carried forward to the year immediately succeeding the loss year as an offset to the allocated or apportioned corporate income tax base, then successively to the next 9 taxable years following the loss year or until the loss is used up, whichever occurs first.
As used in this section, “oil and gas” means oil and gas that is subject to severance tax under 1929 PA 48, MCL 205.301 to 205.317.”.
Amend page 38, line 2, by striking out all of subdivision (a) and relettering the remaining subdivisions.
Amend page 39, following line 13, by inserting:
“Sec. 815. (1) Subject to section 847, beginning January 1, 2021 and each tax year after 2021, there is levied and imposed a flow-through entity tax on every taxpayer with business activity in this state unless prohibited by 15 USC 381 to 384. Except as otherwise provided under subsection (5), the flow-through entity tax is imposed on the positive business income tax base, after allocation or apportionment to this state, at the same rate levied and imposed under section 51 for that same tax year. A negative business income tax base of a flow-through entity, after allocation or apportionment to this state, is includible in the business income tax base of each member of the flow-through entity and is not available as an offset to the allocated or apportioned business income tax base of the flow-through entity in any other tax year for which an election is made under section 813.
The business income tax base means a taxpayer’s business income subject to the following adjustments, before allocation or apportionment, and the adjustment in subsection (4) after allocation or apportionment:
Add interest income and dividends derived from obligations or securities of states other than this state, in the same amount that was excluded from federal taxable income, less the related portion of expenses not deducted in computing federal taxable income because of sections 265 and 291 of the internal revenue code.
Add losses on the sale or exchange of obligations of the United States government, the income of which this state is prohibited from subjecting to a net income tax, to the extent that the loss has been deducted in arriving at federal taxable income.
Deduct, to the extent included in federal taxable income, income derived from obligations, or the sale or exchange of obligations, of the United States government that this state is prohibited by law from subjecting to a net income tax, reduced by any interest on indebtedness incurred in carrying the obligations and by any expenses incurred in the production of that income to the extent that the expenses, including amortizable bond premiums, were deducted in arriving at federal taxable income.
Add charitable contributions to the extent deducted in arriving at federal taxable income.
Add all taxes on or measured by net income including the tax imposed under this part to the extent that the taxes were deducted in arriving at federal taxable income.
Deduct guaranteed payments for services rendered by a member who is an individual to the extent that those guaranteed payments were included in federal taxable income.
Deduct, to the extent included in federal taxable income, all of the following:
The amount of a refund received in the tax year based on taxes paid under this part.
The amount of a refund received in the tax year based on taxes paid under the city income tax act, 1964 PA 284, MCL 141.501 to 141.787.
Deduct business income received as a member of another flow-through entity to the extent that the business income increased federal taxable income.
Eliminate all of the following:
Income from producing oil and gas to the extent included in federal taxable income.
Expenses of producing oil and gas to the extent deducted in arriving at federal taxable income.
Income derived from a mineral to the extent included in federal taxable income of a qualified taxpayer.
Expenses related to the income deductible under subparagraph (iii) to the extent deducted in arriving at federal taxable income.
For a taxpayer that has a direct, or indirect through 1 or more other flow-through entities, ownership or beneficial interest in a flow-through entity for which an election was made under section 813 and that reported positive business income in a tax year ending on or within the taxpayer’s tax year, the adjustments in subsection (2) shall not include the taxpayer’s share of the electing flow-through entities adjustments under subsection (2).
For a taxpayer that has a direct, or indirect through 1 or more other flow-through entities, ownership or beneficial interest in a flow-through entity for which an election was not made under section 813, add the taxpayer’s share of the non-electing flow-through entity’s positive business income as determined under section 817(2).
In computing the tax due under this part, the taxpayer shall pay the tax due only on the business income tax base allocable to those members who are individuals, flow-through entities, estates, or trusts and exclude the business income tax base allocable to those members that are corporations, insurance companies, or financial institutions. The department may require the taxpayer to disclose identifying information for all members of the taxpayer and the allocable share of business income for each member.
As used in this section:
“Mineral” means that term as defined in section 2 of the nonferrous metallic minerals extraction severance tax act, 2012 PA 410, MCL 211.782.
“Oil and gas” means oil and gas that is subject to severance tax under 1929 PA 48, MCL 205.301 to 205.317.
“Qualified taxpayer” means a taxpayer subject to the minerals severance tax levied under the nonferrous metallic minerals extraction severance tax act, 2012 PA 410, MCL 211.781 to 211.791.”.
The amendments were not adopted, a majority of the members serving not voting therefor.
Senator Lindsey offered the following amendments:
Amend page 15, line 15, by striking out all of subdivisions (ff) and (gg).
Amend page 26, line 12, by removing section 36 from the bill.
Amend page 29, line 10, after “calculated” by striking out the balance of the subsection and inserting “as if section 168(k) and section 199 of the internal revenue code were not in effect.”.
Amend page 37, line 29, after “code” by striking out the balance of the page through “(c)” on line 21 of page 38 and inserting a period.
The question being on the adoption of the amendments, Senator Lauwers requested the yeas and nays.
The yeas and nays were ordered, 1/5 of the members present voting therefor.
The amendments were not adopted, a majority of the members serving not voting therefor, as follows:
Roll Call No. 260 | Yeas—18 | |||
Albert Bellino Bumstead Daley Damoose | Hauck Hertel Hoitenga Huizenga Johnson | Lauwers Lindsey McBroom Nesbitt | Runestad Theis Victory Webber | |
Nays—18 | ||||
Anthony Bayer Brinks Camilleri Cavanagh | Chang Cherry Geiss Irwin Klinefelt | McCann McMorrow Moss Polehanki | Santana Shink Singh Wojno | |
Outman
In The Chair: Cherry
Senator Nesbitt offered the following amendments:
Amend page 15, line 21, after “168(k),” by striking out “174, and 179” and inserting “and 174”.
Amend page 27, line 20, after “168(k),” by striking out “174, and 179” and inserting “and 174”.
Amend page 29, line 21, after “163(j)” by striking out the comma and “174, and 179” and inserting “and 174”.
Amend page 38, line 12, after “168(k),” by striking out “174, and 179” and inserting “and 174”. The amendments were not adopted, a majority of the members serving not voting therefor.
Senator Nesbitt offered the following amendments:
Amend page 15, line 15, after “2024” by inserting “and before January 1, 2028”.
Amend page 27, line 14, after “2024” by inserting “and before January 1, 2028”.
Amend page 29, line 12, after “2025” by inserting “and after December 31, 2027”.
Amend page 29, line 15, after “2024” by inserting “and before January 1, 2028”.
Amend page 38, line 7, after “2024” by inserting “and before January 1, 2028”. The question being on the adoption of the amendments,
Senator Lauwers requested the yeas and nays.
The yeas and nays were ordered, 1/5 of the members present voting therefor.
The amendments were not adopted, a majority of the members serving not voting therefor, as follows:
Roll Call No. 261 | Yeas—17 | |||
Albert Bellino Bumstead Daley Damoose | Hauck Hoitenga Huizenga Johnson | Lauwers Lindsey McBroom Nesbitt | Runestad Theis Victory Webber | |
Nays—19 | ||||
Anthony Bayer Brinks Camilleri Cavanagh | Chang Cherry Geiss Hertel Irwin | Klinefelt McCann McMorrow Moss Polehanki | Santana Shink Singh Wojno |
Outman
In The Chair: Cherry
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 262 | Yeas—22 | |||
Anthony Bayer Brinks Camilleri Cavanagh Chang | Cherry Geiss Hertel Huizenga Irwin Klinefelt | McBroom McCann McMorrow Moss Polehanki | Santana Shink Singh Webber Wojno | |
Nays—14 | ||||
Albert Bellino Bumstead Daley | Damoose Hauck Hoitenga Johnson | Lauwers Lindsey Nesbitt | Runestad Theis Victory |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits, rebates, and refunds of the taxes; to create certain funds; to provide for the expenditure of certain funds; to impose certain duties and requirements on certain officials, departments, and authorities of this state; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal acts and parts of acts,”
The Senate agreed to the full title.
Senator Lindsey asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Lindsey’s statement is as follows:
Right now in Michigan, our businesses are set to see an incredible opportunity to have some of their business taxes cut. This is because of work that President Trump and the Republicans in Congress did to achieve historic tax cuts all across the nation, including some that we could inherit in Michigan. Unfortunately, the legislation in front of us would prevent businesses in Michigan from taking full advantage of those tax cuts. I think that’s an unwise thing to do, especially in an environment where Michigan can’t afford to become a less tax-competitive state.
My amendment would remove this unfavorable treatment towards those businesses and make sure that they would be able to take full advantage of all the tax cuts that are in front of them. I hope you’ll vote “yes.”
The following bill was read a third time:
A bill to amend 2018 PA 175, entitled “Insurance provider assessment act,” by amending sections 7, 11, and 17 (MCL 550.1757, 550.1761, and 550.1767).
The question being on the passage of the bill, Senator Lindsey offered the following amendment:
Amend page 3, line 19, after “year.” by striking out the balance of the subsection and inserting “If a tax structure is approved as described in this subsection, the tax structure does not apply 1 year after the tax structure is approved.”.
The amendment was not adopted, a majority of the members serving not voting therefor. The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 263 | Yeas—22 | |||
Anthony Bayer Brinks Camilleri Cavanagh Chang | Cherry Geiss Hertel Huizenga Irwin Klinefelt | McBroom McCann McMorrow Moss Polehanki | Santana Shink Singh Webber Wojno | |
Nays—14 | ||||
Albert Bellino Bumstead Daley | Damoose Hauck Hoitenga Johnson | Lauwers Lindsey Nesbitt | Runestad Theis Victory |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to impose an assessment on certain insurance providers; to impose certain duties and obligations on certain insurance providers, state departments, agencies, and officials; to create certain funds; to authorize certain expenditures; and to impose certain remedies and penalties,”
The Senate agreed to the full title.
Senator Lindsey asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator Lindsey’s statement is as follows:
The bill in front of us is an admirable attempt to solve a very real problem. We’re facing a situation where the state of Michigan could go out of compliance with some new or updated federal standards, and that could deprive our state of certain dollars that go into health care. The bill is remedying that both by asking for a
waiver from the federal government, but also setting out a structure that allows the Department of Health and Human Services—if that waiver is not granted or if we’re out of compliance in the future—to take action to remedy that. But the current language allows that department to entirely rewrite a tax structure, and I think that’s a terrible amount of power to give to the department.
What’s even worse is that currently it gives them that power in perpetuity. So my amendment would still allow the waiver process, it would still even allow the department to set that tax structure, but that tax structure could only exist for one year, which would then force the Legislature into what I think would be the appropriate thing to do: come together and figure out, legislatively, what the tax structure should be. This is a way to make sure that we’re not handing over too much power to arbitrarily write tax code to the department forever, so I hope I could earn the support of my colleagues here in making sure the Legislature plays an essential role in that process.
Senator Singh moved that the Senate recess subject to the call of the Chair. The motion prevailed, the time being 1:51 a.m.
The Senate was called to order by the Assistant President pro tempore, Senator Cherry. Senator Singh moved that the Senate return to consideration of the following bill:
The motion prevailed.
2:57 a.m.
The following bill was read a third time:
A bill to provide for the imposition and collection of excise taxes on certain sales of marihuana; to provide for the establishment of procedures for the collection, administration, and enforcement of those taxes; to provide for the disposition of the taxes; to provide for the promulgation of rules; to create the comprehensive road funding fund; and to prescribe the powers and duties of certain state governmental officers and entities.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 264 | Yeas—19 | |||
Anthony Bayer Brinks Camilleri Cavanagh | Chang Cherry Daley Geiss Klinefelt | Lauwers McBroom McCann McMorrow Moss | Polehanki Singh Victory Wojno | |
Nays—17 | ||||
Albert Bellino Bumstead Damoose Hauck | Hertel Hoitenga Huizenga Irwin | Johnson Lindsey Nesbitt Runestad | Santana Shink Theis Webber |
Outman
In The Chair: Cherry
The Senate agreed to the title of the bill.
Senators Irwin, Bellino, Lindsey and Runestad, under their constitutional right of protest (Art. 4, Sec. 18), protested against the passage of House Bill No. 4951.
Senators Irwin and Lindsey moved that the statements they made during the discussion of the bill be printed as their reasons for voting “no.”
The motion prevailed.
Senator Irwin’s statement, in which Senator Bellino concurred, is as follows:
This is truly a great day for illegal drug dealers and criminal gangs in Michigan. That’s because, right now, Michigan has the most functional and successful cannabis market in the United States. We’ve done it right, and because of how we’ve done it right, here in Michigan, three out of four cannabis sales happen in the legal market, while out west, in high-tax states like California and Colorado, only one-in-three sales happen in the legal market. Because we have the most successful, functional cannabis market in the state of Michigan, there have been 40,000 jobs created in our state in this market because of how we’ve designed it. When Michigan legalized cannabis, we had the benefit of learning from states out west that foolishly set high taxes that drove people into the black market, and we learned also that if you set taxes at a level that is reasonable, if you set taxes at a level that makes it rational for consumers and producers to meet in the legal market, they will do so. That’s why, in 2018, the citizens spoke and adopted Proposal 1, and they set an excise tax of 10 percent—plus our 6 percent sales tax—for cannabis sales. Now, today, this Legislature is trying to do an end-run around the will of the people and massively increase the tax on cannabis. This is going to drive Michigan customers out of the legal market. This is telling customers from other states, Stop bringing your money to Michigan. Customers from other states right now are bringing about $1 billion per year to our state, paying taxes in our state, growing businesses in our state, and employing people in our state, because we have the most functional cannabis market in the nation that, today, we have a proposal on
the board to destroy.
This Legislature is not only trying to do an end-run around the will of the people by increasing this cannabis tax that was set at the ballot, but this bill also does an end-run around the distribution model that the residents voted for. When the residents legalized cannabis in our state, they said there should be extra taxes on cannabis, and that money should go to schools, to roads, and to local communities, but this legislation cuts out local communities, cuts out schools, and gives all the additional revenue to roads, contrary to the will of the voters whom we are here to serve. When we drive customers out of the legal market, not only are we costing Michigan jobs, not only are we costing local communities revenue from the businesses that will close, but we’re also reducing that excise tax revenue that currently goes to support roads, schools, and local communities.
This bill adopts California’s failed taxation model and as a result, if it passes today, businesses will close, employees will lose their jobs, local communities will lose revenue and gain blight and crime. The big winners here on this bill are illegal drug dealers, criminal cartels, and our neighboring states that will no longer be funneling their money into our state to grow our businesses, fund our schools, and pave our roads.
Senator Lindsey’s statement, in which Senator Runestad concurred, is as follows:
It’s just after 3 a.m. in the morning. And in good form, we’re still working as a legislature to pass a budget. I’m sure the people of Michigan will be happy to know when they wake up that we finally got the job done. We couldn’t do it during the day where they could see what we were doing and follow along, but, in particular, you know some of the people who did come out over the last few days to engage their legislature— and what I think is a healthy civic engagement on this particular bill—I think a lot of them are not able to be here at 3 a.m. in the morning.
I didn’t originally intend to rise, but I do want to make a few comments about them and a few comments about us, because over the last week, I’ve heard more from people I serve with—speaking in gleeful terms about how we’re going to pass legislation that’s going to crush people’s jobs, their businesses, and their
livelihoods—than I’ve ever heard before. It’s incredible, I mean, I think that there are also interesting arguments about the value of placing this tax to raise revenue for roads. I’ll talk about that in a little bit. But, I’d like everybody to take a step back first and think about this other topic, of how awful is it for members who serve in a public body like this, to talk in gleeful terms about how we’re going to crush an industry. I had people that I said, Well, you know, if you raise this tax this high, you know, 24 percent tax, there’s no way it’s going to work and raise the amount of revenue that you think it’s going to, you know crush a lot of those businesses, and I had people directly tell me, Yeah, that’s great, that’s what I want. I want it to stop. OK, and I understand there’s a root cause to that, that people have an issue with marijuana. I personally am not a huge fan of that drug. But I think that’s entirely separate from, if you took the time over the last few days to have conversations with people who showed up that have small businesses in our communities, that some of them invested everything they had to build it. They decided this was a legal thing. This is a course that Michigan took, and they were going to invest in it. They hired people—a lot of them.
You know, I was talking to the gentleman upstairs who was just absolutely heartbroken. He said, This is probably going to be the end for us if you do this, and I don’t know what’s next. So again, you know, I can understand the arguments about the practicality of the state believes that it needs more money, so we’ve got to tax something and this seemed like an easy target, but I hope that everybody will at least reflect after we do this—that no matter how you feel about marijuana, no matter how we feel about marijuana, it should never be the role of anybody serving in state government to look for opportunities to be joyful about crushing businesses in our communities.
And then the other point I wanted to make about this is that I think it’s a bad bill because it’s not going to accomplish what it’s meant to accomplish in the first place. We’re estimating that if we put this tax on that, that it’s going to raise $420 million in revenue that’s going to go help us fund roads. I’ve been a big fan of the effort to get more funding into roads, especially local roads, but I think this tax in particular—there’s a body of economic literature out there that any of us could have drawn on at any point and time to come to a very quick conclusion that this is unlikely to raise anywhere near that level of revenue. It baffles me a little bit that this is the one we landed on, that we think this is going to be the answer to funding our roads going forward. Then, the other component of why I don’t think it’s something that works is, Michigan is trying to dig our way out of what is a negative trajectory on our economy in general. Part of the reason we’re probably going to see smaller budgets going forward is because our economy is going to continue to constrict, because we’re not a particularly competitive state. I don’t know how to balance this, personally. I don’t think the pillar of Michigan’s economy should be that we’re the most competitive state in the country in selling marijuana, but there is a fact out there that we are very competitive in that we draw a ton of money from other states into our state. And so, instead of trying to find some sort of off ramp where we said, Hey, maybe we don’t think marijuana is the best place for us to focus all of our competitive energy and figure out how to simultaneously leverage what benefit that is bringing in terms of existing revenue to our state, and then look for other ways to grow our economy. Instead, it seems to me that we’re just going to cut that leg of the stool off. Just be satisfied that we don’t really have any answer about, What are we doing to make Michigan more competitive? I mean, just a little while ago, we voted to make our state less competitive in terms of tax rates for our businesses compared to our neighbors more broadly. You know, I think that will also impact the
marijuana industry, but it’ll impact everybody.
So again, I think you know probably the most frustrating thing to me about this bill is not even in the content—it’s back to what I said at the beginning, that I hope all of us will reconsider the way people are looking at this and have a little bit more empathy to the people, the business owners, the workers, and the people who are part of this economy. But I also think that we should be realistic about what’s likely to happen when we pass this, and that’s that I don’t think it’s going to raise the amount of revenue that we hope to, which is going to create a problem for our road funding. Also, it’s just not going to help in the overall solution of, How do we get Michigan’s economy going again? So, I’ll be voting “no.”
Senator McBroom asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.
The motion prevailed.
Senator McBroom’s statement is as follows:
Mr. President, I rise to support this legislation. There’s, I think, you know, a lot of passion and concern that my colleague from Ann Arbor raised, but one of his points is, What about the benefits that we’re receiving? I want to share with you that, in my opinion, and from what I see representing 15 counties of the U.P., these benefits that we receive are blight, they are crime, they’re loss of investment. I have communities in the U.P. that are overrun with stores, overrun with dispensaries. To the extent that people are leaving these communities, that the communities are abandoned, homes are left vacant, developments have ceased or been
moved to other locations. Crime is up. Where are the benefits? I’m told, Well, this is going to stop cross- border traffic into my communities. Well, tell me another reason to vote “yes.” Because these folks drive in, back up into the streets for miles, hundreds of cars, don’t stop at a single store, restaurant, gas station, or wayside in my communities, and drive out again with their product. And the community dollars that come in, what are we using them for except to address the very downside that I’ve already detailed for you? Will illegal sales increase? I suppose that might be possible. But if I’m not having out-of-state folks come here because it’s too expensive to do business here, they might as well stick with their illegal markets where they live. Why would they drive hundreds of miles to the U.P. to do an illegal sale rather than sticking around with their own state? Especially when so many of them already get busted at the border driving back into Wisconsin.
We have an industry that is out of control, is too large, and is failing to deliver the promises they gave to us when they said they’d come to our state. Where is the massive prosperity? Where is the community revitalization? Where are the thriving restaurants and businesses that should have come along with it? They’re not there. Instead, we have blight and crime and loss of investment in my communities along the border. Hopefully this taxation might even do some right-sizing to this, because certainly the opportunity for this product to be used in medicinal purpose is justified, and I’d love to see our federal government get off of its butt and do the right thing and allow these sales to be legalized for medical purposes and to be regulated effectively so that the products are safe and reliable. But until then, we’re stuck with this mess that we’ve created through this act.
Fortunately, the Medical Marihuana Act will still be available to those who need these services. Many of you know that I’d probably vote for a higher tax increase if we would do it because I’m so disappointed with the results, like so many other industries that promise big results for our communities and don’t deliver. Meanwhile, I find it very interesting that suddenly we are having a massive turnaround that taxes are bad for business from people who otherwise have always supported every possible tax increase that we could offer and said those businesses can afford it. What have we seen out here on the lawn in the last several days with businesses that can easily afford it? They don’t seem to mind blasting music at us for hours long, letting us know they have enough money to pay for it.
This is a great opportunity to add to our revenues and I want to address the particular issue with, Is this an end around? Well, I thought at first it was, but when you read the initiated law from 2018, you see that it specifically references other taxes, specifically, therefore, those who wrote this acknowledged that there are other taxes that can be charged and levied, and it doesn’t say that it can only be those that were in place at the time of passage. And it’s not the first product or item or property in this state where it is taxed under multiple acts and you have to pay tax on the same thing in multiple ways.
Members, this is a good opportunity and a great way to help increase funding for roads and I recommend a “yes” vote.
By unanimous consent the Senate returned to the order of
A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 3, 6, 11, 11a, 11j, 11k, 11m, 11s, 11x, 12d, 15, 18, 19, 20, 20d, 21f, 21h, 22a, 22b, 22d, 22k, 22l, 22m, 22p, 24, 24a,
25f, 25g, 26a, 26b, 26c, 26d, 27a, 27b, 27c, 27h, 27l, 27p, 27r, 28, 29, 30d, 31a, 31d, 31f, 31n, 31aa, 32d,
32n, 32t, 33, 35a, 35m, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a, 54, 54d, 55, 56, 61a, 61b, 61d, 61j,
62, 65, 67, 67f, 74, 81, 94, 94a, 94e, 97g, 97k, 98, 99, 99h, 99ee, 101, 104, 104b, 104h, 107, 111, 147, 147a,
147c, 147e, 152a, 152b, 161a, 201, 201f, 206, 207a, 207b, 207c, 210, 210b, 210d, 212, 216e, 217a, 217b,
217c, 222, 229a, 230, 236, 236c, 236d, 236j, 241, 241a, 241b, 241c, 241e, 244, 247, 248, 251, 252, 254, 256,
260, 263, 263b, 264, 268, 269, 270, 270c, 275k, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, and 286
(MCL 388.1603, 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s,
388.1611x, 388.1612d, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1621f, 388.1621h,
388.1622a, 388.1622b, 388.1622d, 388.1622k, 388.1622l, 388.1622m, 388.1622p, 388.1624, 388.1624a,
388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1626d, 388.1627a, 388.1627b, 388.1627c,
388.1627h, 388.1627l, 388.1627p, 388.1627r, 388.1628, 388.1629, 388.1630d, 388.1631a, 388.1631d,
388.1631f, 388.1631n, 388.1631aa, 388.1632d, 388.1632n, 388.1632t, 388.1633, 388.1635a, 388.1635m,
388.1639, 388.1639a, 388.1641, 388.1641b, 388.1651a, 388.1651c, 388.1651d, 388.1651e, 388.1651g,
388.1653a, 388.1654, 388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661d, 388.1661j,
388.1662, 388.1665, 388.1667, 388.1667f, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1694e,
388.1697g, 388.1697k, 388.1698, 388.1699, 388.1699h, 388.1699ee, 388.1701, 388.1704, 388.1704b,
388.1704h, 388.1707, 388.1711, 388.1747, 388.1747a, 388.1747c, 388.1747e, 388.1752a, 388.1752b,
388.1761a, 388.1801, 388.1801f, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1810, 388.1810b,
388.1810d, 388.1812, 388.1816e, 388.1817a, 388.1817b, 388.1817c, 388.1822, 388.1829a, 388.1830,
388.1836, 388.1836c, 388.1836d, 388.1836j, 388.1841, 388.1841a, 388.1841b, 388.1841c, 388.1841e,
388.1844, 388.1847, 388.1848, 388.1851, 388.1852, 388.1854, 388.1856, 388.1860, 388.1863, 388.1863b,
388.1864, 388.1868, 388.1869, 388.1870, 388.1870c, 388.1875k, 388.1876, 388.1877, 388.1878, 388.1879,
388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1885, and 388.1886), sections 3, 11x, 19, 21f, 27b,
32t, and 283 as amended and sections 22k, 27h, 217a, and 241b as added by 2023 PA 103, sections 6 and 97g as amended by 2023 PA 320, sections 11 and 31aa as amended by 2024 PA 148, sections 11a, 11j, 11k, 11m, 11s, 15, 20, 20d, 21h, 22a, 22b, 22d, 22l, 22m, 22p, 24, 24a, 25f, 25g, 26a, 26b, 26c, 26d, 27a, 27c,
27l, 27p, 28, 29, 30d, 31a, 31d, 31f, 31n, 32d, 32n, 33, 35a, 39, 39a, 41, 41b, 51a, 51c, 51d, 51e, 51g, 53a,
54, 54d, 56, 61a, 61b, 61d, 61j, 62, 65, 67, 67f, 74, 81, 94, 94a, 97k, 98, 99h, 99ee, 104, 104h, 107, 147,
147a, 147c, 147e, 152a, 152b, 201, 206, 207a, 207b, 207c, 217b, 222, 229a, 230, 236, 236c, 236j, 241, 241a,
241c, 244, 248, 251, 252, 254, 256, 260, 263, 263b, 264, 268, 269, 270c, 275k, 276, 277, 278, 279, 280, 281,
and 282 as amended and sections 12d, 27r, 35m, 55, 94e, 99, 201f, 216e, 217c, 236d, 241e, 247, and 270 as added by 2024 PA 120, section 18 as amended by 2022 PA 144, section 101 as amended by 2025 PA 5, section 104b as amended by 2018 PA 265, section 111 as amended by 1997 PA 93, section 161a as amended by 2006 PA 342, section 210 as amended and section 210d as added by 2015 PA 85, sections 210b, 285, and 286 as amended by 2021 PA 86, section 212 as amended by 2016 PA 249, and section 284 as amended by 2017 PA 108, and by adding sections 12e, 18d, 22r, 22s, 31c, 32y, 35e, 61v, 97n, 99mm, 164k, 164l, 201i, 217f, 236e, 236s, and 241h; and to repeal acts and parts of acts.
(For Conference Report, see p. .)
The House of Representatives has adopted the report of the Committee of Conference.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending section 8715 (MCL 324.8715), as amended by 2021 PA 123.
The House of Representatives has substituted (H-2) the bill.
The House of Representatives has passed the bill as substituted (H-2), ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.
Pending the order that, under rule 3.202, the bill be laid over one day, Senator Singh moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 265 | Yeas—35 | |||
Albert Anthony Bayer Bellino Brinks Bumstead Camilleri Cavanagh Chang | Cherry Daley Damoose Geiss Hauck Hertel Hoitenga Huizenga Johnson | Klinefelt Lauwers Lindsey McBroom McCann McMorrow Moss Nesbitt Polehanki | Runestad Santana Shink Singh Theis Victory Webber Wojno | |
Nays—1 | ||||
Irwin | ||||
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the full title.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 2000 PA 489, entitled “Michigan trust fund act,” by amending section 3a (MCL 12.253a), as added by 2023 PA 174.
The House of Representatives has passed the bill, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the full title.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 2000 PA 489, entitled “Michigan trust fund act,” by amending section 7 (MCL 12.257), as amended by 2024 PA 188.
The House of Representatives has passed the bill, ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the full title.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 1976 PA 399, entitled “Safe drinking water act,” by amending section 9 (MCL 325.1009), as amended by 2021 PA 107.
The House of Representatives has substituted (H-1) the bill.
The House of Representatives has passed the bill as substituted (H-1), ordered that it be given immediate effect and pursuant to Joint Rule 20, inserted the full title.
Pending the order that, under rule 3.202, the bill be laid over one day, Senator Singh moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 266 | Yeas—23 | |||
Anthony | Cherry | Klinefelt | Santana | |
Bayer | Daley | Lauwers | Shink | |
Brinks | Geiss | McCann | Singh | |
Camilleri | Hertel | McMorrow | Webber | |
Cavanagh | Huizenga | Moss | Wojno | |
Chang | Irwin | Polehanki |
Nays—13 | ||||
Albert Bellino Bumstead Damoose | Hauck Hoitenga Johnson | Lindsey McBroom Nesbitt | Runestad Theis Victory |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the full title.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 1951 PA 51, entitled “An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; to investigate and study the tolling of roads, streets, highways, or bridges; and to repeal acts and parts of acts,” by amending sections 10a and 11g (MCL 247.660a and 247.661g), section 10a as amended by 1992 PA 137 and section 11g as added by 2016 PA 246.
The House of Representatives has substituted (H-1) the bill.
The House of Representatives has passed the bill as substituted (H-1), ordered that the bill be given immediate effect and amended the title to read as follows:
A bill to amend 1951 PA 51, entitled “An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in
the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; to investigate and study the tolling of roads, streets, highways, or bridges; and to repeal acts and parts of acts,” by amending section 11g (MCL 247.661g), as added by 2016 PA 246, and by adding section 13c.Pending the order that, under rule 3.202, the bill be laid over one day,
Senator Singh moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 267 | Yeas—21 | |||
Anthony Bayer Brinks Camilleri Cavanagh Chang | Cherry Geiss Hertel Klinefelt Lauwers | McBroom McCann McMorrow Moss Polehanki | Santana Shink Singh Webber Wojno | |
Nays—15 | ||||
Albert Bellino Bumstead Daley | Damoose Hauck Hoitenga Huizenga | Irwin Johnson Lindsey Nesbitt | Runestad Theis Victory |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the title as amended.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
A bill to amend 1994 PA 451, entitled “Natural resources and environmental protection act,” by amending sections 301, 3101, 3104, 3110, 3118, 3120, 3122, 3132, 3306, 4104, 4112, 5519, 11108, 11109, 11123, 11153,
11509, 11512, 11525a, 11717b, 12109, 12112, 16904, 17303, 17317, 30104, 30109, 31509, 32312, 32513, 32707,
32723, 33911, 33929, 61525, 61525a, 62509, 62509a, 63103d, 63205, 63215, 63405, 63413, and 63711 (MCL
324.301, 324.3101, 324.3104, 324.3110, 324.3118, 324.3120, 324.3122, 324.3132, 324.3306, 324.4104, 324.4112,
324.5519, 324.11108, 324.11109, 324.11123, 324.11153, 324.11509, 324.11512, 324.11525a, 324.11717b,
324.12109, 324.12112, 324.16904, 324.17303, 324.17317, 324.30104, 324.30109, 324.31509, 324.32312,
324.32513, 324.32707, 324.32723, 324.33911, 324.33929, 324.61525, 324.61525a, 324.62509, 324.62509a,
324.63103d, 324.63205, 324.63215, 324.63405, 324.63413, and 324.63711), section 301 as amended by 2018 PA
240, section 3101 as amended by 2015 PA 247, sections 3104, 3110, 3118, 3120, 4104, 11153, 30104, 30109,
32312, and 32513 as amended by 2021 PA 91, sections 3122, 4112, 11525a, 17303, and 17317 as amended by
2023 PA 140, section 3132 as added by 1997 PA 29, section 3306 as amended by 2014 PA 253, section 5519 as
added by 2024 PA 56, section 11108 as amended by 2013 PA 73, section 11109 as added by 2018 PA 689,
section 11123 as amended by 2014 PA 254, sections 11509 and 11512 as amended by 2022 PA 245, section 11717b
as amended by 2008 PA 492, sections 12109 and 12112 as amended by 2017 PA 90, section 16904 as amended by
2014 PA 543, sections 31509, 61525, and 62509 as amended by 2004 PA 325, section 32707 as amended by
2008 PA 182, section 32723 as amended by 2008 PA 180, sections 33911 and 33929 as amended by 2006 PA 496, section 61525a as added by 1998 PA 252, section 62509a as added by 1998 PA 467, section 63103d as amended by 2011 PA 214, sections 63205 and 63215 as added by 2004 PA 449, sections 63405 and 63413 as added by
2017 PA 40, and section 63711 as added by 1995 PA 57.
The House of Representatives has substituted (H-3) the bill.
The House of Representatives has passed the bill as substituted (H-3), ordered that the bill be given immediate effect and amended the title to read as follows:
A bill to amend 1994 PA 451, entitled “An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to protect the people’s right to hunt and fish; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, assessments, and donations; to provide certain appropriations; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” by amending sections 3104, 3110, 3118, 3120, 4104, 11153, 30104,
30109, 32312, and 32513 (MCL 324.3104, 324.3110, 324.3118, 324.3120, 324.4104, 324.11153, 324.30104,
324.30109, 324.32312, and 324.32513), as amended by 2021 PA 91.
Pending the order that, under rule 3.202, the bill be laid over one day, Senator Singh moved that the rule be suspended.
The motion prevailed, a majority of the members serving voting therefor.
The question being on concurring in the substitute made to the bill by the House,
The substitute was concurred in, a majority of the members serving voting therefor, as follows:
Roll Call No. 268 | Yeas—21 | |||
Anthony Bayer Brinks Camilleri Cavanagh Chang | Cherry Geiss Hertel Irwin Klinefelt | Lauwers McCann McMorrow Moss Polehanki | Santana Shink Singh Theis Wojno | |
Nays—15 | ||||
Albert Bellino Bumstead Daley | Damoose Hauck Hoitenga Huizenga | Johnson Lindsey McBroom Nesbitt | Runestad Victory Webber |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor. The Senate agreed to the title as amended.
The bill was referred to the Secretary for enrollment printing and presentation to the Governor.
By unanimous consent the Senate returned to the order of
Senator Singh moved that the Senate proceed to consideration of the following bill:
The motion prevailed.
The following bill was read a third time:
A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending sections 6a and 25 (MCL 205.56a and 205.75), section 6a as amended by 2015 PA 264 and section 25 as amended by 2023 PA 20, and by adding section 4gg.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 269 | Yeas—30 | |||
Anthony Brinks Bumstead Camilleri Cavanagh Chang Cherry Daley | Damoose Geiss Hauck Hertel Hoitenga Johnson Klinefelt Lauwers | Lindsey McBroom McCann McMorrow Moss Nesbitt Polehanki | Runestad Santana Singh Theis Victory Webber Wojno | |
Nays—6 | ||||
Albert Bayer | Bellino Huizenga | Irwin | Shink |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,”
The Senate agreed to the full title.
Senators Irwin and Nesbitt asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.
The motion prevailed.
Senator Irwin’s statement is as follows:
This sales tax swap has been described as a tax-neutral shift for drivers in Michigan. Unfortunately, it is not. That is simply not true. This tax shift raises fees on EV drivers and drivers of plug-in hybrids. It seeks to raise fees for EV drivers by $100 a year, and for plug-in hybrid drivers by $50 per year. EV drivers and plug-in hybrid drivers already pay substantial extra registration fees every year. Why? Because in 2015, the last time our gas tax was increased, the Legislature at that time—under Governor Snyder—decided to create EV fees and plug-in hybrid fees that were designed to raise as much money to fix our roads as EV drivers and hybrid drivers would otherwise pay if they were paying a gas tax. That’s why people who have EVs or plug-in hybrids in Michigan have substantial additional registration fees. But this bill, while keeping taxes the same for drivers of gas-powered vehicles, increases fees for EV drivers and plug-in drivers such that they’ll be paying more than their fair share. So I think, here in Michigan, we should be striving to build the cars of the future—not to tax the cars of the future.
Furthermore, I’ll point out that there is a huge problem in this package of legislation for K-12 schools and
for our local governments. You’ve probably heard from some of your local government partners— particularly, our townships—who are concerned about losing constitutionally protected revenue-sharing dollars as a result of this shift. A promise from this Legislature for future funding to fill those holes is not worth very much to me, because I know how trustworthy this Legislature can be. Also, K-12 schools are being put in a very precarious position by this tax shift. Currently, K-12 schools are getting almost a billion dollars a year and growing in constitutionally protected revenue from the sales tax. How are we trying to protect our schools from this—from this loss of almost a billion dollars in revenue to our schools? We are backfilling that loss with a promise that future legislators will remember the deal that we made here today and they’ll continue to make K-12 schools whole. Well, our K-12 schools have been through this story before. They know that the next time there’s a recession, that these are the kind of dollars that are going to be targeted by this Legislature. So, today, I do not want to imperil our K-12 schools, I do not want to take funding away from our local governments, and I do not want to vote for a bill that’s advertised around this place as being tax neutral when it is not, in fact, tax neutral—it’s a tax increase on thousands of drivers here in our state.
Senator Nesbitt’s statement is as follows:
A billion dollars a year. Every year, a billion dollars that motorists are paying at the pump are going to other uses than fixing our roads, our bridges, and our infrastructure that has been crumbling. It’s about time we take that promise—to make sure every dime that hardworking taxpayers pay at the pump actually goes to fixing our roads. I ask for a “yes” vote on these bills.
The following bill was read a third time:
A bill to amend 2004 PA 175, entitled “Streamlined sales and use tax revenue equalization act,” by amending sections 3 and 5 (MCL 205.173 and 205.175), section 3 as amended by 2015 PA 177 and section 5
as amended by 2022 PA 24.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 270 | Yeas—31 | |||
Anthony Brinks Bumstead Camilleri Cavanagh Chang Cherry Daley | Damoose Geiss Hauck Hertel Hoitenga Johnson Klinefelt Lauwers | Lindsey McBroom McCann McMorrow Moss Nesbitt Polehanki Runestad | Santana Shink Singh Theis Victory Webber Wojno | |
Nays—5 | ||||
Albert Bayer | Bellino | Huizenga | Irwin | |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to impose taxes and create credits and refundable credits to modify and equalize the impact of changes made to the general sales tax act and use tax act necessary to bring those taxes into compliance with the streamlined sales tax agreement so this state may participate in the streamlined sales tax system and governing board; to prescribe certain powers and duties of certain state departments; and to provide for the disbursement of certain proceeds,”
The Senate agreed to the full title.
The following bill was read a third time:
A bill to amend 1937 PA 94, entitled “Use tax act,” by amending section 21 (MCL 205.111), as amended by 2023 PA 175, and by adding section 4gg.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 271 | Yeas—31 | |||
Anthony | Damoose | Lindsey | Santana | |
Brinks | Geiss | McBroom | Shink | |
Bumstead | Hauck | McCann | Singh | |
Camilleri | Hertel | McMorrow | Theis | |
Cavanagh | Hoitenga | Moss | Victory | |
Chang Cherry Daley | Johnson Klinefelt Lauwers | Nesbitt Polehanki Runestad | Webber Wojno |
Nays—5 | |||
Albert Bayer | Bellino | Huizenga | Irwin |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to provide for the levy, assessment, and collection of a specific excise tax on the storage, use, or consumption in this state of tangible personal property and certain services; to appropriate the proceeds of that tax; to prescribe penalties; and to make appropriations,”
The Senate agreed to the full title.
The following bill was read a third time:
A bill to amend 2000 PA 403, entitled “Motor fuel tax act,” by amending section 8 (MCL 207.1008), as amended by 2015 PA 176.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows:
Roll Call No. 272 | Yeas—24 | |||
Anthony | Cherry | McBroom | Santana | |
Bayer Brinks | Daley Damoose | McCann McMorrow | Singh Theis | |
Camilleri | Geiss | Moss | Victory | |
Cavanagh Chang | Klinefelt Lauwers | Nesbitt Polehanki | Webber Wojno | |
Nays—12 | ||||
Albert | Hauck | Huizenga | Lindsey | |
Bellino | Hertel | Irwin | Runestad | |
Bumstead | Hoitenga | Johnson | Shink | |
Outman
In The Chair: Cherry
Senator Singh moved that the bill be given immediate effect.
The motion prevailed, 2/3 of the members serving voting therefor.
Pursuant to Joint Rule 20, the bill title of the act shall be inserted to read as follows,
“An act to prescribe a tax on the sale and use of certain types of fuel in motor vehicles on the public roads or highways of this state and on certain other types of gas; to prescribe the manner and the time of collection and payment of this tax and the duties of officials and others pertaining to the payment and collection of this tax; to provide for the licensing of persons involved in the sale, use, or transportation of motor fuel and the collection and payment of the tax imposed by this act; to prescribe fees; to prescribe certain other powers and duties of certain state agencies and other persons; to provide for exemptions and refunds and for the disposition of the proceeds of this tax; to provide for appropriations from the proceeds of this tax; to prescribe remedies and penalties for the violation of this act; and to repeal acts and parts of acts,”
The Senate agreed to the full title.
By unanimous consent the Senate proceeded to the order of
Senators Anthony and Brinks asked and were granted unanimous consent to make statements and moved that the statements be printed in the Journal.
The motion prevailed.
Senator Anthony’s statement is as follows:
This year’s budget cycle was long and contentious, but each and every one of us who have served over the past few years has committed to always fighting for people here in Michigan, and the values that we share. After months of negotiation, the House, the Senate, and the Governor’s office have come together to deliver a comprehensive, bipartisan budget that keeps our state government moving forward.
I want to thank each and every one of the Appropriations Committee members, as well as their staff, and our policy staff who helped to work to get this budget across the finish line with special thanks to the entire Senate Fiscal Agency team, particularly our director, Kathryn Summers, and our deputy director, Josh Sefton. Your dedication to the people of Michigan and this institution is truly admirable, and we appreciate you.
The budget bill that we passed today is a product of countless difficult conversations and compromise. In the face of drastic changes and cuts from Washington, D.C., this budget protects essential healthcare for everyday Michiganders and at-risk populations. This budget doubles down on our belief that every Michigander deserves a path to prosperity and opportunity for economic stability. This budget puts very creative solutions and approaches together to make sure we’re addressing our housing crisis, food insecurity, and other critical needs for our communities. There is always much more work that we can do to set our state up for long-term success, but this budget brings us one step closer.
Today passing this budget provides stability and critical dollars to our school districts, our local governments, state departments, and critical services. But I would be remiss if I didn’t mention how disappointed so many of us are. The fact that we are days past our constitutional deadline, the fact that so many of these conversations have played out in the public square, we know that we in this chamber and in this Capitol can do better. There is no reason why there was so much instability, with so many school districts left wondering whether they would be able to afford the breakfast and lunch program. There is no excuse for local governments not knowing how they should plan their next fiscal year. We should recommit ourselves to normalcy, to stability for we are not the chaos in Washington, D.C. we are the Michigan Legislature. We have done better, and we should do better, and I commit we will do better in the next fiscal year.
Thank you, colleagues, for your hard work this evening.
Senator Brinks’ statement is as follows:
Colleagues, we made it. The process wasn’t pretty, and you all know that I have a lot of opinions about that, but we made it. Much has been made of this moment, and so I’d like to take a minute to share what I am thinking about at this moment. For us to be reaching this place of bipartisanship in such a fraught time in our political atmosphere feels a little bit miraculous—and there’s so much more for us to be proud of in what we just passed. Folks across Michigan deserve a budget that puts their tax dollars to work the right way, and I am proud of how we came together to make that happen—delivering a responsible, bipartisan budget that fixes our roads, strengthens our public schools, protects health care access, and insulates us from some of the toughest federal cuts. And to that last point, I can’t emphasize enough the importance of the work that we do here in state legislatures, and how critical it is at this very tenuous moment in our nation.
As with any budget, but especially with this one, there was give and take. I’m not sure if there was one person here who is getting everything they want out of this budget, but that’s OK. I might even say it’s a good thing. It reflects the posture of compromise that we all have had to have this year. And while everyone has something they would change, add, or delete, I would argue that there are 10 or 20 times as many things to be proud of and excited to vote for in this budget.
My tradition is to close out this process with some well-deserved thank yous. Everyone in this institution, whether behind the scenes or in front of the mic, played a role in accomplishing this massive feat.
I want to start by thanking each Senator in this chamber—regardless of party—for treating the budget process with the attentiveness and seriousness it deserves. We voted tonight on a budget that protects the balance sheet, that delivers for our constituents, and, yes, even tightens the belt in some places because of your good work.
To my office staff and central staff: You made the best team in Lansing, and you guys—we have stopped the worst of the cuts from the federal level because of you. To the Secretary’s team and to all of Session Staff, and to the folks at LSB who probably all have carpal tunnel after writing that budget language for literally days on end: I want to say thank you. Because of you, our roads are getting fixed.
To the members in the press corps who cover the budget this year and every year: Your work provides important context to everything that we do. Your investigative reporting over the years is the fuel for increased transparency measures—and hopefully there are plenty more of those to come.
Our Senate Fiscal analysts led by Kathryn Summers—a true rock star: You are truly the unsung heroes. Their brilliance is the magic that makes all of this work, and, because of you, we are doing things like saving Medicaid, which covers two out of every five children in our state.
Our subcommittee chairs have been champions for their budget areas, with remarkable expertise. Because of them, we have a quality budget that will infuse our communities with historic public safety and public transit money. And to the Appropriations chair and her staff: You guys are fighters. Chairwoman—you make this look so easy, and we both know that this one was not easy. With your partnership, we have expanded college scholarships, job training programs, and countless opportunities for people to achieve career success in industries that are critical to our state.
Lastly, to my chief of staff, Kathleen O’Reilly Farhat, and to the budget director, Lori Dey: You two are the queens of the jungle. No one can ever truly know the amount that you have sacrificed to get us to this point. I hope that tonight you go home and you give Jack, Brady, and Rayanne big hugs. Because of you— their moms—no kid will go hungry at school.
I hope everyone takes time to rest, recuperate, and come back reenergized to continue the work of the people.
COMMITTEE ATTENDANCE REPORT
The Conference Committee on Senate Bill No. 166 submitted the following:
Meeting held on Thursday, October 2, 2025, at 1:15 p.m., Room 403, 4th Floor, Capitol Building Present: Senators Camilleri (C), Anthony and Bumstead
COMMITTEE ATTENDANCE REPORT
The Conference Committee on House Bill No. 4706 submitted the following:
Meeting held on Thursday, October 2, 2025, at 1:30 p.m., Room 352, House Appropriations Room, 3rd Floor, Capitol Building
Present: Senators Anthony, McCann and Bumstead
Senator Singh moved that the Senate adjourn. The motion prevailed, the time being 3:55 a.m.
The Assistant President pro tempore, Senator Cherry, declared the Senate adjourned until Tuesday, October 7, 2025, at 10:00 a.m.
DANIEL OBERLIN
Secretary of the Senate