Higher education: other; use of school aid funds for community colleges and higher education expenses; limit. Creates appropriation act.

HB 5088 limits annual state funding for Michigan community colleges and higher education to $1.324 billion from the state school aid fund, starting in fiscal year 2026. This directly affects community colleges and public universities that receive state funding through the school aid program. The bill creates a hard cap on these appropriations, requiring that any amount exceeding the limit be covered by general fund money instead of the school aid fund. This policy change explicitly restricts how state education funds can be allocated, with no additional policy effects described in the bill text.