HB 5630: Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12 school aid, higher education, and community colleges; provide for. Amends, adds & repeals (See bill). - Michigan

As Passed by the House → As Passed by the Senate · 5 edits · Jul 3, 2026

MODERATE

The Senate dramatically narrowed HB 5630 from a comprehensive amendment of over 100 sections of the State School Aid Act to only three sections (11, 201, and 236). Within Section 11, the Senate replaced all specific dollar appropriations for fiscal years 2026 and 2027 with $100 placeholder amounts, effectively stripping out the House's funding levels of roughly $18.2 billion (FY2026) and $18.7 billion (FY2027) from the state school aid fund alone. The Senate also removed the entire Section 11a, which had created a school aid stabilization fund to hold unexpended balances.

Scope change

The bill was narrowed from a sweeping overhaul of the State School Aid Act touching over 100 sections (definitions, membership formulas, special education funding, transportation aid, consolidation incentives, and more) to a limited amendment of only three sections: appropriations (Sec. 11), and two other sections (201 and 236). The Senate also replaced all specific FY2026 and FY2027 dollar amounts with $100 placeholders, deferring actual funding levels.

SCOPE

The bill's scope was reduced from amending over 100 sections of the State School Aid Act (covering definitions, membership counting rules, funding formulas, special education provisions, and more) to amending only sections 11, 201, and 236. All House amendments to other sections were stripped out.

FISCAL

For FY2026, the state school aid fund appropriation was reduced from $18,189,425,300 (the House figure) to a $100 placeholder. The general fund allocation was reduced from $73,151,100 to $100. All other FY2026 fund allocations (school consolidation and infrastructure, school transportation, enrollment stabilization, great start readiness, educator fellowship, pupil support reserves) were similarly reduced to $100.

For FY2027, the state school aid fund appropriation was reduced from $18,705,849,400 (the House figure) to a $100 placeholder. The general fund allocation was reduced from $67,334,900 to $100. All other FY2027 fund allocations were similarly reduced to $100.

Section 11a, which created the school aid stabilization fund as a separate account within the state school aid fund to hold unexpended balances and statutorily dedicated money, was removed in its entirety. This fund would have prevented unspent school aid from lapsing back to the general fund.

DEFINITION

All House amendments to Section 6 (definitions) were removed, including extensive definitions for center programs, membership counting rules, pupil eligibility, cyber school participation requirements, dropout recovery program counting, and many other operational definitions that would have governed how school funding is calculated.

As Passed by the Senate → Substitute (H-1) · 7 edits

MODERATE

The bill was completely restructured from a narrow Senate substitute that amended only 3 sections (11, 201, and 236) with specific dollar appropriations for FY2025-2027, into a comprehensive House substitute that amends over 100 sections, adds 20+ new sections, and repeals portions of the State School Aid Act. All specific dollar amounts were replaced with $100 placeholders, indicating fiscal details will be set separately. The new version adds extensive definitions and operational rules for pupil membership counting, cyber school participation requirements, special education funding, and other school aid mechanics.

Scope change

Expanded dramatically from a targeted appropriations bill covering 3 sections to a comprehensive overhaul of the State School Aid Act touching over 100 sections with new definitions, membership formulas, eligibility rules, and program structures. The bill now functions as a full reauthorization and restructuring rather than a simple funding allocation.

SCOPE

The bill's scope expanded from amending 3 sections (11, 201, 236) to amending over 100 sections of the State School Aid Act, adding 20+ new sections (including 12f, 16, 16a, 18e, 27o, 31j, 32p, 35o, 35p, 35q, 36, 36a, 51i, 61w, 61x, 67d, 94f, 95b, 164m, 216c, 236m, 239a), and repealing acts and parts of acts.

FISCAL

All specific dollar appropriation amounts were removed and replaced with $100 placeholders. The old version specified $17.9 billion for FY2025 public schools, $18.4 billion for FY2026, $493 million for community colleges, and $2.3 billion for higher education. These figures are no longer in the text.

DEFINITION

New Section 6 adds detailed definitions including 'center program' (special education programs for pupils with autism, cognitive impairment, hearing/visual/physical impairment), 'district and high school graduation rate,' 'district and high school graduation report,' and an extensive 'membership' definition governing how pupil counts determine funding.

REQUIREMENT

New membership counting rules specify detailed participation requirements for cyber school pupils, including 2-way interaction definitions, mentor and teacher-of-record roles, sequential vs. non-sequential learning verification methods, and documentation standards for virtual course attendance.

New rules for small districts: if a district's membership would be under 1,550 pupils with 4.5 or fewer pupils per square mile, its membership is set to the greater of its actual membership or the 3-fiscal-year average, providing a funding floor.

TIMELINE

The fiscal year focus shifted from covering FY2025-2027 (with specific amounts for all three years) to primarily FY2026-2027, with the FY2025 appropriation language removed entirely.

ELIGIBILITY

New membership rules address eligibility edge cases including: pupils in dropout recovery programs counted at 1/12 FTE per month, special education pupils up to age 25, pupils in alternative education programs for those with extreme barriers (e.g., homelessness) up to age 22, and minimum age exceptions for kindergarten entry.

House Concurred Bill → As Passed by the Senate · 7 edits · Jul 3, 2026

MODERATE

This bill significantly reduces state funding for public schools, community colleges, and universities for fiscal years 2026-2027 and 2027-2028, replacing specific dollar amounts with a nominal $100.00 allocation. It also simplifies the list of amended sections to only three, removes definitions for over 100 specific sections, and alters membership counting rules for districts with low population density.

Scope change

The bill's scope of amendments was drastically narrowed from over 100 sections to just three, and the funding scope was reduced by removing specific appropriations for future fiscal years.

FISCAL

Specific dollar appropriations for public schools, community colleges, and universities for fiscal years 2026-2027 and 2027-2028 were removed and replaced with a nominal $100.00 allocation.

The specific appropriation amount for the 2025-2026 fiscal year was reduced from $18,366,334,700.00 to $100.00 in the state school aid fund.

Specific funding allocations for community college operations and university support for 2026-2027 and 2027-2028 were removed.

The 2025-2026 appropriation for community college operations was reduced from $363,570,600.00 to $100.00.

The 2025-2026 appropriation for public universities was reduced from $1,754,478,200.00 to $100.00.

DEFINITION

Definitions for more than 100 specific sections were removed, leaving only definitions for sections 11, 201, and 236.

REQUIREMENT

Membership counting rules were modified to allow districts with fewer than 1,550 pupils and low population density to use an average membership figure instead of actual counts.

Substitute (S-1) - 3 → House Concurred Bill · 8 edits

MODERATE

This bill significantly rewrites the Michigan School Aid Act to modernize funding formulas, expand definitions of school districts and membership, and establish new accountability and transparency requirements. It replaces outdated fiscal year appropriations with updated figures for 2025-2027 and introduces complex rules for counting student membership, particularly for cyber schools and special education students. The bill also mandates that districts publicly disclose detailed budget data, including personnel costs, lobbying expenses, and credit card usage, to increase transparency.

Scope change

The bill expands the scope of the act to include detailed definitions for public school academies, community districts, and cyber schools, while also extending the applicability of new membership counting rules to various types of educational settings and student populations.

FISCAL

Updated state appropriations for fiscal years 2025-2027, replacing placeholder figures with specific dollar amounts for the state school aid fund, general fund, and various reserve funds.

DEFINITION

Added extensive new definitions for key terms including 'Center', 'Community district', 'Cooperative education program', 'District', 'District of residence', and 'Public school academy' to clarify their legal status and operational boundaries.

Redefined 'Class' for attendance purposes to exclude periods where instruction occurs with an improperly certified teacher, linking such misplacements to penalties under existing law.

REQUIREMENT

Mandated that districts and intermediate districts make specific budget documents, including charts of expenditures, collective bargaining agreements, health care plans, and lobbying costs, publicly available on their websites.

Established new requirements for districts to report on the use of funds for students impacted by drinking water emergencies, including hiring personnel and providing behavioral health supports.

Created a new school consolidation and infrastructure fund with specific allocation rules for feasibility studies, internal consolidation costs, and critical infrastructure repairs like HVAC and roofing.

Required districts to conduct annual financial and pupil accounting audits, with specific exemptions for small districts with stable membership and low error rates.

ELIGIBILITY

Overhauled the rules for counting students in 'membership' to determine funding, adding specific provisions for cyber school participation, students in alternative education, and those in cooperative education programs.

Substitute (H-1) - 2 → Substitute (S-1) - 5 · 4 edits

MODERATE

The bill was significantly shortened and simplified, reducing the scope of amendments from over 100 sections to just three specific sections. The detailed appropriations for public schools were replaced with a single, minimal appropriation of $100.00 per fund for fiscal years 2025 through 2027, likely serving as a placeholder or a placeholder for a different funding mechanism. Additionally, the detailed community college funding summary was replaced with a new, simplified structure listing a total gross appropriation of $493 million for community colleges in 2026-2027.

Scope change

The bill's scope was drastically narrowed. Instead of amending hundreds of sections across the State School Aid Act, it now only amends sections 11, 201, and 236.

SCOPE

The list of amended sections was reduced from over 100 specific sections to only three: sections 11, 201, and 236.

FISCAL

The specific dollar amounts appropriated for public schools were removed and replaced with a generic $100.00 allocation for each of the various state education funds for fiscal years 2025, 2026, and 2027.

The detailed breakdown of community college funding was replaced with a new summary stating a total gross appropriation of $493,032,100.00 for fiscal years 2026 and 2027.

TECHNICAL

The header was updated to reflect that this is a Senate Substitute (S-1) rather than a House Substitute (H-1), and page numbering was adjusted.

As Passed by the House → Substitute (H-1) · 4 edits

MODERATE

The bill was amended to update the list of statutory sections being modified, correct formatting errors in the title and section headers, and adjust specific funding amounts and fiscal year references. The substantive policy content regarding membership calculations, foundation allowances, and program definitions remains consistent between the two versions.

Scope change

The scope of the bill's applicability remains unchanged; the amendments only adjust the technical list of sections affected and correct numerical and formatting discrepancies.

TECHNICAL

The list of amended sections was reformatted and corrected to ensure consistency between the House version and the substitute version.

Formatting errors in section headers and text were corrected, such as removing stray line breaks and standardizing the bill title.

FISCAL

Specific appropriation amounts for the 2026-2027 fiscal year were adjusted, including changes to the state school aid fund allocation and various reserve funds.

TIMELINE

Fiscal year references were updated or corrected, such as changing '2025-2026 2026-2027' to the standard '2026-2027' format in several sections.

House Introduced Bill → As Passed by the House · 7 edits · Apr 22, 2026

MODERATE

This bill significantly amends the State School Aid Act to update funding allocations for the 2025-2027 fiscal years, redefine how student membership is calculated to include virtual and special education students, and establish new funds for school infrastructure and stabilization. It also introduces strict prohibitions on curriculum promoting race or gender stereotyping and mandates separate athletic teams for males and females.

Scope change

The bill expands the scope of membership calculations to include cyber school participation and specific special education populations, while narrowing the scope of curriculum content allowed in schools by banning race and gender stereotyping.

FISCAL

Updated appropriation amounts for public schools, community colleges, and universities for fiscal years 2025-2027, including specific allocations for infrastructure and stabilization funds.

Created the 'school aid stabilization fund' to prevent future proration of state aid payments and the 'school consolidation and infrastructure fund' for facility improvements.

DEFINITION

Added detailed definitions for 'Center program' and expanded the definition of 'Membership' to include virtual course participation and specific special education placements.

REQUIREMENT

Prohibited districts from using state funds for diversity, equity, and inclusion (DEI) initiatives and banned curriculum that promotes race or gender stereotyping.

Mandated that interscholastic athletic teams be designated as male, female, or co-ed based on the biological sex of participants, prohibiting males from participating in female-only teams.

Prohibited districts from providing multistall unisex bathrooms for students.

ELIGIBILITY

Modified membership counting rules to allow districts to count students enrolled in cyber schools and certain special education programs as full-time members.

Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12 school aid, higher education, and community colleges; provide for. Amends, adds & repeals (See bill).

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