School aid: foundation allowance; foundation allowance amounts; base on the state and local government inflation index and tie to inflation. Amends sec. 367b of 1984 PA 431 (MCL 18.1367b).

This bill updates the rules for calculating Michigan's school foundation allowance, which determines the base funding provided to public schools. It requires the state's revenue estimating conference to use the Detroit Consumer Price Index to adjust the allowance amount, ensuring it keeps pace with local inflation rather than a statewide index. The legislation also mandates that this adjusted allowance be projected for the current fiscal year and the next two years to help plan school budgets. By tying school funding growth to inflation in the Detroit area, the bill aims to maintain the purchasing power of state aid for education.