Michigan House Bill HB5633

Michigan 2025-2026 Regular Session

• Introduced: 2/26/26
• Refer: 2/26/26

Caption

Appropriations: supplemental; supplemental appropriations in the school aid act for fiscal year 2026-2027; provide for. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).

Summary

HB5633 amends the Michigan State School Aid Act to revise school aid appropriations and payment timing provisions. The bill updates Section 11 to set funding levels for public schools and related education purposes for fiscal year 2025 and, more notably, for fiscal year 2026-2027. It specifies the sources of money for those appropriations, including the state school aid fund, general fund, and several dedicated reserve and trust funds tied to transportation, enrollment stabilization, school meals, early childhood readiness, educator fellowships, and pupil support. The bill also amends Section 17b to keep the monthly school aid payment schedule in place. It requires the Department of Education to prepare electronic payment files by set monthly dates and directs the State Treasurer to distribute installments to districts and intermediate districts, generally in 1/11 shares of the annual entitlement. It preserves existing authority for payment adjustments when errors or law changes affect amounts owed, and it allows limited advance releases of funds for temporary, nonrecurring needs with required approvals.

Impact

HB5633 would change the state’s school aid appropriations law by resetting funding amounts and fund sources for the 2026-2027 fiscal year and by preserving the statutory framework for distributing aid to school districts and intermediate districts. It affects the State School Aid Act, including MCL 388.1611 and 388.1617b, and it would govern how education dollars are allocated, drawn from reserve funds, and paid out on a monthly schedule. The bill also reinforces the rule that general fund money must be spent before state school aid fund money and that unused general fund allocations are transferred to the School Aid Stabilization Fund.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears procedural and budgetary rather than controversial. The measure is framed as a supplemental appropriations bill for school aid, suggesting it is intended to maintain or adjust education funding and payment administration rather than to make major policy changes. No formal support or opposition is documented in the supplied context.

Contention

The main potential points of contention are the size and source of the appropriations, especially the use of multiple dedicated reserve funds and the shift in funding levels for 2026-2027. Stakeholders concerned with school finance may focus on whether the bill adequately funds districts, transportation, meals, early childhood programs, and pension-related obligations, or whether it relies too heavily on reserve accounts. Another possible issue is the payment schedule and the authority for advance releases, though the bill largely preserves existing procedures rather than changing them substantially.