SENATE BILL NO. 795

March 14, 2024, Introduced by Senator THEIS and referred to the Committee on Education.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending section 11 (MCL 388.1611), as amended by 2023 PA 103, and by adding section 34a.

the people of the state of michigan enact:

Sec. 11. (1) For the fiscal year ending September 30, 2023, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $17,290,268,900.00 from the state school aid fund, the sum of $124,350,000.00 from the general fund, an amount not to exceed $72,000,000.00 from the community district education trust fund created under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to exceed $200,000.00 from the school transportation fund created under section 22k, an amount not to exceed $25,000,000.00 from the school meals reserve fund created under section 30e, and an amount not to exceed $140,400,000.00 from the MPSERS retirement obligation reform reserve fund created under section 147b. For the fiscal year ending September 30, 2024, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $18,364,157,800.00 from the state school aid fund, the sum of $87,900,000.00 $142,900,000.00 from the general fund, an amount not to exceed $72,000,000.00 from the community district education trust fund created under section 12 of the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to exceed $245,000,000.00 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 $60,000,000.00 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, and an amount not to exceed $215,800,000.00 from the MPSERS retirement obligation reform reserve fund created under section 147b. In addition, all available federal funds are only appropriated as allocated in this article for the fiscal years year ending September 30, 2023 and September 30, 2024.

(2) 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.

(3) 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. 34a. (1) From the general fund money appropriated in section 11, there is allocated $55,000,000.00 to a postsecondary institution for, subject to subsection (8), the purposes described in subsections (2) and (3) to address learning loss among students, including, but not limited to, low-income students, children with disabilities, English language learners, migrant students, students experiencing homelessness, and children in foster care, by providing information and assistance to parents and families to effectively support students, including in a distance learning environment.

(2) Subject to subsection (8), by not later than August 1, 2024, a postsecondary institution shall use the funding it receives under subsection (1) toward the establishment of a grant program for reading scholarships to eligible children.

(3) A postsecondary institution shall directly apply funding it receives under subsection (1) for each eligible child as a reading scholarship described in subsection (2) toward the payment of eligible services selected by the eligible child's parent or legal guardian in the application described in subsection (6). A postsecondary institution may apply funding under subsection (1) only toward eligible services, as provided under this subsection, for eligible children. A postsecondary institution may apply, from the funding under subsection (1), only an amount not to exceed $1,000.00 for each eligible child.

(4) A district, in consultation with a postsecondary institution, shall determine the number of eligible children enrolled in the district. The district shall directly apply funding for each eligible child described in this subsection as a reading scholarship described in subsection (2) toward the payment of eligible services selected by the eligible child's parent or legal guardian in the application described in subsection (6). A district may apply, from the funding described in this subsection, only an amount not to exceed $1,000.00 for each eligible child.

(5) A postsecondary institution shall develop a catalog of eligible services and shall provide this catalog to the parent or legal guardian of each eligible child. The catalog developed under this subsection must be provided to all districts and must be available to the general public through a postsecondary institution's website homepage. The catalog described in this subsection must include only services that provide any of the following that are designed to improve reading or literacy:

(a) Instructional materials or curricula.

(b) Part-time tutoring services.

(c) Specialized summer education programming.

(d) After-school education programming.

(6) A postsecondary institution shall establish an application process for applicants to apply for reading scholarships through the grant program described in subsection (2). The application process must include both of the following:

(a) A verification of the identity of the eligible child's parent or legal guardian.

(b) A requirement that the parent or legal guardian of the eligible child who is seeking the reading scholarship select, from the catalog developed under subsection (5), the services the parent or legal guardian would like the parent's or legal guardian's child to participate in through the reading scholarship.

(7) A child to whom all of the following apply is an eligible child under this section:

(a) The child is enrolled in kindergarten or any of grades 1, 2, 3, 4, or 5 in a district.

(b) The child is less than proficient in reading, based on available assessment data, including benchmark assessment data and state summative assessment data.

(c) The child has applied for a reading scholarship through the grant program described in subsection (2) through the application process described in subsection (6).

(8) From the funding allocated under subsection (1), an amount not to exceed $1,000,000.00 may be utilized by a postsecondary institution for administrative costs associated with the administration of the grant program described in subsection (2). A postsecondary institution may charge a fee not exceeding 3% of the total administrative costs associated with the administration of the grant program described in subsection (2) for each application submitted through the process described in subsection (6).

(9) Each district shall notify the parent or legal guardian of each eligible child enrolled in the district that the parent's or legal guardian's child meets the criteria of an eligible child under this section.

(10) "Postsecondary institution" means a state university, community college, or independent nonprofit degree-granting college or university that is located in this state.