A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending section 18 (MCL 388.1618), as amended by 2022 PA 144.
The bill outlines the permissible uses of state school aid funds by districts and other entities, emphasizing that these funds should primarily cover salaries, employee compensation, tuition, transportation, utilities, textbooks, and other operational expenditures. It restricts the transfer of more than 20% of the funds received under sections 22a and 22b to capital projects or debt retirement funds. The bill mandates that districts adopt annual budgets in compliance with the Uniform Budgeting and Accounting Act and make these budgets, along with revisions and expenditure summaries, publicly accessible via their websites.
The legislation requires detailed transparency in financial reporting, including personnel and district expenditure charts, links to collective bargaining agreements, health care plans, audit reports, procurement policies, and other financial documents. It also stipulates the disclosure of superintendent and high-earning employee compensation, association dues, lobbying expenses, and credit card usage. Districts must submit annual financial and pupil accounting audits, with specific deadlines for filing these reports with the Department of Education and making them publicly available.
The bill introduces several compliance measures, including the withholding of state aid for non-compliance and the requirement for districts offering virtual learning to report per-pupil costs by vendor type. The Department of Education is tasked with reviewing and updating pupil accounting manuals annually and reporting on virtual learning costs to legislative bodies. The bill also includes provisions for the retention of property purchased with state funds by public school academies and sets forth penalties for non-compliance with the outlined requirements.
The enactment of this bill will take effect 90 days after it is signed into law, ensuring that districts and intermediate districts adhere to the new transparency and accountability standards in their financial operations and reporting.
Co-sponsored by Sens.
Referred to the Committee on Education
