Michigan House Bill HB4692

Michigan 2023-2024 Regular Session

• Introduced: 5/30/23
• Refer: 5/30/23

Caption

School aid: supplemental; supplemental appropriations in the school aid act; provide for. Amends secs. 11 & 147c of 1979 PA 94 (MCL 388.1611 & 388.1747c).

Impact

The bill explicitly allocates substantial resources towards the Michigan Public School Employees Retirement System (MPSERS), allowing for retirement contributions to be made on behalf of various participating educational entities. For the 2022-2023 fiscal year, it earmarks $2 billion specifically for this purpose. This funding mechanism is designed to reduce payroll growth assumptions and ensure financial stability for retirement funding, thereby relieving potential pressures on local districts from rising retirement costs.

Summary

House Bill 4692 seeks to amend the state school aid act of 1979 by adjusting the appropriations for public schools and other educational purposes for the fiscal years ending September 30, 2022, and September 30, 2023. It proposes a total allocation of approximately $17.754 billion from the state school aid fund, alongside contributions from the general fund and specified community and water emergency funds. This significant funding increase aims to support educational facilities and initiatives across Michigan, reflecting a growing commitment to enhance public education within the state.

Contention

Despite its intention to bolster educational funding, conversations surrounding HB 4692 may raise concerns regarding the sustainability of such substantial appropriations and their potential long-term impacts on state budgeting. Some legislators may express anxiety over future financial commitments that could strain the state’s budget should economic conditions shift. Additionally, there may be discussions regarding the adequacy of the proposed allocations in meeting the diverse needs of all public schools in Michigan, especially in economically disadvantaged areas where funding challenges are exacerbated.