HB 6577 Summary

• Amends the State School Aid Act of 1979 to allow districts and intermediate districts to assign or pledge state school aid payments to the Michigan finance authority or trustees for paying obligations incurred under the revised school code.

• Creates a statutory lien and trust superior to all other liens on state school aid payments designated for obligation repayment, effective upon allocation of aid to the district, and perfected without delivery, recording, or notice.

• Exempts districts levying the maximum number of mills authorized under the state constitution to pay debt service on school bond obligations from withholding of state school aid under the School Bond Qualification, Approval, and Loan Act.

• Permits the state treasurer to advance state school aid payments ahead of scheduled distribution dates when the payments are assigned or pledged to the Michigan finance authority under an agreement with a district or intermediate district.

• Establishes that the bill does not require state appropriations or create state indebtedness, and defines "trustee of a pooled arrangement" and "other trustee" for purposes of state school aid agreements and liens.