SB-0951 Summary

• Allows the Department of Education to withhold state school aid from districts and intermediate districts that default on financial obligations under various financial stability acts, including the Revised Municipal Finance Act, Emergency Municipal Loan Act, Local Financial Stability and Choice Act, and Revised School Code Section 1356.

• Establishes statutory liens and trusts on state school aid for districts with emergency managers or deficit elimination plans that pledge aid to the Michigan Finance Authority or pooled arrangement trustees, making these liens paramount to all other liens for repaying obligations.

• Requires districts and intermediate districts to make annual budgets, expenditure summaries, collective bargaining agreements, health benefits plans, audit reports, superintendent compensation details, and spending on associations and lobbying publicly available on their websites within 15 days of budget adoption.

• Mandates annual financial and pupil accounting audits by certified public accountants or intermediate district superintendents, with filing deadlines of November 1 (or November 15 for 2014-2015), and allows withholding of all state school aid for non-compliance with audit and reporting requirements.

• Requires districts offering online learning to submit detailed reports by November 1, 2014 showing per-pupil costs by vendor type, student enrollment data, and provider information; Department must report findings to legislature by March 31, 2015.