MI HB4325

School districts and public school academies must submit budgetary assumptions to CEPI by July 7 each year, including projected foundation allowance, membership, and per-pupil expenditures, unless they maintained a positive general fund balance of at least 5% for the two most recently completed fiscal years.

State treasurer may declare potential fiscal stress exists for a school district, intermediate school district, or public school academy based on financial data, audit statements, enrollment trends, and other specified factors.

School districts and public school academies declared to be in fiscal stress may establish a contract with an intermediate school district for an administrative review within 60 days, which must be completed within 90 days and include examination of financial practices, staffing, wages, benefits, facility utilization, and other operational areas.

Public school academies facing fiscal stress may alternatively establish a contract with their authorizing body to perform the same administrative review functions as an intermediate school district.

School districts, intermediate school districts, or public school academies that do not establish a required contract or have declining general fund balances must submit periodic financial status reports to the state treasurer, which are made publicly available through CEPI's website.