MI HB5383

Creates the community district education trust fund within the state treasury to offset the absence of local school operating revenue in community districts for state-funded foundation allowances

Allocates $72,000,000 annually beginning in fiscal year 2017 from tobacco settlement revenue (non-TSR) to the community district education trust fund, with a cumulative cap of $617,000,000

Directs remaining tobacco settlement revenue (non-TSR) to the Michigan merit award trust fund, with funds remaining in the trust account rather than reverting to the general fund

Requires the general fund to reimburse the school aid fund if deposited amounts are insufficient to offset the absence of local school operating revenue in community districts prohibited from levying school operating taxes

Takes effect only upon enactment of House Bill 5384 of the 2016 Legislature (tie-bar provision)