MI HB5470

Requires school districts, intermediate school districts, and public school academies to immediately notify the superintendent of public instruction and state treasurer upon discovering a deficit budget or deficit fund balance.

Mandates submission of an amended budget and deficit elimination plan within 30 days of notification, with copies to relevant oversight bodies and posting on school websites.

Authorizes the department to withhold and conditionally release state school aid funds under section 102 of the state school aid act of 1979 for entities with deficits.

Requires the department and state treasurer to submit annual reports by March 1 and quarterly interim reports to legislative committees on deficit status and progress in reducing deficits across all school entities.

Establishes enhanced deficit elimination plans for entities with rapidly deteriorating finances, persistent enrollment declines, or unresolved deficits after 5 years, subject to state treasurer approval and potential financial recovery agreements including assistance, auditors, and consultant retention.