HB 5686 Summary

• Requires school districts and intermediate districts to notify legislative education committees before implementing changes to pupil accounting and pupil auditing manuals, with changes not taking effect during the fiscal year they are made unless necessary to implement a change in law.

• Mandates districts and intermediate districts submit annual comprehensive financial data to the center by the first business day in November, consistent with audited financial statements and using standardized chart of accounts categories for instruction, support, administration, transportation, facilities, and debt service.

• Requires districts and intermediate districts to post detailed budget and expenditure information on their websites within 15 days of budget adoption or revision, including personnel cost breakdowns, expenditure summaries by category, collective bargaining agreements, health benefits plans, audit reports, and superintendent/high-earning employee compensation details.

• Establishes annual reporting requirements for virtual learning per-pupil costs by vendor type (Michigan Virtual University, cyber schools, third-party vendors, and district-created courses), with the department submitting summary reports to appropriations committees and fiscal agencies by March 31 each year.

• Authorizes the department to withhold up to 10% of state school aid if districts fail to comply with website posting requirements by fiscal year end, or to withhold all state aid if districts fail to submit required financial audits and reports.