MI HB4162

Appropriates $15,039,488,000 from the state school aid fund and $400,000 from the general fund for fiscal year 2025-2026 for public school funding, a decrease from the prior year's $17,769,551,300 state school aid fund appropriation

Increases the target foundation allowance per pupil from $9,608 to $10,025 for 2025-2026, with public school academies (including cyber schools) also receiving the $10,025 amount

Allocates $350,000,000 for student mental health and school safety programs in 2025-2026, up from $150,000,000 in 2024-2025, but removes nonpublic schools from eligibility for these funds

Increases MPSERS (Michigan Public School Employees' Retirement System) rate cap funding to $1,536,500,000 for 2025-2026, up from $955,000,000, with estimated average rate cap per pupil rising from $740 to $1,100

Removes several fund sources from the appropriation including the community district education trust fund ($41 million), school transportation fund ($125 million), enrollment stabilization fund ($71 million), and MPSERS retirement obligation reform reserve fund ($334.1 million)