MI SB0168

Appropriates $506,504,600 from the state school aid fund for Michigan community colleges for fiscal year 2025-2026, an increase from $462,220,800 in the prior year, with $374,543,100 allocated for operations across 28 community colleges

Allocates $89,500,000 for retirement system payments to participating community colleges, up from $62,100,000, and caps the unfunded actuarial accrued liability contribution rate at 15.21% (reduced from 20.96%)

Creates a new $10,972,500 appropriation for infrastructure, technology, equipment, maintenance, housing, and safety improvements, with two-thirds reserved for community colleges that did not receive capital outlay authorizations between January and October 2025

Establishes tuition restraint requirements limiting in-district tuition and fee increases to the greater of 3.5% or $174 for academic year 2026-2027, with non-compliant colleges losing eligibility for performance funding

Adds new institutional best practice requirements for performance funding eligibility, including adopting corequisite remediation models, establishing prior learning assessment policies, and requiring community colleges to report on diversity, equity, and inclusion program changes made after January 1, 2025