Michigan § 388.1612e.amended - Infrastructure grants; needs under a statewide school facilities study.

(1) From the state school aid fund money appropriated in section 11, there is allocated for 2026-2027 only an amount estimated at $50,000,000.00 for grants to districts and intermediate districts for infrastructure needs, including, but not limited to, demolition of vacant buildings as described in this section.

(2) Districts and intermediate districts must apply on a competitive basis for funding in a form and manner determined by the department.

(3) If the amount allocated under subsection (1) is insufficient to fully fund awards under this section, there is appropriated from the school consolidation and infrastructure fund described in section 11x the amount necessary, but not to exceed $50,000,000.00, to fully fund these awards, or the maximum available in the fund, whichever is less. The state budget director shall provide notification to the house and senate appropriations subcommittees on school aid and the house and senate fiscal agencies regarding any additional appropriation described in this subsection.

(4) The department shall prioritize applications from districts and intermediate districts that meet any of the following criteria:

(a) Are in an opportunity index band, as determined under section 6(21), of 4 or higher.

(b) Are an intermediate district for which the percentage of pupils in membership who were determined to be economically disadvantaged in the immediately preceding fiscal year is equal to or greater than the minimum percentage for a district or public school academy to be in an opportunity index band, as determined under section 6(21), of 4 or higher.

(c) Have infrastructure needs identified by the statewide school facilities study under the former section 11y as being critical needs. A district or intermediate district must demonstrate that the needs described in this subdivision affect the health, safety, or well-being of students.

(d) Have no ability to issue bonds for infrastructure needs, or have made a good-faith effort, as determined by the department, to issue bonds for infrastructure needs.

(5) Funds awarded in subsection (4) may be used only to address infrastructure needs that were identified as critical needs in the statewide school facilities study issued pursuant to the former section 11y.

(6) From the state school aid fund money allocated in subsection (1), there is allocated for 2026-2027 an amount not to exceed $8,800,000.00 for grants to districts to cover costs associated with the demolition of vacant buildings on property owned by the district. All of the following apply to grants awarded under this subsection:

(a) A district shall apply for funding under this section in a form and manner determined by the department.

(b) The department shall prioritize applicants that have lost more than 80% of their pupil membership since 2002-2003 with the greatest number of vacant properties.

(c) Notwithstanding section 18a, funds allocated for programs described in this subsection may be available for expenditure until September 30, 2029. A recipient of funding for a program described in this subsection must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2029.

(7) A recipient of funds under subsection (6) must not be awarded more than $10,000,000.00 in additional grants under this section.

(8) The funds allocated under this section for 2026-2027 are a work project appropriation, and any unexpended funds for 2026-2027 are carried forward into 2027-2028. The purpose of the work project is to fund district and intermediate district infrastructure needs. The estimated completion date of the work project is September 30, 2029.

(9) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department.