LANSING, Mich. (Michigan News Source) — The Michigan House passed a bill on Sept. 25 aimed at cutting long-term retirement expenses for school districts, while also restoring $126 million to the 2025 school aid budget, largely for mental health and school safety programs.

The legislative action follows criticism from school leaders and Republicans over the budget passed in June, which notably froze the per-pupil funding for Michigan students. Despite the freeze, Gov. Gretchen Whitmer’s team defended the budget by pointing to significant savings in school employee retirement contributions, projected to free up $589 million for districts next year.

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The supplemental spending bill, House Bill 5503, cleared the Michigan House in a 98-11 vote and later passed the Senate in a less resounding 23-15 vote. As a result of lacking the required two-thirds majority for immediate effect, schools will not see the funds until early 2025. The bill, which takes effect on Oct. 1, includes an array of new investments, with a strong emphasis on addressing mental health needs and school security — areas that saw cuts earlier this year.

The legislation, however, faced pushback from Republican lawmakers, particularly over $1 million earmarked for an anonymous tip line designed to help students report unsecured firearms accessible to minors. Critics, including Sen. John Damoose (R-Harbor Springs), argued that the program is a covert attempt to push for gun control measures. Other Republican legislators, like Sen. Thomas Albert (R-Lowell), dismissed it as a “tattletale” initiative.

The revised funding formula also directly benefits Michigan’s teachers. Changes in the retirement plan will eliminate the 3% mandatory pension contribution for many educators hired before 2012, saving teachers an estimated $181.5 million next year, according to the Detroit Free Press. This shift reflects ongoing efforts by the state to fully fund the Michigan Public School Employees’ Retirement System (MPSERS) while reducing its long-standing liabilities.

Education groups, such as the K-12 Alliance of Michigan, welcomed Wednesday’s developments. Al Lotosz, superintendent of Algonac Community Schools and president of the organization, said the changes would have “both a short and long-term positive impact on public education funding,” benefiting educators and the work they are doing.

Despite bipartisan support for parts of the bill, Republicans expressed dissatisfaction with the overall spending package. Rep. Jaime Greene (R-Richmond), vice-chair of the House Education Committee, criticized the reduced allocation for mental health and school safety, arguing that Democrats should have restored the full $300 million initially proposed by Republicans. 

“This is absolutely an election issue,” Greene said. “Clearly, they are panicking.”