2023 Senate Bill 63 / Public Act 26

Education: financing; use of school sinking fund; allow for school transportation.

An act to amend 1976 PA 451, entitled “An act to provide a system of public instruction and elementary and secondary schools; to revise, consolidate, and clarify the laws relating to elementary and secondary education; to provide for the organization, regulation, and maintenance of schools, school districts, public school academies, intermediate school districts, and other public school entities; to prescribe rights, powers, duties, and privileges of schools, school districts, public school academies, intermediate school districts, and other public school entities; to provide for the regulation of school teachers and certain other school employees; to provide for school elections and to prescribe powers and duties with respect thereto; to provide for the levy and collection of taxes; to provide for the borrowing of money and issuance of bonds and other evidences of indebtedness; to establish a fund and provide for expenditures from that fund; to make appropriations for certain purposes; to provide for and prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to provide for licensure of boarding schools; to prescribe penalties; and to repeal acts and parts of acts,” by amending section 1212 (MCL 380.1212), as amended by 2016 PA 319.

Mackinac Center Analysis

Amends section 1212 (MCL 380.1212) of the Revised School Code. Section 1212 specifies the purposes for which a sinking fund tax, if approved by voters, may be used. Under current law, depending on the date of authorization, the sinking fund tax may be used for the purchase of real estate for the construction of school buildings, repair of school buildings, improvement of school security, and/or purchase of technology resources and upgrades. As passed by the Senate, in addition to the aforementioned items, SB 63 would allow a sinking fund tax to be used for the purchase of student transportation vehicles, maintenance equipment for those vehicles, trucks and vans under the Michigan Vehicle Code to carry equipment and personnel for the maintenance of school buildings, and maintenance equipment for those trucks and vans. If passed, SB 63 could lead to an increase in sinking fund millage rates and/or the number of districts creating sinking funds.

Introduced in the Senate

Feb. 9, 2023

Introduced by Sen. Dayna Polehanki (D-5) and eight co-sponsors

Co-sponsored by Sens. Veronica Klinefelt (D-11), Ed McBroom (R-38), Erika Geiss (D-1), Rosemary Bayer (D-13), Sue Shink (D-14), Kevin Daley (R-26), Joseph Bellino (R-16) and Mary Cavanagh (D-6)

Referred to the Committee on Education

Feb. 21, 2023

Reported with substitute S-1

Feb. 22, 2023

Referred to the Committee of the Whole

March 2, 2023

Reported with substitute S-1

Substitute S-1 concurred in by voice vote

March 7, 2023

Amendment offered by Sen. Lana Theis (R-22)

1. Amend page 3, line 5, after “years.” by inserting “For a sinking fund tax authorized on or after the effective date of the amendatory act that added this sentence, the sinking fund tax may be levied each year for a period not to exceed either of the following, whichever is less:

(i) The life of the authorized purpose for which the tax was levied.

(ii) 60 months.”.

The amendment failed 17 to 21 (details)

Passed in the Senate 28 to 10 (details)

Received in the House

March 7, 2023

Referred to the Committee on Education

April 11, 2023

Reported without amendment

April 20, 2023

Amendment offered by Rep. Jay DeBoyer (R-63)

1. Amend page 3, line 4, after “2017” by inserting “and before the effective date of the amendatory act that added subparagraph (i)”.

2. Amend page 3, line 5, after “years.” by inserting “For a sinking fund tax authorized on or after the effective date of the amendatory act that added this sentence, the sinking fund tax may be levied each year for a period not to exceed either of the following, whichever is less:

(i) The life of the authorized purpose for which the tax was levied.

(ii) 60 months.”.

The amendment failed by voice vote

Amendment offered by Rep. Timothy Beson (R-96)

1. Amend page 2, line 14, after “vehicles” by striking out the balance of the subsection through line 21 and inserting a period.

The amendment failed by voice vote

Passed in the House 61 to 45 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

April 27, 2023

Motion to give immediate effect

The motion prevailed by voice vote

Signed by Gov. Gretchen Whitmer

May 8, 2023