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2021 Senate Bill 618: Revise rate for overspending school board borrowing from state

Public Act 51 of 2022

Introduced by Sen. Roger Victory (R) on September 1, 2021
To revise details of the interest rate charged by the state to school districts if they borrow from a “school bond loan fund,” which happens when a school board authorizes more spending during a year than a district’s revenue can pay for. The bill would eliminate a 3% minimum interest rate, and a requirement that the rate be at least high enough to cover the state’s cost. The cost to the district would instead be “the annual cost of funds used to make qualified loans plus 0.125%”.   Official Text and Analysis.
Referred to the Senate Appropriations Committee on September 1, 2021
Reported in the Senate on March 10, 2022
With the recommendation that the bill pass.
Received in the House on March 10, 2022
Referred to the House Local Government and Municipal Finance Committee on March 10, 2022
Reported in the House on March 16, 2022
Without amendment and with the recommendation that the bill pass.
Signed by Gov. Gretchen Whitmer on March 29, 2022