Support for pupil attending postsecondary institution.

Sec. 21b. (1) Subject to subsections (2) and (3), a district shall use funds received under this section, section 22a, or section 22b to support the attendance of a district pupil who is an eligible student at an eligible postsecondary institution under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or under the career and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, by paying eligible charges on behalf of the district pupil as required under those acts. (2) A district is not required to pay transportation costs, parking costs, or activity fees on behalf of an eligible student for attendance at an eligible postsecondary institution as described in subsection (1). (3) A district may pay more money to an eligible postsecondary institution on behalf of an eligible student than required under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or the career and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and may use local school operating revenue for that purpose. An eligible student is responsible for payment of the remainder of the costs associated with the eligible student's postsecondary enrollment that exceed the amount the district is required to pay under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or the career and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not paid by the district. As used in this subsection, "local school operating revenue" means that term as defined in section 22b. (4) From the state school aid fund money appropriated in section 11, there is allocated for 2026-2027 only an amount not to exceed $40,000,000.00 for reimbursements to eligible districts supporting eligible charges on behalf of eligible students as described in subsection (1). All of the following apply to payments made under this subsection: (a) To be considered an eligible district under this section, a district must be assigned to an opportunity index band, as described in section 6(21), of 4 or higher. (b) Payments must not exceed the amount the eligible district is required to pay under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, and the career and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913. (c) If the amount allocated in this subsection is not sufficient to fully reimburse all eligible districts, payments to eligible districts must be adjusted as follows: (i) Payments to any individual district that exceed 25% of the allocation under this subsection must be reduced to an amount equal to 25% of the allocation under this subsection. (ii) If, after the operation of subparagraph (i), the amount allocated under this subsection is still insufficient to fully reimburse all eligible districts, the payment to each eligible district must be prorated on an equal percentage basis. (d) If the amount allocated in this subsection exceeds the amount necessary to fully reimburse all eligible districts, the department shall provide payments to districts assigned to an opportunity index band, as described in section 6(21), of 3. If the remaining funds are insufficient to fully fund all eligible districts described in this subdivision, the payment to each eligible district described in this subdivision must be prorated on an equal percentage basis. (e) If, after the operation of subdivision (d), the amount allocated in this subsection exceeds the amount necessary to fully reimburse all eligible districts, the department shall provide payments to districts assigned to an opportunity index band, as described in section 6(21), of 2. If the remaining funds are insufficient to fully fund all eligible districts described in this subdivision, the payment to each eligible district described in this subdivision must be prorated on an equal percentage basis. (f) If, after the operation of subdivision (e), the amount allocated in this subsection exceeds the amount necessary to fully reimburse all eligible districts, the department shall provide payments to districts assigned to an opportunity index band, as described in section 6(21), of 1. If the remaining funds are insufficient to fully fund all eligible districts described in this subdivision, the payment to each eligible district described in this subdivision must be prorated on an equal percentage basis. (g) Funds under this section may be used to support CTE dual enrollment programs authorized under section 61b. (h) Notwithstanding section 17b, the department shall make payments under this subsection on a schedule determined by the department. (5) As used in this section, "eligible charges", "eligible student", and "eligible postsecondary institution" mean those terms as defined in section 3 of the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3 of the career and technical preparation act, 2000 PA 258, MCL 388.1903, as applicable.