Grow your own and educator development and retention programs; competitive grant process; performance reports; 4-tier grants; school librarian specialist certification grants.

Sec. 27b. (1) From the state school aid fund money appropriated in section 11, there is allocated for 2025-2026 only an amount not to exceed $70,000,000.00 to districts, intermediate districts, and consortia of intermediate districts for grow your own programs and educator development programs as described in this section and subject to subsection (5), and there is allocated for 2026-2027 only an amount not to exceed $25,000,000.00 to districts, intermediate districts, and consortia of intermediate districts for grow your own programs, educator workforce innovation programs, and educator development and retention programs as described in this section. (2) The department shall establish a competitive grant process to distribute funds under this section. A district, intermediate district, or consortium of intermediate districts must apply for funds in a form and manner prescribed by the department. As part of the application described in this subsection, a district, intermediate district, or consortium of intermediate districts must submit the following information and assurances: (a) Demonstrated need for funding in the district, intermediate district, or consortium of intermediate districts or the broader community, including projected workforce needs, and a proposed spending plan on how the funds will be used that includes, but is not limited to, administrative costs, expected tuition, fees, and books for the program. Funds used for administrative costs must not exceed 10% of funds received through an award under this section. As used in this subdivision, "administrative costs" includes only costs associated with teacher recruitment, retention, development, innovation, and evaluation. (b) Number of support staff projected to participate in a program described in this section. (c) The planned activities for programs described in this section. (d) Projected outcomes of programs described in this section, which must include, but are not limited to, the following: (i) Teacher and school leader retention and satisfaction. (ii) Teacher and school leader efficacy. (iii) Anticipated school or district partners, evidenced by signed partnership agreements. (iv) Beginning in 2026-2027, demonstration of addressing projected workforce needs. (e) Assurances that the programs described in this section will be no cost for participants and that participants will be compensated as an employee for the duration of their training, including a paid residency, fellowship, or student teaching. (f) Beginning in 2026-2027, assurances that any educator preparation program partnering with the district, intermediate district, or consortium of intermediate districts to support a grow your own program under this section satisfies at least 1 of the following: (i) Is approved by the department for the preparation of teachers in this state. (ii) Satisfies both of the following: (A) Holds national accreditation from the Council for the Accreditation of Education Preparation or the Association for Advancing Quality in Educator Preparation. (B) Leads to licensure in this state. (3) Recipients of grants under this section must submit performance reports to the department not less than twice per year. Each report must include the following information: (a) The number of program participants served and retention in the program or district. (b) Qualitative and quantitative participant feedback. (c) Evidence of efficacy and progress toward projected outcomes. (4) The department shall ensure that all performance reports required under subsection (3) are made publicly available on the department's website. (5) For 2025-2026 only, grant awards under this section must be structured into 3 tiers, as described in subsections (6), (8), and (11). Beginning in 2026-2027, grant awards under this section must be structured into 4 tiers, as described in subsections (6), (8), (11), and (14), or be used for the purposes described in subsection (17). All programs funded under this section must address a measurable and critical problem related to the health and efficacy of this state's education talent working in Michigan schools and be data- and research-driven, demonstrating effectiveness against intended and measurable outcomes. (6) For 2025-2026 only, funding for tier 1 grant awards must not exceed $50,000,000.00, unless otherwise directed by the legislature. In 2025-2026, the department shall allocate at least 1 tier 1 grant of not less than $40,000,000.00. For 2026-2027 only, funding for tier 1 grant awards must not exceed $8,000,000.00. Tier 1 grants must sustain or further scale programs that meet all of the following criteria, as applicable: (a) For 2025-2026 only, have been in operation in this state for at least 5 years, and evaluated for at least 2 years by a rigorous, independent Michigan-based evaluator, and results of the program have been made publicly available. (b) For 2025-2026 only, have at least 2 consecutive years of public financial audits of the program with no material findings. (c) For 2025-2026 only, demonstrate broad geographic reach and investment into teachers and school leaders at every experience level, in partnerships established with not fewer than 15 local education agencies across both urban and rural regions, that extend back to the start of the 2023-2024 school year, bound by written agreements that include data sharing with an independent evaluator for evaluation purposes. (d) For 2025-2026 only, generate private matching funds. (e) For 2026-2027, have been in operation at least 3 years. (f) For 2026-2027, demonstrate a proven track record of success, as evidenced by internal data showing both of the following: (i) High rates of educator retention within the program, the profession, or participating districts after program completion. (ii) Active and ongoing engagement and formal partnership with school districts in each of the state's intermediate districts. (g) For 2026-2027, operate as a statewide program, demonstrating the ability to serve a geographically diverse population, including both urban and rural areas. (h) For 2026-2027, have a demonstrated track record of receiving private philanthropic or corporate funding. (7) Notwithstanding section 18a, funds allocated in 2025-2026 for programs described in subsection (6) may be available for expenditure until September 30, 2029. A recipient of funding for a program described in subsection (6) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2029. (8) Tier 2 grants must scale or sustain programs that meet all of the following criteria, as applicable: (a) For 2025-2026 only, have been in operation for at least 3 years. (b) For 2025-2026 only, demonstrate promising internal results, but are not yet supported by an independent evaluation. (c) For 2025-2026 only, serve a geographically diverse population, including both urban and rural areas. (d) Have a demonstrated track record of receiving private philanthropic or corporate funding. (e) For 2026-2027, have been in operation for at least 4 years. (f) For 2026-2027, be a Michigan-based nonprofit organization organized under section 501(c)(3) of the internal revenue code, 26 USC 501. (g) For 2026-2027, serve both K to 12 and the early childhood educator pipelines in a geographically diverse population, including both urban and rural areas. (h) For 2026-2027, demonstrate promising internal results and have contracted with a third-party research agency. (i) For 2026-2027, have a demonstrated track record of launching grow your own programs with more than 100 participants in geographically diverse areas of the state. (j) For 2026-2027, have partnered with at least 9 districts and a national nonprofit strategic staffing organization to adopt innovative staffing models, including strategic staffing. (k) For 2026-2027, have led at least 1 program that develops school district talent leaders with national best practices and is degree-granting. (l) For 2026-2027, have partnered with at least 5 of this state's educator preparation programs to improve teacher preparation, teacher candidate experience, and outcomes. (9) For 2025-2026 only, grant awards for programs described in subsection (8) must not exceed $12,500,000.00 per year. For 2026-2027 only, funding for tier 2 grant awards must not exceed $8,000,000.00. (10) Notwithstanding section 18a, funds allocated in 2025-2026 for programs described in subsection (8) may be available for expenditure until September 30, 2027. A recipient of funding in 2025-2026 for a program described in subsection (8) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2027. (11) Tier 3 grants must scale or sustain programs that meet all of the following criteria, as applicable: (a) For 2025-2026 only, have been in operation for fewer than 2 years. (b) For 2025-2026 only, do not yet have independent evaluation data available. (c) For 2025-2026 only, are limited in scope or geography. (d) For 2025-2026 only, include a documented path to scale or expand the program to serve more educators or additional districts. (e) For 2026-2027, have been in operation for at least 3 years. (f) For 2026-2027, have an independent evaluation partnership with promising results. (g) For 2026-2027, are a regional consortium model led by an intermediate district serving between 97,000 and 103,000 students, partnering with not fewer than 35 districts and a regional educator preparation program approved by the department for the preparation of teachers in this state. (h) For 2026-2027, include a documented path to deepen regional impact or support replication of the program model in additional regions of the state. (12) For 2025-2026 only, grant awards for programs described in subsection (11) must not exceed $5,000,000.00 per year. For 2026-2027 only, funding for tier 3 grant awards must not exceed $3,000,000.00. (13) Notwithstanding section 18a, funds allocated in 2025-2026 for programs described in subsection (11) may be available for expenditure until September 30, 2027. A recipient of funding for a program described in subsection (11) must return any unexpended funds to the department in a manner prescribed by the department by not later than October 30, 2027. (14) Beginning in 2026-2027, tier 4 grants must fund pilot-stage, early-stage, or small programs that meet both of the following criteria: (a) Do not yet have independent evaluation data available. (b) Are limited in scope or geography. (15) An individual may not concurrently receive funding for programs under this section and programs funded under sections 27a and 27c. (16) From the state school aid fund money allocated in subsection (1) for 2026-2027, an amount not to exceed $3,000,000.00 may be awarded by the department for school librarian specialist certification grants. These grants may be awarded to eligible programs that provide a pathway for individuals to receive a school librarian specialist (NQ) endorsement from the department. In awarding grants under this subsection, the department shall prioritize awards for applicants serving in schools that have libraries but do not have staff with a school librarian or equivalent endorsement. (17) Notwithstanding section 17b, the department shall make payments under this section by not later than December 15, 2026.