Educator compensation program; 1-time bonus payments.

Sec. 27l. (1) From the state school aid fund money appropriated in section 11, there is allocated $150,000,000.00 for 2026-2027 only to districts and intermediate districts in an equal amount per pupil. Subject to subsection (2), a district or intermediate district shall use all of the funding allocated under this subsection to increase compensation for educators in the district or intermediate district. (2) If there are 1 or multiple labor unions representing educators in the district or intermediate district, the district or intermediate district shall bargain any increases in compensation under subsection (1) with those unions. All payments to educators made by districts or intermediate districts with funds allocated under subsection (1) shall be in addition to any existing compensation negotiated in a collective bargaining agreement. (3) Notwithstanding section 17b, the department shall make payments under this section on a schedule determined by the department. (4) The funds appropriated under this section for payments to educators are 1-time bonus payments. Pursuant to section 3a(3) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1303a, payments under this section are not considered compensation for retirement purposes and are not subject to member or employer contribution requirements under the Michigan public school employees' retirement system (MPSERS). (5) As used in this section, "Educator" includes, but is not limited to, teachers, librarians, speech therapists, language therapists, physical therapists, occupational therapists, school counselors, school social workers, school psychologists, school nurses, paraprofessionals aids, food service workers, custodians, bus drivers, and literacy coaches. Educator also includes any other school employee covered under a collective bargaining agreement.