FY 2025-26 State School Aid Budget: Key Changes to Section 164k
The FY 2025-26 State School Aid Budget makes several changes to Section 164k of the State School Aid Act (MCL 388.1764k). Compliance with Section 164k remains tied to state aid eligibility, so it is prudent that districts and ISDs review these changes carefully and take steps to ensure they remain in compliance.
Key Changes
1. Elimination of Student Survey Publication Requirements
Changes to Section 164k of the State School Aid Act remove certain student survey publication requirements. Districts and ISDs are no longer required to:
1. Post student survey questions on their websites;
2. Make survey results available to the public; or
3. Notify parents and guardians regarding student surveys.
Under prior law, failure to meet these requirements could result in MDE withholding 5% of certain state aid payments.
2. K-5 Curriculum Notification Requirement Moved
The requirement for districts to notify parents when K-5 students are taught using a curriculum that is not on MDE’s approved evidence-based curriculum list has not been eliminated. Rather, it has been moved to Section 22b of the State School Aid Act and is now tied to Section 22b funding.
Beginning in FY 2025-26, districts using a curriculum that is not included on the state’s evidence-based list must provide notice to parents and explain how they plan to transition to an evidence-based, state-aligned curriculum.
Upon its relocation to Section 22b, compliance with the K-5 curriculum notification requirement is now tied to eligibility for Section 22b foundation allowance funding. However, the legislation does not include the separate 5% state aid withholding penalty that previously applied to certain curriculum-related requirements.
3. New Smart Snacks Compliance Requirement
Section 164k now requires districts to comply with federal Smart Snacks in School standards.
These standards limit the sale of certain foods and beverages, including soda, candy, and other products that do not meet federal nutritional requirements. Districts should review vending machines, school stores, and other food sales to ensure compliance.
4. Presidential Fitness Test Required Beginning in 2026-27
Beginning with the 2026-27 school year, districts and ISDs that offer physical education classes must administer the Presidential Fitness Test to students enrolled in those classes.
Districts and ISDs should keep in mind that:
1. Students with an Individualized Education Program (“IEP”) are exempt unless participation is required by the IEP.
2. The test may only be administered in physical education classes, if such classes are offered by the school.
3. MDE must issue implementation guidance in consultation with the Governor’s Council on Physical Fitness, Health, and Sports.
Districts that offer physical education classes should begin preparing for this requirement and watch for additional guidance from MDE.
Practical Considerations
While the Legislature has removed several of the administrative reporting and notification requirements that districts previously had to follow, Section 164k now places greater focus on student nutrition and physical education requirements. Districts should review food service practices, wellness policies, and physical education programs to ensure they are prepared for these new requirements and remain eligible for state funding.
For inquiries, please contact Eric Feldman at feldmane@millerjohnson.com or (313) 435-2355.