- Nearly 80% of Michigan districts, including many in the Upper Peninsula, are declining FY2025–26 Section 31aa School Aid funds over legal and local-control concerns.
- In Marquette-Alger RESA, 11 of 13 districts rejected the money, citing vague “mass casualty event” language and required state investigations.
- Districts say the provisions could force waivers of attorney-client privilege and increase liability, prompting calls for legislative clarification.
- About $321 million in School Aid Fund dollars plus $21 million from the General Fund for safety and mental health programs is at risk of going unused unless the language is changed.
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The Michigan state budget for fiscal year 2025-26 introduced a requirement under Section 31aa of the School Aid Act that districts accepting the awarded funds must waive certain legal protections—including attorney-client privilege—in cases defined as “mass casualty events,” and agree to state-directed investigations. This newly added language has prompted widespread rejection of the funds by school districts across the Upper Peninsula and statewide due to concerns over liability, vague definitions, and undermined local control.
In Marquette-Alger Regional Educational Service Agency (MARESA), 11 of 13 districts declined to accept Section 31aa funds. Officials cited undefined terms, exposure to legal risk (including potential loss of governmental immunity), a shift from prevention to reactive mandates, and erosion of autonomy in decision-making as core issues.
The funding at stake is significant: Section 31aa allocates about $300 million from the School Aid Fund and an additional $21 million from the General Fund for student safety and mental health grants. The scale of refusal—nearly 80% of districts statewide—means these dollars might go unexpended unless the state intervenes.
Legislative sources acknowledge that the “mass casualty event” term has a statutory definition within the budget law, but also that it is broad and potentially overbroad—e.g. an incident involving three injuries could qualify. State Senate Republican Senator Ed McBroom has called for more detailed refinement.
Strategic implications involve: (a) legal exposure if districts accept and the requirements are enforced; (b) financial impact if districts must supply services (mental health, school safety) from local funds instead; (c) political pressure on Lansing to clarify or amend budget language via a supplemental budget; (d) potential variation in service quality and safety outcomes between districts that accept vs decline funding.
Open questions: When will legislative fixes be pursued, how will eligible districts manage without Section 31aa funding, will local lawsuits or other legal challenges emerge, how will this affect students’ access to mental health and safety programming, and what precedents are set for future budget conditionality tied to legal waivers?
Supporting Notes
- MARESA Superintendent Dr. Gregory Nyen states: “This decision was not made lightly … the new requirements raise serious concerns about legal exposure, ambiguous definitions and a shift away from prevention-focused funding toward reactive, state-directed mandates.”
- Section 31aa funding totals approximately $300 million from the School Aid Fund plus $21 million from the General Fund to support school safety and mental health.
- 11 of 13 school districts in Marquette-Alger RESA have declined Section 31aa funds in FY 2025-26.
- Refusal stems from concerns that the term “mass casualty event” is undefined, potentially triggering mandatory investigations and legal and liability risks.
- The new requirement mandates waiving confidential attorney-client privileges for various categories of personnel in response to mass casualty events.
- Senator Ed McBroom affirmed there is a statutory definition for “mass casualty event,” but stated it is likely too broad and in need of clarification for practical implementation.