November 1st Deadline for SSAA Section 6 State Aid Deduction Reversals

Public Act 15 of 2025 (“PA 15”) amended State School Aid Act (“SSAA”) Section 6(8) to postpone a grade range and subject area endorsement requirement for teaching certificates, substitute permits, authorizations, and approvals until the 2026-27 school year.

The Michigan Department of Education (“MDE”) issued an October 24, 2025 memorandum about PA 15, stating that PA 15 applies both retroactively and prospectively. Meaning, a school that was subject to a state aid deduction under SSAA Section 6 for a teacher who did not possess a valid endorsement during either the 2024-25 or 2025-26 school year is eligible for a reversal of that deduction.

The MDE memo states that the ISD auditor, in coordination with the local school district, must reverse the state aid deduction by November 1, 2025. Note, however, that such a reversal may trigger a separate (and potentially larger) state aid deduction under SSAA Section 163.

A state aid deduction for a teacher’s failure to maintain a required credential may be issued under either SSAA Section 6 (a deduction based on the number of pupils taught by the teacher on count day) or SSAA Section 163 (a deduction based on the salary paid to the teacher during the non-compliance period). The MDE memo warns that if a state aid deduction is reversed for purposes of SSAA Section 6, MDE may assess a state aid penalty under SSAA Section 163. Although PA 15 postponed the SSAA Section 6 endorsement requirement, it did not postpone the SSAA Section 163 endorsement requirement.

Finally, although the MDE memo suggests that MDE only issued SSAA Section 6 state aid deductions for grade level misplacements, schools should review previous state aid deductions for both grade level and subject area enforcement, as PA 15 suspends both the grade level and subject area requirements.