News from Thrun Law

School Board Member Voting Abstention

January 6, 2025

Michigan law suggests that a school board member who is present at a board meeting has a fiduciary duty to vote on every motion that comes before the school board unless a statute permits abstention. A board member who abstains from voting absent a statute permitting abstention is arguably neglecting the duties of their public office, which is prohibited under the Michigan Penal Code. Both the Revised School Code (RSC) and the Contracts of Public Servants with Public Entities Act,...

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Background Checks: Don’t Forget Employees of Third-Party Contractors

December 30, 2024

With limited exceptions, school officials must obtain a criminal history and records check for employees of third-party contractors who are assigned to “regularly and continuously” work on school property. Revised School Code (RSC) Sections 1230 and 1230a provide that when an individual is assigned to regularly and continuously work under contract at a school, officials shall request a criminal history check from the criminal records division of the department of state police and a...

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Filing Requirements for Issuers of Tax Credit Bonds

December 23, 2024

Schools that issued tax credit bonds on or before December 31, 2017 must annually complete and file Form 1097-BTC with the IRS. For tax year 2024, Form 1097-BTC must be filed by mail by February 28, 2025 or filed electronically by March 31, 2025.

Tax credit bonds differ from conventional school bonds because the bond purchaser receives a tax credit instead of, or in...

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Next Stop: Pupil Transportation

December 16, 2024

The Michigan Department of Education (MDE) recently released guidance to help schools navigate the complexities of pupil transportation. MDE’s guidance explains new funding and reporting requirements established by Public Act 120 of 2024 (PA 120) and provides important reminders to help schools steer clear of common pupil transportation pitfalls.

Funding Requirements

PA 120 allocated $125 million to school transportation reimbursement funding for the...

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The ABCs of Student Behavior Management: BIPs, FBAs, & PBIS

December 9, 2024

Managing student behavior is integral to a successful educational experience for all students but becomes a mandate when a student has a disability. The IDEA and Section 504 recognize the connection between behavior and providing a free appropriate public education (FAPE) to students with disabilities. When a student’s behavior impairs their or others ability to learn, school staff likely need to address the causes of and seek solutions for the problematic behavior.

School staff may...

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December Filing Deadlines “Yule” Regret Missing

December 2, 2024

With the excitement of the holiday season, finance-related filings may be the last thing on school officials’ priority lists. Please keep in mind two important end-of-the-calendar-year deadlines to stay off the “naughty” list: (1) continuing disclosure and (2) qualified status.

Continuing Disclosure

If your school has outstanding bonds, it likely entered into a continuing disclosure agreement (CDA) when those bonds were issued. A CDA requires school...

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Federal Judge Vacates FLSA Minimum Salary Threshold Increases

November 21, 2024

On Friday, November 15, 2024, a federal Texas court vacated the April 23, 2024 U.S. Department of Labor (DOL) final rule that increased the minimum salary threshold for Fair Labor Standards Act (FLSA) exemptions (Final Rule), concluding that the Final Rule was unlawful. The court’s decision applies nationwide and results in the minimum salary threshold for FLSA exemptions reverting to the pre-Final Rule level of $684 per week ($35,568 per year). 

The Administrative Procedures...

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2024-2025 Pupil Accounting Manual

November 18, 2024

The Michigan Department of Education (MDE) recently published the 2024-2025 Pupil Accounting Manual (PAM) and a...

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Michigan Teachers’ Tenure Act Amendment

November 11, 2024

Earlier this month, Governor Whitmer signed into law Public Act 134 of 2024 (PA 134), which changes the performance evaluation ratings a probationary teacher must receive to successfully complete the teacher’s probationary period under the Michigan Teachers’ Tenure Act (TTA).

PA 134 will become effective 91 days after final adjournment of the Michigan Legislature’s 2024 regular session, meaning PA 134 is expected to take effect in late March or early April 2025.

Currently, for...

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Competitive Bid Threshold Increased

November 8, 2024

On October 10, 2024, MDE issued a memorandum announcing the new competitive bid threshold, which MDE adjusts annually to account for inflation based on the consumer price index.

School districts, ISDs, and public school academies must competitively bid the following if the cost will exceed the new bid threshold of $30,512: (1) labor and materials for...

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