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The Supreme Court of Michigan issued an order on June 10, 1997 dealing with education funding cases filed against the State of Michigan. As part of the
State School Aid Act, as amended by Public Act 142 of 1997, appropriations were made to provide state payment to those schools involved in the litigation and also for those schools not involved in the litigation referred to as Non-Durant
School Districts. Part of the PA 142 amendments included issuing bonds for Non-Durant Schools who elected to receive bond payments. Also, PA 142 provided for Non-Durant bonds to be issued by the Authority. Over $313 million in School
Loan Revenue Bonds, Series 1998 Bonds were issued. There were 452 schools that elected to be paid bond proceeds. The bonds are paid from annual State School Aid Appropriation, and have a 15 year life.
The bonds are subject to annual
appropriations.
The bonds were issued through the Michigan Municipal Bond Authority as School Loan Revenue Bonds, Series 1998. Per terms of the bond, immediately after payment, these state aid payments are forwarded to the program
trustee, Bank One Trust Company, NA, (formerly NBD Bank). No action is required of the 452 participating school districts to effectuate the debt service payment (NOTE: no direct payment is necessary by the 452 school districts).
Department of Education – Durant Settlement Information
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