State Aid Deduction Responsibilities

Overview of State Aid Deductions

The State School Aid Act (MCL 388.1763) states that districts that employ educators who are not appropriately placed with valid Michigan credentials (i.e., certificates, permits, annual career authorizations (ACAs), or approvals that correspond to the subject areas and grade levels to which they are assigned) are subject to State Aid deductions.

What: Credential Requirements and Appropriate Placement

• Superintendents must be aware of credential requirements and appropriate placement for themselves and for all credentialed school staff.

Why

• Employing educators without valid or appropriate credentials will lead to financial deductions for the district.

How

• HR staff should have processes in place to verify educator credentials before placement. At least one staff person should have internal access to the Michigan Online Educator Certification System (MOECS) to verify that certificates, permits, ACAs, and approvals are valid and appropriate before an educator's placement.
• Substitute permits are available to help fill shortage areas. Please ensure HR staff are aware of permit options and requirements. Improper use of substitute permits is the main reason districts are found to be out of compliance. 

Critical Takeaway

Ensuring educators are appropriately credentialed before they are placed will save thousands of dollars in state aid deductions.

Need more help?

• Email MDE-EducatorHelp@Michigan.gov or call Phone: 517-241-5000 with questions about credential compliance.