The final House-Senate agreement for the 2011-2012 school, community college and state university budgets. It appropriates $12.66 billion for K-12 public schools, compared to $12.17 billion originally recommended by Gov. Rick Snyder, and $13.13 billion the previous year (inflated by $420 million in “stimulus” and other one-time money). Per-pupil grants would be reduced by $300, but around $100 of that would be “given back” as a pension contribution subsidy, and another $100 to school districts that adopt specified reforms including paying 10 percent of health insurance benefits, refusing the policy terms of the teacher union's insurance company, competitive bidding on non-instructional services, consolidating some services and more transparency. The budget includes $133 million to cover potential transition costs of a possible school employee pension reform.

The bill also appropriates $1.36 billion for state universities, compared to $1.58 billion the previous year, and more would be cut from universities that raise tuition by more than 7.1 percent. Community colleges would get $283.8 million, compared to $295.8 million last year. $395 million of the college and university budgets would come from tax revenue earmarked to the School Aid Fund, in the past mostly used just for K-12 schools.