LANSING – School boards and administrators in K-12 districts across Michigan are weighing whether to waive certain legal protections in exchange for their share of $321 million set aside in the state budget passed this fall for mental health and safety initiatives in schools.

Under part of the 2025-26 state budget passed in early October, school districts must relinquish rights like attorney-client privilege in the event of a “mass casualty” that’d later be subject to an investigation — a trade that some school leaders say could cost them more than the state safety funding they’d stand to receive.

But simultaneous lawsuits from dozens of school officials in over 30 districts statewide may press pause on that “impossible choice,” arguing legislators unconstitutionally leveraged critical funds for a mandate “with unknown limitations” based on too vague of terms.

Here’s what to know about the budgetary waiver measure and subsequent lawsuits now before the Michigan Court of Claims and U.S. District Court filed last week.

What it means to waive legal rights for funds

Mental health and safety funds, which were first raised by state lawmakers several years ago, fall under section 31aa of the State School Aid Act. Although cut in late 2024, the latest $321 million pot marked a $21 million boost for local districts.

School officials have speculated the waiver provision to access their share — allocations that range from a few hundred thousand dollars well into the millions, depending on a district’s size — emerged as part of the wider cultural reactions and school safety reforms after the mass shooting at Oxford High School in 2021.
Currently, districts have until Nov. 30 to opt out of receiving the funds. However, the state and federal lawsuits ask the courts to find the waiver requirement unconstitutional and issue a preliminary injunction to stop it.
School officials have been wary of the requirement because of the vagueness of what may constitute a “mass-casualty event,” as well as the unclear circumstantial limits of what legal protections districts would forfeit.
The federal lawsuit against the state also alleges it could create a credible threat of misdemeanor exposure for school staff and board members.
Districts from across Michigan have signed on to the lawsuit

Roughly 33 superintendents of local and intermediate school districts and several school board members are listed as plaintiffs in their official capacities from all four corners of the state.

Regional plaintiffs include the Bay Arenac, Eastern Upper Peninsula, Huron, Ingham, Macomb and Monroe County intermediate school districts; Kalamazoo, Marquette-Alger, St. Clair County and Wayne regional educational services agencies; Oakland Schools, the Northwest Education Services in Traverse City, the Gratiot-Isabella Regional Education Service District and Midland County Educational Service Agency.

Local districts represented are Algonac, Birch Run, Flat Rock, Garden City, Huron Valley in Highland, Lakeview in St. Clair Shores, Lincoln Park, Livonia, Marquette, Romeo, Romulus, Roseville, Traverse City, Trenton, Utica, Van Buren in Belleville and Woodhaven-Brownstown.

The state of Michigan, Michigan Department of Education and the state superintendent for public instruction are named as defendants.

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