The State School Aid Act (the "Act"), as amended by Public Act 142 of 1997, provided appropriations as part of a settlement both to school districts involved in the Durant litigation and school districts not involved in the litigation (referred to as Non-Durant school districts). The Act provided for most of the Non-Durant schools districts to receive half of their Durant related settlement amount in ten annual cash payments beginning in 1998, and the other half in fifteen annual payments (beginning in 1998 and ending in 2013) that could be pledged for a bonding option. PA 142 amendments permitted the Michigan Municipal Bond Authority (the "Authority") to issue bonds for Non-Durant school districts that elected to receive a lump-sum amount from the Authority rather than fifteen annual payments. Six school districts elected not to use the bonding option, while the rest elected to receive a lump-sum amount from Authority bond proceeds. The Authority issued over $300 million in School Loan Revenue Bonds, Series 1998 (the "Bonds") on November 24, 1998. The Bonds are paid from annual State school aid appropriations and have a final maturity date of 2013.

As part of the Executive Budget Recommendation for Fiscal Year 2004, the Authority's Bonds were refunded. To accomplish that, the payment schedules of 451 school districts in the program changed, as allowed in the original Bonds, but the refunding did not change the total payments for any of these borrowers. Revised payment schedules were sent to each of the schools districts on March 24, 2003. The revised payment schedules contain the original and revised payment information. No action is required by the participating school districts to effectuate the debt service payments; all payments continue to be made by State appropriations for this purpose.

Durant Refunding Payment Information