The move is meant to reduce the gap between higher- and lower-funded schools.
The audit found several flaws with financial controls, educational standards and program effectiveness at the state-run facility.
The $15.8 billion budget bill sets spending for the state’s schools, universities and community colleges.
The education community is not enamored with a proposed “compromise” on guns in Michigan schools.
Police say more than 217,500 students will benefit from the safety improvements.
Representatives of a local union say boilers in the Detroit Public Schools buildings are putting students and staff in danger.
A single case of pertussis has led one Michigan school to ban unvaccinated students from class.
The Department of Education reported the figures last week to the state House and Senate education budget subcommittees.
School districts would have to include cyberbullying in their anti-bullying policies and report bullying data to the state under a bill moving ahead in the Legislature.
Education officials in Michigan are concerned that an increase in testing for high school juniors will lead to problems this spring.