Michigan Compiled Laws, Chapter 380. School Code of 1976 § 380.12a

Sec. 12a. (1) As permitted under federal law, if a school district is dissolved under section 12  1 or if the functions and responsibilities of a school district for operating a public school are transferred to another public entity, the superintendent of public instruction shall grant each receiving school district or other public entity assuming the functions and responsibilities for the public school an allocation of grants under 20 USC 6333, 6334, 6335, and 6337 and of other federal funds that would otherwise be made available for grants to or federal funding for the public school or make other adjustments in the allocation of federal funds to implement the dissolution of the school district or other transfer of functions and responsibilities.

(2) As used in this section, “receiving school district” means that term as defined in section 12.