The bills, passed 58-49 almost entirely along party lines after 11 p.m. in the Republican-controlled chamber, are designed to address two struggling districts in the Detroit and Saginaw areas. But the measure also could have implications for other schools running deficits down the line.
The Inkster and Buena Vista districts face the prospect of not having enough money to reopen for classes in September.
The legislation would let the state school superintendent and state treasurer jointly determine to dissolve a district with fewer than 2,500 students that is deemed not to be "financially viable." A district could not be dissolved unless it loses at least 10 percent of its enrollment from the previous school year under an amendment added to the bill.
The Senate could take up the measure next week before the Legislature's summer break because school is going to start around the time they return to Lansing.