FY 2008-09 COMMUNITY COLLEGES S.B. 1093: GOVERNOR'S RECOMMENDATION


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Senate Bill 1093 (as introduced) Vehicle for Governor's Recommendation line items is Senate Bill 1142.
Committee: Appropriations

FY 2007-08 Year-to-Date Gross Appropriation $318,928,800
Changes from FY 2007-08 Year-to-Date:
  1. One-time Delayed Payment. The Governor eliminated the funding related to the one-time August 2007 delayed payment (E.O. 2007-3 and 2007 PA 17). (25,759,800)
2. Community College Operations. The Governor included funding for an overall 3.0% increase for community college operations. The increase is distributed pursuant to the Performance Indicators Task Force formula. This distribution formula has been used to allocate increases in funding since FY 2006-07. The attached table delineates increases for each college, which range from 2.4% to 3.9%. Components of the formula include: a. 50.0% distribution proportionate to current base funding b. 17.5% based on student contact hours c. 17.5% based on a weighted degrees formula d. 15.0% based on strategic value 8,604,800
3. Renaissance Zone Reimbursements. Funding is increased from $3,025,000 to $3,480,000, based on projected payments pursuant to Public Act 376 of 1996. 455,000
Total Changes ($16,700,000)
  FY 2008-09 Governor's Recommendation $302,228,800
FY 2008-09 COMMUNITY COLLEGES BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:
  1. Accelerated Entrepreneurship Curriculum. Requires the DLEG to continue to work collaboratively with community colleges to implement an accelerated entrepreneurship curriculum to provide students with the skills and knowledge needed for creating their own businesses. The Governor removed this section.
2. Payment Distribution of Appropriation. The Governor's recommendation modified this section by removing the provision that required At-risk funding to be paid in full by November 1 (this effectively would result in payments over 11 months). (Sec. 211)
3. Appropriation Limitations. Prohibits the use of appropriations in Part 1 for the construction or maintenance of a self-liquidating project. The Governor eliminated the provision that requires compliance with Joint Capital Outlay Subcommittee use and finance requirements. (Sec. 217)
4. Infrastructure, Technology, Equipment, and Maintenance (ITEM). States legislative intent that ITEM funding provided in previous years will be restored. Appropriations for ITEM were included in the Capital Outlay Budget. However, FY 1999-2000 was the last year that this program was funded. The Governor eliminated this section.
5. University Admissions Workgroup. Legislative intent that the Michigan Community College Association may create and administer a workgroup that includes members representing universities and K-12 school organizations to evaluate, discuss, and make recommendations for future action regarding university admission and enrollment policies that specifically address the acceptance and application of college credits earned by students through the Postsecondary Enrollment Options Act. This section was first included in FY 2002-03 to address concerns that certain universities are not accepting college credits earned by high school students. To date, no workgroup has been formed. The Governor eliminated this section.
6. Parity to Higher Education Budget. States legislative intent that any executive or legislative proposal or action to increase appropriations to State-supported 4-year universities will be accompanied by a similar action or proposal for State-supported community colleges. The Governor eliminated this section.
7. Payments in Lieu of Taxes. States legislative intent that interested parties continue the discussion regarding payments in lieu of taxes, especially for those community college districts that contain significant portions of nontaxable land. The Governor eliminated this section.
8. Performance Indicators Task Force. The Governor modified Subsection 1 by stating that the FY 2008-09 appropriation includes a 3.0% increase distributed pursuant to the formula developed by the Performance Indicators Task Force and removing the intent statement that the ACS Data Book information continue to be collected. The Governor modified Subsection 2 by replacing "intent of the legislature" with a general statement requiring future review and continued implementation of the Performance Indicators. (Sec. 304)
9. Nursing Program Grants. Due to Leadership Targets for FY 2007-08, no funding was included in the budget for this proposed new program. However, the enacted version of the bill retained this language as an intent statement regarding support for future funding of the program. The Governor replaced this section with language to identify State programs for expanding nursing education. Programs referenced include financial assistance through the Michigan Nursing Scholarship Program (Treasury) and the Michigan Nursing Corps Grants (DLEG). Community colleges are encouraged to coordinate with the Chief Nurse Executive in the Department of Community Health, and with 4-year universities, to improve access to nursing programs and to assist students to successfully enter the nursing workforce. (Sec. 405)
10. Perkins Act. At least 30 days before submission of a new State plan to the United States Department of Education for approval under the Perkins Act, the Department of Labor and Economic Growth shall provide copies of the proposed plan to the members of the Senate and House Appropriations Subcommittees on Community Colleges for their review and comment. States intent that the Perkins grant application process and content shall be streamlined to the extent possible. The Governor eliminated this section.
11. Tax Increment Finance Authorities (TIFAs) Report. Requires Treasury to compile and publish a report on the property tax revenue loss for each community college as a result of TIFAs and tax abatement programs. The Governor eliminated this section.

Date Completed: 02-13-08 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiccl_gr.doc