1093: ENACTED (07-21-08) - FY 2008-09 COMMUNITY COLLEGES BUDGET

FY 2008-09 COMMUNITY COLLEGES BUDGET S.B. 1093 (P.A. 255 of 2008): ENACTED

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FY 2007-08 Year-to-Date Gross Appropriation	$318,928,800
Changes from FY 2007-08 Year-to-Date:
Items Included by the Senate and House
1. One-Time Delayed Payment. The Governor and Senate 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 Leadership Target Agreement reduced funding available for community colleges to a 2% increase. 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 1.6% to 2.6%. 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	5,736,500
Conference Agreement on Items of Difference
3. Nursing Programs. The Senate included a $100 placeholder for nursing programs. The House included $7 million. Due to the Leadership Target Agreement, the Conference did not include funding for this item.	0
4. Property Tax Base Disparity. The House added funding to three community colleges (Alpena $125,700; Bay de Noc $121,400; Gogebic $258,500) based on districts that have a property tax bases of less than $1.4 billion and assess at least 2.5 mills. Due to the Leadership Target Agreement, the Conference did not include funding for this item.	0
5. Indian Tuition Waiver Adjustment. The House included funding to offset the difference between the current cost of the Indian Tuition Waiver Program and the amount that was rolled into the community college appropriation base for the Program in FY 1996-97. Due to the Leadership Target Agreement, the Conference did not include funding for this item.	0
6. Renaissance Zone Reimbursements. Funding is increased from $3,025,000 to $3,479,900, based on projected payments pursuant to Public Act 376 of 1996. The Senate reduced this line by $100. The House restored the $100. The Conference concurred with the House.	455,000
Total Changes	($19,568,300)
FY 2008-09 Enacted Gross Appropriation	$299,360,500

FY 2008-09 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:

Items Included by the Senate and House

1. 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). The Senate and House restored the current-year distribution schedule. (Sec. 211)

2. Collaboration with Four-Year Universities. The Senate added subsections focusing on responding to local employment needs through collaboration with employers and other community colleges to develop strategies to meet local employment needs and encourages a statewide summit on a strategy. The House concurred with the Senate. (Sec. 224)

3. Michigan New Jobs Training Program (MNJTP). The Senate added language stating legislative intent to develop and pass legislation that would authorize community colleges to issue debt to fund customized workforce development training. The principal and interest payments on the debt would be paid by capturing the incremental increase in the State income tax associated with the new employees' wages and redirecting it to the college, instead of the State. The House concurred with the Senate. (Sec. 243)

4. Other Changes. The Senate and House restored the following provisions eliminated by the Governor: Requires compliance with Joint Capital Outlay Subcommittee use and finance requirements. (Sec. 217) States legislative intent regarding parity with increases for universities. (Sec. 239) States legislative intent that interested parties continue the discussion regarding payments in lieu of taxes. (Sec. 242) Requires notice to Legislature before submission of a new state plan for Perkins Act grants. (Sec. 511) Requires Treasury to compile a report on the property tax revenue loss resulting from TIFAs and tax abatement programs. (Sec. 513) The Governor, Senate and House eliminated sections that required the DLEG to continue to work collaboratively with community colleges to implement an accelerated entrepreneurship curriculum and a section stating legislative intent that the Michigan Community College Association may create and administer a workgroup to evaluate university admission and enrollment policies.

Conference Agreement on Items of Difference

5. Infrastructure, Technology, Equipment, and Maintenance (ITEM). States legislative intent that ITEM funding will be restored. FY 1999-2000 was the last year that this program was funded (in the Capital Outlay Budget). The Governor and Senate eliminated this section. The House restored it. The Conference concurred with the Governor and Senate.

6. College President's Salary Increases. The Senate added this new section, stating legislative intent that each community college limit any annual salary increase for its college president or chancellor to the annual average percentage increase in the Detroit consumer price index unless complying with that limit is inconsistent with the college's need to maintain qualified leadership for the institution. The House removed this section. The Conference concurred with the House.

7. Performance Indicators Task Force. The House added the following sentence: "Specifically, it is the intent of the legislature that the performance indicators task force review and implement one or more measurable data items for the local strategic value indicator and review and implement one or more measurable data items for an administrative cost formula component." The Conference concurred with the House. (Sec. 304)

8. Nursing Grant Distribution. The House added language providing that nursing program grants shall be allocated to each community college on a proportional basis based on the number of 2006-2007 ADN/RN nursing program awards. The Conference eliminated this section.

9. Nursing Shortage Workgroup. The House added language stating that it is the intent of the Legislature that a workgroup be formed including representatives of community colleges, State universities, and the health care community to address and resolve the nursing shortage in the State of Michigan. The Conference concurred with the House. (Sec. 246)

10. Purchase of Foreign Automobiles Prohibition. The House added language providing that funds appropriated in Part 1 shall not be used for the purchase of foreign automobiles if competitively priced and of comparable quality automobiles made in the State of Michigan or elsewhere in the United States of America are available. The Conference concurred with the House. (Sec. 247)

Date Completed: 07-21-08 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa hiccl_en.doc