SB-1093, As Passed Senate, March 25, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1093

A bill to make appropriations for community colleges and

certain state purposes related to education for the fiscal year

ending September 30, 2009; to provide for the expenditure of those

appropriations; to establish or continue certain funds, programs,

and categories; and to prescribe the powers and duties of certain

state departments, institutions, agencies, employees, and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this act, the

amounts listed in this part are appropriated for community colleges

and certain other state purposes relating to education for the

fiscal year ending September 30, 2009, from the funds indicated in

this part. The following is a summary of the appropriations in this

part:

COMMUNITY COLLEGES

APPROPRIATION SUMMARY:

GROSS APPROPRIATION.................................... $ 302,228,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ 302,228,800

Federal revenues:

Total federal revenues................................. 0

Special revenue funds:

Total local revenues................................... 0

Total private revenues................................. 0

Total other state restricted revenues.................. 0

State general fund/general purpose..................... $ 302,228,800

Sec. 102. OPERATIONS

Alpena Community College............................... $ 5,171,900

Bay de Noc Community College........................... 5,225,400

Delta College.......................................... 13,898,200

Glen Oaks Community College............................ 2,327,600

Gogebic Community College.............................. 4,308,900

Grand Rapids Community College......................... 17,390,300

Henry Ford Community College........................... 21,086,400

Jackson Community College.............................. 11,644,000

Kalamazoo Valley Community College..................... 12,011,300

Kellogg Community College.............................. 9,402,800

Kirtland Community College............................. 2,873,700

Lake Michigan College.................................. 5,058,200

Lansing Community College.............................. 30,051,900

Macomb Community College............................... 32,081,400

Mid Michigan Community College......................... 4,332,800

Monroe County Community College........................ 4,187,100

Montcalm Community College............................. 3,012,600

C.S. Mott Community College............................ 15,159,600

Muskegon Community College............................. 8,593,400

North Central Michigan College......................... 2,921,400

Northwestern Michigan College.......................... 8,757,200

Oakland Community College.............................. 20,351,400

St. Clair County Community College..................... 6,794,500

Schoolcraft College.................................... 11,892,400

Southwestern Michigan College.......................... 6,328,500

Washtenaw Community College............................ 12,302,700

Wayne County Community College......................... 16,041,400

West Shore Community College........................... 2,219,100

GROSS APPROPRIATION.................................... $ 295,426,100

Appropriated from:

State general fund/general purpose..................... $ 295,426,100

Sec. 103. GRANTS

At-risk student success program........................ $ 3,322,700

Renaissance zone tax reimbursement funding............. 3,479,900

Nursing programs....................................... 100

GROSS APPROPRIATION.................................... $ 6,802,700

Appropriated from:

State general fund/general purpose..................... $ 6,802,700

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2008-2009 is $302,228,800.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2008-2009 is $302,228,800.00. The

itemized statement below identifies appropriations from which

spending to local units of government will occur:

Operations............................................. $ 295,426,100

At-risk student success program........................ 3,322,700

Renaissance zone tax reimbursement program............. 3,479,900

Nursing programs....................................... 100

TOTAL.................................................. $ 302,228,800

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. Unless otherwise specified, a community college

receiving appropriations in part 1 and the department of labor and

economic growth shall use the Internet to fulfill the reporting

requirements of this act. This requirement may include transmission

of reports via electronic mail to the recipients identified for

each reporting requirement or it may include placement of reports

on an Internet or Intranet site.

Sec. 209. Funds appropriated in part 1 shall not be used for

the purchase of foreign goods or services, or both, if

competitively priced and of comparable quality American goods or

services, or both, are available. Preference should be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference should be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 210. The principal executive officer of each community

college receiving appropriations in part 1 shall take all

reasonable steps to ensure businesses in deprived and depressed

communities compete for and perform contracts to provide services

or supplies, or both. Each principal executive officer shall

strongly encourage firms with which the community college contracts

to subcontract with certified businesses in depressed and deprived

communities for services or supplies, or both.

Sec. 211. (1) The money appropriated in this act is

appropriated for community colleges with fiscal years ending June

30, 2009 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

2008. Each community college shall accrue its July and August 2009

payments to its institutional fiscal year ending June 30, 2009.

However, if a community college fails to submit all verified

Michigan community colleges activities classification structure

data for school year 2007-2008 to the department of labor and

economic growth by November 1, 2008, the monthly installments shall

be withheld from that community college until those data are

submitted. The amount from the money appropriated in part 1 that is

allocated to address the special needs of at-risk students shall be

paid in full by the state treasurer by November 1, 2008. The amount

distributed to a community college or department shall not exceed

the net state allocation authorized by this act.

(2) Except as otherwise provided by law, each of the amounts

appropriated shall be used solely for the respective purposes

stated in this act. The money appropriated in this act may be used

to match the cost of any available programs under the Carl D.

Perkins vocational and applied technology education act of 1998, 20

USC 2301 to 2415, including local administration.

Sec. 216. (1) A community college shall pay the employer's

contributions to the Michigan public school employees' retirement

system created by the public school employees retirement act of

1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of

receiving money appropriated under this act.

(2) A community college shall not pay an employer's

contribution to more than 1 retirement fund providing benefits for

an employee.

Sec. 217. Money appropriated in part 1 shall not be used to

pay for the construction or maintenance of a self-liquidating

project. A community college shall comply with the current use and

finance requirements of the joint capital outlay subcommittee

(JCOS) for any construction, renovation, or other capital outlay

projects pursuant to JCOS policy.

Sec. 224. (1) Recognizing the critical importance of education

in strengthening Michigan's workforce, the legislature encourages

the state's public community colleges to explore ways of increasing

collaboration and cooperation with 4-year universities,

particularly in the areas related to training, instruction, and

program articulation.

(2) Recognizing the central role of community colleges in

responding to local employment needs and challenges, community

colleges shall develop and continue efforts to collaborate with

local employers and students to identify local employment needs and

strategies to meet them.

(3) Community colleges are encouraged to collaborate with each

other on innovations to identify and meet local employment needs.

(4) Community colleges are encouraged to organize and

participate in a legislative summit on a strategy for meeting the

employment needs of the entire state. The community colleges shall

report the results of the summit to the senate and house

appropriations subcommittees on community colleges.

Sec. 234. Community colleges shall do the following:

(a) Undertake active measures to promote equal opportunities,

eliminate discrimination, and foster a diverse student body and

administration among all people including, but not limited to,

women, minorities, seniors, veterans, and people with disabilities.

(b) Review, analyze, and eradicate activities that may tend to

discriminate.

Sec. 239. The legislature intends that any executive or

legislative proposal or action, subsequent to the adoption of a

recommendation for appropriations for community colleges for the

fiscal year ending September 30, 2009, to increase appropriations

to state-supported 4-year universities in excess of the governor's

original recommendation for the fiscal year ending September 30,

2009, will be accompanied by a similar action or proposal for

state-supported community colleges.

Sec. 241. (1) It is the intent of the legislature that

community colleges expand their current nursing education programs

and increase nursing education program enrollments. This expansion

may include, but is not limited to, creating partnerships with

hospitals and other health care providers, expanding the focus and

utilization of the nursing scholarship program, and redirecting

existing institutional resources toward nursing education programs.

(2) Community college nursing programs are part of a

comprehensive solution to Michigan’s nursing shortage. Community

college students are eligible to apply for financial assistance

through the Michigan nursing scholarship program established in the

Michigan nursing scholarship act, 2002 PA 591, MCL 390.1181 to

390.1189. The Michigan nursing corps grants described in section

431 of 2007 PA 118 and administered by the department of labor and

economic growth provide funding to address the shortage of

qualified nursing faculty. 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. 242. It is the intent of the legislature that the

Michigan community college association, the legislature, and other

interested parties continue the discussion regarding payments in

lieu of taxes, especially for those community college districts

that contain significant portions of nontaxable land.

Sec. 243. It is the intent of the legislature to develop and

pass enact legislation that would authorize community colleges to

issue debt to fund customized workforce development training. This

program would be known as the Michigan new jobs training program.

The principal and interest payments on any debt issued under the

program would be paid by capturing the incremental increase in the

state income tax associated with the wages of new employees and

redirecting it to the community college instead of the state. The

program would offer an incentive for employers creating new jobs or

expanding operations in Michigan. This program has the potential to

be a cornerstone of Michigan’s workforce and economic development

efforts, with the state’s community colleges collaboratively

partnering with state and local economic development, the Michigan

works agencies, and the private sector to implement unified

strategies for regional growth.

Sec. 244. It is the intent of the legislature that each

community college receiving an appropriation in part 1 limit any

annual salary increase for its college president or chancellor to

the annual average percentage increase in the Detroit consumer

price index in the immediately preceding state fiscal year, unless

complying with that limit is inconsistent with the college's need

to maintain qualified leadership for the institution. As used in

this subsection, "Detroit consumer price index" means the most

comprehensive index of consumer prices available for the Detroit

area from the bureau of labor statistics of the United States

department of labor.

STATE AID - OPERATIONS

Sec. 301. Unless otherwise stated, all data items used in

determining state aid in this act are as defined in the 2001 Manual

for Uniform Financial Reporting, Michigan Public Community

Colleges, which shall be the basis for reporting data, and the

Activities Classification Structure Manual for Michigan Community

Colleges, as amended, which shall be used to document financial

needs of the community colleges.

Sec. 302. A community college shall not include in the

enrollment data reported for determining state aid under this act

any student credit hours or student contact hours for a student

incarcerated in a Michigan penal institution. Exclusion of these

students is intended to avoid the payment of state aid under this

act for the same individuals for whom reimbursement is provided by

the state correctional system.

Sec. 304. (1) The appropriations in part 1 for community

college operations include an aggregate 3% increase distributed

pursuant to the funding formula developed by the performance

indicators task force formed pursuant to section 242 of 2005 PA

154.

(2) It is the intent of the legislature that the

recommendations and performance measures developed by the

performance indicators task force formed pursuant to section 242 of

2005 PA 154 be reviewed and more fully implemented for distribution

of state funding to community colleges in future years.

GRANTS

Sec. 401. (1) The community college at-risk student success

program is continued. The funding shall be prorated among community

colleges based on the number of student contact hours for

developmental and preparatory instruction reported by each

community college to the department of labor and economic growth

pursuant to the Activities Classification Structure Manual for

Michigan Community Colleges, as amended. Of the amount appropriated

in part 1 for the at-risk student success program, $1,120,000.00 is

allocated for base grants of $40,000.00 each, to address the

special needs of at-risk students at community colleges.

(2) Of the amount appropriated in part 1 for the at-risk

student success program, the balance of the appropriated money

shall be distributed on a proration utilizing the sum of the most

recent 3 years developmental/preparatory contact hours divided by

the sum of the 3-year total contact hours at each college. Each

community college's percentage shall be divided by the sum of all

the percentages systemwide to obtain each community college's

prorated grant amount.

(3) For the fiscal year ending September 30, 2009, the at-risk

student success program money is allocated as follows:

Alpena Community College............................... $ 80,200

Bay de Noc Community College........................... 62,800

Delta College.......................................... 104,500

Glen Oaks Community College............................ 112,500

Gogebic Community College.............................. 58,600

Grand Rapids Community College......................... 132,300

Henry Ford Community College........................... 161,900

Jackson Community College.............................. 120,900

Kalamazoo Valley Community College..................... 92,000

Kellogg Community College.............................. 163,600

Kirtland Community College............................. 125,400

Lake Michigan College.................................. 157,200

Lansing Community College.............................. 153,500

Macomb Community College............................... 84,400

Mid Michigan Community College......................... 141,400

Monroe County Community College........................ 105,400

Montcalm Community College............................. 75,000

C.S. Mott Community College............................ 106,300

Muskegon Community College............................. 78,700

North Central Michigan College......................... 111,100

Northwestern Michigan College.......................... 122,400

Oakland Community College.............................. 148,900

St. Clair Community College............................ 124,800

Schoolcraft College.................................... 127,300

Southwestern Michigan College.......................... 150,700

Washtenaw Community College............................ 140,300

Wayne County Community College......................... 132,600

West Shore Community College........................... 148,000

(4) As used in this act, "at-risk students" means students who

meet 1 or more of the following criteria:

(a) Are initially placed in 1 or more developmental courses as

a result of standardized testing or as a result of failure to make

satisfactory academic progress.

(b) Are diagnosed as learning disabled.

(5) Grant funding under this section shall be utilized to

address the special needs of at-risk students. Activities related

to services provided to at-risk students include, but are not

limited to, pretesting for academic ability, counseling contacts,

and special programs. Equipment or information technology hardware

or software purchased under this section must be associated with

the operation of a program designed to address the needs of at-risk

students.

(6) Grant funding under this section shall not be used for

indirect costs including, but not limited to, rent, utilities, or,

except as provided in this section, college administration.

(7) Each community college shall report to the department of

labor and economic growth a summary of all accomplishments under,

expenditures for, and compliance with the intent of this program,

including the number of at-risk students served. The report is

subject to audit as provided for in section 502(1). The report

shall be submitted not later than 90 days after the end of the

state's fiscal year.

Sec. 404. The appropriation in part 1 for renaissance zone

reimbursements shall be made to each eligible recipient no later

than 60 days after the department of treasury certifies to the

state budget director that it has received all necessary

information to properly determine the amounts due each eligible

recipient under section 12 of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692.

REPORTS AND AUDITS

Sec. 501. The department of labor and economic growth shall

publish the activities classification structure data book for

Michigan community colleges on or before March 1, 2009.

Sec. 502. (1) The auditor general or a certified public

accountant appointed by the auditor general may conduct performance

audits of community colleges as the auditor general considers

necessary.

(2) Not more than 60 days after an audit report is released by

the office of the auditor general, the principal executive officer

of the community college that was audited shall submit to the house

and senate appropriations committees, the house and senate fiscal

agencies, the department of labor and economic growth, the auditor

general, and the state budget director a plan to comply with audit

recommendations. The plan shall contain projected dates and

resources required, if any, to achieve compliance with the audit

recommendations, or a documented explanation of the college's

noncompliance with the audit recommendations concerning the matters

on which the audited community college and office of the auditor

general disagree.

Sec. 504. (1) A community college shall retain certified class

summaries, class lists, registration documents, and student

transcripts that are consistent with the taxonomy of courses. For

each enrollment period during the fiscal year, these certified

documents shall identify clearly by course the number of in-

district and out-of-district student credit and contact hours. The

class summaries and class lists shall be consistent with each other

and shall include the course prefix and numbers, course title,

course credit and contact hours, credit and contact hours generated

by each student, and activity classifications consistent with the

taxonomy. An auditable process shall be used by the community

college to determine the unduplicated head count for in-district

students, out-of-district students, and prisoners for each

enrollment period during the fiscal year.

(2) Contracts between the community college and agencies that

reimburse the community college for the costs of instruction shall

be retained for audit purposes.

Sec. 505. Each community college shall have an annual audit of

all income and expenditures performed by an independent auditor and

shall furnish the independent auditor's management letter and an

annual audited accounting of all general and current funds income

and expenditures including audits of college foundations to the

members of the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, the

auditor general, the department of labor and economic growth, and

the state budget director before November 15, 2008. If a community

college fails to furnish the audit materials, the monthly state aid

installments shall be withheld from that college until the

information is submitted. All reporting shall conform to the

requirements set forth in the 2001 Manual for Uniform Financial

Reporting, Michigan Public Community Colleges.

Sec. 506. (1) Each community college shall report the

following to the department of labor and economic growth no later

than November 1, 2008:

(a) The number of North American Indian students enrolled each

term for the previous fiscal year, using guidelines and procedures

developed by the department of labor and economic growth and the

Michigan commission on Indian affairs.

(b) The number of Indian tuition waivers granted each term,

and the monetary value of the waivers for the previous fiscal year.

(2) Colleges shall use the criteria cited in 1976 PA 174, MCL

390.1251 to 390.1253, to determine eligibility for tuition waivers,

and shall grant those waivers to individuals who meet the criteria

and request tuition waivers.

(3) The department of labor and economic growth shall compile

the information received under subsection (1) and shall submit this

compilation to the house and senate appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget director by January 7, 2009.

Sec. 507. Upon request, a community college shall inform

interested Michigan high schools of the aggregate academic status

of its students for the prior academic year, in a manner prescribed

by the Michigan community college association and in cooperation

with the Michigan association of secondary school principals.

Sec. 508. (1) Each community college shall report to the house

and senate fiscal agencies, the state budget director, and the

department of labor and economic growth by August 31, 2008, the

tuition and mandatory fees paid by a full-time in-district student

and a full-time out-of-district student as established by the

college governing board for the 2008-2009 academic year. This

report should also include the annual cost of attendance based on a

full-time course load of 30 credits. Each community college shall

also report any revisions to the reported 2008-2009 academic year

tuition and mandatory fees adopted by the college governing board

to the house and senate fiscal agencies, the state budget director,

and the department of labor and economic growth within 15 days of

being adopted.

(2) The department of labor and economic growth shall prepare

and provide to community colleges a standard format for reporting

tuition and fees pursuant to subsection (1).

Sec. 509. (1) Each community college shall report to the

department of labor and economic growth the numbers and type of

associate degrees and other certificates awarded during the

previous fiscal year. The report shall be made not later than

November 15, 2008.

(2) The department of labor and economic growth shall compile

the information received under subsection (1) and shall submit this

compilation to the house and senate appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget director by January 7, 2009.

Sec. 510. A community college receiving funding under this act

and also subject to the student right-to-know and campus security

act, Public Law 101-542, 104 Stat. 2381, shall make a copy of all

material prepared in accordance with the public information

reporting requirements under the crime awareness and campus

security act of 1990, title II of the student right-to-know and

campus security act, Public Law 101-542, 104 Stat. 2384, available

in hard copy and electronic format accessible through the Internet

for school districts, parents, and students.

Sec. 511. (1) 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. Copies of the

proposed plan shall be provided to the senate and house fiscal

agencies and the state budget director at the same time that they

are provided to the senate and house subcommittees.

(2) The Perkins grant application process and content shall be

streamlined to the extent possible.

(3) As used in this section, "Perkins act" means the Carl D.

Perkins vocational and applied technology education act of 1998, 20

USC 2301 to 2415.

Sec. 513. The department of treasury shall annually collect

and compile data on the tax revenue losses to community colleges

resulting from tax increment financing authorities (TIFA) and tax

abatements. The department of treasury shall produce a report

detailing the data. The report shall be completed and presented to

the house and senate appropriations subcommittees on community

colleges, the department of labor and economic growth, and the

department of management and budget not later than March 1, 2009.

The report shall include, but is not limited to, the following:

(a) Estimated revenue losses for each community college for

the calendar year 2008.

(b) Confirmed revenue losses for each community college for

the calendar years 2006 and 2007.

appropriations subcommittees on community colleges.