0193: SUMMARY OF DIFFERENCES (Date Completed: 4-26-13) - FY 2013-14 HIGHER EDUCATION BUDGET

FY 2013-14 HIGHER EDUCATION BUDGET S.B. 193 (S-1): SUMMARY OF DIFFERENCES

FY 2013-14 Senate-Passed Gross Appropriation.................................................................

$1,430,573,500

House Changes to Senate-Passed:
1. Performance Funding. The House included $4.0 million more than the Senate for performance funding. The formula used by the House scores Carnegie classification distributions as follows: 3 for improving, 2 for top 20%, and 1 for above the national median. The House modified the distribution formula for Carnegie classifications by weighting the distribution by the number of resident undergraduate FYES. The Senate changed the scoring from current year to: 3 for top 20%, 2 for above the national median, and 2 for improving. See Table 1 for differences in funding allocations by university.	4,000,000
2. MPSERS reimbursements. The FY 2012-13 budget included $446,200 for the purpose of offsetting a portion of the MPSERS retirement contributions. The Senate increased this appropriation by $2.0 million GF/GP. The House did not include this increase.	(2,000,000)
3. North American Indian Tuition Waiver. Public Act 174 of 1976 provides for free tuition for Michigan resident North American Indians who attend Michigan public community colleges, universities, and certain Federal tribally controlled community colleges. State appropriations have not kept pace with actual costs. In FY 2012-13, universities absorbed $4.5 million of waiver costs. The Senate added $2.0 million offset part of the shortfall. The House did not include this adjustment.	(2,000,000)
4. MSU AgBioResearch and MSU Extension. The House separated the appropriations into two line items, MSU AgBioResearch $29,706,600, and MSU Extension $25,582,100. There is no difference in overall funding for the programs between the Governor, House, and Senate.	0

Total Changes.....................................................................................................................	0
FY 2013-14 House-Passed Gross Appropriation..................................................................	$1,430,573,500

FY 2013-14 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2013-14 Senate-Passed:

1. Federal and Private Funds. Governor and House removed statement that the acceptance and use of Federal or private funds does not place an obligation upon the Legislature to continue program. Senate retained. (Sec. 242)

2. Posting of Expenditures. Governor removed listing of individual names and salaries and replaced with a listing of the number of employees by job classification. The Senate concurred with the Governor, the House did not. The Senate also required posting block transfer policies and reverse agreements. (Sec. 245)

3. U of M Douglas Lake Biological Station. Governor and House removed intent statement to protect and preserve the unique long-term research value of the biological station area and Douglas Lake. Senate retained. (Sec. 261)

4. Textbook Cost Review. Senate added language stating intent that universities develop policies to minimize the cost of textbooks and course materials and review any potential financial conflict of interest for faculty written materials. Requires report. (Sec 262a)

5. Project GREEEN. House modified to reflect separating appropriations. (Sec. 263)

6. Tuition Restraint. House and Senate tie tuition restraint to all of performance funding instead of separate allocation. House sets at 3.0%. Senate sets at less than 4.0%. House included health insurance as part of restraint calculation, Governor and Senate did not. (Sec. 265)

7. Performance Funding Criteria. Differences based on performance funding methods. (Sec. 265a)

8. Unfunded Indian Tuition Waiver Costs. States intent that funds be allocated for unfunded North American Indian tuition waiver costs from the General Fund/General Purpose. Senate included language related to new funding and provided for new reporting requirements. (Sec. 268)

9. Transfer Credits. House added language requiring universities to report on the number of transfer credits, with grade of C or better, rejected for incoming students. (Sec. 272a)

10. Counseling Degree Programs/Student's Religious Beliefs. Legislative intent that public universities submit a report on efforts to accommodate the sincerely held religious beliefs of students enrolled in accredited counseling degree programs at the university. Governor and Senate removed, House retained. (Sec. 273)

11. Adult Co-resident Health Benefits. Governor and Senate removed legislative intent stating that universities not provide health insurance or other fringe benefits for any adult co-resident of a university employee who is not married to that employee or a dependent of such an adult co-resident. House retained. (Sec. 274a)

12. Yellow Ribbon GI Education Enhancement Program. Senate included legislative intent that universities consider veterans residents of this State for the purpose of determining tuition rates and fees, and also waive enrollment fees for veterans. (Sec. 275)

13. Self-liquidating Projects/JCOS Compliance. Prohibits use of funds for the construction or maintenance of a self-liquidating project. Provides penalty for noncompliance with JCOS use and finance requirements. Governor and House removed. Senate modified based on recent capital outlay reforms. (Sec. 275a)

14. Martin Luther King, Jr.-Cesar Chavez-Rosa Parks Grant Funds. Governor would allow unexpended funds to be used by the Workforce Development Agency for administration of programs. House did not include, Senate would lapse remaining funds to the State General Fund. (Sec. 282)

15. New Degree Programs. Provides that public universities may establish the degree programs listed in this section. House maintained; Governor and Senate removed. (Sec. 290)

16. Federal Educational Rights & Privacy Act (FERPA). Requires universities to provide information from records pursuant to written authorization from the student. Senate maintained; Governor and House removed. (Sec. 293)

17. Building Authority Rent. Lists amounts paid by the State for previously constructed capital outlay projects. House merges this language with section 236. (Sec. 293a)

Date Completed: 4-26-13 Fiscal Analyst: Bill Bowerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.