FY 2014-15 HIGHER EDUCATION BUDGET S.B. 768: GOVERNOR'S RECOMMENDATION
Senate Bill 768 (as introduced) Vehicle for Governor’s Recommendation line items is Senate Bill 838
Committee: Appropriations
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$1,430,573,500 |
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1. University Operations Increase. The Governor's recommendation includes a $76.9 million (6.1%) increase for university operations. The funding is distributed through the same performance metrics as FY 2013-14 with certain modifications. The changes include distributing half the increase proportionally to universities based on FY 2010-11 appropriations, and adding Pell grants to the metrics that are based on Carnegie classifications. See Table 1 for distributions by university. |
76,892,000 |
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2. MSU AgBioResearch. AgBioResearch performs agricultural research to promote efficient production, marketing, distribution, and use of farm products. AgBioResearch receives funds from the Federal government, as well as State appropriations and local and private revenue. The Governor increased funding by 6.1%, from $30,243,900 to $32,088,800. |
1,844,900 |
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3. MSU Extension. The MSU Extension Services identifies and solves farm, home, and community problems through the practical application of Federal and State research findings. MSU Extension Services receives funds from the Federal government, as well as State appropriations and local and private revenue. MSU Extension Services operates Michigan's Expanded Food and Nutrition Education Program (EFNEP), serves as a resource for youth 4-H programs, and provides information on family financial planning. The Governor increased funding by 6.1%, from $26,044,800 to $27,633,500. |
1,588,700 |
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4. Tuition Incentive Program (TIP). The Governor increased this program by $1.5 million GF/GP (3.2%), from $47.0 million to $48.5 million. The program provides an incentive to students to complete high school and go on to college by pledging to pay tuition and fees for associate degree or certificate programs, as well as up to a maximum amount of $2,000 for junior and senior years combined at a four-year institution. Students in grades 6 through 12 who are Medicaid-eligible for 24 months within a 36-consecutive month period can qualify for TIP. |
1,500,000 |
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5. Higher Education Database Modernization and Conversion. This funding provides support for the maintenance of the Higher Education Institutional Data Inventory (HEIDI). HEIDI is the State's database for enrollment, expenditure, and degree information for Michigan's 15 public universities. The recommended additional funding is necessary to cover current information technology support staff needs. |
95,000 |
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$81,920,600 |
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FY 2014-15 Governor's Recommendation........................................................................... |
$1,512,494,100 |
FY 2014-15 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS
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Changes from FY 2013-14 Year-to-Date: |
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1. Posting of Expenditures. Posting of financial and other information on university websites. The Governor eliminated the provision stating that the State Budget Director shall determine whether a university has complied with this section and also eliminated the Budget Director's authority to withhold a public university's monthly installments for noncompliance. (Sec. 245) |
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2. State Tuition Grant Program. Public Act 313 of 1966 established the Tuition Grant Program for undergraduate and graduate students at Michigan two-year and four-year private institutions. Students are eligible based on financial need. The annual grant maximum stated in the boilerplate is $1,512. The Governor changes the application deadline from July 1 to March 1, eliminates carry-forward authorization for unexpended funds, and requires independent colleges and universities to submit annual P-20 longitudinal data system sets and annual reports on the number of tuition grant students that successfully complete a program or graduate, the number of tuition grant students taking remedial classes, and Pell grant students that successfully complete a program or graduate. (Sec. 252) |
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3. Tuition Incentive Program. Sets criteria and financial thresholds for the Tuition Incentive Program (TIP). The Governor specifies application for certification must be before August 31, and requires compliance with satisfactory academic progress policy. (Sec. 256) |
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4. Tuition Restraint. Governor sets maximum tuition and fee increase for FY 2014-15 at 3.2% and eliminates cost of mandated heal insurance from calculation. (Sec. 265) |
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5. Performance Funding Criteria. Governor revises formula by distributing 50% of the funding increase proportional to each university's share of State funding in FY 2010-11, adds the number of students receiving Pell grants to Carnegie classification metrics, and eliminates intent language that would change the score for improving universities from 2 to 1. (Sec. 265a) |
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6. Transfer Credits. Requires universities to report on the number of transfer credits, with grade of C or better, rejected for incoming students. Governor limits report to credits earned by resident students at postsecondary institutions in Michigan. (Sec. 272a). |
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7. King-Chavez-Parks-Hood Unexpended Grant Funds. The Governor modified this section to provide that funds remaining after reallocation of unexpended funds up to $100,000 may be used by the Workforce Development Agency for administration of the programs. (Sec. 282) |
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8. Deleted Provisions. The Governor removed the following sections: Purchase of foreign automobiles prohibition (Sec. 239a); provision stating the acceptance and use of Federal or private funds does not place an obligation upon the Legislature to continue the purposes for which the funds are made available (portion of Sec. 242); intent regarding protection/preservation of U of M Douglas Lake Biological Station (Sec. 261); language stating intent that universities develop policies to minimize the cost of textbooks and course materials (Sec 262a); legislative intent that funds be allocated from the General Fund for unfunded North American Indian tuition waiver costs incurred by public universities (Sec. 268 (1); counseling degree programs/student's religious beliefs (Sec. 273); human embryonic stem cell research report (Sec. 274); legislative intent regarding adult co-resident health benefits (Sec. 274a); Yellow Ribbon GI Education Enhancement Program notice/reporting requirements (portion of Sec. 275); prohibits use of funds for the construction or maintenance of a self-liquidating project, requires compliance with Section 238 of 1984 PA 431 and JCOS use and finance requirements, and includes penalty provisions (Sec. 275a); and Federal Educational Rights & Privacy Act compliance (Sec. 293). |
Date Completed: 2-11-14 Fiscal Analyst: Bill Bowerman
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. |
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