SB-0193, As Passed Senate, April 25, 2013

SUBSTITUTE FOR

SENATE BILL NO. 193

     A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 236, 236a, 236b, 241, 244, 245, 246, 252, 256,

258, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 275, 275a, 276,

277, 278, 279, 280, 281, 282, 289, 293a, and 296 (MCL 388.1836,

388.1836a, 388.1836b, 388.1841, 388.1844, 388.1845, 388.1846,

388.1852, 388.1856, 388.1858, 388.1863a, 388.1864, 388.1865,

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874,

388.1875, 388.1875a, 388.1876, 388.1877, 388.1878, 388.1879,

388.1880, 388.1881, 388.1882, 388.1889, 388.1893a, and 388.1896),

sections 236, 236a, 241, 244, 245, 252, 256, 258, 263a, 264, 265,

267, 268, 269, 270, 274, 275, 275a, 276, 277, 278, 279, 280, 281,

282, and 289 as amended and sections 236b, 246, 265a, and 293a as

added by 2012 PA 201 and section 296 as added by 2011 PA 62, and by

adding section 262a; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in subsections (2) to (7) (6) are

appropriated for higher education for the fiscal year ending

September 30, 2013, 2014, from the funds indicated in this section.

The following is a summary of the appropriations in subsections (2)

to (7):(6):

     (a) The gross appropriation is $1,399,220,400.00.

$1,430,573,500.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

$1,399,220,400.00.$1,430,573,500.00.

     (b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

     (i) Total federal revenues, $97,026,400.00.

     (ii) Total local revenues, $0.00.

     (iii) Total private revenues, $0.00.

     (iv) Total other state restricted revenues, $200,565,700.00.

     (v) State general fund/general purpose money,

$1,101,628,300.00.$1,132,981,400.00.

     (2) Amounts appropriated for public universities are as

follows:

     (a) The appropriation for Central Michigan University is

$69,575,300.00, $68,108,900.00 $73,195,200.00, $71,352,300.00 for

operations and $1,466,400.00 $1,842,900.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $11,284,600.00.

     (ii) State general fund/general purpose money,

$58,290,700.00.$61,910,600.00.

     (b) The appropriation for Eastern Michigan University is

$66,297,500.00, $64,619,100.00 $67,124,100.00, $66,466,700.00 for

operations and $1,678,400.00 $657,400.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $10,706,400.00.

     (ii) State general fund/general purpose money,

$55,591,100.00.$56,417,700.00.

     (c) The appropriation for Ferris State University is

$42,981,400.00, $41,324,300.00 $46,087,100.00, $44,250,700.00 for

operations and $1,657,100.00 $1,836,400.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $6,846,800.00.

     (ii) State general fund/general purpose money,

$36,134,600.00.$39,240,300.00.

     (d) The appropriation for Grand Valley State University is

$55,097,500.00, $52,677,400.00 $57,428,000.00, $55,436,000.00 for

operations and $2,420,100.00 $1,992,000.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $8,727,800.00.

     (ii) State general fund/general purpose money,

$46,369,700.00.$48,700,200.00.

     (e) The appropriation for Lake Superior State University is

$11,030,700.00, $10,789,500.00 $12,736,100.00, $12,046,100.00 for

operations and $241,200.00 $690,000.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $1,787,600.00.

     (ii) State general fund/general purpose money,

$9,243,100.00.$10,948,500.00.

     (f) The appropriation for Michigan State University is

$298,733,800.00, $241,120,800.00 $303,164,000.00, $245,037,000.00

for operations, $3,408,400.00 $2,838,300.00 for performance

funding, and $54,204,600.00 $55,288,700.00 for MSU AgBioResearch

and MSU extension activities, appropriated from the following:

     (i) State school aid fund, $39,949,900.00.

     (ii) State general fund/general purpose money,

$258,783,900.00.$263,214,100.00.

     (g) The appropriation for Michigan Technological University is

$42,409,900.00, $40,733,600.00 $43,764,200.00, $42,579,100.00 for

operations and $1,676,300.00 $1,185,100.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $6,748,900.00.

     (ii) State general fund/general purpose money,

$35,661,000.00.$37,015,300.00.

     (h) The appropriation for Northern Michigan University is

$40,348,800.00, $38,367,400.00 $42,452,600.00, $40,856,600.00 for

operations and $1,981,400.00 $1,596,000.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $6,356,900.00.

     (ii) State general fund/general purpose money,

$33,991,900.00.$36,095,700.00.

     (i) The appropriation for Oakland University is

$44,033,300.00, $43,145,000.00 $45,578,800.00, $44,964,100.00 for

operations and $888,300.00 $614,700.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $7,148,400.00.

     (ii) State general fund/general purpose money,

$36,884,900.00.$38,430,400.00.

     (j) The appropriation for Saginaw Valley State University is

$25,487,500.00, $23,561,500.00 $26,105,400.00, $25,656,700.00 for

operations and $1,926,000.00 $448,700.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $3,903,800.00.

     (ii) State general fund/general purpose money,

$21,583,700.00.$22,201,600.00.

     (k) The appropriation for University of Michigan - Ann Arbor

is $273,056,700.00, $268,803,300.00 $277,935,100.00,

$274,156,700.00 for operations and $4,253,400.00 $3,778,400.00 for

performance funding, appropriated from the following:

     (i) State school aid fund, $44,536,300.00.

     (ii) State general fund/general purpose money,

$228,520,400.00.$233,398,800.00.

     (l) The appropriation for University of Michigan – Dearborn is

$21,898,800.00, $21,016,300.00 $22,684,200.00, $22,237,300.00 for

operations and $882,500.00 $446,900.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $3,482,100.00.

     (ii) State general fund/general purpose money,

$18,416,700.00.$19,202,100.00.

     (m) The appropriation for University of Michigan – Flint is

$19,103,500.00, $17,762,400.00 $20,278,900.00, $19,526,600.00 for

operations and $1,341,100.00 $752,300.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $2,942,900.00.

     (ii) State general fund/general purpose money,

$16,160,600.00.$17,336,000.00.

     (n) The appropriation for Wayne State University is

$183,229,100.00, $182,036,900.00 $183,908,500.00, $183,398,300.00

for operations and $1,192,200.00 $510,200.00 for performance

funding, appropriated from the following:

     (i) State school aid fund, $30,160,600.00.

     (ii) State general fund/general purpose money,

$153,068,500.00.$153,747,900.00.

     (o) The appropriation for Western Michigan University is

$95,318,300.00, $93,168,300.00 $97,167,200.00, $95,487,500.00 for

operations and $2,150,000.00 $1,679,700.00 for performance funding,

appropriated from the following:

     (i) State school aid fund, $15,436,500.00.

     (ii) State general fund/general purpose money,

$79,881,800.00.$81,730,700.00.

     (3) In addition to the amounts described in subsection (2),

$9,054,200.00 in tuition restraint funding is appropriated for

university operations from general fund/general purpose money. The

amount allocated to each public university is determined in the

manner provided in section 265.

(3) (4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is $446,200.00,

$2,446,200.00, $446,200.00 appropriated from the state school aid

fund and $2,000,000.00 from state general fund/general purpose

money.

(4) (5) The amount appropriated for state and regional

programs is $200,000.00, $2,200,000.00, appropriated from general

fund/general purpose money and allocated as follows:

     (a) College access program, $2,000,000.00.

(b) (a) Higher education database modernization and

conversion, $105,000.00.

(c) (b) Midwestern higher education compact, $95,000.00.

(5) (6) The amount appropriated for the Martin Luther King,

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

appropriated from general fund/general purpose money and allocated

as follows:

     (a) Select student support services, $1,956,100.00.

     (b) Michigan college/university partnership program,

$586,800.00.

     (c) Morris Hood, Jr. educator development program,

$148,600.00.

(6) (7) Subject to subsection (8), (7), the amount

appropriated for grants and financial aid is $98,226,400.00,

$103,626,400.00, allocated as follows:

     (a) State competitive scholarships, $18,361,700.00.

     (b) Tuition grants, $31,664,700.00.

     (c) Tuition incentive program, $43,800,000.00.$47,000,000.00.

     (d) Children of veterans and officer's survivor tuition grant

programs, $1,200,000.00.$1,400,000.00.

     (e) Project GEAR-UP, $3,200,000.00.

     (f) North American Indian tuition waiver, $2,000,000.00.

(7) (8) The money appropriated in subsection (7) (6) for

grants and financial aid is appropriated from the following:

     (a) Federal revenues under the United States department of

education, office of elementary and secondary education, GEAR-UP

program, $3,200,000.00.

     (b) Federal revenues under the social security act, temporary

assistance for needy families, $93,826,400.00.

     (c) Contributions to children of veterans tuition grant

program, $100,000.00.

     (d) State general fund/general purpose money,

$1,100,000.00.$6,500,000.00.

     Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2014

2015 for the items listed in section 236. The fiscal year 2013-2014

2014-2015 appropriations are anticipated to be the same as those

for fiscal year 2012-2013, 2013-2014, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January 2013 2014

consensus revenue estimating conference.

     Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year 2012-2013 2013-2014 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

     Sec. 241. (1) Subject to section 265a, the funds appropriated

in section 236 to public universities shall be paid out of the

state treasury and distributed by the state treasurer to the

respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, 2012. 2013. Except for Wayne State

University, each institution shall accrue its July and August 2013

2014 payments to its institutional fiscal year ending June 30,

2013.2014.

     (2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, 2012, 2013, these data shall be submitted to

the state budget director by October 15, 2012. 2013. Public

universities with a fiscal year ending September 30, 2012 2013

shall submit preliminary HEIDI data by November 15, 2012 2013 and

final data by December 15, 2012. 2013. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer shall may withhold the monthly installments under

subsection (1) to the public university until those data are

submitted.

     Sec. 244. A public university receiving funds in section 236

shall cooperate with all measures taken by the state to develop,

operate, and maintain the statewide P-20 education longitudinal

data system described in section 94a. If the state budget director

finds that a university has not complied with this section, the

state budget director is authorized to withhold the monthly

installments provided to that university under section 236 until he

or she finds the university has complied with this section.

     Sec. 245. (1) Within 30 days after the board of a public

university adopts its annual operating budget for the following

school fiscal year, or after the board adopts a subsequent revision

to that budget, the public university shall make all of the

following available through a link on its website homepage: in a

form and manner prescribed by the department of technology,

management, and budget:

     (a) The annual operating budget and subsequent budget

revisions.

     (b) A summary of current expenditures for the most recent

fiscal year for which they are available, expressed as pie charts

in the following 2 categories:

     (i) A chart of personnel expenditures, broken into the

following subcategories:

     (A) Earnings and wages.

     (B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

     (C) Retirement benefit costs.

     (D) All other personnel costs.

     (ii) A chart of all current expenditures the public university

reported as part of its higher education institutional data

inventory data under section 241(2), broken into the same

subcategories in which it reported those data.

     (c) Links to all of the following for the public university:

     (i) The current collective bargaining agreement for each

bargaining unit.

     (ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee of the public

university.

     (iii) Audits and financial reports for the most recent fiscal

year for which they are available.

     (iv) Campus security policies and crime statistics pursuant to

the student right-to-know and campus security act, Public Law 101-

542, 104 Stat. 2381. Information shall include all material

prepared pursuant to 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. 2381.

     (d) A list of all positions funded partially or wholly through

institutional general fund revenue that includes the position

title, name, and annual salary or wage amount for each position.The

number of active employees sorted by job classification and major

administrative unit.

     (e) General fund revenue and expenditure projections for

fiscal year 2013-2014 and fiscal year 2014-2015.

     (f) A listing of all debt service obligations, detailed by

project, anticipated fiscal year 2013-2014 payment for each

project, and total outstanding debt.

     (g) The institution's policy regarding the transferability of

core college courses between community colleges and the university.

     (h) A listing of all community colleges that have entered into

reverse transfer agreements with the university.

     (2) A public university shall provide a dashboard or report

card demonstrating the university's performance in several "best

practice" measures. The dashboard or report card shall include at

least all of the following for the 3 most recent school years for

which the data are available:

     (a) Enrollment.

     (b) Student retention rate.

     (c) Six-year graduation rates.

     (d) Number of Pell grant recipients and graduating Pell grant

recipients.

     (e) Geographic origination of students, categorized as in-

state, out-of-state, and international.

     (f) Faculty to student ratios and total university employee to

student ratios.

     (g) Teaching load by faculty classification.

     (h) Graduation outcome rates, including employment and

continuing education.

     (3) For statewide consistency and public visibility, public

universities must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each public university's homepage.

The size of the icon may be reduced to 150 x 150 pixels. The font

size and style for this reporting must be consistent with other

documents on each university's website. To be in compliance with

this section, all data elements defined in this section must be

available on the university's homepage, in a form and manner

prescribed by the department of technology, management, and budget,

by December 31, 2012.

     (4) The state budget director shall determine whether a public

university has complied with this section. The state budget

director may withhold a public university's monthly installments

described in section 241 until the public university complies with

this section.

     Sec. 246. (1) The funds appropriated in section 236(4) for

Michigan public school employees' retirement system reimbursement

shall be allocated to each participating public university under

this section based on each participating public university's total

retiree health care premiums paid for Michigan public school

employees' retirement system retirants in proportion to the total

retiree health care premiums paid for Michigan public school

employees' retirement system retirants for all participating public

universities for the immediately preceding state fiscal year.

Payments shall be made in a form and manner determined by the

office of retirement services. A public university that receives

money under this section shall use that money solely for the

purpose of offsetting a portion of the retirement contributions

owed by the university. for the fiscal year ending September 30,

2013.

     (2) As used in this section, "participating public university"

means a public university that is a reporting unit of the Michigan

public school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1408, and that pays retiree health care premiums to the Michigan

public school employees' retirement system for the state fiscal

year.

     Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

     (2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

apply before July 1, 2012 2013 and who are qualified.

     (3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsection (7), the department of treasury shall

determine an actual maximum tuition grant award per student, which

shall be no less than $1,512.00, that ensures that the aggregate

payments for the tuition grant program do not exceed the

appropriation contained in section 236 for the state tuition grant

program. If the department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$1,512.00, the department shall immediately report to the house and

senate appropriations subcommittees on higher education, the house

and senate fiscal agencies, and the state budget director regarding

the estimated amount of additional funds necessary to establish a

$1,512.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $1,512.00, the department shall immediately

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

state budget director regarding the maximum award amount

established and the projected amount of any projected year-end

appropriation balance based on that maximum award amount. By

December 15 , 2012, and again by February 18 , 2013 of each fiscal

year, the department shall analyze the status of award commitments,

shall make any necessary adjustments, and shall confirm that those

award commitments will not exceed the appropriation contained in

section 236 for the tuition grant program. The determination and

actions shall be reported to the state budget director and the

house and senate fiscal agencies no later than the final day of

February of each year. If award adjustments are necessary, the

students shall be notified of the adjustment by March 4 of each

year.

     (4) Any unexpended and unencumbered funds remaining on

September 30, 2012 2014 from the amounts appropriated in section

236 for the tuition grant program shall not lapse on September 30,

2012, 2014, but shall continue to be available for expenditure for

tuition grants provided in the 2012-2013 2014-2015 fiscal year

under a work project account. The use of these unexpended fiscal

year 2011-2012 2013-2014 funds shall terminate at the end of the

2012-2013 2014-2015 fiscal year.

     (5) The department of treasury shall continue a proportional

tuition grant maximum award level for recipients enrolled less than

full-time in a given semester or term.

     (6) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year. 2012-2013.

     (7) The department of treasury shall not award more than

$3,000,000.00 in tuition grants to eligible students enrolled in

the same independent nonprofit college or university in this state.

Any decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

     Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

     (2) As used in this section:

     (a) "Phase I" means the first part of the tuition incentive

assistance program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate.

     (b) "Phase II" means the second part of the tuition incentive

assistance program which provides assistance in the third and

fourth year of 4-year degree programs.

     (c) "Department" means the department of treasury.

     (3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive benefits:

     (a) To be eligible for phase I, an individual shall meet all

of the following criteria:

     (i) Apply for certification to the department before graduating

from high school or completing the general education development

(GED) certificate.

     (ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or completes his or her GED.

     (iii) Be a United States citizen and a resident of Michigan

according to institutional criteria.

     (iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or GED

certificate completion.

     (v) Request information on filing a FAFSA.

     (b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

     (i) Complete at least 56 transferable semester or 84

transferable term credits.

     (ii) Obtain an associate degree or certificate at a

participating institution.

     (c) To be eligible for phase I or phase II, an individual must

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from the state of Michigan for 24 months within the 36 months

before application. The department shall accept certification of

Medicaid eligibility only from the department of human services for

the purposes of verifying if a person is Medicaid eligible for 24

months within the 36 months before application. Certification of

eligibility may begin in the sixth grade. As used in this

subdivision, "incarcerated" does not include detention of a

juvenile in a state-operated or privately operated juvenile

detention facility.

     (4) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

     (5) For phase I, all of the following apply:

     (a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

     (b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

     (c) For persons enrolled at a Michigan public university, the

department shall pay lower division resident tuition and mandatory

fees for the current year. It is the intent of the legislature

that, beginning with the 2014-2015 fiscal year, for individuals

enrolled at a Michigan public university, the department shall pay

mandatory fees and a per-credit payment that does not exceed 300%

of the average community college in-district per-credit tuition

rate as reported on August 1 for the immediately preceding academic

year.

     (d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

     (6) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

     (a) Credits are earned in a 4-year program at a Michigan

degree-granting 4-year college or university.

     (b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

     (7) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

     (8) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

     (9) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

     (10) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

     Sec. 258. By February 15 of each year, the department of

treasury shall submit post to its publicly available website a

report to the state budget director, the house and senate

appropriations subcommittees on higher education, and the house and

senate fiscal agencies for the preceding fiscal year on all student

financial aid programs for which funds are appropriated in section

236. For each student financial aid program, the report shall

include, but is not limited to, the total number of awards paid in

the preceding fiscal year, the total dollar amount of those awards,

and the number of students receiving awards and the total amount of

those awards at each eligible postsecondary institution. To the

extent information is available, the report shall also include

information on household income and other demographic

characteristics of students receiving awards under each program and

historical information on the number of awards and total award

amounts for each program.

     Sec. 259. The funds appropriated in section 236 for the

college access program shall be used for efforts to support college

access. The department of treasury shall administer these funds.

Allowable uses include the following:

     (a) Michigan college access network operations, programming,

and services to local college access networks.

     (b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

     (c) Michigan college access portal, an online 1-stop portal to

help students and families plan and apply for college.

     (d) Public awareness and outreach campaigns to encourage low-

income and first-generation students to take necessary steps toward

college and to assist students and families in completing a timely

and accurate free application for federal student aid.

     (e) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school students in navigating the postsecondary planning and

enrollment process.

     Sec. 262a. (1) It is the intent of the legislature that each

public university shall develop policies for reviewing required

textbook and course materials with the goal of minimizing the cost

of textbooks and course materials used at the university while

maintaining quality of education and academic freedom. These

policies should require all of the following:

     (a) That faculty members submit lists of required textbooks

and course materials for university review.

     (b) That faculty members consider the least costly practices

in assigning textbooks and course materials, such as adopting the

least expensive edition of a textbook available when educational

content is comparable to a more costly edition.

     (c) That the university review any potential financial

conflict of interest that may occur if a faculty member requires

the purchase of any textbooks or course materials he or she has

written.

     (d) That the university review required textbooks and course

materials to ensure that least costly practices are being utilized,

such as adopting the least expensive edition of a textbook

available when educational content is comparable to a more costly

edition.

     (2) By February 1 of each year, each public university shall

submit a report to the house and senate appropriations

subcommittees on higher education and the house and senate fiscal

agencies on the policies developed under this section.

     Sec. 263a. (1) By January 1, 2013, the Michigan State

University college of agriculture and natural resources, MSU

extension, and MSU AgBioResearch, in partnership with the

department of agriculture and rural development and other

stakeholders, shall establish a strategic growth initiative for the

Michigan food and agriculture industry. This initiative shall

address the following goals as established at the 2011 governor's

summit for production agriculture:

     (a) Increasing the sector's total economic impact from today's

$71,000,000,000.00 to $100,000,000,000.00.

     (b) Doubling Michigan's agricultural exports from

$1,750,000,000.00 to $3,500,000,000.00.

     (c) Increasing jobs in the food and agriculture sector by 10%.

     (d) Improving access by Michigan consumers to healthy foods by

20%.

     (2) The initiative described in subsection (1) shall be

patterned after Project GREEEN, shall emphasize priorities as set

by the Michigan food and agricultural industry, and shall include a

commitment to continuous communication, input, and interaction

among stakeholders in government and industry and at Michigan State

University. Similar to Project GREEEN, the initiative shall also

include a commitment to communicating results and impacts to

stakeholders and the legislature based on a mutually established

set of metrics designed to assure MSU extension and AgBioResearch

programs are contributing to the goals described in subsection

(1)(a) to (d).

(1) (3) Not later than September 30 , 2013, of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

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

for the preceding school fiscal year. detailing, but not limited

to:

     (2) The report required under subsection (1) shall include all

of the following:

     (a) Total funds expended by MSU AgBioResearch and by MSU

extension service identified by state, local, private, federal, and

university fund sources.

     (b) The metric goals that were used to evaluate the impacts of

programs operated by MSU extension and MSU AgBioResearch. It is the

intent of the legislature that the following metric goals will be

used to evaluate the impacts of those programs:

     (i) Increasing the number of agriculture and food-related firms

collaborating with and using services of research and extension

faculty and staff by 3% per year.

     (ii) Increasing the number of individuals utilizing MSU

extension's educational services by 5% per year.

     (iii) Increasing external funds generated in support of research

and extension, beyond state appropriations, by 10% over the amounts

generated in the past 3 state fiscal years.

     (iv) Increasing the sector's total economic impact from today's

$71,000,000,000.00 to $100,000,000,000.00.

     (v) Doubling Michigan's agricultural exports from

$1,750,000,000.00 to $3,500,000,000.00.

     (vi) Increasing jobs in the food and agriculture sector by 10%.

     (vii) Improving access by Michigan consumers to healthy foods

by 20%.

     (c) A review of major programs within both MSU AgBioResearch

and MSU extension with specific reference to accomplishments,

impacts, and the metrics described in subdivision (b), including a

specific accounting of Project GREEEN expenditures and the impact

of those expenditures.

     Sec. 264. Included in the appropriation in section 236 for

fiscal year 2013-2014 for Michigan State University is $80,000.00

for the Michigan future farmers of America association. This

$80,000.00 allocation shall not supplant any existing support that

Michigan State University provides to the Michigan future farmers

of America association.

     Sec. 265. (1) Payments from the amount appropriated in section

236(3) 236(2) for public university tuition restraint incentives

performance funding shall only be made to a public university that

certifies to the state budget director by August 31, 2012 2013 that

its board did not adopt an increase in tuition and fee rates for

resident undergraduate students after September 1, 2011 2012 for

the 2011-2012 2012-2013 academic year and that its board will not

adopt an increase in tuition and fee rates for resident

undergraduate students for the 2012-2013 2013-2014 academic year

that is greater than of 4.0% or more. As used in this subsection:

and subsection (2):

     (a) Subject to subdivision (c), "fee" "Fee" means any board-

authorized fee that will be paid by more than 1/2 of all resident

undergraduate students at least once during their enrollment at a

public university. A university increasing a fee that applies to a

specific subset of students or courses shall provide sufficient

information to prove that the increase applied to that subset will

not cause the increase in the average amount of board-authorized

total tuition and fees paid by resident undergraduate students in

the 2012-2013 2013-2014 academic year to exceed the limit

established in this subsection.

     (b) "Tuition and fee rate" means the average of full-time

rates for all undergraduate classes, based on an average of the

rates authorized by the university board and actually charged to

students, deducting any uniformly-rebated or refunded amounts, for

the 2 semesters with the highest levels of full-time equated

resident undergraduate enrollment during the academic year.

     (c) For purposes of subdivision (a), for a public university

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

     (2) For purposes of section 236(3), each public university's

allocation for tuition restraint incentive shall be determined as

follows:

     (a) Calculate an adjustment for each university by subtracting

each university's reported percent change in tuition and fee rates

for academic year 2012-2013 from 4.1%. If the result of the

calculation in this subdivision is less than 0.1%, the university

is not qualified to receive an allocation under this section. All

calculations under this subdivision shall be rounded to the first

decimal place.

     (b) For each qualified university, divide the university's

adjustment as calculated under subdivision (a) by the sum of all

adjustments for qualifying universities under subdivision (a) and

then multiply the resulting calculation for each university by the

total amount available for tuition restraint incentive funding,

rounded to the nearest hundred dollars.

(2) (3) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

an appropriation under section 236(3) that receives a payment under

section 265a for performance funding has satisfied the tuition

restraint requirements of this section. The state budget director

shall have the sole authority to determine if a public university

has met the requirements of this section. Information reported by a

public university to the state budget director under this

subsection shall also be reported to the house and senate

appropriations subcommittees on higher education and the house and

senate fiscal agencies.

     (4) In conjunction with the uniform reporting requirements

established under subsection (3), each public university shall also

report the following information to the house and senate

appropriations subcommittees on higher education, the house and

senate fiscal agencies, and the state budget director by August 31,

2012:

     (a) Actual or estimated fiscal year 2011-2012 and budgeted

fiscal year 2012-2013 total general fund tuition and fee revenue.

     (b) Actual or estimated fiscal year 2011-2012 and budgeted

fiscal year 2012-2013 total general fund revenue.

     (c) Actual or estimated fiscal year 2011-2012 and budgeted

fiscal year 2012-2013 general fund expenditures for student

financial aid.

     (d) Actual or estimated fiscal year 2011-2012 and budgeted

fiscal year 2012-2013 total general fund expenditures.

     (e) Actual or estimated fiscal year 2011-2012 and budgeted

fiscal year 2012-2013 total fiscal year equated student enrollment.

     Sec. 265a. (1) Appropriations to public universities in

section 236 for performance funding shall be paid only to a public

university that certifies to the state budget director, the house

and senate appropriations subcommittees on higher education, and

the house and senate fiscal agencies by August 31, 2013 that it

complies with all of the following requirements:

     (a) The university certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, 2012, that,

by January 3, 2013, it will be participating participates in

reverse transfer agreements described in section 286 with at least

3 Michigan community colleges or have has made a good-faith effort

to enter into reverse transfer agreements.

     (b) The university certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, 2012, that,

by January 3, 2013, it does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

     (c) The university certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, 2012 that

the university participates in the Michigan transfer network

created as part of the Michigan association of collegiate

registrars and admissions officers transfer agreement.

     (d) The university complied with the tuition restraint

requirements under section 265.

     (2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for tuition restraint performance funding described

in section 265.subsection (4).

     (3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 17, 2012, 2013,

regarding any performance funding amounts not paid to a public

university because it did not comply with 1 or more requirements

under subsection (1) and any reappropriation of funds under

subsection (2).

     (4) A university that has not implemented the policies

required under subsection (1)(a) and (b) by August 31, 2012, but

certifies that it will implement those policies by January 3, 2013,

shall recertify to the state budget director, the house and senate

appropriations subcommittees on higher education, and the house and

senate fiscal agencies by January 3, 2013, that the policies have

been fully implemented. For a university that does not recertify

that the policies have been fully implemented, the performance

funding appropriated to that university in section 236 shall be

retroactively withheld and unappropriated and reappropriated under

subsection (2).

     (4) Performance funding amounts described in section 236 are

distributed based on the following formula:

     (a) Based on weighted undergraduate completions in critical

skills areas, 22.2%.

     (b) Based on research and development expenditures, for

universities classified in Carnegie classifications as

doctoral/research universities, research universities (high

research activity), or research universities (very high research

activity) only, 11.1%.

     (c) Based on 6-year graduation rate, scored against national

Carnegie classification peers, 22.2%.

     (d) Based on total degree completions, scored against national

Carnegie classification peers, 22.2%.

     (e) Based on institutional support as a percentage of core

expenditures, scored against national Carnegie classification

peers, 22.2%.

     (5) For purposes of determining the score of a university

under subsection (4)(c), (d), and (e), each university is assigned

1 of the following scores:

     (a) A university classified as in the top 20%, a score of 3.

     (b) A university classified as above national median, a score

of 2.

     (c) A university classified as improving, a score of 2. It is

the intent of the legislature that, beginning in the 2014-2015

state fiscal year, a university classified as improving is assigned

a score of 1.

     (d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

     (6) For purposes of this section, "Carnegie classification"

shall mean the basic classification of the university according to

the most recent version of the Carnegie classification of

institutions of higher education, published by the Carnegie

foundation for the advancement of teaching.

     Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year 2012-2013 2013-2014 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year 2012-2013

2013-2014 tuition and fee charges to HEIDI within 15 days of being

adopted.

     Sec. 268. (1) For the fiscal year ending September 30, 2013,

2014, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

     (2) Appropriations in section 236(6)(f) for North American

Indian tuition waivers shall be paid to universities under section

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

amounts included in university operations appropriations. If funds

are insufficient to support the entire cost of waivers, amounts

shall be prorated.

     (3) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies for the preceding fiscal

year a report on North American Indian tuition waivers that

includes, but is not limited to, all of the following information

for each postsecondary institution:

     (a) The total number of waiver applications.

     (b) The total number of waivers granted and the monetary value

of each waiver.

     (c) The number of students who withdraw from classes.

     (d) The number of students who successfully complete a degree

or certificate program.

     Sec. 269. For fiscal year 2012-2013, 2013-2014, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

     Sec. 270. For fiscal year 2012-2013, 2013-2014, from the

amount appropriated in section 236 to Lake Superior State

University for operations, $100,000.00 shall be paid to Bay Mills

Community College for the costs of waiving tuition for North

American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of community health by December 1, 2012 2013 that

includes all of the following:

     (a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant national institutes of

health guidelines pertaining to embryonic stem cell derivation.

     (b) A list of all human embryonic stem cell lines submitted by

the organization to the national institutes of health for inclusion

in the human embryonic stem cell registry before and during fiscal

year 2011-2012, 2012-2013, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

     (c) Number of human embryonic stem cell lines derived and not

submitted for inclusion in the human embryonic stem cell registry,

before and during fiscal year 2011-2012.2012-2013.

     Sec. 275. (1) It is the intent of the legislature that each

public university receiving that receives an appropriation in

section 236 do all of the following:

     (a) Meet the provisions of section 5003 of the post-911

veterans educational assistance act of 2008, 38 USC 3301 to 3324,

including voluntary participation in the yellow ribbon GI education

enhancement program established in that act in 38 USC 3317. By

October 1 of each year, each public university shall report to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the presidents council,

state universities of Michigan on whether or not it has chosen to

participate in the yellow ribbon GI education enhancement program.

If at any time during the fiscal year a university participating in

the yellow ribbon program chooses to leave the yellow ribbon

program, it shall notify the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the presidents council, state universities of

Michigan.

     (b) Establish an on-campus veterans' liaison to provide

information and assistance to all student veterans.

     (c) Provide flexible enrollment application deadlines for all

veterans.

     (d) Include in its admission application process a specific

question as to whether an applicant for admission is a veteran, an

active member of the military, a member of the national guard or

military reserves, or the spouse or dependent of a veteran, active

member of the military, or member of the national guard or military

reserves, in order to more quickly identify potential educational

assistance available to that applicant.

     (e) Consider all veterans residents of this state for

determining their tuition rates and fees.

     (f) Waive enrollment fees for all veterans.

     (2) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to 3324.

     Sec. 275a. Funds appropriated in section 236 shall not be used

by a public university to pay for the construction or maintenance

of a self-liquidating project. A public university shall comply

with section 238 of the management and budget act, 1984 PA 431, MCL

18.1238, and 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. The appropriation in section 236 for a public university

that fails to comply with JCOS reporting requirements shall be

reduced by 1% for each violation.

     Sec. 276. (1) Included in the appropriation for fiscal year

2012-2013 for each public university in section 236 is funding for

the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks future

faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

     (2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

     Sec. 277. (1) Included in the appropriation for fiscal year

2012-2013 for each public university in section 236 is funding for

the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college day

program that is intended to introduce academically or economically

disadvantaged schoolchildren to the potential of a college

education. Preference may not be given to participants on the basis

of race, color, ethnicity, gender, or national origin. Public

universities should encourage participation from those who would

otherwise not adequately be represented in the student population.

     (2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

     (3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

     Sec. 278. (1) Included in section 236 for fiscal year 2012-

2013 is funding for the Martin Luther King, Jr. - Cesar Chavez -

Rosa Parks select student support services program for developing

academically or economically disadvantaged student retention

programs for 4-year public and independent educational institutions

in this state. Preference may not be given to participants on the

basis of race, color, ethnicity, gender, or national origin.

Institutions should encourage participation from those who would

otherwise not adequately be represented in the student population.

     (2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

     (3) The program described in this section shall be

administered by the workforce development agency.

     Sec. 279. (1) Included in section 236 for fiscal year 2012-

2013 is funding for the Martin Luther King, Jr. - Cesar Chavez -

Rosa Parks college/university partnership program between 4-year

public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

     (2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

     (3) The program described in this section shall be

administered by the workforce development agency.

     Sec. 280. (1) Included in the appropriation for fiscal year

2012-2013 for each public university in section 236 is funding for

the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks visiting

professors program which is intended to increase the number of

instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

     (2) The program described in this section shall be

administered by the workforce development agency.

     Sec. 281. (1) Included in the appropriation for fiscal year

2012-2013 in section 236 is funding under the Martin Luther King,

Jr. - Cesar Chavez - Rosa Parks initiative for the Morris Hood, Jr.

educator development program which is intended to increase the

number of academically or economically disadvantaged students who

enroll in and complete K-12 teacher education programs at the

baccalaureate level. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Institutions should encourage participation from those who would

otherwise not adequately be represented in the teacher education

student population.

     (2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

     (3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

     Sec. 282. Each institution receiving funds under section 278,

279, or 281 shall notify the workforce development agency by April

15, 2013 2014 as to whether it will expend by the end of its fiscal

year the funds received under section 278, 279, or 281.

Notwithstanding the award limitations in sections 278 and 279, the

amount of funding reported as not being expended will be

reallocated to the institutions that intend to expend all funding

received under section 278, 279, or 281. Funds remaining after

reallocation shall lapse to the state general fund.

     Sec. 289. (1) The auditor general shall review periodically

audit higher education institutional data inventory (HEIDI)

enrollment data submitted by all public universities under section

241 and may perform audits of selected public universities if

determined necessary. The review and audits shall be based upon the

definitions, requirements, and uniform reporting categories

established by the state budget director in consultation with the

HEIDI advisory committee. The auditor general shall submit a report

of findings to the house and senate appropriations committees and

the state budget director no later than July 1 of each year an

audit takes place.

     (2) Student credit hours reports shall not include the

following:

     (a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

     (b) Student credit hours generated through distance learning

instruction for students not eligible for the public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

     (c) Student credit hours generated through credit by

examination.

     (d) Student credit hours generated through inmate prison

programs regardless of teaching location.

     (e) Student credit hours generated in new degree programs

after January 1, 1975, that have not been specifically authorized

for funding by the legislature, except spin-off programs converted

from existing core programs that do all of the following:

     (i) Represent new options, fields, or concentrations within

existing programs.

     (ii) Are consistent with the current institutional role and

mission.

     (iii) Are accommodated within the continuing funding base of the

public university.

     (iv) Do not require a new degree level beyond that which the

public university is currently authorized to grant within that

discipline or field.

     (v) Do not require funding from the state other than that

provided by the student credit hours generated within the program,

either before program initiation or within the first 3 years of

program operation.

     (3) The auditor general shall periodically audit higher

education institutional data inventory (HEIDI) data as submitted by

the public universities under section 241 for compliance with the

definitions established by the state budget director in

consultation with the HEIDI advisory committee for the HEIDI

database.

(3) (4) "Distance learning instruction" as used in subsection

(2) means instruction that occurs solely in other than a

traditional classroom setting where the student and instructor are

in the same physical location and for which a student receives

course credits and is charged tuition and fees. Examples of

distance learning instruction are instruction delivered solely

through the internet, cable television, teleconference, or mail.

     Sec. 293a. It is the intent of the legislature that fiscal

year 2012-2013 2013-2014 appropriations to the department of

technology, management, and budget for state building authority

rent be provided for the state share of costs for previously

constructed capital projects for public universities. These

appropriations for state building authority rent represent

additional state general fund support provided to public

universities, and the following is an estimate of the amount of

that support to each university:

     (a) Central Michigan University, $9,100,100.00.$9,155,600.00.

     (b) Eastern Michigan University, $5,203,100.00.$5,234,800.00.

     (c) Ferris State University, $6,322,100.00.$6,360,600.00.

     (d) Grand Valley State University,

$4,251,000.00.$4,277,000.00.

     (e) Lake Superior State University, $910,000.00.$915,600.00.

     (f) Michigan State University, $16,096,000.00.$16,194,400.00.

     (g) Michigan Technological University,

$7,645,600.00.$7,692,200.00.

     (h) Northern Michigan University, $7,450,000.00.$8,062,600.00.

     (i) Oakland University, $10,726,000.00.$10,791,500.00.

     (j) Saginaw Valley State University,

$9,774,000.00.$9,833,700.00.

     (k) University of Michigan – Ann Arbor,

$9,156,100.00.$9,212,000.00.

     (l) University of Michigan – Dearborn,

$6,294,000.00.$6,332,400.00.

     (m) University of Michigan – Flint,

$2,854,100.00.$2,871,400.00.

     (n) Wayne State University, $13,000,100.00.$13,079,500.00.

     (o) Western Michigan University,

$15,264,000.00.$15,357,300.00.

     Sec. 296. (1) If the maximum amount appropriated under this

act from the state school aid fund for a fiscal year exceeds the

amount necessary to fully fund allocations under this act from the

state school aid fund, that excess amount shall not be expended in

that state fiscal year and shall not lapse to the general fund, but

instead shall be deposited into the school aid stabilization fund

created in section 11a.

     (2) If the total maximum amount appropriated under all

articles of this act from the state school aid fund and the school

aid stabilization fund exceeds the amount available for expenditure

from the state school aid fund for that fiscal year, payments under

sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12),

51c, 53a, 56, and 152a shall be made in full. In addition, for

districts beginning operations after 1994-95 that qualify for

payments under section 22b, payments under section 22b shall be

made so that the qualifying districts receive the lesser of an

amount equal to the 1994-95 foundation allowance of the district in

which the district beginning operations after 1994-95 is located or

$5,500.00. The amount of the payment to be made under section 22b

for these qualifying districts shall be as calculated under section

22a, with the balance of the payment under section 22b being

subject to the proration otherwise provided under this subsection

and subsection (3). If proration is necessary, state payments under

each of the other sections of article I from all state funding

sources, and state appropriations to community colleges and public

universities under articles II and III from the state school aid

fund, shall be prorated in the manner prescribed in subsection (3)

as necessary to reflect the amount available for expenditure from

the state school aid fund for the affected fiscal year. However, if

the department of treasury determines that proration will be is

required under this subsection, or if the department of treasury

determines that further proration is required under this subsection

after an initial proration has already been made for a fiscal year,

the department of treasury shall notify the state budget director,

and the state budget director shall notify the legislature at least

30 calendar days or 6 legislative session days, whichever is more,

before the department reduces any payments under this act because

of the proration. During the 30-calendar-day or 6-legislative-

session-day period after that notification by the state budget

director, the department shall not reduce any payments under this

act because of proration under this subsection. The legislature may

prevent proration from occurring by, within the 30-calendar-day or

6-legislative-session-day period after that notification by the

state budget director, enacting legislation appropriating

additional funds from the general fund, countercyclical budget and

economic stabilization fund, state school aid fund balance, or

another source to fund the amount of the projected shortfall.

     (3) If proration is necessary under subsection (2), the

department shall calculate the proration in district and

intermediate district payments under article I that is required

under subsection (2), and the department of treasury shall

calculate the proration in community college and public university

payments under articles II and III that is required under

subsection (2), as follows:

     (a) The department and the department of treasury shall

calculate the percentage of total state school aid fund money that

is appropriated and allocated under this act for the affected

fiscal year for each of the following:

     (i) Districts.

     (ii) Intermediate districts.

     (iii) Entities receiving funding from the state school aid fund

under article I other than districts or intermediate districts.

     (iv) Community colleges and public universities that receive

funding from the state school aid fund.

     (b) The department shall recover a percentage of the proration

amount required under subsection (2) that is equal to the

percentage calculated under subdivision (a)(i) for districts by

reducing payments to districts. This reduction shall be made by

calculating an equal dollar amount per pupil as necessary to

recover this percentage of the proration amount and reducing each

district's total state school aid from state sources, other than

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

51a(2), 51a(12), 51c, 53a, and 152a, by that amount.

     (c) The department shall recover a percentage of the proration

amount required under subsection (2) that is equal to the

percentage calculated under subdivision (a)(ii) for intermediate

districts by reducing payments to intermediate districts. This

reduction shall be made by reducing the payments to each

intermediate district, other than payments under sections 11f, 11g,

26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal

percentage basis.

     (d) The department shall recover a percentage of the proration

amount required under subsection (2) that is equal to the

percentage calculated under subdivision (a)(iii) for entities

receiving funding from the state school aid fund under article I

other than districts and intermediate districts by reducing

payments to these entities. This reduction shall be made by

reducing the payments to each of these entities, other than

payments under sections 11j, 26a, and 26b, on an equal percentage

basis.

     (e) The department of treasury shall recover a percentage of

the proration amount required under subsection (2) that is equal to

the percentage calculated under subdivision (a)(iv) for community

colleges and public universities that receive funding from the

state school aid fund by reducing that portion of the payments

under articles II and III to these community colleges and public

universities that is from the state school aid fund on an equal

percentage basis.

     Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending from

state sources for higher education for fiscal year 2013-2014 under

article III is estimated at $1,333,547,100.00 and the amount of

that state spending from state sources to be paid to local units of

government for fiscal year 2013-2014 is estimated at $0.

     Enacting section 2. Sections 273, 273a, 274a, and 290 of the

state school aid act of 1979, 1979 PA 94, MCL 388.1873, 388.1873a,

388.1874a, and 388.1890, are repealed effective October 1, 2013.

     Enacting section 3. This amendatory act takes effect October

1, 2013.