FY 2018-19 HIGHER EDUCATION BUDGET S.B. 857 (S-1, Draft 4): SENATE SUBCOMMITTEE REC.
Senate Bill 857 (S-1, Draft 4 as reported) Throughout this document Senate means Subcommittee.
Committee: Appropriations
*As of February 7, 2018.
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$1,629,224,400 |
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1. University Operations. Governor included an overall $28.6 million School Aid Fund (SAF) (2.0%) increase for university operations. The formula continues performance metrics used in recent years, with a minor modification regarding increased weighting for associate degrees and certificates for the critical skills metric. Half of the funding increase is allocated proportional to FY 2010-11 (across-the-board). The balance of the funding is allocated using metrics that include; weighted undergraduate completions in critical skills, research and development expenditures, six-year graduation rates, total degree completions, administrative costs, and percentage of students receiving Pell Grants. Prerequisites for receiving performance funding are continued. Tuition restraint is set at the greater of 3.8% or $490 (FY 2017-18 tuition restraint was the greater of 3.8% or $475). Senate did not concur with Governor's revised weighting for the critical skills metric and maintained the existing performance funding formula for the 2.0% SAF increase. Senate included an additional $14.3 million GF/GP, resulting in an overall 3.0% increase for university operations. The additional funds are allocated proportional to FY 2010-11 operations funding (across-the-board) and are required to be used for campus safety programs, sexual assault prevention programs, and student mental health programs. Table 1 provides details of formula allocations. Table 2 compares FY 2017-18 Year-to-Date funding, the FY 2018-19 Governors recommendation, and the FY 2018-19 Senate version of the budget. |
42,850,300 |
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2. Funding Shift. Governor and Senate shifted $120.0 million in funding for university operations from the State General Fund to the SAF. This results in a total SAF appropriation of $385.6 million. |
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3. Competitive Scholarships. Public Act 208 of 1964 established State competitive scholarships. Undergraduate students at Michigan two-year and four-year, public and private institutions are eligible for up to 10 semesters if they have financial need and a qualifying SAT score. Governor recommended increasing funding by 6.0 million Federal Temporary Assistance for Needy Families (TANF) (22.8%), from $26,361,700 to 32,361,700, offset by a $6.0 million reduction to the Tuition Grant Program (see item #4 below). These adjustments are recommended based on eligible students and fully funding the grant award amounts set in the State School Aid Act (Sections 251 and 252). Governor is recommending the same adjustment in an FY 2017-18 Supplemental (DTMB Supplemental Request 2018-5). Senate included the $6.0 million increase for Competitive Scholarships in FY 2018-19, but did not include the FY 2017-18 supplemental in this bill. |
6,000,000 |
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4. Tuition Grants. Public Act 313 of 1966 established Tuition Grants. Undergraduate students at Michigan private institutions are eligible for up to 10 semesters, if they have financial need. Governor recommended decreasing funding for Tuition Grants by $6.0 million TANF, from $38,021,500 to $32,021,500, based on enrollments and projected amounts needed to fund the grant award amount set in the State School Aid Act. Governor is recommending the same adjustment in an FY 2017-18 Supplemental (DTMB Supplemental Request 2018-5). Senate did not include the proposed $6.0 million reduction for FY 2018-19, and also did not include the proposed FY 2017-18 supplemental reduction in this bill. |
0 |
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5. Tuition Incentive Program (TIP). The TIP is a financial aid program targeted toward low-income middle school and high school students. It was established in FY 1986-87 through language in the Department of Social Services appropriation bill and was transferred to the Higher Education budget in FY 1992-93. The TIP provides an incentive to students to complete high school and go on to college by pledging to pay their tuition and fees for associate degree or certificate programs (Phase I), as well as up to $2,000 at a four-year institution (Phase II). Students in grades 6 through 12 who are Michigan Medicaid-eligible for 24 months in a 36-consecutive-month period can qualify for TIP. Governor increased funding from by $1.5 million TANF, from 58.3 million to $59.8 million. Senate concurred. |
1,500,000 |
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6. MSU AgBioResearch. MSU AgBioResearch performs agricultural research to promote efficient production, marketing, distribution, and use of farm products. Governor included a $678,300 GF/GP (2.0%) increase. Senate provided a $1,017,400 GF/GP (3.0%) increase, bringing total FY 2018-19 funding to $34,930,500. |
1,017,400 |
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7. MSU Extension. MSU Extension identifies and solves farm, home, and community problems through the practical application of research findings. MSU Extension 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. Governor included a $585,100 GF/GP (2.0%) increase. Senate included an $877,600 GF/GP (3.0%) increase, bringing total FY 2018-19 funding to $30,130,200. |
877,600 |
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8. Michigan Public School Employees' Retirement System (MPSERS). Adjustments for the seven universities (Central, Eastern, Ferris, Lake Superior, Michigan Tech, Northern, and Western) include a decrease of $1,572,000 (SAF) based on the rate cap for the UAAL; and a one-time increase of $250,000 (SAF) due to decreasing the assumed rate of return for the normal cost offset. Senate concurred with Governor. |
(1,322,000) |
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9. 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 and universities, and certain Federal tribally controlled community colleges. State appropriations in university operation budgets have not kept pace with actual costs. In FY 2016-17, universities absorbed $6.5 million in waiver costs. The FY 2017-18 budget included a separate appropriation of $300,000 to partially offset the shortfall in State funding. Governor removed the $300,000 for FY 2018-19. Senate maintained it. |
0 |
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10. Comparison to Governor's Recommendation. The Senate is $21,215,100 Gross and $15,215,100 GF/GP over the Governor. |
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$50,923,300 |
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FY 2018-19 Senate Appropriations Subcommittee Gross Recommendation........................ |
$1,680,147,700 |
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Boilerplate Changes from FY 2017-18 Year-to-Date: |
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1. Budget Transparency. Requires public university to maintain a public transparency website available through a link on its website homepage with specified budget and other information. Governor removed State Budget Director's authority to determine compliance and withhold funds for noncompliance. Senate did not concur with Governor and maintained current year language. Senate transferred reports related to campus security policies and crime statistics to a new Campus Safety Information and Resources section (see Item # 2 below). (Sec. 245) |
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2. Campus Safety Information and Resources. Senate added new language requiring public universities to develop, maintain, and update a "campus safety information and resources" link, prominently displayed on the homepage of its website. Information required to be included on the "campus safety information and resources" section of each public university's website shall include, but not be limited to, all of the following information: · Emergency contact numbers for police, fire, health, and other services. · Hours, locations, phone numbers, and electronic mail contacts for campus public safety offices and Title IX offices. · A listing of safety and security services provided by the university, including transportation, escort services, building surveillance, anonymous tip lines, and other available security services. · A public university’s policies applicable to minors on university property. · A directory of resources available at the university or surrounding community for students or employees who are survivors of sexual assault or sexual abuse. · An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family,” published in 2018 by the office of the governor in conjunction with the first lady of Michigan. · Campus security policies and crime statistics pursuant to the Student Right-to-Know and Campus Security Act, public law 101-542, 104 stat 2381. The State Budget Director shall determine whether a public university has complied with this section and may withhold a public university's monthly State aid payments until the public university complies with this section. (Sec. 245a) |
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3. State Tuition Grant Program. Provides that grants for the State Tuition Grant Program shall be distributed pursuant to 1966 PA 313 and includes other criteria. The Department of Treasury determines an actual maximum state tuition grant award per student, which shall not be less than $2,000. The section also provides that not more than $3.2 million in tuition grants shall be awarded to eligible students enrolled in the same independent nonprofit institution. Governor increased the per student award stated in this section from $2,000 to $2,100; removed the provision that limited duration of grants to ten years after eligibility is first determined; eliminated the termination date for use of carry-forward funds; increased the maximum award to students enrolled in the same independent nonprofit college by $700,000, from $3.5 million to $4.2 million; and updated date references. Senate concurred with the recommended changes except the grant per student was increased to $2,400. Senate also added new language providing that the $4.2 million per institution limit does not apply to any other student financial aid program or combination with any other student financial aid program. (Sec. 252) |
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4. Tuition Incentive Program (TIP). Provides criteria for the TIP. Governor modified this section by eliminating the carry-forward authorization for unexpended funds; extending the date for implementation of penalty for reporting requirement noncompliance from FY 2018-19 to FY 2019-20; and updating date references. Senate concurred with extending the implementation date for the penalty regarding reporting noncompliance and updating date references, but did not eliminate the carry-forward authorization for unexpended funds. Senate eliminated the $8.5 million TIP maximum payment cap for students enrolled in any one institution. Senate also removed the 3 times the average community college in-district per-credit tuition reimbursement cap for public universities. (The 3x cost containment measure was scheduled to be implemented in FY 2018-19.) (Sec. 256) |
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5. Tuition Restraint. Governor updated the cap for increases in resident undergraduate tuition and fee rates to the greater of 3.8% or $490 (greater of 3.8% or $475 in FY 2017-18); eliminated language that states "fee” includes the annual amount a student is charged for coverage by the university-affiliated group health insurance policy; removed provision that stated universities exceeding the cap will not receive planning or construction authorizations for a State funded capital outlay project in the subsequent two fiscal years; removed provision stating that other sanctions may be imposed at any time by the Legislature for universities exceeding tuition cap; and updated date references. Senate concurred with the tuition rate cap of 3.8% or $490 and updating date references, but did not include any of the other changes recommended by Governor. (Sec. 265) |
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6. Performance Funding. Governor removed the legislative intent statement that, beginning in the next State fiscal year, a university classified as improving is assigned a score of 1; included increased weighting for certificates and associate degrees in critical skills metric, eliminated the legislative intent statement to allocate more funding based on performance metrics in future years; and updated date references. Senate updated date references but did not include any other change recommended by Governor. (Sec. 265a) |
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7. Campus Initiatives. Senate added new language providing that appropriations to public universities in section 236 for fiscal year 2018-2019 for campus initiatives shall be paid only to a public university that complies with sections 265 and 265a(1) (a) to (c). Allocations to universities are based on a distribution proportional to each university's share of total operations funding appropriated in fiscal year 2010-2011. Appropriations for campus initiatives shall be limited to expenditures on 1 or more of the following: (a) Campus Safety Programs. (b) Sexual Assault Prevention Programs. (c) Student Mental Health Programs. (Sec. 265b) |
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8. Academic Program Partnerships. Governor recommended language requiring the Michigan Community College Association, the Michigan Association of State Universities, and the Michigan Independent Colleges and Universities, on behalf of their member colleges and universities, to submit a comprehensive report detailing the number of academic program partnerships between public community colleges, public universities, and private colleges and universities. This language was first included with the FY 2016-17 appropriation. It was removed in the FY 2017-18 budget. Senate did not include this section. (Sec. 265b in Governor's recommendation) |
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9. Indian Tuition Waiver. Governor removed the legislative intent statement that funds be allocated from the General Fund for unfunded North American Indian tuition waiver costs incurred by public universities. Governor also removed language regarding the distribution of additional funds appropriated for waiver costs. Senate restored both provisions. (Sec. 268 (1)(2)) |
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10. State Funding Purpose and Annual Accounting. Senate added language stating that pursuant to Section 4 of Article VIII of the State Constitution of 1963, appropriations of state taxpayer funding provided for in Section 236 shall be expended to maintain Michigan public universities. Each public university that receives State funding shall provide the legislature with an annual accounting of all of its income and expenditures. (Sec. 274e) |
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11. Governing Board - Incident Report. Senate added language requiring each public university receiving funds under Section 236 shall require that the governing board of the university receive written notice of every report made to the university’s Title IX coordinator regarding any incident of possible sexual misconduct occurring on the university’s campus or in connection with any program, activity, or event sponsored in whole or in part by the university. (Sec 274f) |
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12. Yellow Ribbon GI Education Enhancement Program. Requires universities to meet the provisions of section 5003 of the post-911 veterans educational assistance act of 2008, 38 USC 3301 to 3327, including voluntary participation in the Yellow Ribbon GI Education Enhancement Program established in that act in 38 USC 3317. Requires reporting to Higher Education Subcommittees, fiscal agencies, and the Michigan Association of State Universities on whether or not it has chosen to participate in the Yellow Ribbon GI Education Enhancement Program. Requires establishment of an on-campus veterans’ liaison to provide information and assistance to all student veterans flexible enrollment deadlines for veterans and admission application process that includes 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. Also requires universities to consider all veterans residents of this state for determining their tuition rates and fees, waive enrollment fees for all veterans, and report by October 1 of each year, regarding services provided specifically to veterans and active military duty personnel. Governor removed this section. Senate restored it. (Sec. 275) |
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13. Higher Education Institutional Data Inventory (HEIDI) Audit. Governor recommended changing the frequency that the Auditor General is required to audit data submitted by universities from "periodically" to "not less than every four years." Senate concurred with Governor. (Sec. 289) |
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14. Restored Provisions. Senate restored the following provisions that were removed by Governor: Intent regarding appropriations for the next fiscal year (Sec. 236a); 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); discouraged instruction activity (Sec. 271a); and human embryonic stem cell research report. (Sec. 274) |
Date Completed: 4-11-18 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.