FY 2017-18 HIGHER EDUCATION BUDGET H.B. 4229 (CR-1*): CONFERENCE REPORT
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$1,582,640,400 |
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Items Included by the Senate and House |
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1. 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. The Governor increased funding from $53.0 million to $58.3 million, funded from Federal Temporary Assistance for Needy Families (TANF). A $4.7 funding shift from General Fund to TANF is also included in the Governor's FY 2017-18 recommendation. The Senate and House concurred with the funding adjustments recommended by the Governor. |
5,300,000 |
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2. Michigan Public School Employees' Retirement System (MPSERS). Adjustments for the seven universities (Central, Eastern, Ferris, Lake Superior, Michigan Tech, Northern, and Western) include an increase of $2,411,000 School Aid Fund (SAF) due to decreasing the assumed rate of return for the Unfunded Actuarial Accrued Liability (UAAL); a one-time increase of $419,000 SAF due to decreasing the assumed rate of return for the normal cost offset; and a decrease of $4,296,000 SAF due to investment gains and positive health experience. The Senate and House concurred with the Governor. |
(1,466,000) |
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3. FY 2016-17 One-Time Appropriation. The FY 2016-17 budget included a one-time $500,000 GFGP appropriation for the MSU Diagnostic Center for Population and Animal Health (DCPAH).
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(500,000) |
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Conference Agreement on Items of Difference |
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4. University Operations. The Governor included an overall $35.0 million GF/GP (2.5%) increase for university operations. The formula continues performance metrics used in FY 2016-17. Half of the funding increase is allocated proportional to FY 2010-11 (across-the-board). Prerequisites for receiving performance funding are continued. Tuition restraint is set at the greater of 3.8% or $475 (FY 2016-17 tuition restraint was 4.2%). The Senate reduced the increase to $28.0 million (2.0%), and the House reduced the increase to $26.6 million (1.9%). Both the Senate and House concurred with the formula and tuition restraint recommended by the Governor. Conference concurred with the Senate. Table 1 provides details of formula allocations and Table 2 compares the Governor, Senate, and House by university and program. |
28,000,000 |
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5. MSU AgBioResearch. MSU AgBioResearch performs agricultural research to promote efficient production, marketing, distribution, and use of farm products. The Governor and House included an $831,100 GF/GP (2.5%) increase for MSU AgBioResearch, increasing funding from $33,243,100 to $34,074,200. The Senate reduced the increase to $670,000 (2.0%). Conference concurred with the Senate. |
670,000 |
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6. 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. The Governor and House included a $718,900 GF/GP (2.5%) increase for MSU Extension, increasing funding from $28,672,600 to $29,391,500. The Senate reduced the increase to $580,000 (2.0%). Conference concurred with the Senate. |
580,000 |
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7. 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 ACT score. The Governor and Senate increased funding by 8.0 million GF/GP (43.6%), from $18,361,700 to $26,361,700. The House reduced the increase to $4.0 million GF/GP. Conference concurred with the Governor and Senate. |
8,000,000 |
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8. Tuition Grants. Public Act 313 of 1966 established Tuition Grants. Undergraduate students at Michigan two-year and four-year private institutions are eligible for up to 10 semesters, if they have financial need. The Governor and Senate increased funding by $3.0 million GF/GP (8.6%), from $35,021,500 to $38,021,500. The House reduced the increase to $1.5 million GF/GP. Conference concurred with the Governor and Senate. |
3,000,000 |
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9. MSU Animal Agriculture Initiative. The Governor recommended a one-time $2.5 million GF/GP grant for the Animal Agriculture Initiative. The program is a partnership between livestock producers, industry groups, MSU and the Michigan Department of Agriculture and Rural Development. The initiative develops sustainable farm production practices, environmentally sound manure management systems, efficient new energy sources, safer food products and more humane animal care systems based on science. It will fund new and continuing projects directly tied to problems limiting growth and sustainability of Michigan animal agriculture industries, provide investments in infrastructure and operations to support ongoing animal agriculture research, and support emergency funding to quickly address emerging issues. The Senate concurred with the Governor. The House did not include funding for this program. Conference did not include this program in the Higher Education budget. (Target transferred to Department of Agriculture and Rural Development.) |
0 |
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10. MSU Agriculture Workforce Initiative. The Governor recommended one-time funding of $1.2 million GF/GP to develop a food-processing curriculum and expand partnerships with community colleges. The Initiative provides direct support for Michigan’s agriscience programs and teachers. Funding will also be used to expand educational and training opportunities in animal agriculture (swine, dairy and meat industries) to improve food-borne illness detection, quality control, production monitoring and distribution related to food safety. The Senate concurred with the Governor. The House did not include this program. Conference did not include this program in the Higher Education budget. (Target transferred to Department of Agriculture and Rural Development.) |
0 |
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11. MSU Fruit & Vegetable Processing Teaching Lab. The House added $1.5 million GF/GP in one-time funding for the MSU Fruit & Vegetable Processing Teaching Laboratory. Conference did not include funding for this program. |
0 |
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12. North American Indian Tuition Waiver. Public Act 174 of 1976 provides for free tuition for Michigan resident North American Indians who attend Michigan public community colleges, universities, and certain Federal tribally controlled community colleges. State appropriations in university operation budgets have not kept pace with actual costs. In FY 2015-16, universities absorbed $6.1 million of waiver costs. The Senate added a separate appropriation of $300,000 GF/GP to partially offset the shortfall. Conference concurred with the Senate. |
300,000 |
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13. Tuition Incentive Program - FY 2016-17 Supplemental. Along with the FY 2017-18 adjustments for TIP (Item #1 above), the Governor recommended an FY 2016-17 supplemental of $2.6 million TANF based on projected costs. The Senate included the supplemental. The House did not. Conference concurred with the Senate. |
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14. FY 2017-18 One-Time Gross Appropriations. The budget includes $419,000 SAF in one-time funding for MPSERS due to decreasing the assumed rate of return for the normal cost offset. |
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$43,884,000 |
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FY 2017-18 Conference Report Ongoing/One-Time Gross Appropriation............................. |
$1,626,524,400 |
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Amount Over/(Under) GF/GP Target: $0 |
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Boilerplate Changes from FY 2016-17 Year-to-Date: |
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Items Included by the Senate and House |
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1. P-20 Education Longitudinal Data System. 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 longitudinal data system described in section 94a. The Governor removed "shall cooperate with all measures taken …………. "; and replaced with "provide its longitudinal data system data set for the preceding academic year …" The Senate and House concurred. (Sec. 244) |
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2. 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. The Governor removed State Budget Director's authority to determine compliance and withhold funds for noncompliance. The Senate and House restored. (Sec. 245) |
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3. Children of Veterans and Officer's Survivor Tuition Grant Programs. The Governor included new language providing that the funds appropriated for the programs shall be supported with revenue from the restricted account created in section 5 of the Children of Veterans Tuition Grant Act and unexpended funds remaining in the restricted account at the end of the fiscal year shall not lapse to the general fund. The general fund/general purpose funds appropriated for the grant programs shall also be deposited into the restricted account as required in section 5 of the Children of Veterans Tuition Grant Act. Funds deposited into the restricted account are appropriated and available for allocation as required in the Children of Veterans Tuition Grant act. The Senate and House concurred. (Sec. 249) |
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4. Student Financial Aid Distribution. Sets quarterly distribution schedule for the State Competitive Scholarship, Tuition Incentive, and Tuition Grant programs. The Governor modified schedule for Tuition Incentive Program to 65% the first quarter and 35% the second quarter. The Senate and House concurred. (Sec. 254) |
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5. AgBioResearch and MSU Extension. Requires annual report on and specifies goals. The Governor increased the metric goals for increasing the sector's total economic impact and increasing agricultural exports. The metric for increasing jobs by ten percent was eliminated. The Senate and House concurred. (Sec. 263a) |
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6. Tuition Restraint. The Governor changed the cap from 4.2%, to the greater of 3.8% or $475; 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. The Senate and House concurred with the new tuition restraint limit but did not include any of the other changes recommended by the Governor. (Sec. 265) |
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7. Unexpended Grant Funds. The Governor modified reporting requirements for select student support services, college/university partnerships, visiting professors program and the educator development program to provide information on amount of unobligated and unexpended funds remaining as of March 31, 2018, and require a plan to expend the remaining funds by the end of the fiscal year. The Senate and House concurred. (Sec. 282) |
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8. Academic Progress Reports - High Schools and Community Colleges. Process for providing information to high schools and community colleges regarding the academic progress of former students. The Governor, Senate, and House modified based on use of data provided to CEPI and P-20 Longitudinal Data System. (Sec. 283 and Sec. 284) |
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9. HEIDI Audits. Provides that the Auditor General shall periodically audit the Higher Education Data Inventory (HEDI) data. Governor replaced "shall" with "may". Senate and House maintained current year language. (Sec. 289) |
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10. Restored Provisions. The Senate and House restored the following sections that were removed by the 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); human embryonic stem cell research report (Sec. 274); and prohibits use of funds for the construction or maintenance of a self-liquidating project, requires compliance with Section 238 of 1984 PA 431 and Joint Capital Outlay Subcommittee use and finance requirements, and includes penalties. (Sec. 275a) |
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Conference Agreement on Items of Difference |
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11. Lease Purchase of Foreign Vehicles. The House added intent language that public universities shall not use funds appropriated in Section 236 to lease or purchase a vehicle assembled or manufactured outside of the United States and will give preference to vehicles assembled or manufactured in this State. Conference did not include. (Sec. 239b) |
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12. Financial Aid Requirement. The Governor and House added new language stating that to be considered eligible for any scholarship or grant financial aid program administered by the Department of Treasury the student must file the free application for Federal student aid (FAFSA) annually. The House concurred with the Governor. The Senate did not include this provision. Conference included. (Sec. 250) |
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13. State Competitive Scholarship Program. Provides that grants for the State Competitive Scholarship Program shall be distributed pursuant to 1964 PA 208, MCL 390.971 to 390.981 and includes other criteria. The Department of Treasury determines an actual maximum state competitive scholarship award per student, which shall be not less than $575.00. The Governor increased the per student award stated in this section from $575 to $1,000. The Senate concurred and also added carryforward authority similar to the Tuition Grant Program. The House set the per student award at $775, and also added carryforward authority. Conference concurred with the Senate. (Sec. 251) |
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14. 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 $1,512. 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. The Governor increased the per student award stated in this section from $1,512 to $2,000; beginning with FY 2018-19 changed application due date from July 1to June 1; added that in addition to the ten semester limit on grants provided for in Public Act 313 an eligible applicant has to complete using the grant within ten years after eligibility is determined; eliminated carryforward authorization for unexpended funds; and updated date references. The Senate maintained the carryforward authorization; moved the application deadline up to March 1, beginning with FY 2018-19; delayed until FY 2018-19 the implementation of ten year duration limit on grant eligibility; increased the per institution cap from $3.2 million to $3.5 million, and concurred with the Governor's other recommendations. The House maintained the carryforward authorization; moved the application deadline up to June 1, beginning with FY 2018-19; delayed until FY 2018-19 the implementation of ten year duration limit on grant eligibility; increased the per institution cap from $3.2 million to $3.5 million, set the per student award at $1,750, changed the annual reporting due date from September 30th to October 31st, and concurred with the Governor's other recommendations. Conference set the award amount at $2,000, set the application deadline at March 1, and set the annual reporting date at October 31st. (Sec. 252) |
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15. Tuition Incentive Program. Provides criteria for the Tuition Incentive Program. The Governor modified this section by providing: · Students must be enrolled in a certificate or associate degree program and taking classes within the program of study for a certificate or associate degree. Tuition will not be covered for courses outside of a certificate or associate degree program. |
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· For students attending a 5-year middle college approved by the Michigan Department of Education, be less than 21 years of age when he or she graduates from high school instead of the current age limit of less than 20 years old. |
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· All eligibility expires six years from high school graduation or equivalency certificate. · The Department will only accept standard per-credit hour tuition billings. · Beginning in FY 2018-19, students enrolled in public universities will receive mandatory fees and a maximum per credit payment that does not exceed two times the average community college in-district per credit tuition rate for the immediately preceding academic year. · New reporting requirements on student success, P-20 Longitudinal Data, and Pell grants. · Beginning with FY 2018-19, requires Treasury to withhold funding from students who attend institutions that do not comply with reporting requirements. The Senate concurred with all of the Governor's changes except the provision limiting tuition reimbursements for public universities to twice the average community college rate. The House concurred with the Governor, except it set the reimbursement rate for public 4-year institutions at three times the average community college tuition rate. Conference concurred with the Senate and did not include the proposed limit for 4-year public institutions. (Sec. 256) |
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16. Performance Funding. The Governor updated Carnegie classifications categories for research; eliminated legislative intent that, beginning in the next State fiscal year, a university classified as improving is assigned a score of 1; and updated date references. The House and Senate restored the intent statement regarding changing the score for improving in the next fiscal year. The Senate included a new provision stating that it is the intent of the Legislature to increase the proportion of funds allocated through performance metrics in future years. The House did not include this new provision. Conference concurred with the Senate and included the proposed new intent statement. (Sec. 265a) |
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17. Indian Tuition Waiver. The 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. The Senate maintained the intent provision. The Governor, for reporting purposes, changed the reference from "fiscal" year to "academic" year; included continuing education students in number of waiver students reported; and defined "withdrawal" as any student awarded the waiver who withdraws from the institution at any point during the term, regardless of enrollment in subsequent terms. The Senate concurred with the Governor's changes to the reporting criteria. The Senate added new language regarding the distribution of additional funds appropriated for waiver costs. Conference concurred with Senate. (Sec. 268) |
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18. Title IX Report. The House added language that requires universities to report the Senate and House Appropriations Subcommittees on Higher Education, the Senate and House fiscal agencies, and the State Budget Director their annual title IX report, (student sexual misconduct report), issued by the title IX coordinator, as required under the federal campus save act of 2013, public law 113-4, section 304, 127, stat 54, 89-92 (2013). Conference included this new section. (Sec. 274d) |
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19. Yellow Ribbon GI Education Enhancement Program. Legislative intent regarding university participation in Yellow Ribbon Program. Includes notice and reporting requirements. Governor replaced "Legislative intent" with "encouraged" and eliminated report and notice requirements. Senate maintained current year language. House maintained current requirements but replaced "Legislative intent" with "shall." Conference concurred with House. (Sec. 275) |
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20. Meningococcal Meningitis. The Senate added language requiring universities to provide students with materials containing information about meningococcal meningitis and the vaccine for meningococcal meningitis, as provided by the Department of Health and Human Services pursuant to Section 9205a of the Public Health Code. The materials shall contain information about, at a minimum, the causes and symptoms of meningococcal meningitis, how it is spread, and sources where students may obtain additional information about meningococcal meningitis and where they may obtain vaccination against meningococcal meningitis. Conference concurred with the Senate. (Sec. 275c) |
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21. Academic Program Partnerships. First included in the FY 2016-17 budget, the section requires a report detailing the number of academic program partnerships between public community colleges, public universities, and private colleges and universities. The Governor continued the report for FY 2017-18. The Senate deleted this section. Conference concurred with Senate and deleted this section. (Sec. 286a) |
Date Completed: 6-6-17 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.