Michigan Legislative Website

Sec. 265.

(1) Payments from the amount appropriated in section 236(3) for public university tuition restraint incentives shall only be made to a public university that certifies to the state budget director by August 31, 2012 that its board did not adopt an increase in tuition and fee rates for resident undergraduate students after September 1, 2011 for the 2011-2012 academic year and that its board will not adopt an increase in tuition and fee rates for resident undergraduate students for the 2012-2013 academic year that is greater than 4.0%. As used in this subsection and subsection (2):

(a) Subject to subdivision (c), "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 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.

(3) The state budget director shall implement uniform reporting requirements to ensure that a public university receiving an appropriation under section 236(3) 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.