FY 2005-06 HIGHER EDUCATION BUDGET S.B. 273 (S-1): FLOOR ANALYSIS






Senate Bill 273 (S-1 as reported)
Committee: Appropriations

Changes from FY 2004-05 Year-to-Date:
  1. University Operations. The Senate distributes funding in 4 categories: a) $20.5 million for a $3,750 per-student floor; b) $1.0 million to reward job placement; c) $2.0 million for engineering, technology, and health degrees granted; and d) $7.4 million for research. Funding for Northern and Wayne State is reduced by $4.5 million and $10.7 million, respectively, to align their per-student funding more closely with their peers. 14,364,500
2. King-Chavez-Parks (KCP) Initiative. The Governor consolidates KCP funding into a new competitive grant program administered by the Department of Labor and Economic Growth. The 15 public universities and 28 community colleges would be required to compete for the grants and independent colleges would no longer be eligible for the KCP Programs. The Senate retains the current program. 0
3. National Charter Schools Institute. The Governor eliminates, but the Senate retains, $500,000 for this program operated by Central Michigan University that provides technical support and training for educators, parents, and authorizing agents. 0
4. Agriculture Experiment Station (AES). The Governor reduces AES funding by 10.0% for an FY 2005-06 total of $29,863,800; the Senate retains current funding of $33,163,800. 0
5. Cooperative Extension Service (CES). The Governor reduces CES funding by 23.4% for an FY 2005-06 total of $21,904,300; the Senate retains current funding of $28,604,300. 0
6. Collegiate Employment Research Institute. The Senate includes funding to collect data on job placement for graduates of the 15 public universities. 100,000
7. Midwest Higher Education Compact. The Governor eliminates Michigan's membership dues in this 10-state compact that is charged with promoting interstate cooperation and resource sharing in Higher Education. In addition to Michigan, other Compact members are Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin. The Senate funds FY 2005-06 dues of $90,000. (75,000)
8. State Competitive Scholarships. The Governor and Senate reduce Federal funds for this program to reflect the expected FY 2005-06 Federal funding level for Michigan of $2.0 million. (1,000,000)
9. Michigan Tuition Grants. The Governor eliminates these need-based grants of $61.8 million for approximately 40,000 students at Michigan's independent colleges and universities; the Senate reduces the grants by $3.0 million. (3,000,000)
10. Michigan Merit Awards. The Governor recommends a total of $121.0 million and the Senate includes a total of $101.3 million, for FY 2005-06. The Governor proposes a "new" $4,000 Merit Scholarship beginning with the high school graduating class of 2007. The new $4,000 Merit Scholarship would be awarded to students who obtain an associates degree or its equivalent, or who earn junior status at a Michigan college or university. The Senate proposes award revisions which are still being developed. 39,881,400
11. Tuition Incentive Program (TIP). The Governor and Senate recommend an increase of $1.75 million from the Merit Award Trust Fund to fund an expanding caseload; total FY 2005-06 appropriation would be $12.0 million. 1,750,000
Total Changes $52,020,900
  FY 2005-06 Senate Appropriations Committee Gross Appropriation $1,706,938,100
FY 2005-06 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Year to Date:
  1. State Spending to Local Units. Governor identifies none, Senate retains current year estimate. (Sec. 201)
2. Appropriations Report from Fiscal Agencies. Governor deletes, Senate retains. (Sec. 212(3))
3. Tuition Tax Credit. Governor deletes notification requirement, Senate retains. (Sec. 214)
4. Tuition Grants. Governor deletes due to proposed elimination of program, Senate retains. (Sec. 302)
5. Quarterly Payments for Financial Aid. Governor changes current 40/40/10/10% schedule to 25/25/25/25% for all programs except Work Study and Byrd Scholarships, Senate retains current schedule. (Sec. 308)
6. Tuition Incentive Program. Governor and Senate delete fund carry-forward provision. (Sec. 310(11))
7. Nursing Education Programs. The Senate adds legislative intent to expand these programs at the 15 public universities. (Sec. 313)
8. Douglas Lake. Governor deletes Legislative intent to preserve research value, Senate retains. (Sec. 402)
9. HEIDI Advisory Committee. Governor deletes, Senate retains. (Sec. 405)
10. Collegiate Employment Research Institute. Senate adds data collection and reporting requirements for job placement and first destination information for graduating students at the public universities. (Sec. 406)
11. CMU's National Charter Schools Institute. Governor deletes funding and language, Senate deletes language only.
12. Lists of Required Textbooks. Governor deletes legislative intent for timely access by private bookstores/student groups and for ability of students to decide where to purchase textbooks, Senate retains. (Sec. 426)
13. Tuition Restraint. Pursuant to Executive Order 2005-7, Governor and Senate add legislative intent that if a university increases resident undergraduate tuition and required fees, then that university shall increase student financial aid expenditures by at least the same percentage; report required by November 15, 2005. (Sec. 436)
14. Michigan Public School Employees Retirement System (MPSERS). Governor deletes legislative intent to provide a subsidy for the MPSERS contribution rate; the Senate retains with an amount of $3.96 million. (Sec. 437)
15. Tuition Revisions. Governor and Senate require report on any revision to any semester's tuition and fee charges. (Sec. 440)
16. Per-Student Floor Funding. Governor deletes Legislative intent to fund a $4,000 per-student floor for FY 2004-05; Senate adds per-student funding floor of $3,750 for FY 2005-06. (Sec. 450)
17. Student and Presidential Housing. Governor and Senate delete report requirement. (Sec. 460)
18. King-Chavez-Parks. Governor consolidates current programs into one new competitive grant program and eliminates specific allocations for universities; community colleges are newly eligible but independent colleges are no longer eligible; Senate retains current year programs. (Sec. 501)
19. New Academic Programs. Governor deletes FY 2004-05 degree list; Senate adds Presidents Council approved degrees for FY 2005-06. (Sec 701a)
20. FY 2003-04 Tuition Restraint. Governor and Senate delete. (Sec. 1201)

Date Completed: 6-8-05 Fiscal Analyst: Ellen Jeffries This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hihed_fa.doc