0171: CONFERENCE REPORT (Date Completed: 5-23-11) - FY 2011-12 COMMUNITY COLLEGES BUDGET

FY 2011-12 COMMUNITY COLLEGES BUDGET S.B. 171 (CR-1): CONFERENCE REPORT

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Amount Over/(Under) GF/GP Target: $ 0

FY 2010-11 Year-to-Date Gross Appropriation	$295,880,500
Changes from FY 2010-11 Year-to-Date:
Items Included by the Senate and House
1. At-Risk Student Success Program. The Governor maintained funding for the at-risk program at the FY 2010-11 level. The House, Senate, and Conference eliminated the $3,322,700 separate appropriation line item for at-risk payments and rolled the FY 2011-12 distribution into the operation line items of each community college. The At-Risk Student Success Program originated in FY 1989-90 and was designed to address the needs of students who test at a level that would indicate that they will not be successful in college without additional preparatory assistance. Of the amount appropriated, $1,120,000 is allocated for base grants of $40,000 to each community college and the balance is distributed proportionately based on each college's most recent three years total developmental/ preparatory contact hours. Table 1 lists the distribution to each college.	0
2. Funding Shift to School Aid Fund. The Governor, House, and Senate shifted $195,880,500 from the State General Fund to the School Aid Fund.	0
Conference Agreement on Items of Difference
3. Operations. The Governor maintained funding for community college operations at the FY 2010-11 level. The Senate reduced funding for community college operations by $10.0 million (3.4%). The reduction was allocated based on the Performance Indicators Task Force Formula that was developed pursuant to Section 242 of Public Act 154 of 2005, and Section 304 of Public Act 165 of 2010. The House reduced funding for community colleges by $43,883,700 (15.0%), applying the reductions across-the-board instead of using the Performance Indicators Task Force Formula. The Conference reduced funding by $12.0 million. Half of the reduction was across-the-board and half was based on the Performance Indicators Task Force Formula. Table 1 lists the impact on each college.	(12,000,000)
Total Changes	($12,000,000)
FY 2011-12 Conference Report Gross Appropriation	$283,880,500

FY 2011-12 COMMUNITY COLLEGES BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:

Items Included by the Senate and House

1. Restored Sections. Compliance with the DMB Act, buy American intent language, depressed and deprived communities, equal opportunities, and efficiencies.

2. School Aid Fund Proration. Process to adjust appropriation if is revenue below appropriations. (Sec. 250)

Conference Agreement on Items of Difference

3. Internet Reports. Requires use of the Internet to fulfill reporting requirements unless otherwise specified. Governor and Senate deleted; House restored. Conference concurred with House. (Sec. 203)

4. JCOS Compliance. Governor deleted compliance with JCOS policy. Senate and Conference restored and included penalty of 1.0% appropriations reduction for each violation. House included different penalty. (Sec. 217)

5. Transparency. The House and Conference included language requiring colleges to develop on public accessible Internet site a comprehensive report categorizing all institutional general fund expenditures. (Sec. 218)

6. Collaboration with Four-Year Universities. Encourages community colleges to explore ways of increasing collaboration and cooperation with universities. Governor/House deleted; Senate/Conference restored. (Sec. 224)

7. Foreign Automobile Prohibition. Prohibits lease or purchase if competitively priced/comparable quality Michigan/USA automobiles available. Governor/House deleted; Senate/Conference included. (Senate Sec. 247)

8. Communications with Legislators. Senate and Conference included language stating a college shall not take disciplinary action against an employee for communicating with member of the legislature or their staff. (Sec. 251)

9. Block Transfers. House and Conference included new language creating a committee to develop a process to improve the transferability of core college courses between colleges and universities. (Sec. 225)

10. Reverse Transfer. House and Conference included language providing that colleges work with public universities to implement reverse transfer agreements (transfer university credits to college for an associate's degree). (Sec. 252)

11. Common Cut Score. House and Conference included language creating a committee to develop a common set of scores using the ACT assessment to determine placement in developmental courses, requires report. (Sec. 253)

12. FY 2011-12 Budget Report. House and Conference included language requiring report on FY 2011-12 budgeted revenue sources, and expenditures by November 15, 2011. (Sec. 218(2))

13. Statutory Mandates. House and Conference included legislative intent for a review of statutory mandates imposed on community colleges. Determine whether necessary and costs/benefit analysis. Provides for report. (Sec. 257)

14. Military Status. Conference included intent that colleges include in their admission application process a specific question as to the military/national guard/reserves/veteran status of an applicant (or the spouse or dependent thereof) in order to more quickly identify potential educational assistance available to that applicant. (Sec. 258)

15. Performance Indicators Task Force. Legislative intent that performance measures be reviewed and more fully implemented and that the performance indicators task force review and implement one or more measurable data items for the local strategic value indicator and one or more measurable data items for an administrative cost formula component. Governor and House deleted; Senate and Conference included. (Sec. 304)

16. Indian Tuition Waivers. States colleges shall use the criteria cited in 1976 PA 174, MCL 390.1251 to 390.1253, to determine eligibility for tuition waivers, and shall grant those waivers to individuals who meet the criteria and request tuition waivers. Governor and Senate included; House and Conference deleted. (Sec. 506 (2))

17. Anticipated Appropriations for Fiscal Year 2012-13. The Governor and House included line-item appropriations for FY 2012-13. The Senate and Conference did not include line items and instead included boilerplate stating intent to provide appropriations for FY 2012-13 at the FY 2011-12 level except for changes in caseload and related costs, Federal fund match rates, economic factors, and available revenue. (Sec. 1201)

Date Completed: 5-23-11 Fiscal Analyst: Bill Bowerman This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIccl_cr