FY 2012-13 COMMUNITY COLLEGES BUDGET S.B. 949 (S-1): SUMMARY OF DIFFERENCES
|
$294,130,600 |
|
|
|
|
1. Performance Funding. The Governor included a 3.0% GF/GP increase to community colleges allocated through a new formula based on the average number of completions of associate degrees and certificates below baccalaureate in critical skills areas (3-year average for FY 2008-09, FY 2009-10, and FY 2010-11). Critical skills areas include: science, technology, engineering, mathematics, and health fields. The source of the data is the United States Department of Education Integrated Postsecondary Education Data System (IPEDS). The Senate did not concur with the Governor’s proposed distribution. The Senate continues using the Performance Indicators Taskforce recommendations to allocate additional funding. The local strategic value component was modified to allocate funds based on community colleges meeting certain best practice requirements. The Senate allocations are based on the following: · 50% proportionate to FY 2011-12 base. · 10% contact hour equated students. · 7.5% administrative costs. · 17.5% weighted degrees. · 15.0% local strategic value. The House did not include formula distributions and instead allocated additional funds across-the-board. |
0 |
|
2. Michigan Public School Employees Retirement System (MPSERS) Health Costs. The Governor and Senate included funding from the School Aid Fund for the purpose of offsetting the increase in MPSERS retirement contributions owed by community colleges in FY 2012-13 attributable to the 0.25% increase in costs related to retiree health care. Table 2 provides an estimate of amounts that would be allocated to each community college, based on the FY 2010-11 community college MPSERS payroll, an inflationary adjustment, and the intended allocation methodology. Actual distributions will be based on the FY 2011-12 MPSERS payroll. The House included the appropriation but allocates the funds across-the-board instead of basing distributions on MPSERS payroll. |
0 |
|
3. School Aid Fund. The Senate shifts $96,516,400 from the State General Fund to the School Aid Fund, leaving no General Fund appropriation in the community college budget. The House did not include the funding shift. |
0 |
|
4. Renaissance Zone Reimbursements. The Senate included a placeholder for Renaissance Zone tax reimbursements pursuant to Public Act 376 of 1996. The House did not include this item. |
(100) |
|
5. Budget Format. The House included all additional funding in a separate appropriation unit, total of $10,250,000 ($8,516,400 the Governor recommended for performance funding, and $1,733,600 that the Governor recommended to offset a portion of MPSERS costs). The House allocated the entire increase as an across-the board adjustment to partially offset MPSERS costs, resulting in a 3.6% increase to each community college. |
0 |
|
($ 100) |
|
|
FY 2012-13 House-Passed Gross Appropriation.................................................................. |
$294,130,500 |
FY 2012-13 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS
|
Changes from FY 2012-13 Senate-Passed: |
|
1. Anticipated Appropriations Subsequent Fiscal Year. Boilerplate stating intent of the Legislature to provide the same level of appropriations for the next fiscal year, except that the line items will be adjusted after the January Consensus Revenue Estimating Conference for changes in caseload and related costs, Federal fund match rates, economic factors, and available revenue. The Governor replaced this section with actual line items for FY 2013-14. The Senate did not include line items and restored this section. House maintained language but changed Revenue Estimating Conference to May instead of January. (Sec. 201(a)) |
|
2. Payment Distribution Schedule. Provides for the payment of funds to colleges in eleven equal monthly payments. Provided for accrual of July and August payments. Withholds payments if Activities Classification Structure (ACS) data are not submitted by November 1. The Governor extended reasons for withholding funds to providing P-20 data and provided that the State Budget Director shall determine compliance with this section. The Senate concurred with the Governor and also added a notice requirement 10 days prior to withholding funds. House did not include notice requirement. (Sec. 206) |
|
3. Definition Section for Workforce Development Agency. Included by Governor and Senate. Deleted by House. (Sec. 202a) |
|
4. Transparency. Governor: Eliminated language requiring community colleges post on the Internet a comprehensive report categorizing all institutional General Fund expenditures by fiscal year, including a listing of all employee positions by position title, name, and annual salary. Subsection 2 requires report on budgeted revenue and expenditures. Senate: Revised by eliminating listing of names and salaries and added standard reporting on college website with additional information required including budget revisions, expenditures, employee costs, employee health care plans, links to collective bargaining agreements, enrollments, student retention, financial aid information, faculty to student ratios, graduation outcome rates, best practices, and also included penalty of withholding State aid payments for noncompliance. House: Restored section and added to the reporting requirements a listing of number of employees by position title with salary range, total number of full time faculty, total students enrolled, and the number of students receiving a degree in the most recent academic year. (Sec. 209) |
|
5. P-20 Longitudinal Data System. Requires community colleges receiving funds under this act to cooperate with the State to comply with the provisions of the American Recovery and Reinvestment Act (ARRA) of 2009 requiring the establishment of a statewide P-20 Longitudinal Data System. The Governor changed shall “cooperate” to shall “comply”. Removed reference to ARRA. Senate concurred with the Governor. House eliminated current year language and requires colleges to provide their longitudinal data system data set for the preceding academic year to CEPI by June 30 of each year. (Sec. 219) |
|
6. Student Academic Status. Requires community colleges, upon request, to inform interested Michigan high schools of the aggregate academic status of its students for the prior academic year, in a manner prescribed by the Michigan Community College Association and in cooperation with the Michigan Association of Secondary School Principals. The Governor and Senate modified this language by requiring community colleges to cooperate with CEPI to design and implement a system to accomplish this work. House did not include new language. (Sec. 224) |
|
7. Senate Restored Sections Deleted by the House. Governor and House deleted the following sections that the Senate restored: Depressed and Deprived intent (Sec. 205), compliance with JCOS use and finance requirements and penalty provisions (portion of Sec. 208), collaboration with four-year universities, local employers, and other community colleges (Sec. 210), purchase of foreign automobiles (Sec. 227), and intent that performance task force indicators be reviewed and more fully implemented for distribution of State funding in future years - the Senate modified this section to reflect FY 2012-13 adjustments to the formula (Sec. 230). |
|
8. House Restored Sections. House restored the following sections that were deleted by the Governor and Senate: Creates committee to develop a process to improve the transferability of core college courses between colleges and universities - House revises membership and adds report (Sec. 210(a)), intent for colleges to promote equal opportunity (Sec. 211), and review statutory mandates (Sec. 216). |
Date Completed: 04-30-12 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.