The bill would not require an increase in State aid. Unless a community college district were able to pass a voter-approved millage increase, growth in property tax revenue would not support the cost of new programs. The assumption is that tuition would be the main source of funding for baccalaureate programs at community colleges. To cover the higher costs of
granting baccalaureate degrees, if the cost of the baccalaureate programs exceed revenue from current tuition rates, a community college could charge a higher amount for the baccalaureate program, or provide for an overall increase in tuition for all programs. That decision would be up to each community college governing board. For 2011-12, the per credit/contact hour in-district tuition and fee rates at Michigan public community colleges range from $66.70 at Oakland Community College to $100.50 at Jackson Community College. The statewide unweighted average tuition and fee rate is $85.70. By comparison, the 2011-12 statewide unweighted average per credit hour tuition and fee rate at Michigan public universities for resident undergraduates is $347, and ranges from $261 at Saginaw Valley to $464 at Michigan Technological University.
The bill could affect how funding is allocated among Michigan's 28 public community colleges to the extent a formula is used to distribute funds in the future. Factors that would benefit colleges that added baccalaureate degrees include contact hours and degrees granted. The bill also could affect tuition revenue for universities, to the extent that it diverted students from universities to community college baccalaureate programs. It is not possible to estimate the extent to which the bill would provide educational opportunities to students who otherwise will not obtain a baccalaureate degree, compared to drawing future students from universities.
Fiscal Analyst: Bill Bowerman
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. 4496/1112