FY 2005-06 COMMUNITY COLLEGES BUDGET S.B. 266 (CR-1*): CONFERENCE REPORT







Amount Over/(Under) GF/GP Target: $ 0
FY 2004-05 Year-to-Date Gross Appropriation $280,827,400
Changes from FY 2004-05 Year-to-Date:
  Items Included by the Senate and House
  1. Renaissance Zone Reimbursements. The Governor recommended a 21% increase in program funds in anticipation of increased reimbursements to local units of government that have designated Renaissance Zones within their taxing districts. The Senate and House substitutes concur. 500,000
  2. At Risk Student Success Program. The Governor recommended continuation level funding of $3,322,700 for this categorical grant program designed to address the special needs of at risk students. Funds are distributed based on the proportion of developmental and preparatory contact hours provided by each college. The Senate and House substitutes concur. 0
Conference Agreement on Items of Difference
  3. Operations. The Governor recommended continuation level support for college operations from the current FY 2004-05 base amount which includes the 1.8% across the board reduction to college operations approved in Executive Order 2005-07. The Senate substitute made across-the-board reductions to each college's appropriation of 0.9%, or $2,554,800, in order to meet overall budget targets. In addition, General Fund support of $18,282,200 is replaced by the same amount from the School Aid Fund. The House substitute retained the Governor's recommended level of funding. The Conference Report adopts the House recommendations. 0
Total Changes 500,000
  FY 2005-06 Conference Report Gross Appropriation $281,327,400
FY 2005-06 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Year to Date:
  Items Included by the Senate and House
1. Tuition Restraint. The Governor did not recommend any form of tuition restraint for community colleges for FY 2005-06. Consequently, current-year language that describes the program's parameters was removed. The House and Senate substitutes concur. (Sec. 207).
2. Entrepreneurship Curriculum. The Governor retains existing language encouraging the Department of Labor and Economic Growth to work with colleges to develop an accelerated entrepreneurship curriculum. The House adds a reporting section. The Senate substitute concurs. (Sec. 208).
3. Buy American/Buy Michigan. The Governor recommends current year language encouraging colleges to buy Michigan and American made products where available, with minor edits to make the language standard with other similar boilerplate. The House and Senate substitute concurs. (Sec. 209).
4. At Risk Payment Schedule. The Governor recommends changing the current distribution of these funds from a single payment on November 1 to 11 equal payments throughout the year similar to the operations payment schedule. The House retains current schedule, which is payment in full by November 1. The Senate substitute concurs. (Sec 211).
5. Abortion Coverage in Employee Health Insurance. The Governor deletes language that prohibits the use of State funds for health insurance that includes abortion services for college employees. The House and Senate substitute retain current language. (Sec. 230).
6. Benefits for Unmarried Partners. The Governor deletes language that prohibits the use of State appropriations to provide benefits to unmarried partners of college employees. The House and Senate substitute retain current language. (Sec. 231).
7. Payments in Lieu of Taxes. The Governor deletes current language that creates a workgroup to evaluate and make recommendations regarding the possibility of state payments in lieu of taxes to community colleges whose districts contain state-owned land. The House includes federal, local, or otherwise nontaxable land, and adds a reporting requirement due by March 1. The Senate substitute concurs. (Sec. 237).
Conference Agreement on Items of Difference
8. Deprived and Depressed. The Governor and Senate substitute retain current-year language that encourages colleges to do business in deprived and depressed communities. The House does not include this language. The Conference Report includes the language. (Sec. 210).
9. Performance Indicators Task Force. The House adds new language that creates a 13-member workgroup to develop performance indicators that will be used to determine all, or part, of future budgets for community colleges. The Senate substitute does not include this language. The Conference Report includes the language, but reduces the membership to 8; 4 legislators, 4 community college representatives. (Sec. 242).
10. Nursing Education Programs. The Senate substitute includes new language encouraging colleges to expand nursing education programs by creating partnerships with health care providers, expanding the scope of the nursing scholarships program and redirecting existing resources. The Conference Report includes the language. (Sec. 241).
11. Audits. The House increases the number of random audits conducted by the Auditor General of Activities Classification Structure (ACS) data, from 7, to 7-10. The Senate substitute retains 7. The Conference Report retains 7.
12. Parity Intent Language. The Conference Committee included new language stating legislative intent that if there is additional FY 2005-06 revenues determined at the January 2006 consensus revenue estimating conference, the legislature will review the possibility of providing an increase of up to $3.2 million for community colleges. (Sec. 243).
13. FY 2004-05 Book Closing Revenue. The Conference Committee included new language that indicates that the appropriations in the bill are in addition to the revenue colleges may receive from revenue that may be available at the State's FY 2004-05 book closing, and should recognize this revenue in the college's 2005-06 fiscal year.

Date Completed: 09-15-05 Fiscal Analyst: Mike Hansen Bill Analysis @ http://www.senate.michigan.gov/sfa September 19, 2005 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiccl_cr.doc