0273: CONFERENCE REPORT (9-15-05) - FY 2005-06 HIGHER EDUCATION BUDGET

FY 2005-06 HIGHER EDUCATION BUDGET S.B. 273 (CR-1): CONFERENCE REPORT

Amount Over/(Under) GF/GP Target: $5,800

Changes from FY 2004-05 Year-to-Date:
Items Included by the House and Senate
1. Agriculture Experiment Station (AES). The Governor reduced AES funding by 10.0%; the House and Senate retained the FY 2004-05 amount of $33,163,800.	0
2. Cooperative Extension Service (CES). The Governor reduced CES funding by 23.4%; the House and Senate retained the FY 2004-05 amount of $28,604,300.	0
3. Midwest Higher Education Compact. The Governor eliminated Michigan's membership dues in this 10-state compact; the House and Senate included the $90,000 annual dues.	(75,000)
4. State Competitive Scholarships. The Governor, House, and Senate reduced Federal funds to reflect the expected FY 2005-06 Federal contribution of $2.0 million; total funding would be $34.6 million.	(1,000,000)
Conference Agreement on Items of Difference
5. University Operations. The Governor retained the FY 2004-05 appropriations except for the transfer of $2.5 million in King-Chavez-Parks funding to a new program; the House used a formula to redistribute dollars to universities based on enrollment, degrees granted, and research; the Senate provided a funding floor of $3,750 per student and incentive funds for job placement, degrees granted, and research. The Conference Report included $2.5 million across-the-board for each university and $6.9 million each for the Senate funding floor and the House funding model.	16,351,700
6. National Charter Schools Institute. The Governor and House eliminated funding for this program operated by Central Michigan University; the Senate and Conference retained the $500,000.	0
7. King-Chavez-Parks Initiative. The Governor transferred $2.5 million from University Operations line-items and consolidated it with existing KCP grant funds of $2.7 million, into a new competitive grant program administered by DLEG; the House eliminated the entire $5.2 million KCP program; the Senate and Conference retained the FY 2004-05 KCP structure and $5.2 million in funding.	0
8. Collegiate Employment Research Institute. The Senate included $100,000 to collect job placement data for public university graduates; Governor, House, and Conference did not.	0
9. Michigan Tuition Grants. The Governor eliminated the $61.8 million program; the House reduced by $1.2 million; Senate/Conference reduced by $3.0 million and used $4.0 million in FY 2004-05 carry-forward funds as a replacement for GF/GP.	(3,000,000)
10. Work Study, Part-time Independent, and Education Opportunity Grants. The House eliminated; Governor, Senate, and Conference retained at FY 2004-05 total funding of $12.1 million.	0
11. Michigan Merit Awards. The Governor recommended a total of $121.0 million, the House $130.0 million, and the Senate $101.3 million. If no policy changes other than eliminating out-of-state awards are adopted, it is estimated that funding of $126.4 million would be required for FY 2005-06.	65,000,000
12. Tuition Incentive Program (TIP). The Governor, Senate, and Conference recommended an increase of $1.75 million due to caseload, for a total of $12.0 million; the House did not.	1,750,000
Total Changes	$79,026,700
FY 2005-06 Conference Report Gross Appropriation	$1,733,943,900

FY 2005-06 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Year to Date:

Items Included by the House and Senate

1. Appropriations Report from Fiscal Agencies. Governor deleted, Senate and House retained. (Sec. 212(3))

2. Tuition Tax Credit. Governor deleted notification requirement, Senate and House retained. (Sec. 214)

3. Payments for Financial Aid. Governor changed current 40/40/10/10% schedule to 25/25/25/25% for all programs except Work Study and Byrd Scholarships, Senate and House retained current schedule. (Sec. 308)

4. Douglas Lake. Governor deleted legislative intent to preserve research value, Senate/House retained. (Sec. 402)

5. HEIDI Advisory Committee. Governor deleted, Senate and House retained. (Sec. 405)

6. Lists of Required Textbooks. Governor deleted legislative intent for timely access by private bookstores/student groups and for ability of students to decide where to purchase textbooks, Senate and House retained. (Sec. 426)

7. Tuition Restraint. Pursuant to Executive Order 2005-7, Governor, House, and Senate added 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)

8. Michigan Public School Employees Retirement System (MPSERS). Governor deleted legislative intent to provide a subsidy for the MPSERS contribution rate; Senate and House retained with an amount of $3.96 million. (Sec. 437)

9. Tuition Revisions Report. Governor/House/Senate required if there are changes in any semester. (Sec. 440)

10. Student and Presidential Housing. Governor, House, and Senate deleted report requirement. (Sec. 460)

11. New Academic Programs. Senate/House added Presidents Council approved degrees for FY 2005-06. (Sec 701a)

12. FY 2003-04 Tuition Restraint. Governor, House, and Senate deleted. (Sec. 1201)

Conference Agreement on Items of Difference

13. State Spending to Local Units. Governor/House identified none, Senate/Conference retained current year estimate. (Sec. 201)

14. State Competitive Scholarships. Conference excluded veterans' benefits from eligibility determination. (Sec. 301(5))

15. Tuition Grants. Governor deleted program; House changed application deadline; Conference included deadlines of July 15, 2005, July 1, 2006, & June 15, 2007, and guarantee of no less than a $2,000 award. (Sec. 302)

16. Work Study. House deleted due to their elimination of program, Governor/Senate/Conference retained. (Sec. 303)

17. Tuition Incentive Program. Governor/Senate/Conference deleted funding carry-forward provision. (Sec. 310(11))

18. Nursing Scholarship and Grant Programs. Senate/Conference allowed for both to be funded. (Sec. 312)

19. Collegiate Employment Research Institute. Senate added data collection and reporting requirements for job placement and first destination information for students graduating from college; Conference deleted. (Sec. 406)

20. Funding Model Calculations. House/Conference added description of enrollment, degree, and research components (Sec. 418) and modified payment schedule to conform with model. (Sec. 212)

21. CMU's National Charter Schools Institute. Governor/House/Senate/Conference deleted language.

22. Per-Student Floor Funding. Governor/House deleted legislative intent to fund a $4,000 per-student floor; Senate added per-student funding floor of $3,750 for FY 2005-06, Conference used floor of $3,650. (Sec. 450)

23. University Revenue. Any State payments to universities pursuant to the FY 2004-05 State bookclosing process are recognized as FY 2005-06 university revenue. (Sec. 462)

24. King-Chavez-Parks. Governor consolidated current programs into one competitive grant program, eliminated specific allocations for universities, added eligibility for community colleges, and deleted eligibility for independent colleges; House eliminated all programs; Senate/Conference retained current year programs. (Secs. 501-507)

Date Completed: 9-15-05 Fiscal Analyst: Ellen Jeffries Bill Analysis @ http://www.senate.michigan.gov/sfa September 16, 2005 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. Ej\word\06hihed_cr