HOUSE BILL No. 4350

 

 

EXECUTIVE BUDGET BILL

 

February 28, 2007, Introduced by Rep. Byrnes and referred to the Committee on Appropriations.

 

†††† A bill to make appropriations for the state institutions of

 

higher education and certain state purposes related to education

 

for the fiscal year ending September 30, 2008; to provide for the

 

expenditures of those appropriations; and to prescribe the powers

 

and duties of certain state departments, institutions, agencies,

 

employees, and officers.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

†††† Sec. 101. Subject to the conditions set forth in this bill,

 

the amounts listed in this part are appropriated for higher

 

education for the fiscal year ending September 30, 2008, from the

 

funds indicated in this part.† The following is a summary of the

 


appropriations in this part:

 

HIGHER EDUCATION

 

APPROPRIATION SUMMARY:

 

†† Full-time equated classified positions............ 1.0

 

GROSS APPROPRIATION.................................... $††† 852,644,400

 

†† Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

†† transfers............................................ ††††††††††††††† 0

 

ADJUSTED GROSS APPROPRIATION........................... $††† 852,644,400

 

†† Federal revenues:

 

Total federal revenues................................. ††††††† 6,000,000

 

†† Special revenue funds:

 

Total local revenues................................... ††††††††††††††† 0

 

Total private revenues................................. ††††††††††††††† 0

 

Total other state restricted revenues.................. ††††† 125,800,000

 

State general fund/general purpose..................... $††† 720,844,400

 

†† Sec. 102. CENTRAL MICHIGAN UNIVERSITY

 

Operations............................................. $†††† 84,443,300

 

GROSS APPROPRIATION.................................... $†††† 84,443,300

 

††† Appropriated from:

 

†† Special revenue funds:

 

Michigan merit award trust fund........................ ††††††††† 538,400

 

State general fund/general purpose..................... $†††† 83,904,900

 

†† Sec. 103. EASTERN MICHIGAN UNIVERSITY

 

Operations............................................. $†††† 80,122,900

 

GROSS APPROPRIATION.................................... $†††† 80,122,900

 

††† Appropriated from:

 


†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 80,122,900

 

†† Sec. 104. FERRIS STATE UNIVERSITY

 

Operations............................................. $†††† 51,296,200

 

GROSS APPROPRIATION.................................... $†††† 51,296,200

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 51,296,200

 

†† Sec. 105. GRAND VALLEY STATE UNIVERSITY

 

Operations............................................. $†††† 66,417,600

 

GROSS APPROPRIATION.................................... $†††† 66,417,600

 

††† Appropriated from:

 

†† Special revenue funds:

 

Michigan merit award trust fund........................ ††††††† 5,000,000

 

State general fund/general purpose..................... $†††† 61,417,600

 

†† Sec. 106. LAKE SUPERIOR STATE UNIVERSITY

 

Operations............................................. $†††† 13,251,600

 

GROSS APPROPRIATION.................................... $†††† 13,251,600

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 13,251,600

 

†† Sec. 107. MICHIGAN TECHNOLOGICAL UNIVERSITY

 

Operations............................................. $†††† 50,449,800

 

GROSS APPROPRIATION.................................... $†††† 50,449,800

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 50,449,800

 


†† Sec. 108. NORTHERN MICHIGAN UNIVERSITY

 

Operations............................................. $†††† 47,559,400

 

GROSS APPROPRIATION.................................... $†††† 47,559,400

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 47,559,400

 

†† Sec. 109. OAKLAND UNIVERSITY

 

Operations............................................. $†††† 53,719,200

 

GROSS APPROPRIATION.................................... $†††† 53,719,200

 

††† Appropriated from:

 

†† Special revenue funds:

 

Michigan merit award trust fund........................ ††††††† 1,941,800

 

State general fund/general purpose..................... $†††† 51,777,400

 

†† Sec. 110. SAGINAW VALLEY STATE UNIVERSITY

 

Operations............................................. $†††† 29,596,400

 

GROSS APPROPRIATION.................................... $†††† 29,596,400

 

††† Appropriated from:

 

†† Special revenue funds:

 

Michigan merit award trust fund........................ ††††††† 2,019,800

 

State general fund/general purpose..................... $†††† 27,576,600

 

†† Sec. 111. UNIVERSITY OF MICHIGAN - DEARBORN

 

Operations............................................. $ †††† 26,093,000

 

GROSS APPROPRIATION.................................... $†††† 26,093,000

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 26,093,000

 

†† Sec. 112. UNIVERSITY OF MICHIGAN - FLINT

 


Operations............................................. $†††† 22,058,300

 

GROSS APPROPRIATION.................................... $†††† 22,058,300

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 22,058,300

 

†† Sec. 113. WESTERN MICHIGAN UNIVERSITY

 

Operations............................................. $††† 115,698,300

 

GROSS APPROPRIATION.................................... $††† 115,698,300

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $††† 115,698,300

 

†† Sec. 114. SUPPLEMENTAL PAYMENT

 

One-time supplemental payment ......................... $†††† 28,412,600

 

GROSS APPROPRIATION.................................... $†††† 28,412,600

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $†††† 28,412,600

 

†† Sec. 115. STATE AND REGIONAL PROGRAMS

 

††† Full-time equated positions...................... 1.0††††††††††††††††

 

Higher education database modernization and

 

†† conversion--1.0 FTE position......................... $††††††† 200,000

 

Midwestern higher education compact.................... ††††††††† 90,000

 

GROSS APPROPRIATION.................................... $††††††† 290,000

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $††††††† 290,000

 

†† Sec. 116. MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA

 


PARKS PROGRAM

 

Select student supportive services..................... $††††† 1,956,100

 

Michigan college/university partnership program........ ††††††††† 586,800

 

Morris Hood, Jr. educator development program.......... †††††††† 148,600

 

GROSS APPROPRIATION.................................... $††††† 2,691,500

 

††† Appropriated from:

 

†† Special revenue funds:

 

State general fund/general purpose..................... $††††† 2,691,500

 

†† Sec. 117. GRANTS AND FINANCIAL AID

 

State competitive scholarships......................... $†††† 34,130,500

 

Michigan work-study program............................ ††††††† 7,326,300

 

Part-time independent student program.................. ††††††† 2,653,300

 

Michigan education opportunity grants.................. ††††††† 2,084,200

 

Robert C. Byrd honors scholarship program.............. ††††††† 1,500,000

 

Nursing scholarship and grant programs................. ††††††† 4,250,000

 

Michigan merit award program........................... †††††† 60,000,000

 

Michigan promise grant program......................... †††††† 43,500,000

 

Tuition incentive program.............................. †††††† 21,100,000

 

Children of veterans tuition grant program............. ††††††† 1,000,000

 

Project gear-up........................................ †††††† 3,000,000

 

GROSS APPROPRIATION.................................... $††† 180,544,300

 

††† Appropriated from:

 

†† Federal revenues:

 

Higher education act of 1965, title IV, 20 USC......... ††††††† 1,500,000

 

Higher education act of 1965, title IV, part A......... ††††††† 1,500,000

 

United States department of education, office of

 

†† elementary and secondary education, gear-up.......... ††††††† 3,000,000

 


†† Special revenue funds:

 

Michigan merit award trust fund........................ ††††† 114,100,000

 

Michigan higher education assistance authority

 

†† operating fund....................................... ††††††† 1,200,000

 

Contributions to children of veterans tuition grant

 

†† program.............................................. ††††††† 1,000,000

 

State general fund/general purpose..................... $†††† 58,244,300

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

†††† Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2007-2008 is $846,644,400.00 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2007-2008 is $3,759,100.00.† The

 

itemized statement below identifies the estimated appropriations

 

from which spending to local units of government will occur:

 

Part-time independent student program.................. $††††† 1,255,700

 

Michigan education opportunity grant................... ††††††††† 932,900

 

Michigan work-study.................................... †††††† 1,570,500

 

TOTAL.................................................. $††††† 3,759,100

 

†††† Sec. 202. The appropriations authorized under this bill are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

†††† Sec. 208. Unless otherwise specified, the institutions of

 


higher education receiving appropriations in part 1 shall use the

 

Internet to fulfill the reporting requirements of this bill.† This

 

requirement may include transmission of reports via electronic mail

 

to the recipients identified for each reporting requirement, or it

 

may include placement of reports on an Internet or Intranet site.

 

†††† Sec. 209. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods and

 

services, or both, are available.† Preference should be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

value.

 

†††† Sec. 212. (1) The funds appropriated in part 1 to state

 

institutions of higher education, except for the one-time

 

supplemental payment, shall be paid out of the state treasury and

 

distributed by the state treasurer to the respective institutions

 

in 11 monthly installments on the sixteenth of each month, or the

 

next succeeding business day, beginning with October 16, 2007.†

 

Each institution shall accrue its July and August 2008 payments to

 

its institutional fiscal year ending June 30, 2008.

 

†††† (2) The funds appropriated in part 1 to state institutions of

 

higher education for the one-time supplemental payment shall be

 

paid out of the state treasury and distributed by the state

 

treasurer to the respective institutions on October 16, 2007.† Each

 

state institution of higher education shall accrue this payment to

 

its institutional fiscal year ending June 30, 2007.†

 

†††† (3) All universities receiving appropriation in part 1 shall

 


submit higher education institutional data inventory (HEIDI) data

 

and associated financial and program information requested by and

 

in a manner prescribed by the state budget director by October 15,

 

2007.† If a university fails to submit HEIDI data and associated

 

financial aid program information in accordance with this reporting

 

schedule, the state treasurer shall withhold the monthly

 

installments under subsection (1) to the university until those

 

data are submitted.

 

†††† Sec. 213. Funds received by the state from the federal

 

government or private sources for the use of a college or

 

university are appropriated for the purposes for which they are

 

provided.† The acceptance and use of federal or private funds do

 

not place an obligation upon the legislature to continue the

 

purposes for which the funds are made available.

 

†††† Sec. 214. If section 274 of the income tax act of 1967, 1967

 

PA 281, MCL 206.274, is not repealed and if a state institution of

 

higher education that receives funds under this bill notifies the

 

department of treasury regarding its tuition and fee rates in order

 

to qualify as an eligible institution for the Michigan tuition tax

 

credit under section 274 of the income tax act of 1967, 1967 PA

 

281, MCL 206.274, the institution shall also submit the

 

notification and applicable documentation of tuition and fee

 

changes to the house and senate fiscal agencies.

 

†††† Sec. 215. A state institution of higher education that

 

receives funds under this bill shall furnish all program and

 

financial information that is required by and in a manner

 

prescribed by the state budget director or the house or senate

 


appropriations committee.

 

 

 

GRANTS AND FINANCIAL AID

 

†††† Sec. 301. (1) Payments of the amounts included in part 1 for

 

the state competitive scholarship program shall be distributed

 

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

 

†††† (2) The Michigan higher education assistance authority shall

 

implement a proportional competitive scholarship maximum award

 

level for recipients enrolled less than full-time in a given

 

semester or term.

 

†††† (3) If a student who receives an award under this section has

 

his or her tuition and fees paid under the Michigan educational

 

trust program, pursuant to the Michigan education trust act, 1986

 

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

 

funds awarded under this section may be used for educational

 

expenses other than tuition and fees.

 

†††† (4) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided

 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants.† Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards.

 

†††† (5) Students who receive aid under 1964 PA 208, MCL 390.971 to

 

390.981, shall be awarded scholarships on the basis of merit and

 

financial need.† Veterans administration benefits shall not be

 

considered in determining eligibility under 1964 PA 208, MCL

 


390.971 to 390.981.

 

†††† Sec. 303. (1) Included in the appropriation in part 1 is

 

funding for the Michigan work-study program established under 1986

 

PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to

 

390.1332.† An effort should be made by each institution

 

participating in the Michigan work-study program to assure that not

 

less than 10 percent of those undergraduate, graduate, and

 

professional students eligible to participate in the program are

 

placed with for-profit employers no later than December 31 of each

 

year for which funding is provided under this bill.

 

†††† (2) The Michigan higher education assistance authority shall

 

allocate funds to institutions eligible for work-study money based

 

upon each institution's specific Pell grant index and each

 

institution's utilization rate of work-study funds for the 3 most

 

recent years for which statistics are available.

 

†††† (3) The Michigan higher education assistance authority shall

 

set aside not more than 5 percent of the total work-study

 

appropriation to process requests from participating institutions

 

for allocation adjustments.† Allocation adjustments shall be based

 

on criteria set by the authority prior to making the allocations

 

under subsection (2).

 

†††† Sec. 307. The auditor general may audit selected enrollments,

 

degrees, and awards at selected independent colleges and

 

universities receiving awards administered by the department of

 

treasury.† The audits shall be based upon definitions and

 

requirements established by the Michigan higher education

 

assistance authority, the state budget director, and the senate and

 


house fiscal agencies.† The auditor general shall accept the Free

 

Application for Federal Student Aid (FAFSA) form as the standard of

 

residency documentation.† The auditor general shall submit a report

 

of findings to the senate and house appropriations committees and

 

state budget director by May 1, 2008.

 

†††† Sec. 308. The sums appropriated in part 1 for the student

 

financial aid programs shall be paid out of the state treasury and

 

shall be distributed to the respective institutions under a

 

quarterly payment system as follows:

 

†††† (a) For the state competitive scholarship, nursing

 

scholarship, and tuition incentive programs, 40 percent shall be

 

paid at the beginning of the state's first fiscal quarter, 40

 

percent at the beginning of the state's second fiscal quarter, l0

 

percent at the beginning of the state's third fiscal quarter, and

 

l0 percent at the beginning of the state's fourth fiscal quarter.

 

†††† (b) For the work-study program, payments shall be made in 11

 

monthly installments from October 1 to August 31 of any year.

 

†††† (c) For the part-time independent student program and the

 

Michigan education opportunity grant program, 50 percent shall be

 

paid at the beginning of the state's first fiscal quarter, 25

 

percent at the beginning of the state's second fiscal quarter, and

 

25 percent at the beginning of the state's third fiscal quarter.

 

†††† (d) For the Robert C. Byrd honors scholarship program, 50

 

percent shall be paid at the beginning of the state's first fiscal

 

quarter and 50 percent at the beginning of the state's second

 

fiscal quarter.

 

†††† Sec. 309. The Michigan higher education assistance authority

 


shall determine the needs analysis criteria for students to qualify

 

for the state competitive scholarship program.† To be consistent

 

with federal requirements, student wages may be taken into

 

consideration when determining the amount of the award.

 

†††† Sec. 310. (1) The funds appropriated in part 1 for the tuition

 

incentive program shall be distributed as provided in this section

 

and pursuant to the administrative procedures for the tuition

 

incentive program of the department of treasury.

 

†††† (2) As used in this section:

 

†††† (a) "Phase I" means the first part of the tuition incentive

 

assistance program defined as the academic period of 80 semester or

 

120 term credits, or less, leading to an associate degree or

 

certificate.

 

†††† (b) "Phase II" means the second part of the tuition incentive

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

†††† (c) "Department" means the department of treasury.

 

†††† (3) A person shall meet the following basic criteria and

 

financial thresholds to be eligible for tuition incentive benefits:

 

†††† (a) To be eligible for phase I, a person shall meet all of the

 

following criteria:

 

†††† (i) Apply for certification to the department before

 

graduating from high school or completing the general education

 

development (GED) certificate.

 

†††† (ii) Be less than 20 years of age at the time of high school

 

graduation or GED completion.

 

†††† (iii) Be a United States citizen and a resident of Michigan

 


according to institutional criteria.

 

†††† (iv) Be at least a half-time student, earning less than 80

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or GED

 

certificate completion.

 

†††† (v) Request information on filing a FAFSA.

 

†††† (b) To be eligible for phase II, a person shall meet either of

 

the following criteria in addition to the criteria in subdivision

 

(a):

 

†††† (i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

†††† (ii) Obtain an associate degree or certificate at a

 

participating institution.

 

†††† (c) To be eligible for phase I or phase II, a person must be

 

financially eligible as determined by the department. A person is

 

financially eligible for the tuition incentive program if that

 

person was Medicaid eligible for 24 months within the 36 months

 

before application. Certification of eligibility may begin in the

 

sixth grade.

 

†††† (4) For phase I, the department shall provide payment on

 

behalf of a person eligible under subsection (3). The department

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.

 

†††† (5) For phase I, all of the following apply:

 

†††† (a) Payments for associate degree or certificate programs

 

shall not be made for more than 80 semester or 120 term credits for

 

any individual student at any participating institution.

 


†††† (b) For persons enrolled at a Michigan community college, the

 

department shall pay the current in-district tuition and mandatory

 

fees.† For persons residing in an area that is not included in any

 

community college district, the out-of-district tuition rate may be

 

authorized.

 

†††† (c) For persons enrolled at a Michigan public university, the

 

department shall pay lower division resident tuition and mandatory

 

fees for the current year.

 

†††† (d) For persons enrolled at a Michigan independent, nonprofit

 

degree-granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college

 

in-district per-credit tuition rate as reported on August 1, for

 

the immediately preceding academic year.

 

†††† (6) A person participating in phase II may be eligible for

 

additional funds not to exceed $500.00 per semester or $400.00 per

 

term up to a maximum of $2,000.00 subject to the following

 

conditions:

 

†††† (a) Credits are earned in a 4-year program at a Michigan

 

degree-granting 4-year college or university.

 

†††† (b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.

 

†††† (7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 

determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 


met.

 

†††† (8) Applications for the tuition incentive program may be

 

approved at any time after the student begins the sixth grade. If a

 

determination of financial eligibility is made, that determination

 

is valid as long as the student meets all other program

 

requirements and conditions.

 

†††† (9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing

 

the tuition incentive program for any portion of a student's

 

tuition and fees.

 

†††† (10) The department shall ensure that the tuition incentive

 

program is well publicized and that potentially eligible Medicaid

 

clients are provided information on the program.† The department

 

shall provide the necessary funding and staff to fully operate the

 

program.

 

†††† (11) A person eligible for the tuition incentive program must

 

not be enrolled in an institution whose primary purpose is to

 

prepare students for ordination or appointment as a member of the

 

clergy of a church, denomination, or religious association, order,

 

or sect.

 

†††† Sec. 311. To enable the legislature and the state budget

 

director to evaluate the appropriation needs of higher education,

 

each independent college and university shall make available to the

 

legislature or state budget director, upon request, data regarding

 

grants for the preceding, current, and ensuing fiscal years.

 

†††† Sec. 312. From the funds appropriated in part 1 for nursing

 

scholarship and grant programs, the Michigan higher education

 


assistance authority shall administer any nursing scholarship or

 

nursing school grant programs authorized under the Michigan nursing

 

scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.

 

†††† Sec. 314. By December 1 of each year, the Michigan higher

 

education assistance authority shall submit a report to the state

 

budget director, the house and senate appropriations subcommittees

 

on higher education, and the house and senate fiscal agencies for

 

the preceding fiscal year on the children of veterans tuition grant

 

program. The report shall include, but is not limited to, the total

 

number of tuition grants paid by the authority in the preceding

 

fiscal year, the total dollar amount of those tuition grants, and

 

the number of students receiving tuition grants and the total

 

amount of those tuition grants at each eligible institution.

 

 

 

STATE UNIVERSITIES

 

†††† Sec. 405. The funds appropriated in part 1 for higher

 

education database modernization and conversion shall be expended

 

to maintain, coordinate, and improve the higher education

 

institutional data inventory (HEIDI) established under section 1299

 

of the management and budget act, 1984 PA 431, MCL 18.1299. The

 

advisory committee established under that section shall meet

 

regularly to review data definitions and requirements in order to

 

advise the state budget director regarding changes to those

 

definitions and requirements that would result in more useful and

 

reliable data being provided to state policymakers and university

 

officials.

 

†††† Sec. 436. If any Michigan public university increases its

 


resident undergraduate tuition and required fees from academic year

 

2006-2007 to academic year 2007-2008, that university shall

 

increase its fiscal year 2007-2008 general fund expenditures for

 

student financial aid by at least the same percentage as the

 

percentage change in resident undergraduate tuition and required

 

fees.† Each public university shall report its proposed fiscal year

 

2007-2008 general fund expenditures for student financial aid

 

compared to its projected fiscal year 2006-2007 general fund

 

expenditures for student financial aid, and its projected academic

 

year 2007-2008 resident undergraduate tuition and required fee

 

changes from academic year 2006-2007, to the state budget director

 

and the house and senate appropriations subcommittees on higher

 

education by November 15, 2007.

 

†††† Sec. 440. All universities shall submit the amount of tuition

 

and fees actually charged to a full-time resident undergraduate

 

student for academic year 2007-2008 as part of their higher

 

education institutional data inventory (HEIDI) data by August 31,

 

2007.† A university shall report any revisions for any semester of

 

the reported academic year 2007-2008 tuition and fee charges to

 

HEIDI within 15 days of being adopted.

 

†††† Sec. 461. From the amount appropriated in part 1 to Lake

 

Superior State University for operations, $100,000.00 shall be paid

 

to Bay Mills Community College for the costs of waiving tuition for

 

North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

 

 

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

 

†††† Sec. 501. (1) Included in the appropriation for each public

 


university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks future faculty program, that is intended

 

to increase the pool of minority candidates pursuing faculty

 

teaching careers in postsecondary education.† Each university shall

 

apply the percentage change applicable to every university in the

 

calculation of appropriations in part 1 to the amount of funds

 

allocated to the future faculty program.

 

†††† (2) The program shall be administered by each university in a

 

manner prescribed by the Michigan department of labor and economic

 

growth.† The Michigan department of labor and economic growth shall

 

use a good faith effort standard to evaluate whether a fellowship

 

is in default.

 

†††† Sec. 502. (1) Included in the appropriation for each public

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks college day program that is intended to

 

introduce schoolchildren underrepresented in postsecondary

 

education to the potential of a college education.

 

†††† (2) Individual program plans of each university shall include

 

a budget of equal contributions from this program, the

 

participating public university, the participating school district,

 

and the participating independent degree-granting college. College

 

day funds shall not be expended to cover indirect costs.† Not more

 

than 20 percent of the university match shall be attributable to

 

indirect costs.† Each university shall apply the percentage change

 

applicable to every university in the calculation of appropriations

 

in part 1 to the amount of funds allocated to the college day

 

program.

 


†††† (3) The program shall be administered by each university in a

 

manner prescribed by the Michigan department of labor and economic

 

growth.

 

†††† Sec. 503. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks select student support

 

services program for developing academically and economically

 

disadvantaged student retention programs for 4-year public and

 

independent educational institutions in this state.

 

†††† (2) An award made under this program to any 1 institution

 

shall not be greater than $150,000.00, and the amount awarded shall

 

be matched on a 70 percent state, 30 percent college or university

 

basis.

 

†††† (3) The program shall be administered by the Michigan

 

department of labor and economic growth.

 

†††† Sec. 504. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

 

partnership program between 4-year public and independent colleges

 

and universities and public community colleges, which is intended

 

to increase the number of academically and economically

 

disadvantaged students who transfer from community colleges into

 

baccalaureate programs.

 

†††† (2) The grants shall be made under this program to Michigan

 

public and independent colleges and universities.† An award to any

 

1 institution shall not be greater than $150,000.00, and the amount

 

awarded shall be matched on a 70 percent state, 30 percent college

 

or university basis.

 

†††† (3) The program shall be administered by the Michigan

 


department of labor and economic growth.

 

†††† Sec. 505. (1) Included in the appropriation for each public

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks visiting professors program which is

 

intended to increase the number of underrepresented minority

 

instructors in the classroom and provide role models for

 

underrepresented minority students.

 

†††† (2) The program shall be administered by the Michigan

 

department of labor and economic growth.

 

†††† Sec. 506. (1) Included in the appropriation in part 1 is

 

funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

 

Parks initiative for the Morris Hood, Jr. educator development

 

program which is intended to increase the number of minority

 

students, especially males, who enroll in and complete K-12 teacher

 

education programs at the baccalaureate level.

 

†††† (2) The program shall be administered by each state-approved

 

teacher education institution in a manner prescribed by the

 

Michigan department of labor and economic growth.

 

†††† (3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program.

 

†††† Sec. 507. Each state institution of higher education receiving

 

funds under section 503, 504, or 506 shall notify the Michigan

 

department of labor and economic growth by April 15, 2008 as to

 

whether it will expend by the end of its fiscal year the funds

 

received under section 503, 504, or 506. Notwithstanding the award

 


limitations in sections 503 and 504, the amount of funding reported

 

as not being expended will be reallocated to the institutions that

 

intend to expend all funding received under section 503, 504, or

 

506.

 

 

 

STUDENT PERFORMANCE REPORTING

 

†††† Sec. 601. (1) From the amount appropriated in part 1 for state

 

universities, the state universities shall systematically inform

 

Michigan high schools regarding the academic status of students

 

from each high school in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan association of secondary school principals.

 

†††† (2) The Michigan high schools shall systematically inform the

 

state universities about the use of information received under this

 

section in a manner prescribed by the Michigan association of

 

secondary school principals in cooperation with the presidents

 

council, state universities of Michigan.

 

†††† Sec. 602. From the amount appropriated in part 1 for state

 

universities, the state universities shall inform Michigan

 

community colleges regarding the academic status of community

 

college transfer students in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan community college association.

 

 

 

GENERAL REPORTS AND AUDITS

 

†††† Sec. 701. (1) The auditor general shall review higher

 

education institutional data inventory (HEIDI) enrollment data

 


submitted by all public universities and may perform audits of

 

selected public universities if determined necessary.† The review

 

and audits shall be based upon the definitions, requirements, and

 

uniform reporting categories established by the state budget

 

director and the senate and house fiscal agencies.† The auditor

 

general shall submit a report of findings to the house and senate

 

appropriations committees and the state budget director no later

 

than July 1, 2008.

 

†††† (2) Student credit hours reports shall not include the

 

following:

 

†††† (a) Student credit hours generated through instructional

 

activity by faculty or staff in classrooms located outside

 

Michigan, with the exception of instructional activity related to

 

study-abroad programs or field programs.

 

†††† (b) Student credit hours generated through distance learning

 

instruction for students not eligible for the institutionís in-

 

state main campus resident tuition rate.

 

†††† (c) Student credit hours generated through credit by

 

examination.

 

†††† (d) Student credit hours generated through inmate prison

 

programs regardless of teaching location.

 

†††† (e) Student credit hours generated in new degree programs

 

after January 1, 1975, that have not been specifically authorized

 

for funding by the legislature, except spin-off programs converted

 

from existing core programs that do all of the following:

 

†††† (i) Represent new options, fields, or concentrations within

 

existing programs.

 


†††† (ii) Are consistent with the current institutional role and

 

mission.

 

†††† (iii) Are accommodated within the continuing funding base of

 

the institution.

 

†††† (iv) Do not require a new degree level beyond that which the

 

institution is currently authorized to grant within that discipline

 

or field.

 

†††† (v) Do not require funding from the state other than that

 

provided by the student credit hours generated within the program,

 

either before program initiation or within the first 3 years of

 

program operation.

 

†††† (3) The auditor general shall periodically audit higher

 

education institutional data inventory (HEIDI) data as submitted by

 

the state universities for compliance with the definitions approved

 

by the HEIDI advisory committee for the HEIDI database.

 

†††† (4) "Distance learning instruction" as used in subsection (2)

 

means instruction that occurs solely in other than a traditional

 

classroom setting where the student and instructor are in the same

 

physical location and for which a student receives course credits

 

and is charged tuition and fees. Examples of distance learning

 

instruction are instruction delivered solely through the Internet,

 

cable television, teleconference, or mail.

 

†††† Sec. 702. The principal executive officer of each institution

 

of higher education receiving an appropriation under this bill

 

shall expend a portion of the funds appropriated to that

 

institution to make a report to the auditor general, the house and

 

senate fiscal agencies, and the state budget director within 60

 


days after the auditor general issues his or her report on the

 

operation of the institution.† The institution's report shall

 

specify all of the following:

 

†††† (a) The recommendations of the auditor general implemented by

 

the institution, including projected dates and resources required,

 

if any, to achieve compliance.

 

†††† (b) The recommendations of the auditor general not implemented

 

by the institution or implemented by the institution as modified.

 

†††† (c) The rationale for not implementing a recommendation of the

 

auditor general or of implementing a recommendation as modified.

 

†††† Sec. 708. The auditor general may conduct performance audits

 

of state universities during the fiscal year ending September 30,

 

2008 as the auditor general considers necessary.

 

†††† Sec. 709. An institution receiving funds under this bill and

 

also subject to the student right-to-know and campus security act,

 

Public Law 101-522, 104 Stat. 2381, shall make a copy of all

 

material prepared pursuant to the public information reporting

 

requirements under the crime awareness and campus security act of

 

1990, title II of the student right-to-know and campus security

 

act, Public Law 101-542, 104 Stat. 2381, available in electronic

 

Internet format on their websites.