EXECUTIVE BUDGET BILL
February 21, 2007, Introduced by Senators SWITALSKI and SCHAUER and referred to the Committee on Appropriations.
A bill to make appropriations for Michigan State University,
University of Michigan – Ann Arbor, and Wayne State University 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 Michigan State
University, University of Michigan – Ann Arbor, and Wayne State
University 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:
RESEARCH UNIVERSITIES
APPROPRIATION SUMMARY:
GROSS APPROPRIATION.................................... $ 960,268,300
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 960,268,300
Federal revenues:
Total federal revenues................................. 0
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 960,268,300
Sec. 102. MICHIGAN STATE UNIVERSITY
Operations............................................. $ 299,490,100
Agricultural experiment station........................ 33,827,100
Cooperative extension service.......................... 26,520,700
GROSS APPROPRIATION.................................... $ 359,837,900
Appropriated from:
State general fund/general purpose..................... $ 359,837,700
Sec. 103. UNIVERSITY OF MICHIGAN - ANN ARBOR
Operations............................................. $ 333,941,200
GROSS APPROPRIATION.................................... $ 333,941,200
Appropriated from:
State general fund/general purpose..................... $ 333,941,200
Sec. 104. WAYNE STATE UNIVERSITY
Operations............................................. $ 225,533,800
GROSS APPROPRIATION.................................... $ 225,533,800
Appropriated from:
State general fund/general purpose..................... $ 225,533,800
Sec. 105. SUPPLEMENTAL PAYMENT
One-time supplemental payment.......................... $ 40,955,400
GROSS APPROPRIATION.................................... $ 40,955,400
Appropriated from:
State general fund/general purpose..................... $ 40,955,400
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 $960,268,300.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2007-2008 is $0.00.
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. 203. 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. 204. 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. 205. (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.
Except for Wayne State University, 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.
Except for Wayne State University, each state institution of higher
education shall accrue this payment to its institutional fiscal
year ending June 30, 2007. Wayne State University shall accrue
this payment to its institutional fiscal year ending September 30,
2007.
(3) All universities receiving appropriations 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. For
universities with fiscal years ending June 30, 2007, these data
shall be submitted to the state budget director by October 15,
2007. Universities with a fiscal year ending September 30, 2007
shall submit preliminary HEIDI data by November 15, 2007 and final
data by December 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. 206. Funds received by the state from the federal
government or private sources for the use of a university receiving
appropriations in part 1 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. 207. 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 appropriations under part 1 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. 208. A state institution of higher education that
receives appropriations under part 1 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.
STATE UNIVERSITIES
Sec. 301. (1) Included in part 1 is $2,953,400.00 for the
agricultural experiment station and $2,619,000.00 for the
cooperative extension service for project GREEEN. Project GREEEN is
intended to address critical regulatory, food safety, economic, and
environmental problems faced by this state's plant-based
agriculture, forestry, and processing industries. "GREEEN" is an
acronym for generating research and extension to meet environmental
and economic needs.
(2) The department of agriculture and Michigan State
University, in consultation with agricultural commodity groups and
other interested parties, shall develop project GREEEN and its
program priorities.
(3) Not later than September 30, 2008, a report shall be
submitted by Michigan State University to the state budget
director, the house and senate appropriations subcommittees on
agriculture and on higher education, and the house and senate
fiscal agencies for the preceding fiscal year regarding project
GREEEN projects. The report shall include, but is not limited to,
the dollar amount of each project and a review of each project's
performance and accomplishments.
Sec. 302. If any Michigan public university receiving
appropriations under part 1 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. 303. All universities receiving appropriations under part
1 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. 304. (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. 305. (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% 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. 306. (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.
STUDENT PERFORMANCE REPORTING
Sec. 401. (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. 402. 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. 501. (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 institution’s 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. 502. The principal executive officer of each institution
of higher education receiving an appropriation under part 1 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. 503. 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. 504. An institution receiving an appropriation under part
1 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.
Sec. 505. Not later than February 1, 2008, each of Michigan's
public universities receiving appropriations in part 1 shall submit
to the state budget director and the house and senate fiscal
agencies a report on the following:
(a) The number of students who graduated from the university
in academic year 2005-2006 and academic year 2006-2007 with an
advanced degree in mathematics, science, healthcare, or
engineering, and the number of those graduates that remained in
Michigan to work.
(b) The projected numbers of graduates in each of the above-
listed categories for the next five calendar years and plans or
programs, if any, to increase the numbers of graduates in these
categories.
(c) The status of the university’s state and regional economic
development activities and the monetary value of these activities
on the economy of Michigan. The report shall include efforts
undertaken to assist the state and its communities with the
development of programs and infrastructure necessary to expand
businesses and jobs, including those in manufacturing, tourism,
agriculture and health care.
(d) Partnerships with other Michigan universities, community
colleges, or other entities regarding new technology development
including but not limited to life sciences, alternative energy and
advanced manufacturing and increasing college graduates in science,
technology, engineering and math disciplines.
(e) Efforts to increase foreign investment and international
trade; efforts to encourage international students to develop,
locate or partner with Michigan-based businesses upon graduation;
and, efforts to identify economic development leads or prospects in
national or international markets for Michigan business for
referral to state, regional or local economic development
officials.
(f) The impact of research and technology development
undertaken by the university including:
(i) The amount of private, state, and federal research funding
received by the university.
(ii) The total amount of research spending by the university.
(iii) The number of new invention disclosures filed by
university faculty, researchers, and graduate students.
(iv) The number of start-up companies formed based on
university generated inventions and the number of those companies
headquartered in Michigan.
(v) The number of new licensing agreements with corporate
partners and the amount of university revenue generated from
licensing new technologies.
(vi) The number of patent applications filed by the university
and the number of patents granted to the university.
(vii) The number of jobs created or retained in Michigan
attributed to university generated research and technology
transfer.