FY 2012-13 HIGHER EDUCATION BUDGET S.B. 955 (CR-1*): CONFERENCE REPORT
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$1,364,178,400 |
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Items Included by the Senate and House |
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1. Michigan Public School Employees Retirement System (MPSERS) Retiree Health Costs. School Aid Fund support to offset the 0.25% increase in costs related to retiree health care. |
446,200 |
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2. State Competitive Scholarships. Governor, Senate, and House increased funding for this program from $18,361,700 to $20,361,700. Conference removed increase due to differences on funding sources (Items 7 and 8 below). |
0 |
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3. Federal Funds. The Robert C. Byrd scholarship was eliminated by Congress. |
(1,300,000) |
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Conference Agreement on Items of Difference |
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4. MSU AgBioResearch. Conference included a 3.0% increase. |
1,578,800 |
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5. Performance Funding. (See Table 1 for details by institution.) Governor: $36,217,000 (3.0%) increase allocated by four new funding formulas based on three-year average growth of undergraduate degree completions, three-year average degree completions in critical skills areas, three-year average number of undergraduate students receiving Pell Grants, and tuition restraint. Senate: Maintained $9,054,300 tuition restraint recommendation, but changed the remaining distribution to an $18,108,400 allocation proportional to FY 2011-12 base appropriations and $9,054,300 allocated pursuant to how universities perform relative to their Carnegie classifications for eight metrics. House: Included the same overall increase but distributed funding based on a single-component formula that weights undergraduate degrees and certificates (two-year average) according to program length and provides a double weight for degrees/certificates in critical skills areas. House also redistributes 1.0% of FY 2011-12 base appropriations ($12,072,300) under the formula, along with the $36,217,000. Conference: Maintained Governor's tuition restraint, but included a modified performance funding method based on the Senate and House formulas. |
36,217,000 |
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6. MSU Facility for Rare Isotopes (FRIB). Governor and Senate included $2,339,900. House and Conference transferred funding to the General Government Budget. |
0 |
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7. Tuition Grants. Governor reduced this program by $1.0 million, from $31,664,700 to $30,664,700. Senate maintained current year funding; House increased to $32,664,700. Conference maintained current-year funding. |
0 |
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8. Tuition Incentive Program (TIP). Governor reduced this program by $1.0 million, from $43.8 million to $42.8 million. Senate reduced this program by an additional $1.0 million. House maintained the Governor's recommended level of funding. Conference maintained current-year funding. |
0 |
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9. Other Changes. Governor and House eliminated FY 2011-12 one-time appropriations for EMU Autism Collaborative Center ($500,000), MSU FRIB ($1.2 million, and WMU Economic Development and Commercialization ($200,000). Senate restored EMU Autism Collaborative Center Funding and added CMU $50,000 grant for Central Assessment Lending Library. Leadership transferred EMU and CMU items to other budgets. |
(1,900,000) |
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$35,042,000 |
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FY 2012-13 Conference Report Ongoing/One-Time Gross Appropriation.................................... |
$1,399,220,400 |
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Amount Over/(Under) GF/GP Target: $0 |
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FY 2012-13 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS
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Changes from FY 2011-12 Year-to-Date: |
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Items Included by the Senate and House |
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1. Contingency Funds. Appropriates up to $6,000,000 in Federal funds for grants and financial aid. (Sec. 236b) |
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2. P-20 Education Longitudinal Data System. Modified to require the development of a P-20 system and allow the Budget Director to withhold funds for noncompliance. (Sec. 244) |
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3. State Competitive Scholarships. Governor, Senate, and House reduced awards to reflect actual amounts. (Sec. 251) |
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4. Academic Information-High Schools and Community Colleges. Modified to require universities to work with Center for Educational Performance and Information (CEPI) to implement a systematic approach. (Secs. 283 and 284) |
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5. State Building Authority Rent. Lists amounts included in the General Government bill. (Sec. 294a) |
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6. Restored/Modified Sections. Buy American/Buy Michigan intent (Sec. 239); purchase of foreign automobiles prohibition (Sec. 239a); certifying eligibility for TIP (Conference added clarification to the term "incarcerated" (Sec. 256); U of M Douglas Lake Biological Station (Sec. 261); unfunded Indian tuition waiver costs (Sec. 268); counseling degree programs/student's religious beliefs (Sec. 273); and human embryonic stem cell report (Conference modified) (Sec. 274). |
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7. Deleted Sections. Research university definition (Sec. 237a); minimizing textbooks costs (Sec. 262); funding formula (Sec. 266); academic program accreditation (Sec. 271); and rejection of transfer credits report (Sec. 272). |
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Conference Agreement on Items of Difference |
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8. Second Year Appropriation Intent Language. Governor replaced with line items. Senate and House maintained boilerplate. House stated intent performance funding is included in FY 2013-14 base and referenced May Revenue Estimating Conference instead of January. Conference concurred with Senate. (Sec. 236a) |
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9. Posting of Expenditures. Governor eliminated listing of individual employee information. Senate concurred in part, but required additional information and uniform placement of information on university websites. Senate authorizes the Budget Director to withhold State aid for noncompliance. House maintained current-year language and added December 15 report deadline. Conference concurred with Senate but added specific salary information.(Sec. 245) |
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10. Tuition Grant Program. Governor changed application deadlines, eliminated carry forward, and added new reporting requirements for independent colleges (P-20, etc.). Senate maintained current-year language. House removed carry forward, changed reporting requirement to intent that private institutions work with CEPI toward establishment of a student-level data reporting process, and added reporting if funds are available above the $1,512 maximum award. Conference concurred with Senate except added House reporting requirement. (Sec. 252) |
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11. Student Financial Aid Distributions. Governor, House, and Conference changed distribution from 50% allocated over the first two quarters to payments of 50%, 30%, 10%, and 10%. (Sec. 254) |
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12. Purpose of University Appropriations. House language stating the purpose of State funding is to reduce the cost charged to Michigan residents for undergraduate instructional programs. (Sec. 260) |
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13. Tuition Restraint. Governor revised and set the FY 2012-13 limit at 4.0%. Senate reduced limit to 3.5%. House tied tuition restraint requirements to all of performance funding and calculated FY 2012-13 tuition restraint limit on two-year basis. Conference concurred with Governor but modified by defining "fee" to include the cost of a university-affiliated health insurance policy for a university that compels resident undergrad students to have health insurance coverage. (Sec. 265) |
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14. Performance Funding Criteria. Governor: Required universities to certify they participate in the Michigan Transfer Network (MTN), set criteria, and lapse forfeited funds. Senate: Changed formula, redistribute funds forfeited, and tie receipt of funds to MTN participation and compliance with stem cell report. House: Changed formula, condition receipt to compliance with tuition restraint, reporting on embryonic stem cell research, certification that the university participates in at least three reverse transfer agreements, certification that dual enrollment policies do not prevent use of credits for high school graduation, and certification that the university does not require resident undergraduate students to carry health insurance coverage. Funds forfeited for noncompliance are re-appropriated for MPSERS, MSU AgBioResearch, and the balance for additional performance funding. Conference: Required reserve transfer agreement, House dual enrollment provision, and MTN participation. Forfeited funds would be reappropriated to tuition restraint. (Sec. 265a) |
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15. Non-Profit Worker Centers. House language stating legislative intent that public universities shall not collaborate with a nonprofit worker center whose documented activities include coercion through protest, demonstration, or organization against a Michigan business. Conference modified intent language. (Sec. 273a) |
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16. Restored Sections. Conference restored: payment schedule/withholding funds (Sec. 241); acceptance of Federal funds not placing an obligation on the Legislature (portion of Sec. 242); coordinate purchases (Sec. 270a); adult co-resident health benefits-legislative intent and report (Sec. 274a); Yellow Ribbon GI Education Enhancement report requirement (portion of Sec. 275); compliance with JCOS use and finance rules and penalty provisions (portion of Sec. 275a); and Federal Educational Rights & Privacy Act (Sec. 293); and new degree programs (Sec. 290). |
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17. Other Changes. Conference removed deprived and depressed communities (Sec. 240); concurred with Senate on AgBioResearch performance goals (Sec. 263a); deleted coordinated purchases (Sec. 270a); and merged campus security information (Sec. 292) with Sec. 245. . |
Date Completed: 6-4-12 Fiscal Analyst: Bill Bowerman
This 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.