SB-0949, As Passed Senate, April 25, 2012

SUBSTITUTE FOR

SENATE BILL NO. 949

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 201, 201a, 202, 203, 204, 205, 206, 207, 208,

209, 210, 212, 213, 217, 218, 219, 220, 221, 222, 223, 224, 225,

226, 227, 228, 229, and 230 (MCL 388.1801, 388.1801a, 388.1802,

388.1803, 388.1804, 388.1805, 388.1806, 388.1807, 388.1808,

388.1809, 388.1810, 388.1812, 388.1813, 388.1817, 388.1818,

388.1819, 388.1820, 388.1821, 388.1822, 388.1823, 388.1824,

388.1825, 388.1826, 388.1827, 388.1828, 388.1829, and 388.1830), as

added by 2011 PA 62, and by adding sections 202a and 229a; and to

repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 201. (1) Subject to the conditions set forth in this

Senate Bill No. 949 as amended April 25, 2012

article, the amounts listed in ~~subsection~~ subsections (2)<<, (4),

AND (5)>>

are appropriated for community colleges for the fiscal year ending

September 30, ~~2012,~~ 2013, from the funds indicated in this section.

The following is a summary of the appropriations in ~~subsection~~

subsections (2)<<, (4), AND (5)>>:

(a) The gross appropriation is ~~$283,880,500.00.~~

<<$294,130,600.00>>. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$283,880,500.00.~~<<$294,130,600.00>>.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$195,880,500.00.~~<<$294,130,600.00>>.

(v) State general fund/general purpose money,

~~$88,000,000.00.~~$0.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$283,880,500.00,~~$292,396,900.00,

allocated as follows:

(a) Alpena Community College, ~~$4,984,300.00.~~$5,111,200.00.

(b) Bay de Noc Community College, ~~$5,040,200.00.~~$5,161,300.00.

(d) Glen Oaks Community College, ~~$2,320,900.00.~~$2,383,000.00.

(e) Gogebic Community College, ~~$4,140,500.00.~~$4,233,100.00.

(f) Grand Rapids Community College,

~~$16,649,700.00.~~$17,054,300.00.

(g) Henry Ford Community College,

~~$20,145,000.00.~~$20,596,700.00.

(h) Jackson Community College, ~~$11,219,700.00.~~$11,491,500.00.

(i) Kalamazoo Valley Community College,

~~$11,522,700.00.~~$11,828,300.00.

(j) Kellogg Community College, ~~$9,047,900.00.~~$9,289,300.00.

(k) Kirtland Community College, ~~$2,872,900.00.~~$2,968,300.00.

(l) Lake Michigan College, ~~$4,937,700.00.~~$5,059,300.00.

(m) Lansing Community College, ~~$28,651,900.00.~~$29,335,000.00.

(n) Macomb Community College, ~~$30,490,300.00.~~$31,206,500.00.

(o) Mid Michigan Community College,

~~$4,266,800.00.~~$4,393,400.00.

(p) Monroe County Community College,

~~$4,094,000.00.~~$4,223,500.00.

(q) Montcalm Community College, ~~$2,946,800.00.~~$3,038,500.00.

(r) C.S. Mott Community College,

~~$14,526,400.00.~~$14,890,400.00.

(s) Muskegon Community College, ~~$8,256,700.00.~~$8,456,100.00.

(t) North Central Michigan College,

~~$2,886,500.00.~~$2,979,900.00.

(u) Northwestern Michigan College,

~~$8,430,300.00.~~$8,624,100.00.

(v) Oakland Community College, ~~$19,455,900.00.~~$19,977,500.00.

(w) St. Clair County Community College,

~~$6,534,100.00.~~$6,697,300.00.

(x) Schoolcraft College, ~~$11,477,300.00.~~$11,800,500.00.

(y) Southwestern Michigan College,

~~$6,143,700.00.~~$6,269,000.00.

(z) Washtenaw Community College,

~~$11,827,300.00.~~$12,242,000.00.

(aa) Wayne County Community College,

~~$15,425,900.00.~~$15,798,500.00.

(bb) West Shore Community College,

~~$2,248,900.00.~~$2,298,200.00.

(cc) Local strategic value, $1,277,500.00.

(3) The amount appropriated in subsection (2) for community

college operations is appropriated from the following:

(a) School aid fund, ~~$195,880,500.00.~~$292,396,900.00.

(b) State general fund/general purpose money,

~~$88,000,000.00.~~$0.00.

(4) From the appropriations described in subsection (1), there

is appropriated for fiscal year 2012-2013 an amount not to exceed

$1,733,600.00 for payments to community colleges from the state

school aid fund. A community college that receives money under this

subsection shall use that money solely for the purpose of

offsetting a portion of the retirement contributions owed by the

college for the fiscal year ending September 30, 2013. The amount

allocated to each participating community college under this

subsection shall be based on each participating college's total

payroll covered by the Michigan public school employees' retirement

system in proportion to the total Michigan public school employees'

retirement system-covered payroll for all participating colleges

for the immediately preceding state fiscal year. As used in this

Senate Bill No. 949 as amended April 25, 2012

subsection, "participating college" means a community college that

is a reporting unit of the Michigan public school employees'

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, and that reports

employees to the Michigan public school employees' retirement

system for the state fiscal year.

<<(5) From the appropriations described in subsection (1), an

amount not to exceed $100.00 is appropriated for fiscal year

2012-2013 for reimbursement to community colleges under section

12(3) of the Michigan renaissance zone act, 1996 PA 376, MCL

125.2692, for tax revenue lost by community colleges from taxes

levied in 2012 as a result of the exemption of property under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696.>>

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2013~~

2014 for the items listed in section 201. The fiscal year ~~2012-2013~~

2013-2014 appropriations are anticipated to be the same as those

for fiscal year ~~2011-2012,~~ 2012-2013, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2012~~ 2013

consensus revenue estimating conference.

Sec. 202. ~~The~~ All appropriations authorized under this article

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

18.1101 to 18.1594.

Sec. 202a. As used in this article, "workforce development

agency" means the workforce development agency of the Michigan

strategic fund.

Sec. 203. Unless otherwise specified, a community college

~~receiving~~ that receives appropriations in section 201 and the

workforce development agency shall use the ~~Internet~~ internet to

fulfill the reporting requirements of this article. 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~~ internet or

~~Intranet~~ intranet site.

Sec. 204. Funds appropriated in section 201 shall not be used

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

competitively priced and of comparable quality American goods or

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

quality. In addition, preference should be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses that are owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 205. The principal executive officer of each community

college ~~receiving~~ that receives appropriations in section 201 shall

take all reasonable steps to ensure businesses in deprived and

depressed communities compete for and perform contracts to provide

services or supplies, or both. Each principal executive officer

shall strongly encourage ~~firms~~ businesses with which the community

college contracts to subcontract with certified businesses in

depressed and deprived communities for services or supplies, or

both.

Sec. 206. The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2012~~ 2013 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

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

or the next succeeding business day, beginning with October 16,

~~2011.~~ 2012. Each community college shall accrue its July and August

~~2012~~ 2013 payments to its institutional fiscal year ending June 30,

~~2012.~~ 2013. However, if the state budget director determines that a

community college ~~fails~~ failed to submit all verified Michigan

community colleges activities classification structure data for

school year ~~2010-2011~~ 2011-2012 to the workforce development agency

by November 1, ~~2011,~~ 2012, or failed to submit its longitudinal

data system data set for school year 2011-2012 to the center for

educational performance and information under section 219, the

state treasurer shall withhold the monthly installments ~~shall be~~

~~withheld~~ from that community college until those data are

submitted. The state budget director shall notify the chairs of the

house and senate appropriations subcommittees on community colleges

at least 10 days before withholding funds from any community

college.

Sec. 207. (1) A community college shall pay the employer's

contributions to the Michigan public school employees' retirement

system created by the public school employees retirement act of

1979, 1980 PA 300, MCL 38.1301 to 38.1408. ~~, as~~ This payment is a

condition of receiving funds appropriated under this article.

(2) A community college shall not pay an employer's

contribution to more than 1 retirement fund providing benefits for

an employee.

Sec. 208. ~~Money~~ A community college shall not use money

appropriated in section 201 ~~shall not be used~~ to pay for the

construction or maintenance of a self-liquidating project. A

community college shall comply with the current use and finance

requirements of the joint capital outlay subcommittee (JCOS) for

any construction, renovation, or other capital outlay projects

pursuant to JCOS policy. The appropriation in section 201 for a

community college that fails to comply with JCOS requirements shall

be reduced by 1% for each violation.

Sec. 209. (1) ~~From the funds appropriated in section 201, each~~

~~community college shall develop, post, and maintain, on a user-~~

~~friendly and publicly accessible Internet site, a comprehensive~~

~~report categorizing all institutional general fund expenditures~~

~~made by the community college within a fiscal year. The report~~

~~shall include institutional general fund expenditure amounts~~

~~categorized both by each academic unit, administrative unit, or~~

~~external initiative within the community college and by major~~

~~expenditure category, including faculty and staff salaries and~~

~~fringe benefits, facility-related costs, supplies and equipment,~~

~~contracts, and transfers to and from other community college funds.~~

~~The report shall also include a list of all employee positions~~

~~funded partially or wholly through institutional general fund~~

~~revenue that includes the position title, name, and annual salary~~

~~or wage amount for each position. The community college shall not~~

~~provide financial information on its website under this section if~~

~~doing so would violate a federal or state law, rule, regulation, or~~

~~guideline that establishes privacy or security standards applicable~~

~~to that financial information.~~Within 30 days after the board of a

community college adopts its annual operating budget for the

following school fiscal year, or after the board adopts a

subsequent revision to that budget, the community college shall

make all of the following available through a link on its website

homepage in a form and manner prescribed by the department of

technology, management, and budget:

(a) The annual operating budget and subsequent budget

revisions.

(b) A summary of current expenditures for the most recent

fiscal year for which they are available, expressed as pie charts

in the following 2 categories:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all current expenditures the community college

reported to the center for educational performance and information

under section 94a, broken into the subcategories described in the

manual for uniform financial reporting described in section 217.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee of the community

college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(2) For compliance with the performance indicators formula,

the community college must comply with all of the following:

(a) The community college shall provide a dashboard or report

card demonstrating the college's performance in several "best

practice" measures. The dashboard or report card shall include at

least all of the following for the 3 most recent school years for

which the data are available:

(i) Enrollment.

(ii) Student retention rate.

(iii) Transfer rates to 4-year institutions.

(iv) Number of Pell grant recipients.

(v) Geographic origination of students, categorized as in-

district, out-of-district, out-of-state, and foreign.

(vi) Faculty-to-student ratios and total college employee-to-

student ratios.

(vii) Graduation outcome rates, including employment and

continuing education.

(viii) A board of trustees resolution regarding compliance with

best practices for the local strategic value component described in

section 201(2)(cc).

(3) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels. The font

size and style for this reporting must be consistent with other

documents on each college's website. To be in compliance with this

section, all data elements defined in this section must be

available on the college's homepage, in a form and manner

prescribed by the department of technology, management, and budget,

by December 31, 2012.

(4) The state budget director shall determine whether a

community college has complied with this section. The state budget

director may withhold a community college's monthly installments

described in section 206 until the community college complies with

this section.

(5) ~~(2)~~ Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15, ~~2011,~~ 2012, and post that

information on the Internet website required under subsection (1):

(a) Budgeted fiscal year ~~2011-2012~~ 2012-2013 general fund

revenue from tuition and fees.

(b) Budgeted fiscal year ~~2011-2012~~ 2012-2013 general fund

revenue from state appropriations.

revenue from property taxes.

(d) Budgeted fiscal year ~~2011-2012~~ 2012-2013 total general

fund revenue.

(e) Budgeted fiscal year ~~2011-2012~~ 2012-2013 total general

fund expenditures.

Sec. 210. (1) Recognizing the critical importance of education

in strengthening Michigan's workforce, the legislature encourages

~~the state's public community colleges~~ each community college to

explore ways of increasing collaboration and cooperation with 4-

year universities, particularly in the areas related to training,

instruction, and program articulation.

(2) Recognizing the central role of community colleges in

responding to local employment needs and challenges, community

colleges shall develop and continue efforts to collaborate with

local employers and students to identify local employment needs and

strategies to meet them.

(3) Community colleges are encouraged to collaborate with each

other on innovations to identify and meet local employment needs.

Sec. 212. It is the intent of the legislature to encourage

community college districts to evaluate and pursue efficiency and

cost-containment measures that maximize state funding. Community

colleges shall identify practices that increase efficiencies,

including, but not limited to, establishing joint ventures,

consolidating services, utilizing program collaborations,

maximizing educational benefits through optimal class sizes and

frequency of course offerings, increasing web-based instruction,

eliminating low-enrollment and high-cost instructional programs,

using self-insurance, practicing energy conservation, and utilizing

group purchasing. ~~Efficiency efforts~~ Community colleges shall also

~~include reviewing~~ review proposed capital outlay projects to

increase coordination and utilization of new facilities, renovation

projects, and technology improvements.

Sec. 213. It is the intent of the legislature that community

colleges work with public universities in the state to implement

statewide reverse transfer agreements to increase the number of

students that are awarded credentials of value upon completion of

the necessary credits. ~~In doing so, the institutions should work~~

~~collaboratively and cooperatively to remove administrative barriers~~

~~that result in understating the academic attainment of Michigan's~~

~~citizens. It is the intent of the legislature that by August 1,~~

~~2012,~~ These statewide agreements ~~be in place between community~~

~~colleges and public universities that~~ shall enable students who

have earned a significant number of credits at a community college

and transfer to a baccalaureate-granting institution before

completing a degree to ~~transfer~~ transferred the credits earned at

the baccalaureate institution back to the community college in

order to be awarded a credential of value.

Sec. 217. Unless otherwise specifically stated, all data items

used in determining state aid in this article are as defined in the

"2001 Manual for Uniform Financial Reporting, Michigan Public

Community Colleges", which shall be the basis for reporting data,

and the "Activities Classification Structure Manual for Michigan

Community Colleges", as amended, which shall be used to document

financial needs of the community colleges.

Sec. 218. ~~A community college~~ Community colleges shall not

include in the enrollment data reported for determining state aid

under this article any student credit hours or student contact

hours for a student incarcerated in a Michigan penal institution.

Exclusion of these students is intended to avoid the payment of

state aid under this article for the same individuals for whom

reimbursement is provided by the state correctional system.

Sec. 219. A community college receiving funds in section 201

shall ~~cooperate~~ comply with the state's efforts to establish a

~~statewide~~ and maintain the P-20 ~~education~~ longitudinal data system

described in section 94a to ~~comply with the state fiscal~~

~~stabilization fund provisions of the American recovery and~~

~~reinvestment act of 2009, Public Law 111-5.~~inform the state's

school districts and citizens about the overall performance of

their investment in public education.

Sec. 220. (1) The auditor general or a certified public

accountant appointed by the auditor general may conduct performance

audits of community colleges as the auditor general considers

necessary.

(2) ~~Not more than~~ Within 60 days after an audit report is

released by the office of the auditor general, the principal

executive officer of the community college that was audited shall

submit to the house and senate appropriations committees, the house

and senate fiscal agencies, the workforce development agency, the

auditor general, and the state budget director a plan to comply

with audit recommendations. The plan shall contain projected dates

and resources required, if any, to achieve compliance with the

audit recommendations, or a documented explanation of the college's

noncompliance with the audit recommendations concerning the matters

on which the audited community college and office of the auditor

general disagree.

Sec. 221. (1) A community college shall retain certified class

summaries, class lists, registration documents, and student

transcripts that are consistent with the taxonomy of courses. For

each enrollment period during the fiscal year, these certified

documents shall identify clearly by course the number of in-

district and out-of-district student credit and contact hours. The

class summaries and class lists shall be consistent with each other

and shall include the course prefix and numbers, course title,

course credit and contact hours, credit and contact hours generated

by each student, and activity classifications consistent with the

taxonomy. An auditable process shall be used by the community

college to determine the unduplicated head count for in-district

students, out-of-district students, and prisoners for each

enrollment period during the fiscal year.

(2) ~~Contracts~~ A community college shall retain all contracts

between the community college and agencies that reimburse the

community college for the costs of instruction ~~shall be retained~~

for audit purposes.

Sec. 222. Each community college shall have an annual audit of

all income and expenditures performed by an independent auditor and

shall furnish the independent auditor's management letter and an

annual audited accounting of all general and current funds income

and expenditures including audits of college foundations to the

members of the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, the

auditor general, the workforce development agency, and the state

budget director before November 15 ~~, 2011.~~ of each year. If a

community college fails to furnish the audit materials, the monthly

state aid installments shall be withheld from that college until

the information is submitted. All reporting shall conform to the

requirements set forth in the "2001 Manual for Uniform Financial

Reporting, Michigan Public Community Colleges". It is the intent of

the legislature that a community college shall make the information

the community college is required to provide under this section

available to the public on its ~~Internet~~ internet website.

Sec. 223. Each community college shall report the following to

the workforce development agency no later than November 1 ~~, 2011:~~of

each year:

(a) The number of North American Indian students enrolled each

term for the previous fiscal year, using guidelines and procedures

developed by the workforce development agency and the ~~Michigan~~

~~commission on Indian affairs.~~department of civil rights.

(b) The number of North American Indian tuition waivers

granted each term, and the monetary value of the waivers for the

previous fiscal year.

Sec. 224. Upon request, a community college shall inform

interested Michigan high schools of the aggregate academic status

of its students for the ~~prior~~ previous academic year, in a manner

prescribed by the Michigan community college association and in

cooperation with the Michigan association of secondary school

principals. Community colleges shall cooperate with the center for

educational performance and information to design and implement a

systematic approach for accomplishing this work.

Sec. 225. Each community college shall report to the house and

senate fiscal agencies, the state budget director, and the

workforce development agency by August 31, ~~2011,~~ 2012, the tuition

and mandatory fees paid by a full-time in-district student and a

full-time out-of-district student as established by the college

governing board for the ~~2010-2011~~ 2011-2012 academic year. This

report should also include the annual cost of attendance based on a

full-time course load of 30 credits. Each community college shall

also report any revisions to the reported ~~2010-2011~~ 2011-2012

academic year tuition and mandatory fees adopted by the college

governing board to the house and senate fiscal agencies, the state

budget director, and the workforce development agency within 15

days of being adopted.

Sec. 226. Each community college shall report to the workforce

development agency the numbers and type of associate degrees and

other certificates awarded during the previous fiscal year. The

report shall be made not later than November 15 ~~, 2011.~~of each

year.

Sec. 227. ~~Funds~~ A community college shall not use funds

appropriated in section 201 ~~shall not be used~~ to enter into a lease

for, or to purchase, a vehicle assembled or manufactured outside of

the United States if competitively priced and comparable quality

vehicles made in the state of Michigan or elsewhere in the United

States of America are available.

Sec. 228. A community college shall not take disciplinary

action against an employee for communicating with a member of the

legislature or ~~his or her~~ the legislator's staff.

Sec. 229. It is the intent of the legislature that each

community college ~~receiving~~ that receives an appropriation in

section 201 include in its admission application process a specific

question as to whether an applicant for admission is a veteran, an

active member of the military, a member of the national guard or

military reserves, or the spouse or dependent of a veteran, active

member of the military, or member of the national guard or military

reserves, in order to more quickly identify potential educational

assistance available to that applicant. As used in this section,

"veteran" means an honorably discharged veteran entitled to

educational assistance under the provisions of section 5003 of the

post-911 veterans educational assistance act of 2008, ~~title V of~~

~~Public Law 110-252,~~ 38 USC 3301 to 3324.

Sec. 229a. Included in the fiscal year 2012-2013

appropriations for the department of technology, management, and

budget are appropriations to provide funding for the state share of

costs for previously constructed capital projects for community

colleges. Those appropriations for state building authority rent

represent additional state general fund support for community

colleges, and the following is an estimate of the amount of that

support to each community college:

(a) Alpena Community College, $428,100.00.

(b) Bay de Noc Community College, $618,000.00.

(d) Glen Oaks Community College, $123,000.00.

(e) Gogebic Community College, $60,000.00.

(f) Grand Rapids Community College, $1,675,000.00.

(g) Henry Ford Community College, $1,110,000.00.

(h) Jackson Community College, $1,563,000.00.

(i) Kalamazoo Valley Community College, $1,467,000.00.

(j) Kellogg Community College, $520,000.00.

(k) Kirtland Community College, $363,300.00.

(l) Lake Michigan College, $340,000.00.

(m) Lansing Community College, $384,000.00.

(n) Macomb Community College, $1,313,100.00.

(o) Mid Michigan Community College, $915,000.00.

(p) Monroe County Community College, $1,355,000.00.

(q) Montcalm Community College, $756,000.00.

(r) C.S. Mott Community College, $1,803,000.00.

(s) Muskegon Community College, $198,000.00.

(t) Northwestern Michigan College, $1,305,000.00.

(u) Oakland Community College, $465,000.00.

(v) St. Clair County Community College, $356,100.00.

(w) Schoolcraft College, $1,546,100.00.

(x) Southwestern Michigan College, $530,600.00.

(y) Washtenaw Community College, $1,993,000.00.

(z) Wayne County Community College, $1,890,000.00.

(aa) West Shore Community College, $577,000.00.

Sec. 230. (1) It is the intent of the legislature that the

recommendations and performance measures developed by the

performance indicators task force formed ~~pursuant to~~ under section

242 of 2005 PA 154 be reviewed and more fully implemented for

distribution of state funding to community colleges in future

years. ~~Specifically, it is the intent of the legislature that the~~

~~performance indicators task force review and implement 1 or more~~

~~measurable data items for the local strategic value indicator and~~

~~review and implement 1 or more measurable data items for an~~

~~administrative cost formula component.~~

(2) Consistent with subsection (1), additional funding

provided to community college operations under section 201 in

fiscal year 2012-2013 is distributed based on the following

formula:

(a) Allocated proportionate to fiscal year 2011-2012 base

appropriations, 50%.

(b) Based on contact hour equated students, 10%.

(d) Based on a weighted degree formula as provided for in the

2006 recommendations of the performance indicators task force,

17.5%.

(e) Based on the local strategic value component, as developed

in cooperation with the Michigan community college association and

described in subsection (3), 15%.

(3) The appropriation in section 201(2)(cc) for local

strategic value shall be allocated to each community college that

certifies to the state budget director, through a board of trustees

resolution on or before November 1, 2012, that the college has met

4 out of 5 best practices listed in each category described in

subsection (4). The resolution shall provide specifics as to how

the community college meets each best practice measure within each

category. One-third of funding available under the strategic value

component shall be allocated to each category described in

subsection (4). Amounts distributed under local strategic value

shall be on a proportionate basis to each college's fiscal year

2011-2012 operations funding. Payments to community colleges that

qualify for local strategic value funding shall be distributed with

the November installment payment described in section 206.

(4) For purposes of subsection (3), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site training

for area companies, employees, or both.

(iii) The community college supports entrepreneurship through a

small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with regional

high schools, intermediate school districts, and career-tech

centers to provide instruction through dual enrollment, direct

credit, middle college, or academy programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or science Olympiad.

(iii) The community college provides, supports, or participates

in programming to promote successful transitions to college for

traditional age students, including grant programs such as talent

search, upward bound, or other activities to promote college

readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education, GED

preparation, GED testing, or recruiting, advising, or orientation

activities specific to adults.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

Senate Bill No. 949 as amended April 25, 2012

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending from

state sources for community colleges for fiscal year 2012-2013

under article II is estimated at <<$294,130,600.00>> and the amount of

that state spending from state sources to be paid to local units of

government for fiscal year 2012-2013 is estimated at

<<$294,130,600.00>>.

Enacting section 2. Sections 210a, 211, 214, and 216 of the

state school aid act of 1979, 1979 PA 94, MCL 388.1810a, 388.1811,

388.1814, and 388.1816, are repealed.

Enacting section 3. This amendatory act takes effect October

1, 2012.