FY 2013-14 COMMUNITY COLLEGES BUDGET S.B. 199 (CR-1): CONFERENCE REPORT
WHITE TEXT
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$294,130,500 |
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Items Included by the Senate and House |
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1. Performance Funding. Governor included a $5.8 million GF/GP (2.0%) increase for community college operations distributed through a modified version of the Performance Indicators Task Force Formula. Governor removed $1,277,500 allocated to community colleges in FY 2012-13 based on local strategic value and reallocated those funds based on his proposed FY 2013-14 formula distribution. Governor replaced the local strategic value component of the formula with a new allocation based on the number of skilled trades program students placed in a relevant job or apprenticeship, with extra weighting for placing a student-veteran. Senate and House maintained FY 2012-13 base appropriations and distributed the FY 2013-14 $5.8 million increase through the current Performance Indicators Task Force Formula. Table 1 provides details by college. |
5,847,100 |
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2. Michigan Public School Employees Retirement System (MPSERS) Rate Cap. Governor, Senate, and House included $31.4 million GF/GP to fund the difference between the employer's capped contribution rate for unfunded accrued liabilities (20.96%) and the actual unfunded actuarial accrued liability contribution rate pursuant to MPSERS reform legislation. Conference also included an FY 2012-13 supplemental appropriation of $12.5 million GF/GP to fund FY 2012-13 rate cap costs (See Sec. 201b). |
31,400,000 |
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3. MPSERS Retiree Health Care. In FY 2012-13 the Governor recommended a $1,733,600 appropriation from the School Aid Fund for the purpose of offsetting a portion of MPSERS retirement contributions attributable to retiree health care costs. Distributions were to be based on the FY 2011-12 MPSERS payroll. The FY 2012-13 enacted budget included the funding, but allocated funds to community colleges on an across-the-board basis. Governor, Senate, and House continue funding, but distribute the funds based on college MPSERS payroll. Table 2 delineates the estimated allocation differences. |
0 |
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4. Renaissance Zone Reimbursements. Governor, Senate, and House included $3.5 million GF/GP for Renaissance Zone tax reimbursements. This appropriation was included in the Department of Treasury budget in FY 2012-13 at the same level of funding. |
3,500,000 |
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Conference Agreement on Items of Difference |
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5. FY 2013-14 One-Time Appropriations - Virtual Learning Collaborative. Governor and the Senate included $1.1 million GF/GP for the Virtual Learning Collaborative. The Collaborative provides access to courses offered by all Michigan public community colleges. In 2009 the Michigan Community College Association Board of Directors approved an affiliate membership for four-year institutions. To date, Lawrence Tech and Grand Valley State University have become members. The new State funding will be used for the development of course aggregator software, development of a "pathway to credential" tool that will identify courses toward a career path, develop analytics software that informs colleges of course demand for decision making of future offerings, and development of a repository of online courses and resources for use by faculty at member institutions. The House eliminated the appropriation. Conference concurred with Senate. |
1,100,000 |
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$41,847,100 |
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FY 2013-14 Conference Report Ongoing/One-Time Gross Appropriation............................. |
$335,977,600 |
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Amount Over/(Under) GF/GP Target: $0 |
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FY 2013-14 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS
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Changes from FY 2012-13 Year-to-Date: |
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Items Included by the Senate and House |
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1. MPSERS Reimbursements. MPSERS Reimbursement shall be distributed based MPSERS payroll. (Sec. 201 (4)) |
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2. MPSERS Reform Costs. Payment of the difference between the unfunded actuarial accrued liability contribution rate calculated pursuant to the MPSERS Act and the statutory maximum employer rate of 20.96%. (Sec. 201 (5)) |
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3. Renaissance Zone Reimbursements. Provides for distribution pursuant to Public Act 376 of 1996. (Sec 201 (6)) |
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4. Collaborations with Four-Year Universities. Governor, Senate, and House added the goal of developing equivalency standards of core college courses and identifying equivalent courses offered by institutions. (Sec. 210(4)) |
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5. Restored Provisions. Senate and House restored the following sections that were deleted by the Governor: Buy American/buy Michigan intent language (Sec. 204); depressed and deprived communities compete for and perform college contracts (Sec. 205); encourages community colleges to achieve efficiencies through collaborations (Sec. 212); prohibition on use of appropriations for purchase or lease of foreign automobiles (Sec. 227); and prohibition on disciplinary action against an employee for communicating with a member of the Legislature. (Sec. 228) |
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6. Core College Courses. Governor and Senate deleted provision for committee to develop a process to improve transferability of core college courses between colleges and universities (Sec. 210(a)). |
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Conference Agreement on Items of Difference |
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7. Anticipated Appropriations subsequent Fiscal Year. Legislative intent to provide the same level of appropriations for the next fiscal year, except that the line-items will be adjusted for changes in caseload and related costs, Federal fund match rates, economic factors, and available revenue, which will be determined after the January Revenue Estimating Conference. House changed January to May Revenue Estimating Conference. Senate and Conference retained current-year language. (Sec. 201a) |
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8. Virtual Learning Collaborative. Governor and Senate included language outlining the criteria for this one-time project. Requires report on use of funds upon request. (Sec. 201(7)) |
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9. Appropriation Limitations/JCOS Compliance. Prohibits the use of appropriations in Part 1 for the construction or maintenance of a self-liquidating project. Provides that community colleges shall comply with current Joint Capital Outlay Subcommittee (JCOS) use and finance requirements. Provides for 1% penalty for each violation. Senate and Conference modified this language based on recent capital outlay reform legislation. (Sec. 208) |
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10. Transparency. Senate and Conference added reporting requirement for estimated costs incurred due to Affordable Health Care Act. House eliminated posting of board resolution regarding compliance with best practices, Senate and Conference restored. (Sec. 209) |
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11. Block Transfer Committee. Conference added legislative intent language that the Michigan Association of Collegiate Registrars and Admissions Officers implement any agreement or agreements among the community colleges and universities concerning the transferability of college courses resulting from the recommendations of the committee created under former Section 210a. Requires implementation update report. (Sec. 210b) |
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12. Statutory Mandates. House maintained this section. Governor, Senate, and Conference eliminated language stating legislative intent that interested parties review statutory mandates imposed on community colleges and determine whether those mandates are necessary and also review estimated costs and benefits. Provides for report. (Sec. 216) |
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13. Veterans Tuition and Fees. Senate added intent language to review the issue of in-district tuition and fee rates for veterans. House did not include. Conference concurred with Senate. (Sec. 229 (2)) |
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14. Skilled Trades Jobs Placement. Senate included new language that required the Department of Technology, Management, and Budget (DTMB) to prepare a report by February 1, 2014, on the number of students that successfully completed a skilled trades program and obtained an apprenticeship or job in a field related to that skilled trades program. The report shall also indicate the number of these students that are veterans. Conference modified to requires DTMB to prepare a report by September 1, 2014, on the feasibility of providing accurate information on student educational outcomes in the employment market. (Sec. 229b) |
Date Completed: 5-23-13 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.