FY 2016-17 COMMUNITY COLLEGES BUDGET S.B. 784 (CR-1): CONFERENCE REPORT
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$387,825,600 |
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Items Included by the Senate and House |
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1. Michigan Public School Employees Retirement System (MPSERS) Rate Cap. Governor, Senate, and House included $3.7 million School Aid Fund (SAF) to continue funding the difference between the employer's capped contribution rate for unfunded accrued liabilities (20.96%) and the actual unfunded actuarial accrued liability contributions rate. MPSERS reform legislation requires the State to pay the difference between these amounts. The FY 2016-17 MPSERS appropriation totals $73.2 million. |
3,700,000 |
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2. Other Changes. Governor, Senate, and House shifted $52.3 million SAF from college operations ($50.7 million) and renaissance zone reimbursements ($1.6 million) to the MPSERS appropriation to effectively fund the entire MPSERS appropriation from the SAF. |
0 |
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Conference Agreement on Items of Difference |
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3. College Operations. Governor included a $7.5 million GF/GP (2.4%) increase distributed through a modified version of the 2016 Performance Indicators Review Task Force recommendations. Senate included the $7.5 million increase but distributed funding based on the Task Force model without the Governor's modifications. House included a $10.6 million GF/GP (3.4%) increase distributed according to the Performance Indicators Review Task Force recommendations. Conference included a $4.4 million GF/GP (1.4%) increase distributed pursuant to the Performance Indicators Review Task Force recommendations. Funding distributions by college are included in Tables 1 and 2. |
4,400,000 |
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$8,100,000 |
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FY 2016-17 Conference Report Ongoing/One-Time Gross Appropriation............................. |
$395,925,600 |
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Amount Over/(Under) GF/GP Target: $0 |
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Boilerplate Changes from FY 2015-16 Year-to-Date: |
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Items Included by the Senate and House |
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1. Restored Provisions. Senate and House restored the following sections that were deleted by the Governor: Anticipated appropriations for subsequent fiscal year (Sec. 201a); prohibits use of appropriations for construction or maintenance of self-liquidating projects and requires compliance with Section 238 of the Management and Budget Act and Joint Capital Outlay Subcommittee use and finance requirements – includes penalty for noncompliance (Sec. 208); prohibition on use of appropriations for purchase or lease of foreign automobiles (Sec. 227); and prohibition on disciplinary action against employee for communicating with a member of the Legislature or legislative staff (Sec. 228). |
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2. Center for Educational Performance and Information (CEPI). Governor, Senate, and House modified several sections based on CEPI assuming responsibility for the Community College Activities Classification Structure (ACS). (Secs. 203, 206, 217, 222, 225, and 226). |
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3. Deleted Provisions. Governor, Senate, and House eliminated the section that created the Performance Indicators Review Task Force. (Sec. 230a) |
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Conference Agreement on Items of Difference |
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4. Transparency. Governor and House eliminated reporting of cost estimate for Affordable Health Care Act and provision authorizing State Budget Director to determine compliance with transparency requirements and the Budget Director's authority to withhold funds for noncompliance. Senate maintained current-year provisions. Conference concurred with Senate. (Sec. 209) |
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5. Block Transfers. Governor, Senate, and House replaced implementation language regarding the Michigan Transfer Agreement (Block Transfers/30 credits) with language requiring the Michigan Community College Association and the Michigan Association of State Universities to submit a progress report on implementation by March 1, 2017, that specifically includes a summary of implementation issues faced by the institutions and strategies being considered to remedy those issues, and an update on progress made on outstanding issues identified in the March 1, 2016, report. Senate and House added reporting requirement regarding improvements to articulation and credit transfer policies among and between all sectors of postsecondary education pursuant to requirements included informer section 210c (Block Transfers/60 credits). There are wording differences in how sections were amended between the Senate and House. Conference concurred with Senate. (Sec. 210b) |
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6. Academic Program Partnerships. Senate added new language added that requires the Michigan Community College Association, the Michigan Association of State Universities, and the Michigan Independent Colleges and Universities, on behalf of their member colleges and universities, to submit a comprehensive report detailing the number of academic program partnerships between public community colleges, public universities, and private colleges and universities. Conference concurred with the Senate. (Sec. 210e) |
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7. Cost Containment/Efficiencies. States legislative intent to encourage community college districts to evaluate and pursue efficiency and cost-containment measures that maximize State funding. Governor removed this section. Senate and House restored. Senate replaced legislative intent statement with general encouragement statement. Conference concurred with Senate. (Sec. 212) |
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8. Indian Tuition Waivers. Requires community colleges to report to the Workforce Development Agency (WDA) the number of North American Indian students enrolled, waivers granted, and the monetary value of the waivers. House changed reporting date from November 1 to February 15 and transferred the responsibility for the report from the WDA to the Department of Civil Rights. House required more specific information including waiver applications received, the number of students that withdrew, degree and certificate completions, and graduation data listed by level of certificate/degree. Conference concurred with House. (Sec. 223) |
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9. Performance Indicators Task Force. Delineates formula. Senate and House included formula as recommended by the 2016 Performance Indicators Review Task Force. Minor wording differences between Senate and House. Conference concurred with House. (Sec. 230) |
Date Completed: 5-25-16 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.