FY 2016-17 HIGHER EDUCATION BUDGET                                           S.B. 790 (S-2, CR-1):  CONFERENCE REPORT

 

 

 

 

 

 

 

 

 

 

 

CHANGES FROM

FY 2015-16 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2015-16

YEAR-TO-DATE

FY 2016-17

CONFERENCE

AMOUNT

PERCENT

FTE Positions..............................................................

N/A

N/A

0.0

0.0

GROSS.........................................................................

1,534,724,400

1,582,640,400

47,916,000

3.1

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

0

0

0

0.0

ADJUSTED GROSS..................................................

1,534,724,400

1,582,640,400

47,916,000

3.1

Less:

 

 

 

 

   Federal Funds..........................................................

97,026,400

101,526,400

4,500,000

4.6

   Local and Private....................................................

0

0

0

0.0

TOTAL STATE SPENDING.......................................

1,437,698,000

1,481,114,000

43,416,000

3.0

Less:

 

 

 

 

   Other State Restricted Funds................................

205,279,500

237,209,500

31,930,000

15.6

GENERAL FUND/GENERAL PURPOSE..............

1,232,418,500

1,243,904,500

11,486,000

0.9

PAYMENTS TO LOCALS..........................................

0

0

0

0.0


 

FY 2015-16 Year-to-Date Gross Appropriation.........................................................................

$1,534,724,400

 

Changes from FY 2015-16 Year-to-Date:

 

Items Included by the Senate and House

 

  1.  MPSERS Rate Cap. Governor, Senate, and House included a $730,000 (14.1%) School Aid Fund (SAF) increase, from $5,160,000 to $5,890,000.

730,000

  2.  Tuition Incentive Program. Governor, House, and Senate included a $2.0 million Federal Temporary Assistance for Needy Families (TANF) increase. Based on updated projections and available Federal funds, Conference adjusted the increase to $4.5 million.

4,500,000

  3.  MSU AgBioResearch. Governor, Senate, and House included 2.3% GF/GP increase, from $32,508,300 to $33,243,100, bringing funding back to FY 2010-11 levels.

734,800

  4.  MSU Extension. Governor, Senate, and House included 2.4% GF/GP increase, from $27,994,800 to $28,672,600, bring funding back to FY 2010-11 levels.

677,800

Conference Agreement on Items of Difference

 

  5.  University Operations. Governor and Senate included a $59.8 million (4.4%) increase. House included a $46.3 million (3.4%) increase. Senate eliminated the across-the-board allocation for Eastern (EMU) and Oakland (OU) and redistributed those funds to four universities that are below FY 2010-11 funding levels. House added a new metric for the Carnegie portion of the formula based on whether a university received a 2010 or 2015 Community Engagement classification. Conference included a $39.8 million (2.9%) increase. Conference distribution based on the Governor's proposed funding model and did not include the new metric proposed by the House. However, Conference did reduce EMU and OU funding by $400,000 each, and redistributed the $800,000 equally to MSU, U of M-Ann Arbor, Wayne, and Western. Governor, Senate, and House all included funding $31.2 million of the increase from the SAF. Tables 1 and 2 provide details on allocations by university.

39,787,400

  6.  Tuition Grants. Governor did not increase funding. Senate included a $748,800 (2.2%) TANF increase. House included a $1,157,200 (3.4%) GF/GP increase. Conference included a $986,000 (2.9%) GF/GP increase.

986,000

  7.  Competitive Scholarships. Governor and House did not increase funding for this program. Senate included a $404,000 (2.2%) TANF increase. Conference did not include an increase.

0

  8.  Indian Tuition Waiver. House added a $100 SAF placeholder for unfunded costs of the Indian Tuition Waiver Program (1976 PA 174). Conference did not include this item.

0

  9.  MSU Diagnostic Center for Population and Animal Health (DCPAH). Conference included a one-time $500,000 GF/GP appropriation for MSU DCPAH.

500,000

10.  FY 2016-17 One-Time Gross Appropriations.  The Conference Report includes a $500,000 one-time appropriation for MSU DCPAH described in item #9 above.

 

 

Total Changes.........................................................................................................................

$47,916,000

FY 2016-17 Conference Report Ongoing/One-Time Gross Appropriation................................

$1,582,640,400

Amount Over/(Under) GF/GP Target:  $0

 

 

 

Boilerplate Changes from FY 2015-16 Year-to-Date:

Items Included by the Senate and House

  1.  Budget Transparency. Governor eliminated State Budget Director's authority to determine compliance and withhold funds. Senate and House restored. (Sec. 245)

  2.  Restored Provisions. Senate and House restored the following sections that were eliminated by the Governor: intent regarding appropriations for the next fiscal year (Sec. 236a); provision stating that the acceptance and use of Federal or private funds do not place an obligation on the Legislature to continue the purposes for which the funds are made available (portion of Sec. 242); intent regarding protection/preservation of U of M Douglas Lake Biological Station (Sec. 261); discouraged instruction activity regarding unionization or decertification (Sec. 271a); human embryonic stem cell research report (Sec. 274); and prohibit use of funds for the construction or maintenance of a self-liquidating project, require compliance with Section 238 of 1984 PA 431 and Joint Capital Outlay Subcommittee use and finance requirements, and include penalty provisions  (Sec. 275a).

  3.  Deleted Provisions. Governor, Senate, and House removed Federal Educational Rights & Privacy Act compliance (Sec. 293), and references to legislative intent in section 263.

  4.  Purchase of Foreign Automobiles. Legislative intent that funds not be used to lease or purchase vehicles assembled or manufactured outside of the U.S., and that preference be given to vehicles assembled or manufactured in Michigan.  Governor removed.  Senate and House included.  Conference removed this section. (Sec. 239a)

Conference Agreement on Items of Difference

  5.  Tuition Grant Program. Governor changed application date to March 1, eliminated carryforward authorization, and reduced maximum grant to eligible students enrolled in the same institution from $3.2 million to $3.0 million. Senate and House did not concur with changes to the application date or carryforward. Senate increased maximum grant to eligible students enrolled in the same institution from $3.2 million to $3.3 million. House increased maximum grant to $3.5 million. Conference set maximum at $3.2 million. (Sec. 252)

  6.  Tuition Incentive Program. Governor added new subsection stating beginning in FY 2017-18, the Department of Treasury shall not award more than $8.5 million annually to eligible students enrolled in the same college or university. House did not concur. Senate did not concur with Governor but added provision limiting expenditures to appropriations and authorizing Treasury to prorate Phase I grants. Conference included Governor's FY 2017-18 $8.5 million limit. (Sec. 256)


  7.  Tuition Restraint. Governor set at 4.8%, clarified tuition and fee definition, and eliminated provision stating "fee" includes the annual amount a student is charged for coverage by the university-affiliated group health insurance policy. Senate and House did not concur with the elimination of mandated health insurance costs from fee definition. Senate set tuition restraint cap at 4.8%, added penalty for universities that exceed tuition and fee cap stating they will not receive capital outlay authorizations from the State in FY 2017-18 or FY 2018-19. House set tuition restraint cap at the greater of 4.8% or $500. Conference set tuition restraint at 4.2%, maintained Senate capital outlay penalty, and included new language stating that Legislature may at any time adjust appropriations for universities that exceed the tuition restraint cap. (Sec. 265)

  8.  Performance Funding Criteria. Governor, Senate, and House included an across-the-board distribution along with last year's metrics. House added metric of whether university has received a Carnegie Community Engagement designation to distribution formula. Governor and House eliminated legislative intent statement that, beginning in the next fiscal year, a university classified as improving is assigned a score of 1. Senate maintained intent statement. Conference concurred with Senate. (Sec. 265a)

  9.  Indian Tuition Waiver Program. Governor eliminated legislative intent that funds be allocated for unfunded North American Indian tuition waiver costs incurred by public universities from the General Fund. Senate and House restored this provision. Senate and House clarified and revised reporting requirements. House added criteria for distributing North American Indian Tuition Waiver appropriation. Conference did not include additional funds for waiver costs and therefore did not include distribution criteria. (Sec. 268)

10.  Yellow Ribbon GI Education Enhancement Program. States that "It is the intent of the Legislature" that each public university meet the provisions of section 5003 of the Post-911 Veterans Educational Assistance Act of 2008, including voluntary participation in the yellow ribbon GI education enhancement program. Requires annual report. Governor removed report and legislative intent reference. Senate and House restored report, but Senate did not include legislative intent reference. Conference included report and intent reference. (Sec. 275(1)(a)

11.  Academic Program Partnerships. Senate added language 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 included this new section. (Sec. 286a)

FY 2015-16 Supplemental

12.  Tuition Incentive Program. Conference included a $4.5 million TANF FY 2015-16 supplemental appropriation for the Tuition Incentive Program based on updated projections as requested in the State Budget Office Supplemental Request Letter 2016-5, dated 5-6-16. (Sec. 236d)

 

Date Completed:  5-31-16                                                                                              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.