SENATE Substitute For

HOUSE BILL NO. 5505

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 236 and 241 (MCL 388.1836 and 388.1841), section 236 as amended by 2023 PA 320 and section 241 as amended by 2023 PA 103.

the people of the state of michigan enact:

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for higher education for the fiscal year ending September 30, 2024, 2025, from the funds indicated in this section. The following is a summary of the appropriations in this section and section 236j:

(a) The gross appropriation is $2,291,048,800.00. $200.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,291,048,800.00.$200.00.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $131,026,400.00.$0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $482,268,300.00.$100.00.

(v) State general fund/general purpose money, $1,677,754,100.00.$100.00.

(c) The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under subsection (7)(f) or (8)(c) to avoid duplicating totals of amounts appropriated in this section and section 236j.

(2) Amounts appropriated for public universities are as follows:

(a) The appropriation for Central Michigan University is $95,413,800.00, $89,352,000.00 for operations, $0.00 for per-student floor funding, $4,467,600.00 for operations increase, and $1,594,200.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Eastern Michigan University is $83,144,700.00, $78,798,800.00 for operations, $0.00 for per-student floor funding, $3,939,900.00 for operations increase, and $406,000.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Ferris State University is $59,646,500.00, $56,126,000.00 for operations, $0.00 for per-student floor funding, $2,806,300.00 for operations increase, and $714,200.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Grand Valley State University is $97,365,000.00, $79,974,500.00 for operations, $11,560,000.00 for per-student floor funding, $4,576,700.00 for operations increase, and $1,253,800.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Lake Superior State University is $15,190,300.00, $13,573,100.00 for operations, $0.00 for per-student floor funding, $678,700.00 for operations increase, and $938,500.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Michigan State University is $390,452,600.00, $301,681,300.00 for operations, $0.00 for per-student floor funding, $15,084,100.00 for operations increase, $1,943,800.00 for costs incurred under the North American Indian tuition waiver, $38,518,400.00 for MSU AgBioResearch, and $33,225,000.00 for MSU Extension.

(g) The appropriation for Michigan Technological University is $54,525,700.00, $51,103,600.00 for operations, $0.00 for per-student floor funding, $2,555,200.00 for operations increase, and $866,900.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Northern Michigan University is $53,320,000.00, $49,589,800.00 for operations, $0.00 for per-student floor funding, $2,479,500.00 for operations increase, and $1,250,700.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Oakland University is $72,288,800.00, $60,406,600.00 for operations, $8,123,900.00 for per-student floor funding, $3,426,500.00 for operations increase, and $331,800.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Saginaw Valley State University is $33,894,500.00, $32,086,300.00 for operations, $0.00 for per-student floor funding, $1,604,300.00 for operations increase, and $203,900.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for University of Michigan Ann Arbor is $356,568,800.00, $338,360,300.00 for operations, $0.00 for per-student floor funding, $16,918,000.00 for operations increase, and $1,290,500.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for University of Michigan Dearborn is $31,233,500.00, $27,869,700.00 for operations, $1,699,800.00 for per-student floor funding, $1,478,500.00 for operations increase, and $185,500.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for University of Michigan Flint is $26,404,700.00, $24,774,800.00 for operations, $0.00 for per-student floor funding, $1,238,700.00 for operations increase, and $391,200.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Wayne State University is $224,354,500.00, $213,286,600.00 for operations, $0.00 for per-student floor funding, $10,664,300.00 for operations increase, and $403,600.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Western Michigan University is $119,983,900.00, $113,752,600.00 for operations, $0.00 for per-student floor funding, $5,687,600.00 for operations increase, and $543,700.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for public universities is $1,713,787,300.00, appropriated from the following:

(a) State school aid fund, $443,168,300.00.

(b) State general fund/general purpose money, $1,270,619,000.00.

(4) The amount appropriated for Michigan public school employees' retirement system reimbursement is $0.00.

(5) The amount appropriated for state and regional programs is $316,800.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Higher education database modernization and conversion, $200,000.00.

(b) Midwestern Higher Education Compact, $116,800.00.

(6) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program, $586,800.00.

(c) Morris Hood, Jr. educator development program, $148,600.00.

(7) Subject to subsection (8), the amount appropriated for grants and financial aid is $447,283,200.00, allocated as follows:

(a) State competitive scholarships, $26,861,700.00.

(b) Tuition grants, $42,021,500.00.

(c) Tuition incentive program, $73,800,000.00.

(d) Children of veterans and officer's survivor tuition grant programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(f) Michigan achievement scholarships, $300,000,000.00. From this amount, up to $10,000,000.00 may be used to award skills scholarships under section 248a.

(8) The money appropriated in subsection (7) for grants and financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of Education, Office of Elementary and Secondary Education, GEAR-UP program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary assistance for needy families, $127,826,400.00.

(c) Postsecondary scholarship fund, $300,000,000.00.

(d) State general fund/general purpose money, $16,256,800.00.

(9) For fiscal year 2023-2024 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $9,100,000.00 for payments to participating public universities, appropriated from the state school aid fund. A public university that receives money under this subsection shall use that money solely for the purpose of offsetting the normal cost contribution rate. As used in this subsection, "participating public universities" means public universities that are 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 38.1437, and that pay contributions to the Michigan public school employees' retirement system for the state fiscal year.

(10) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), the amount appropriated for Michigan Technological University for the creation of a bachelor of science degree in nursing program is $870,000.00, appropriated from state general fund/general purpose money.

(11) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $3,000,000.00 is appropriated from state general fund/general purpose money to the Michigan geological survey for costs related to the development, construction, and equipment purchases for a new facility.

(12) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $5,000,000.00 is appropriated from state general fund/general purpose money for critical incident mapping. These funds must be distributed to universities proportionately to the amounts in subsection (2) for operations.

(13) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), subject to sections 236m and 236o, $79,000,000.00 is appropriated from general fund/general purpose money for infrastructure, technology, equipment, maintenance, and safety.

(14) For fiscal year 2023-2024 only, from the appropriations described in subsection (1), $30,000,000.00 is appropriated from the state school aid fund to Michigan State University for the Engineering and Digital Innovation Center.

Sec. 241. Subject to sections 241a, 241b, 241c, and 244,the funds appropriated in section 236 to public universities must be paid out of the state treasury and distributed by the state treasurer to the respective institutions in 11 equal monthly installments on the sixteenth of each month, or the next succeeding business day, beginning with October 16, 2023. 2024. Except for Wayne State University, each institution shall accrue its July and August 2024 2025 payments to its institutional fiscal year ending June 30, 2024.2025.