SENATE BILL NO. 907
EXECUTIVE BUDGET BILL
February 24, 1998, Introduced by Senators GAST, GOUGEON, STEIL
and MC MANUS and referred to the Committee on Appropriations.
A bill to make appropriations for community colleges for the fiscal
year ending September 30, 1999; to provide for the expenditure of the
appropriations; to establish or continue certain funds, programs, and
categories; and to prescribe the powers and duties of certain state
departments, officers, and employees.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 101. There is appropriated for community colleges and certain
other state purposes relating to education, subject to the conditions
set forth in this bill, for the fiscal year ending September 30, 1999,
the following amounts:
COMMUNITY COLLEGES
APPROPRIATION SUMMARY:
GROSS APPROPRIATION. . . . . . . . . . . . . . . . . .$ 275,242,100
Interdepartmental grants:
Total interdepartmental grants and
intradepartmental transfers. . . . . 0
ADJUSTED GROSS APPROPRIATION . . . . . $ 275,242,100
Federal revenues:
Total federal revenues. . . . . 0
Special revenue funds:
Total local revenues. . . . . . 0
Total private revenues. . . . . 0
Total other state restricted revenues . . . . . 0
State general fund/general purpose. . . . . . $ 275,242,100
OPERATIONS
Alpena Community College. . . . . . $ 4,427,617 Bay de Noc Community College . . . . 4,073,298
Delta College . . . . 12,879,360
Glen Oaks Community College . . . . . 1,938,977
Gogebic Community College . . . . . . 3,911,254
Grand Rapids Community College. . . . . . 17,167,807
Henry Ford Community College. . . . . 19,191,097
Jackson Community College . . . . . . 11,387,890
Kalamazoo Valley Community College. . . . . . . 9,662,776
Kellogg Community College . . . . . . 8,060,728
Kirtland Community College. . . . . . 2,812,022
Lake Michigan College . . . . . 4,468,779
Lansing Community College . . . . . . 27,947,798
Macomb Community College. . . . . . . 30,419,950
Mid Michigan Community College. . . . . . 3,607,590
Monroe County Community College . . . . . 3,534,573
Montcalm Community College. . . . . . 2,907,824
Mott Community College. . . . . 14,136,966 Muskegon Community College. . . . . . 8,025,890
North Central Michigan College. . . . . . 2,686,635
Northwestern Michigan College . . . . . . 7,809,604
Oakland Community College . . . . . . 19,845,292
St. Clair County Community College. . . . . . . 6,327,240 Schoolcraft College. . . . . . . 10,643,950
Southwestern Michigan College . . . . . . 5,138,206
Washtenaw Community College . . . . . 10,176,151
Wayne County Community College. . . . . . 15,869,022
West Shore Community College. . . . . 2,046,238
GROSS APPROPRIATION . . . . . . $271,104,534
Appropriated from: . . . .
State general fund/general purpose. . . . . . . $271,104,534
GRANTS . . . .
At risk student success program . . . . . $ 3,584,566
Renaissance zone tax reimbursement funding. . . . . 553,000
GROSS APPROPRIATION . . . . . . $ 4,137,566
Appropriated from:
State general fund/general purpose. . . . . . . $ 4,137,566
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources for fiscal
year 1998-99 is estimated at $275,242,100 in this bill and state
spending from state sources paid to local units of government for fiscal
year 1998-99 is estimated at $275,242,100. The itemized statement below
identifies appropriations from which spending to units of local
government will occur:
Operations. . . . . . $271,104,534
Grants. . . . . . 4,137,566
Total . . . . . . $275,242,100
(2) If it appears to the principal executive officer of a department
or branch that state spending to local units of government will be less
than the amount that was projected to be expended under subsection (1),
the principal executive officer shall immediately give notice of the
approximate shortfall to the state budget director. Sec. 202. The expenditures and funding sources authorized under this
bill are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
Sec. 203. (1) The sums appropriated in this bill are appropriated
for community colleges with fiscal years ending June 30, 1999 and shall
be paid out of the state treasury and distributed by the state treasurer
to the respective community colleges in 11 equal monthly installments on
the sixteenth of each month, or the next succeeding business day,
beginning with October 16, 1998. Each community college shall accrue its
July and August 1999 payments to its institutional fiscal year ending
June 30, 1999. However, if a community college fails to submit all
verified Michigan Community Colleges Activities Classification Structure
data for school year 1997-98 to the department of education by November
1, 1998, the monthly installments shall be withheld from that community
college until those data are submitted. The department of education
shall publish the activity classification structure data book on or
before March 1, 1999, for use by the legislature during budget
development for the fiscal year ending September 30, 2000. The amount
from the funds appropriated in section 101 that is allocated under
section 401 to address the special needs of at risk students shall be
paid in full by the state treasurer by November 1, 1998. The amount
distributed to a community college or department shall not exceed the
net state allocation authorized by this bill.
(2) Except as otherwise provided by law, each of the amounts
appropriated shall be used solely for the respective purposes stated in
this bill. The funds appropriated by this bill may be used to match the
cost of any available programs under the Carl D. Perkins vocational and
applied technology education act, Public Law 88-210, 98 Stat. 2435,
including local administration.
Sec. 204. (1) The auditor general or an independent public
accounting firm appointed by the auditor general shall audit data for
the fiscal year ending on June 30, 1998 as submitted on the department
of education request forms of 7 randomly selected community colleges. A
community college shall maintain and provide those records necessary for
the auditor general or certified public accountant appointed by the
auditor general to determine the accuracy of the reported data. The
audits shall be based upon the definitions and requirements contained in
the Michigan Public Community Colleges Manual for Uniform Financial
Reporting, 1981, as revised, and the Michigan Community Colleges
Activities Classification Structure, 1981, as revised. Before the
submission of a final audit report, a community college may appeal the
findings of the preliminary report under an appeal process to be
established by the auditor general. The auditor general shall submit a
report of the findings to the house and senate appropriations
committees, the department of education, and the state budget director
before June 1, 1999.
(2) The auditor general or a certified public accountant appointed
by the auditor general shall conduct not less than 3 performance audits
of community colleges but may conduct more if the auditor general
considers it necessary.
(3) Not more than 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
department of education, 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.
(4) A community college whose audited activities classification
structure data is significantly different than the data used to
determine state aid under this bill shall return any overappropriated
funds as provided in this section. The department of education shall
compare formula computations for the audited colleges using pre-and-post-audit data. If the state allocation is 2% or more than the post-audit allocation amount, the college shall return the excess funds. The
returned money shall be redistributed to all 28 community colleges,
prorated on the base appropriations contained in section 101.
Sec. 205. The department of education shall revise and update the
taxonomy of the 7 community colleges selected for audit under section
203(1) pursuant to the Michigan Community Colleges Activities
Classification Structure, 1981, as revised.
Sec. 206. (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 between the community college and agencies that
reimburse the community college for the costs of instruction shall be
retained for audit purposes.
Sec. 207. 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 legislature,
the senate and house fiscal agencies, the auditor general, the
department of education, and the state budget director before November
15, 1998. 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 Michigan Public Community Colleges Manual
for Uniform Financial Reporting, 1981, as revised.
Sec. 208. (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 38.1467, as a condition of receiving funds
appropriated under this bill.
(2) A community college shall not pay an employer's contribution to
more than 1 retirement fund providing benefits for an employee.
(3) An appropriation contained in this bill shall not be used for
the construction of buildings for or operations of a community college
not expressly authorized in section 101. Funds appropriated in section
101 shall not be used to pay for the construction or maintenance of any
self-liquidating project.
Sec. 209. Each community college shall report to the department of
education, the house and senate appropriations committees, the house and
senate fiscal agencies, and the state budget director 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, 1998.
Sec. 210. The department of education shall ensure that a
statistical report for minorities and women employees for the most
recent school year as submitted to the federal government on the EEO-6
form be included in the Michigan Community Colleges Enrollment Profile
published by the department of education. Also included in this profile
shall be a statistical report for the most recent school year that
includes enrollment statistics for minorities and women as submitted to
the department of education. The department of education shall
distribute a copy of this report to members of the house and senate
appropriations subcommittees on community colleges, house and senate
fiscal agencies, and the state budget director no later than March 1,
1999.
Sec. 211. (1) Each community college shall report the following to
the house and senate appropriations subcommittees on community colleges,
the house and senate fiscal agencies, the department of education, and
the state budget director no later than November 1, 1998:
(a) The number of North American Indian students enrolled each term
for the previous fiscal year, using guidelines and procedures developed
by the department of education and the Michigan commission on Indian
affairs.
(b) The number of Indian tuition waivers granted each term, and the
monetary value of the waivers for the previous fiscal year.
(2) Colleges shall use the criteria cited in 1976 PA 174, MCL
390.1251 to 390.1253, to determine eligibility for tuition waivers, and
shall grant such waivers to individuals who meet the criteria and
request tuition waivers.
Sec. 212. From the state general fund/general purpose appropriation
in section 101, there is allocated $553,000 to make reimbursement to
community colleges, as provided by section 12 of 1996 PA 376, MCL
125.2692, for property taxes levied in 1998. Reimbursements shall be
made in amounts to each eligible recipient no later than 60 days after
the department of treasury certifies to the state budget director that
it has received all necessary information to properly determine the
amounts due each eligible recipient pursuant to section 12(4) of 1996 PA
376, MCL 125.2692. Any excess allocations shall lapse to the general
fund.
Sec. 213. Upon request, a community college shall inform interested
Michigan high schools of the aggregate academic status of its students
for the fiscal year beginning October 1, 1999, in a manner prescribed by
the Michigan community college association and in cooperation with the
Michigan association of secondary school principals.
Sec. 214. In order to receive funding under this bill, community
colleges shall prepare a consumer report that provides information
needed for students to make informed career choices, in a form and
manner prescribed by the department of education and the Michigan jobs
commission. Community colleges shall make copies of the consumer report
available to the public.
STATE AID-OPERATIONS
Sec. 301. Unless otherwise stated, all data items used in
determining state aid in this bill are as defined in the Michigan Public
Community Colleges Manual for Uniform Financial Reporting, 1981, as
revised, which shall be the basis for reporting data, and the Michigan
Community Colleges Activities Classification Structure, 1981, as
revised, which shall be used to document financial needs of the
community colleges.
Sec. 302. A community college shall not include in the enrollment
report any student credit hours or student contact hours for a student
incarcerated in a Michigan penal institution. Exclusion of these stu-
dents is intended to avoid the payment of state aid under this bill for
the same individuals for whom reimbursement is provided by the state
correctional system.
GRANTS
Sec. 401. (1) The community college at risk student success program
is continued. The funding shall be prorated among community colleges
based on the number of student contact hours for developmental and
preparatory instruction reported by each community college to the
department of education for use in the Michigan Community Colleges
Activities Classification Structure, 1981, as revised. Of the amount
appropriated in section 101 for the at risk student success program,
$1,120,000.00 is allocated for base grants of $40,000.00 each, to
address the special needs of at risk students at community colleges or
the acquisition or upgrade of technology related equipment and software.
(2) Of the amount appropriated in section 101 for the at risk
student success program, the balance of the appropriated funds shall be
distributed on a proration utilizing the sum of the most recent 3 years
developmental/preparatory contact hours divided by the sum of the 3-year
total contact hours at each college. Each community college's
percentage shall be divided by the sum of all such percentages
systemwide to obtain each community college's prorated grant amount.
(3) For the fiscal year ending September 30, 1999, the at risk
student success program money is allocated as follows:
Alpena Community College . . . . . . . . . . . $ 126,215 Bay de Noc Community College . 122,239 Delta College . 104,543
Glen Oaks Community College. . . . . . . . . . 126,914
Gogebic Community College. . . . . . . . . . . 73,459
Grand Rapids Community College . . . . . . . . 73,167
Henry Ford Community College . . . . . . . . . 164,082
Jackson Community College. . . . . . . . . . . 109,669
Kalamazoo Valley Community College . . . . . . 117,532
Kellogg Community College. . . . . . . . . . . 143,437
Kirtland Community College . . . . . . . . . . 138,127
Lake Michigan College. . . . . . . . . . . . . 174,317
Lansing Community College. . . . . . . . . . . 106,828
Macomb Community College . . . . . . . . . . . 85,344
Mid-Michigan Community College . . . . . . . . 124,193
Monroe Community College . . . . . . . . . . . 100,926
Montcalm Community College . . . . . . . . . . 71,215
Mott Community College . . . . . . . . . . . . 110,568
Muskegon Community College . . . . . . . . . . 199,964
North Central Michigan College . . . . . . . . 118,681
Northwestern Michigan College. . . . . . . . . 134,817
Oakland Community College. . . . . . . . . . . 161,743
St. Clair Community College. . . . . . . . . . 76,110
Schoolcraft College. . . . . . . . . . . . . . 157,115
Southwestern Michigan College. . . . . . . . . 187,371
Washtenaw Community College. . . . . . . . . . 135,213
Wayne County Community College . . . . . . . . 207,316
West Shore Community College . . . . . . . . . 133,461
(4) For the purposes of this section, "at risk students" means
students who meet 1 or more of the following criteria:
(a) Are initially placed in 1 or more developmental courses as a
result of standardized testing or as a result of failure to make
satisfactory academic progress.
(b) Are diagnosed as learning disabled.
(c) Require English as a second language (ESL) assistance.
(5) Grant funding under this section shall be utilized to address
the special needs of at risk students or for equipment or upgrade of
information technology hardware or software. Activities related to
services provided to at risk students include, but are not limited to,
pretesting for academic ability, counseling contacts, and special
programs. Equipment or information technology hardware or software
purchased under this section need not be associated with the operation
of a program designed to address the needs of at risk students.
(6) Grant funding under this section shall not be used for indirect
costs including, but not limited to, rent, utilities, or, except as
provided in this section, college administration.
(7) Each community college shall report to the house and senate
appropriations subcommittees on community colleges, the house and senate
fiscal agencies, the department of education, and the state budget
director, a summary of accomplishments under, expenditures for, and
compliance with the intent of this program, including the number of at
risk students served. The report is subject to audit as provided for in
section 203(1). The report shall be submitted not later than 90 days
after the end of the state's fiscal year. The department of education
shall make available a summary report of the program.
(8) Each community college receiving grant money under this section
shall, not more than 12 months after receipt of that money, certify to
the state treasurer, the state budget director, the house and senate
fiscal agencies, and the auditor general whether all the grant money is
expended or encumbered.
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