FY 2000-01 HIGHER EDUCATION BUDGET - S.B. 967 (H-1): HOUSE PASSED


FY 2000-01 Senate-Passed Gross Appropriation $1,902,618,381
House Changes to Senate-Passed:
1. Per-Student Floor Funding. The Governor and House refer to five funding floors of $4,500, $4,600, $4,700, $5,700, and $9,000. The Senate uses one $4,700 per-student floor which provides funds for Central, Eastern, Grand Valley, Oakland, Saginaw Valley, UM-Dearborn, and UM-Flint. 51,347,698
2. Across-the-Board Increase. The Governor adds 2.5% across-the-board for public universities, and 3% for State and regional programs, the King-Chavez-Parks programs, and grants and financial aid. The Senate provides a 4% increase for all of these programs; the House adds 6.4% for universities, 5.4% for State and regional programs and King-Chavez Parks, and 8.0% for grants and financial aid. 44,832,773
3. Graduate and Engineering Programs. The Senate includes funds for seven universities with strong graduate and engineering programs. Those universities are: Eastern-$300,000; Michigan State-$1,500,000; Michigan Tech-$500,000; Oakland-$400,000; UM-Ann Arbor-$1,500,000; Wayne State-$500,000; and Western-$400,000. The House removes these dollars. (5,100,000)
4. Health Education Technology Grants. The Senate provides grants to each of the public universities for health education programs and their related technology needs. Funds are distributed based on each university's share of the FY 1999-2000 operations base, and the grants are financed from tobacco settlement revenues available in the Michigan Merit Award Trust Fund. The House removes these dollars. (36,600,000)
5. Health Education Technology Grant-Dental Degree Program. The Senate adds $500,000 in tobacco settlement revenue from the Michigan Merit Award Trust Fund to expand the outreach of University of Detroit-Mercy's dental clinics. The House removes these dollars. (500,000)
6. Cap of 13%. The Senate limits the percent increase over FY 1999-2000 for any university to 13%, except for Grand Valley which is capped at 14.4% in order to allow a per-student funding floor of $4,500 for them. The House caps increases for three universities: Grand Valley, Michigan State, and Western. (33,932,914)
7. Kendall College. The House adds a $100 line item for a "merged institution student grant" for Ferris' Kendall College. 100
8. Michigan Merit Award Program. The Governor recommends funding the program at $100 million; the Senate Fiscal Agency estimates FY 2000-01 expenditures of $79.6 million, and the House estimates FY 2000-01 expenditures of $79.0 million. (600,000)
9. Comparison to Governor's Recommendation. The Senate bill is $63,717,819 Gross and $47,017,819 GF/GP over the Governor; the House bill is $83,165,476 Gross and $104,165,476 GF/GP over the Governor.
Total Changes 19,447,657
FY 2000-01 House-Passed Gross Appropriation $1,922,066,038

FY 2000-01 HIGHER EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2000-01 Senate-Passed:
1. Need-Based Financial Aid. The Governor and Senate delete legislative intent that universities increase need-based undergraduate resident student aid by at least the percent increase in tuition and fees; the House retains and adds report requirement. (Sec. 216)
2. Tuition Grant Program. The Governor and Senate allow eligibility for Ferris' Kendall College students for FY 2000-01; the House deletes language but adds a line item. (Sec. 302(7))
3. Work Study. The Governor and Senate delete reference to "3 most recent years" for utilization rate; the House retains. (Sec. 303(2))
4. Independent College Audits. The Governor and Senate allow, rather than require, Auditor General to audit; the House requires. (Sec. 307)
5. Tuition Incentive Program. House requires Department of Treasury to continue outreach components implemented by the Family Independence Agency. (Sec. 310(14))
6. Tuition Incentive Program. The Governor and Senate delete appropriation of a "sum sufficient" from the State General Fund if Merit Award Trust Fund dollars are not available; the House retains. (Sec. 310 (15))
7. Kendall College. House adds distribution method for line item in Part 1. (Sec. 312)
8. Tuition Restraint. Senate requires 1.5% base reduction for any university increasing tuition more than 2.8%; Governor and House allow 3% tuition increase. (Sec. 403)
9. Computing Fees. House excludes fees from tuition and fee calculation. (Sec. 403b)
10. MSU-DCL Law Alliance. Governor and Senate delete legislative intent and audit requirement; House retains. (Sec. 404)
11. Per-Student Floor Funding. Senate establishes one floor of $4,700; Governor and House use five floors of $4,500, $4,600, $4,700, $5,700, and $9,000. (Sec. 409)
12. 2/3 / 1/3. House states intent to achieve this ratio for state appropriations/tuition. (Sec. 410)
13. Tracking System for Graduates. House adds reporting requirement. (Sec. 412)
14. State Funds for New Law Degree Students. House removes prohibition; Governor and Senate retain prohibition. (Sec. 418)
15. Oakland University. House recognizes that campus is located in Auburn Hills. (Sec. 434)
16. Michigan Molecular Institute. House requires Budget Director to review funding. (Sec. 435)
17. King-Chavez-Parks. Senate allows College Days for "postsecondary" education; Governor and House refer only to "college" education. (Sec. 502(1))
18. Approval of New Degree Programs. House adds new list from Presidents Council. (Sec. 701a)
19. Campus Security Act. House requires written report submission to the Department of Education, as well as to the Internet; Governor and Senate require only Internet. (Sec. 709)


Date Completed: 5-26-00 - Fiscal Analyst: E. Jeffries