FY 2000-01 HIGHER EDUCATION BUDGET - S.B. 967 (CR-1*): CONFERENCE REPORT

FY 1999-2000 Year-to-Date Gross Appropriation $1,785,959,308
Changes from FY 1999-2000 Year-to-Date:
Items Included by the House and Senate
1. No Change. The House and Senate retain the FY 1999-2000 funding levels for the Higher Education database ($275,000), Midwest Compact dues ($75,000), the Byrd scholarships ($1,600,000), and the Tuition Incentive Program ($5,250,000).
2. Project GREEEN. The House and Senate transfer this funding from the Department of Agriculture. 6,100,000
Conference Agreement on Items of Difference
3. Per-Student Floor Funding. The Governor and House referred to five funding floors of $4,500, $4,600, $4,700, $5,700, and $9,000. The Senate used one $4,700 per-student floor. The Conference Report includes the Senate's floor funding dollar amount yet recognizes the five separate university groupings proposed by the Governor and House. 30,673,751
4. Across-the-Board Increase. The Governor added 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 provided a 4% increase for all of these programs; the House added 6.4% for universities, 5.4% for State and regional programs and King-Chavez Parks, and 8.0% for grants and financial aid. The Conference Report includes 5% increases for universities, State and regional programs, and King-Chavez-Parks, and 4.75% for grants and financial aid. 85,188,448
5. Graduate and Engineering Programs. The Senate included funds for seven universities with strong graduate and engineering programs. The House and Conference Report remove these dollars. 0
6. Health Education Technology Grants. The Senate provided grants to each of the public universities for health education programs and their related technology needs. Funds were distributed based on each university's share of the FY 1999-2000 operations base, and were financed from tobacco settlement revenues available in the Michigan Merit Award Trust Fund. The House and Conference Report remove these dollars. 0
7. Health Education Technology Grant-Dental Degree Program. The Senate added $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 and Conference Report remove these dollars. 0
8. Funding Cap and Other Adjustments. The Senate limited the percent increase over FY 1999-2000 for any university to 13%, except for Grand Valley which was capped at 14.4% in order to allow a per-student funding floor of $4,500 for them. The House capped increases for three universities: Grand Valley, Michigan State, and Western. The Conference Report adds $6,049,961 to three universities and reduces $21,470,860 from seven universities for a net reduction of $15,420,899. (15,420,899)
9. Kendall College. The House added a $100 line item for a "merged institution student grant". The Conference Report funds these grants through the Tuition Grant Program. 0
10. Michigan Merit Award Program. The Governor originally recommended funding the program at $100 million; the Senate Fiscal Agency estimated FY 2000-01 expenditures of $79.6 million, and the House estimated FY 2000-01 expenditures of $79.0 million. The Conferees adopt the Governor's revised recommendation of $110 million. 12,500,000
Total Changes $119,041,300
FY 2000-01 Conference Report Gross Appropriation $1,905,000,608

Amount Over/(Under) GF/GP Target: $0

FY 2000-01 HIGHER EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 1999-2000 Year-to-Date:
Items Included by House and Senate
1. Higher Education Reports. Continue pilot of Internet reporting, and require written notification to Subcommittees of Internet sites. (Sec. 208)
2. Buy American. Retain requirement for information upon request. (Sec. 209)
3. HEIDI Data. Add financial penalty for untimely submission. (Sec. 210(3))
4. Tuition Grant Program. Extend determination date for maximum award by two months. (Sec. 302(3))
5. Tuition Incentive Program. Governor disallows applications after September 30, 2000; Senate and House do not. (Sec. 310(9))
6. Douglas Lake. Retain legislative intent. (Sec. 402)
7. Undergrad Instruction. Legislative recognition that it is the foremost obligation of public universities. (Sec. 408)
8. Textbooks. Legislative intent for timely access to required book lists by private bookstores, and to allow students discretion on where they are required to purchase textbooks. (Sec. 426)
9. Geographic Areas. Delete requirement for report on appropriate guidelines for expansion of academic programs into areas outside a university's immediate region.
10. Project GREEEN. Transfer $6.1 million from Department of Agriculture. (Sec. 433)
11. King-Chavez-Parks. Include independent colleges in College/University Partnership Program. (Sec. 504)
12. High School Student Achievement Information. Require summary report by August 31, 2001. (Sec. 601(3))
Conference Agreement on Items of Difference
13. Need-Based Financial Aid. Deletes legislative intent that universities increase need-based undergraduate resident student aid by at least the percent increase in tuition and fees.
14. Tuition Grant Program. Allow eligibility for Ferris' Kendall College students for FY 2000-01 and FY 2001-02. (Sec. 302(7))
15. Work Study. Retain reference to "3 most recent years" for utilization rate. (Sec. 303(2))
16. Independent College Audits. Allow, rather than require, Auditor General to audit. (Sec. 307)
17. Tuition Incentive Program. Allow appropriation of a "sum sufficient" from the State General Fund if Merit Award Trust Fund dollars are not available. (Sec. 310(15))
18. Joseph F. Young, Sr. Psychiatric Research Program. Increase earmarking. (Sec. 401)
19. Tuition Restraint. Require 1.5% base reduction for any university increasing tuition more than 4.0%. (Sec. 403)
20. MSU-DCL Law Alliance. Retain legislative intent and audit requirement. (Sec. 404)
21. Per-Student Floor Funding. Recognize five separate university groupings. (Sec. 409)
22. 2/3 / 1/3. Legislative intent to increase toward a 2-to-1 ratio for State appropriations versus tuition. (Sec. 410)
23. Tracking System for Graduates. Add report requirement. (Sec. 412)
24. State Funds for New Law Degree Students. Retain prohibition. (Sec. 418)
25. Oakland University. Recognize that campus is located in Auburn Hills. (Sec. 434)
26. Michigan Molecular Institute. Remove requirement for Budget Director to review funding.
27. King-Chavez-Parks. Refer to "college" not "post secondary" in College Day Program. (Sec. 502(1))
28. Approval of New Degree Programs. Add list from Presidents Council. (Sec. 701a)
29. Campus Security Act. Require reports on institutional websites and to Department of Education. (Sec. 709)
30. Financial Aid. Require report on amount/percent of students receiving need and merit-based aid. (Sec. 710)


Date Completed: 9-8-00 - Fiscal Analyst: E. Jeffries