FY 1999-2000 COMMUNITY COLLEGES BUDGET - H.B. 4298 (S-1): COMMITTEE SUMMARY

House Bill 4298 (S-1 as reported)

Committee: Appropriations

FY 1998-99 Year-to-Date Gross Appropriation $282,000,000
Changes from FY 1998-99 Year-to-Date:
1. Operations. The Governor recommended a 2.5% increase in the base funding level for Community College operations distributed as 1.25% across-the-board and 1.25% according to the Gast-Mathieu funding formula. The House concurred in the Governor's recommendation. The Senate Subcommittee recommendation would distribute the Tuition Restraint Incentive Grant monies into the base for operations, and add an additional $2,746,561 for a total increase of 5.0%. The 5.0% increase would be distributed as 2% across-the-board, and 3% according to the Gast-Mathieu formula. 13,893,122
2. Tuition Restraint Incentive Grants. The Governor recommended a 1.5% across-the-board increase as a categorical grant for community colleges contingent upon the repeal of the College Tuition Tax Credit and colleges keeping their tuition increases to 3% or less. The House adopted the proposal, yet removed the condition requiring the repeal of the Tuition Tax Credit, and exempted tuition from the distance learning pilot program. The Senate Subcommittee recommendation would include these funds in base operations for each college, and remove all language related to the proposal. 0
3. Renaissance Zone Tax Reimbursement. This line-item reimburses colleges for property tax revenue lost from properties located within a Renaissance Zone development. The Governor recommended a reduction in program funding to more accurately reflect anticipated tax loss. The House and Senate Subcommittee concur in the recommendation. (184,542)
4. At-Risk Student Success Program. This program is designed to address the needs of students who test at a level that would indicate that they will not be successful in college level courses without additional preparatory assistance. The Governor, House, and Senate Subcommittee recommended continuation level funding with funds reallocated based on the existing formula. 0
5. Tax Revenue Loss Grant. The House included a new categorical grant intended to reimburse colleges for property tax revenue lost as a result of tax increment finance authorities, and tax abatements. The Senate Subcommittee did not include this item. 0
6. Comparison to Governor's Recommendation. The Senate Subcommittee recommendation exceeds the Governor's recommendation by $2,746,561 Gross and General Fund/General Purpose.
Total Changes $13,708,579
FY 1999-2000 Senate Appropriations Subcommittee Gross Appropriation $295,708,579



FY 1999-2000 COMMUNITY COLLEGES BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 1998-99 Year to Date:
1. Tax Increment Finance Authorities Report. The Governor and Senate Subcommittee would delete current-year language, reinstated by the House, to require the Department of Treasury to compile and publish a report on property tax revenue loss as a result of tax increment finance authorities and other tax abatement programs. The House also reinstated language, deleted by the Senate Subcommittee, requiring the Auditor General to audit tax loss reports.
2. Co-terminus College Districts. The Governor deletes current-year language that creates a task force to improve access to comprehensive community college services. The House and Senate Subcommittee concurred, yet retained a provision encouraging the Legislature to continue to review and analyze the issue. (Sec. 218)
3. "Buy American". The Governor deletes current-year language, reinstated by the House and Senate Subcommittee, that requires the purchase of American goods and services if they are comparable to foreign goods. (Sec. 219)
4. Intent to Fully-Fund Gast-Mathieu Funding Formula. The Governor deletes current-year language, reinstated by the House and Senate Subcommittee, that states legislative intent to fully fund the Gast-Mathieu fairness in funding formula, and to establish a per student funding floor. (Sec. 224)
5. Abortion Coverage in Employee Health Insurance. The Governor deletes current-year language, reinstated by the House and Senate Subcommittee, that prohibits the use of funds for health insurance that include abortion services (except in cases of spontaneous abortions, or to protect the life of the mother) for college employees. (Sec. 226)
6. Benefits for Unmarried Partners. The Governor deletes current-year language, reinstated by the House and Senate Subcommittee, that prohibits the use of funds to provide benefits to unmarried partners of employees. (Sec. 227)
7. Tuition Restraint Incentive Grant. The Governor recommended an additional 1.5% for each college contingent on repealing the Tuition Tax Credit, and colleges keeping tuition increases to 3% or less. The House eliminated the repeal of the Tuition Tax Credit contingency and exempted tuition for the distance learning program. The Senate Subcommittee eliminated this section.
8. College Increases Should Equal University Increases. The Governor deletes current-year language, reinstated by the House and Senate Subcommittee, that states intent that increases for colleges should equal increases for universities. (Sec. 403)
9. Partnership for Employment Program. The Governor and Senate Subcommittee delete current-year language, reinstated by the House, that requires colleges to implement a partnership for employment program, that would require colleges to form links with businesses in order to ascertain local employment needs.
10. Economic Development Job Training Grant Report. The House inserted new language retained by the Senate Subcommittee requiring a report detailing the recipients of economic development job training grants. (Sec. 405)
11. Tax Revenue Loss Grant Program. The House included new language eliminated by the Senate Subcommittee intended to reimburse colleges for the revenue lost from tax increment finance authorities and tax abatements.
12. Payment of Preventative Contraceptives. The House included new language eliminated by the Senate Subcommittee encouraging colleges to ensure that payment for preventative contraceptives is included in the employee's insurance plan.
13. Promoting Equal Opportunities. The House included new language eliminated by the Senate Subcommittee that requires colleges to promote equal opportunities, eliminate discrimination, and foster a diverse student body.
14. Deprived & Depressed Communities. New language added by the Senate Subcommittee that would encourage colleges to ensure business in depressed areas compete for contracts. (Sec. 228)
15. Reports on Internet. New language added by the Senate Subcommittee that would require all reports to be made available through the Internet. (Sec. 230)

Date Completed: 5/17/99 - Fiscal Analyst: M. Hansen