FY 1999-2000 HIGHER EDUCATION BUDGET - H.B. 4302 (P.A. 93 of 1999): ENACTED WITH VETOES




FY 1998-99 Year-to-Date Gross Appropriations $1,604,100,000
Changes from FY 1998-99 Year-to-Date:
Items Included by the House and Senate
1. Tuition Incentive Program (TIP). An increase of $3,500,000 is provided for TIP to bring total funding to $5,250,000. In addition, the fund source for TIP is shifted from State GF/GP to the Michigan Merit Award Trust Fund. 3,500,000
Conference Agreement on Items of Difference
2. University Operations. The Conference Report includes a 5.4% average increase for the 15 public universities, with increases ranging from 3.3% to 8.6%. The 5.9% increase for Michigan State University includes a separate $250,000 line-item for the Kinship Care Program. 76,827,341
3. State and Regional Programs. An increase of 4.6% is provided for the Agricultural Experiment Station, with an earmarking of $150,000 for the Michigan-Latvian Economic Development Project; a 4.1% increase for the Cooperative Extension Service; an increase of $152,310 for the Michigan Molecular Institute for a total of $222,310; a 10.5% increase for the Japan Center; new funds of $110,000 for the Higher Education database; and a $17,000 dues increase for the Midwest Higher Education Compact.

* The Governor vetoed the $150,000 for the Michigan-Latvian Economic Development Project.

 2,605,127
4. King-Chavez-Parks Initiative. A 3.3% increase is provided for all six King-Chavez-Parks Programs but the funds for the Visiting Professors Program ($171,916) are then transferred to the Universities' Operations line-items, $11,461 for each university. (76,756)
5. Grants and Financial Aid. The Conference Report includes 3.3% increases for all of the State-funded financial aid programs, with an additional $1,600,000 for the General Degree Reimbursement Program. The Federal Robert Byrd Scholarship Program receives an additional $300,000 for a FY 1999-2000 total of $1,600,000. 5,595,596
6. Michigan Merit Awards. An appropriation of $86,300,000 from the Michigan Merit Award Trust Fund, which is proposed to be financed from national tobacco settlement revenues, is made to fund this new merit-based scholarship program. 86,300,000
7. Center for Advanced Technology. This grant to Focus:HOPE for manufacturing-based education is transferred to the Department of Career Development. (4,092,000)
8. Life Sciences Consortium. This consortium funded from $50,000,000 in tobacco settlement revenue is transferred to the Strategic Fund Agency. 0
Total Changes 170,659,308
FY 1999-2000 Enacted Gross Appropriation $1,774,759,308
* Vetoed by the Governor
FY 1999-2000 HIGHER EDUCATION - BOILERPLATE HIGHLIGHTS
Changes from FY 1998-99 Year-to-Date:
Items Included by the House and Senate
1. Buy American. Governor deletes; House and Senate retain. (Sec. 206)
2. Need-Based Financial Aid. House and Senate add legislative intent that universities increase need-based undergraduate resident student aid by at least the percent increase in tuition and fees. (Sec. 210)
3. Independent College Audits. House and Senate require Auditor General to accept the Free Application for Federal Student Aid (FAFSA) form as the standard for residency. (Sec. 307)
4. Tuition Incentive Program. House and Senate appropriate a "sum sufficient" from the State General Fund if Merit Award Trust Fund dollars are not available. (Sec. 310(14))
5. Michigan Merit Award Program. House and Senate require progress report, and prohibit consideration of merit award when determining eligibility for other State financial aid. (Sec. 313)
6. Douglas Lake. House and Senate reinstate Legislative intent. (Sec. 402)
7. MSU-DCL Law Alliance. House and Senate reinstate audit requirement. (Sec. 404)
8. Enrollment of First-Time Law Students. House and Senate reinstate prohibition against use of State funds to increase law student enrollment. (Sec. 418)
9. Charter School Center. House/Senate reinstate requirement for CMU to report on its activities. (Sec. 421)
10. Textbooks. House and Senate reinstate Legislative intent for timely access to required book lists by private bookstores, and for students' discretion on textbook purchase. (Sec. 426)
11. Geographic Areas. House and Senate require Presidents Council to report on appropriate guidelines for expansion of academic programs into areas outside a university's immediate region. (Sec. 427)
12. Teaching Faculty. House/Senate reinstate report requirement regarding English language oral proficiency. (Sec. 704)
13. Campus Security Act. House and Senate add report requirement. (Sec. 709)
Conference Agreement on Items of Difference
14. Tuition Restraint Incentive Grants. Governor/House provide grants contingent on tuition and fee increases of 3% or less; Senate/Conferees do not include this concept but do apply sanctions for FY 2000-2001. (Secs. 304 & 403)
15. University Groupings. The Conference Report includes five per-student funding floors. (Sec. 409)
16. Tuition Incentive Program. Senate and Conferees add eligibility for Focus:HOPE. (Sec. 310(5)(d))
17. Athletic Personnel Contracts. House reinstates Legislative intent to reduce university appropriations by any amount spent to fulfill a contract before the end of its term; Senate and Conferees delete.
18. Charter School Authorizing. House/Senate retain requirement for universities to provide information requested by Auditor General; Senate adds intent to request Attorney General Opinion; Conferees delete entire section.
19. Life Sciences Consortium. Senate includes parameters for the consortium; Conferees transfer to DCD.
20. King-Chavez-Parks. House/Senate retain reference to King-Chavez-Parks Initiative Unit within the Dept. of Education (Secs. 501-507); Senate/Conferees delete Future Faculty Program reference to "full-time" & "in this state". (Sec. 501)
21. Resident Students. House retains, Senate and Conferees delete, responsibility for UM-Ann Arbor to achieve a resident undergraduate enrollment level of 70%.
22. Higher Education Reports. Senate and Conferees require availability on the Internet in a pilot program. (Sec. 710)
*23. FY 1998-99 Supplemental. Senate and Conferees add $300,000 for Northern for infrastructure, technology, equipment, and maintenance. (Parts 1A & 2A)

Date Completed: 7-21-99 - Fiscal Analyst: E. Jeffries