FY 1999-2000 HIGHER EDUCATION BUDGET - H.B. 4302 (S-1): SENATE-PASSED

House Bill 4302 (S-1 as passed by the Senate)

Committee: Appropriations

FY 1998-99 Year-to-Date Gross Appropriation $1,604,100,000
Changes from FY 1998-99 Year-to-Date:
1. Per-Student Funding Floor. The Governor and House place universities into four tiers and use floors of $4,500, $4,600, $4,700, and $8,500 per resident student. The Senate uses a $4,500 floor for all fiscal-year-equated students, which provides funds for Central, Eastern, Grand Valley, Oakland, Saginaw Valley, UM-Dearborn, and UM-Flint. 18,961,230
2. Across-the-Board Increase. The Governor and House add 1.5% across-the-board for public universities, state and regional programs, the King-Chavez-Parks programs, and grants and financial aid; the Senate adds 3.3%. 53,377,114
3. Graduate, Research, and Engineering Grants. The Senate includes grants for 8 universities with strong graduate, research, and/or engineering programs. Those universities are: Eastern-$250,000; Michigan State-$3,650,000; Michigan Tech-$1,200,000; Oakland-$500,000; UM-Ann Arbor-$3,650,000; UM-Dearborn-$450,000; Wayne State-$800,000; and Western-$500,000. 11,000,000
4. Cap of 8.6%. The Senate limits the percent increase over FY 1998-99 for any university to 8.6%, which results in reductions for Central, Grand Valley, and Oakland. (7,750,000)
5. Program Revisions. The Senate fulfills program revision requests for Ferris' Collegiate Skills Program-$500,000; Lake State's Teacher Education Program-$135,000; Western's School of Aviation Sciences-$1,340,000; a Michigan-Latvian economic development project-$150,000; and MSU's Kinship Care Program-$250,000. 2,375,000
6. State and Regional Programs. In addition to the across-the-board increase, the Senate provides funds for the Agricultural Experiment Station and Cooperative Extension Service to allow a 4.1% increase; $150,000 for the Michigan Molecular Institute; $26,000 for a new vehicle for the Japan Center; a $110,000 expansion for the Higher Education database to allow integration of national data; and a $17,000 Midwest Higher Education Compact dues increase. 733,000
7. Life Sciences Consortium. The Senate includes tobacco settlement revenue to fund this consortium of Michigan State, UM-Ann Arbor, Wayne State, and the Van Andel Institute. The funds would be allocated $25 million each for: a) basic research and b) peer-reviewed research projects. 50,000,000
8. Michigan Merit Awards. The Senate includes an appropriation from the Michigan Merit Award Trust Fund to fund this scholarship program proposed by the Governor; legislation is pending. 86,300,000
9. Grants and Financial Aid. In addition to the across-the-board increase, the Senate adds $1,600,000 to General Degree Reimbursement; $300,000 in Federal funds to the Robert Byrd Scholarship; increases the grant to Focus:HOPE's Center for Advanced Technologies to a total of $5,000,000; and increases the Tuition Incentive Program to $5,250,000, funded from the Michigan Merit Award Trust Fund. 6,172,964
10. Comparison to Governor's Recommendation. The Senate bill is $152,990,100 Gross and $16,390,100 GF/GP over the Governor.
Total Changes $221,169,308
FY 1999-2000 Senate Gross Appropriation $1,825,269,308
FY 1999-2000 HIGHER EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 1998-99 Year to Date:
1. Buy American. Governor deletes; House and Senate retain. (Sec. 206)
2. Tuition Restraint Incentive Grants. Governor and House provide grants contingent on tuition and fee increases of 3% or less; Senate does not include this concept.
3. 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)
4. 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)
5. Tuition Incentive Program. Senate adds eligibility for Focus:HOPE. (Sec. 310(5)(d))
6. 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))
7. 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)
8. Douglas Lake. House and Senate reinstate Legislative intent. (Sec. 402)
9. MSU-DCL Law Alliance. House and Senate reinstate audit requirement. (Sec. 404)
10. 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 deletes.
11. Enrollment of First-Time Law Students. House and Senate reinstate prohibition against use of State funds to increase law student enrollment. (Sec. 418)
12. Charter School Center. House/Senate reinstate requirement for CMU to report on its activities. (Sec. 421)
13. Charter School Authorizing. House/Senate retain requirement for universities to provide all information Auditor General may request during an audit; Senate adds Legislative intent to request Attorney General Opinion. (Sec. 422)
14. 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)
15. 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)
16. Life Sciences Consortium. Senate includes parameters for the consortium. (Sec. 428)
17. King-Chavez-Parks. House and Senate retain reference to King-Chavez-Parks Initiative Unit within the Department of Education (Secs. 501-507); Senate deletes Future Faculty Program reference to "full-time" and "in this state". (Sec. 501)
18. Teaching Faculty. House/Senate reinstate report requirement regarding English language oral proficiency. (Sec. 704)
19. Resident Students. House retains and Senate deletes, responsibility for UM-Ann Arbor to achieve a resident undergraduate enrollment level of 70%.
20. Campus Security Act. House and Senate add report requirement. (Sec. 709)
21. Higher Education Reports. Senate requires availability to public on the Internet (Sec. 710)
22. FY 1998-99 Supplemental. Senate adds $300,000 for Northern and $100 for each of the other public universities for infrastructure, technology, equipment, and maintenance. (Parts 1A & 2A)


Date Completed: 5-28-99 - Fiscal Analyst: E. Jeffries