SENATE BILL NO. 367


EXECUTIVE BUDGET BILL



February 23, 1999, Introduced by Senators SCHWARZ, A. SMITH, MC MANUS,
     HOFFMAN, GOUGEON, STEIL and GOSCHKA and referred to the Committee 
     on Appropriations.


        A bill to make appropriations for the state institutions of higher
  education and certain state purposes related to education for the
  fiscal year ending September 30, 2000; to provide for the expenditures
  of those appropriations; and to prescribe the powers and duties of
  certain state departments, institutions, agencies, employees and
  officers. 
  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
  PART 1
  LINE-ITEM APPROPRIATIONS
        Sec. 101. The amounts listed in this part are appropriated for the
  state institutions of higher education and certain state purposes
  related to education, subject to the conditions set forth in this bill,
  for the fiscal year ending September 30, 2000.  The following is a
  summary of the appropriations in this part:
  HIGHER EDUCATION
   APPROPRIATION SUMMARY:
   GROSS APPROPRIATION . . . . . . . .     $ 1,672,279,208
  Interdepartmental grant revenues:
   Total interdepartmental grants and 
        intradepartmental transfers. . . . . . .                   0
   ADJUSTED GROSS APPROPRIATION. . . . . .      $ 1,672,279,208
  Federal revenues:
   Total federal revenues. . . . . . .           3,600,000
  Special revenue funds:
   Total local revenues. . . . . . . .                   0
   Total private revenues. . . . . . .                   0
   Total other state restricted revenues . . . . . .            5,250,000
   State general fund/general purpose. . . . . . . .      $ 1,663,429,208
        Sec. 102. CENTRAL MICHIGAN UNIVERSITY
   Operations. . . . . . . .     $  78,992,204
   GROSS APPROPRIATION . . . . . . . .     $    78,992,204
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    78,992,204
        Sec. 103. EASTERN MICHIGAN UNIVERSITY
   Operations. . . . . . . .     $  79,476,067
   GROSS APPROPRIATION . . . . . . . .     $    79,476,067
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    79,476,067
        Sec. 104. FERRIS STATE UNIVERSITY
   Operations. . . . . . . .     $  50,699,829
   GROSS APPROPRIATION . . . . . . . .     $    50,699,829
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    50,699,829
        Sec. 105. GRAND VALLEY STATE UNIVERSITY
   Operations. . . . . . . .     $  52,702,676
   GROSS APPROPRIATION . . . . . . . .     $    52,702,676
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    52,702,676
        Sec. 106. LAKE SUPERIOR STATE UNIVERSITY
   Operations. . . . . . . .     $  13,015,011
   GROSS APPROPRIATION . . . . . . . .     $    13,015,011
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    13,015,011
        Sec. 107. MICHIGAN STATE UNIVERSITY
   Operations. . . . . . . .     $ 295,224,423
   GROSS APPROPRIATION . . . . . . . .     $   295,224,423
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $   295,224,423
        Sec. 108. MICHIGAN TECHNOLOGICAL UNIVERSITY
   Operations. . . . . . . .     $  49,754,962
   GROSS APPROPRIATION . . . . . . . .     $    49,754,962
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    49,754,962
        Sec. 109. NORTHERN MICHIGAN UNIVERSITY
   Operations. . . . . . . .     $  47,956,518
   GROSS APPROPRIATION . . . . . . . .     $    47,956,518
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    47,956,518
        Sec. 110. OAKLAND UNIVERSITY
   Operations. . . . . . . .     $  46,315,722     GROSS APPROPRIATION. . . . . . . .      $    46,315,722
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    46,315,722
        Sec. 111. SAGINAW VALLEY STATE UNIVERSITY
   Operations. . . . . . . .     $  23,709,893
   GROSS APPROPRIATION . . . . . . . .     $    23,709,893
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    23,709,893
    . . . . Sec. 112. UNIVERSITY
  OF MICHIGAN - ANN ARBOR
   Operations. . . . . . . .     $ 328,337,052
   GROSS APPROPRIATION . . . . . . . .     $   328,337,052
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $   328,337,052
        Sec. 113. UNIVERSITY OF MICHIGAN - DEARBORN
   Operations. . . . . . . .     $  25,290,019
   GROSS APPROPRIATION . . . . . . . .     $    25,290,019
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    25,290,019
        Sec. 114. UNIVERSITY OF MICHIGAN - FLINT
   Operations. . . . . . . .     $  21,604,275
   GROSS APPROPRIATION . . . . . . . .     $    21,604,275
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    21,604,275
        Sec. 115. WAYNE STATE UNIVERSITY
   Operations. . . . . . . .     $ 233,121,094
   GROSS APPROPRIATION . . . . . . . .     $   233,121,094
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $   233,121,094
        Sec. 116. WESTERN MICHIGAN UNIVERSITY
   Operations. . . . . . . .     $   112,668,316
   School of aviation sciences . . . . . .            500,000     GROSS APPROPRIATION . . . . . . . .     $   113,168,316
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $   113,168,316
        SEC. 117. TUITION RESTRAINT INCENTIVE GRANTS
   Tuition restraint incentive grants. . . . . . . .      $  22,000,000     GROSS APPROPRIATION . . . . . . . .     $    22,000,000
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    22,000,000
        Sec. 118. STATE AND REGIONAL PROGRAMS
   Agricultural experiment station . . . . . . .     $    31,025,008
   Cooperative extension service . . . . . . . .          26,684,294
   Michigan molecular institute. . . . . .               70,000
   Japan center for Michigan universities. . . . . .              394,335
   Higher education database modernization and 
        conversion . . . . . . .              275,000
   Midwestern higher education compact . . . . . . .             75,000
   GROSS APPROPRIATION . . . . . . . .     $    58,523,637
        Appropriated from:
   State general fund/general purpose. . . . . . . .      $    58,523,637
        Sec. 119. MARTIN LUTHER KING, JR. - CESAR 
        CHAVEZ - ROSA PARKS PROGRAM
   Select student supportive services. . . . . . . .      $     2,024,152
   Michigan college/university partnership program . . . . . .              607,246
   Morris Hood, Jr. educator development program . . . . . . .              153,750
   Visiting professors program . . . . . .            170,585
   GROSS APPROPRIATION . . . . . . . .     $     2,955,733          Appropriated from:
   State general fund/general purpose. . . . . . . .      $     2,955,733
        Sec. 120. GRANTS AND FINANCIAL AID
   State competitive scholarships. . . . . . . .     $    33,157,672
   Tuition grants. . . . . . . .           60,599,096
   Michigan work-study program . . . . . .            7,482,984
   Part-time independent student program . . . . . .            2,710,052
   Grant for Michigan resident dental graduates. . . . . . . .            4,716,435
   Grant for general degree graduates. . . . . . . .            5,419,613
   Tuition restraint incentive grants for independent
     colleges and universities . . . . . .            1,600,000
   Grant for allied health graduates . . . . . .             872,908
   Michigan education opportunity grants . . . . . .            2,128,717
   Robert C. Byrd honors scholarship program . . . . . . .           1,300,000
   Center for advanced technologies. . . . . . .           4,194,300
   Tuition incentive program . . . . . . .          5,250,000
   GROSS APPROPRIATION . . . . . . . .     $   129,431,777
        Appropriated from:
  Federal revenues:
   Higher education act of 1965, title IV, 20 U.S.C. . . . . . . . .           2,300,000
   Higher education act of 1965, title IV, part A. . . . . . .            1,300,000
  Special revenue funds:
   Michigan merit award trust fund . . . . . . .           5,250,000
   State general fund/general purpose. . . . . . . .      $   120,581,777
  PART 2
  PROVISIONS CONCERNING APPROPRIATIONS
  GENERAL SECTIONS
        Sec. 201. (1) Pursuant to section 30 of article IX of the state
  constitution of 1963, total state spending under part 1 for fiscal year
  1999-2000 is $1,668,679,208.00 and state appropriations to be paid to
  local units of government are as follows:
  GRANTS AND FINANCIAL AID
   Part-time independent student program . . . . . .      $     1,346,354
   Michigan education opportunity grant. . . . . . .            1,107,784
   Michigan work-study . . . . . . . .         2,112,446
   TOTAL . . . . . . .      $     4,566,584
        (2) If it appears to the principal executive officer of a
  department or branch that state spending to local units of government
  will be less than the amount that was projected to be expended under
  subsection (1), the principal executive officer shall immediately give
  notice of the approximate shortfall to the state budget director.
        Sec. 202. The expenditures and funding sources authorized under
  this bill are subject to the management and budget act, 1984 PA 431,
  MCL 18.1101 to 18.1594.
        Sec. 203. (1) The funds appropriated in part 1 to state
  institutions of higher education shall be paid by the state treasurer
  to the respective institutions in 11 equal monthly installments on the
  sixteenth of each month, or the next succeeding business day, beginning
  with October 16, 1999.  Except for Wayne State University, each
  institution shall accrue its July and August 2000 payments to its
  institutional fiscal year ending June 30, 2000.
        (2) The amount distributed to an institution shall not exceed the
  net appropriations plus additional distributions specifically
  authorized by this bill.
        (3) All universities shall submit higher education institutional
  data inventory (HEIDI) data and associated financial and program
  information requested by and in a manner prescribed by the state budget
  director.  For universities with fiscal years ending June 30, 1999,
  these data shall be submitted to the state budget director by October
  15, 1999.  Universities with a fiscal year ending September 30, 1999
  shall submit preliminary HEIDI data by November 15, 1999, and final
  data by December 15, 1999.
        Sec. 204. Funds received by the state from the federal government
    or private sources for the use of a college or university are appropriated for the purpose for which provided.  The acceptance and
  use of federal or private funds does not place an obligation upon the
  legislature to continue the purposes for which the funds are made
  available.
        Sec. 205. A state institution of higher education that receives
  funds under this bill shall furnish all program and financial
  information that is required by and in a manner prescribed by the state
  budget director or the house or senate appropriations committee.
        Sec. 206. (1) The appropriation in section 117 for tuition
  restraint incentive grants is contingent upon the repeal of the
  Michigan college tuition and fees credit, section 274 of the income tax
  act, 1967 PA 281, MCL 206.274, effective for the 1999 tax year. 
  Pursuant to the requirement established in subsection (2), the amount
  identified for tuition restraint incentive grants in section 117 of
  this bill shall be allocated to state universities as follows:
        Central Michigan University. . . . . . .     $     1,146,035
    Eastern Michigan University. . . . . .            1,210,708
    Ferris State University. . . . . . . .              772,341
    Grand Valley State University. . . . . . . .             764,620
    Lake Superior State University . . . . . . .             198,266
    Michigan State University. . . . . . .            4,435,292
    Michigan Technological University. . . . . . . .              757,948
    Northern Michigan University . . . . . . . .             730,551
    Oakland University . . . . . . . .             671,958
    Saginaw Valley State University. . . . . . .             356,808
    University of Michigan-Ann Arbor . . . . . .           5,001,759
    University of Michigan-Dearborn. . . . . . .             366,913
   University of Michigan-Flint. . . . . .              319,180
    Wayne State University . . . . . .           3,551,276
    Western Michigan University. . . . . .            1,716,345
            (2) The distribution of the allocation to each state university
  contained in subsection (1) shall be made if the university adopts a
  resident undergraduate tuition and fee increase for the 1999-2000
  academic year of three percent or less and certifies such to the state
  budget director.
        (3) The allocations contained in subsection (1) are proportionate
  to the fiscal year 1999 appropriations to state universities.
  GRANTS AND FINANCIAL AID
        Sec. 301. (1) Payments of the amounts included in section 120 for
  the state competitive scholarship program shall be distributed pursuant
  to 1964 PA 208, MCL 390.971 to 390.981.
        (2) The Michigan higher education assistance authority shall
  implement a proportional competitive scholarship maximum award level
  for recipients enrolled less than full-time in a given semester or
  term.
        (3) If a student who receives an award under this section has his
  or her tuition and fees paid under the Michigan educational trust
  program, pursuant to the Michigan education trust act, 1986 PA 316, MCL
  390.1421 to 390.1444, and still has financial need, the funds awarded
  under this section may be used for educational expenses other than
  tuition and fees.
        (4) If the Michigan higher education assistance authority increases
  the maximum award per eligible student from that provided in the
  previous fiscal year, it shall not have the effect of reducing the
  number of eligible students receiving awards in relation to the total
  number of eligible applicants.  Any increase in the maximum grant shall
  be proportional for all eligible students receiving awards.
        Sec. 302. (1) The amounts appropriated in section 120 for the state
  tuition grant program shall be distributed pursuant to 1966 PA 313, MCL
  390.991 to 390.997a.
            (2) Tuition grant awards shall be made to all eligible Michigan
  residents who apply before September 1, 1999 and who are qualified.
  Tuition grant awards shall not be made to students newly enrolled in a
  juris doctor law degree program after the 1995-96 academic year.
        (3) The Michigan higher education assistance authority shall
  determine an actual maximum tuition grant award per student that
  ensures that the aggregate payments for the tuition grant program do
  not exceed the appropriation contained in section 120 for the state
  tuition grant program.  By October 15, 1999, and again by December 15,
  1999, the authority shall analyze the status of award commitments,
  shall make any necessary adjustments, and shall confirm that those
  award commitments will not exceed the appropriation contained in
  section 120 for the tuition grant program.  The determination and
  actions shall be reported to the state budget director and the house
  and senate fiscal agencies no later than December 15, 1999. If award
  adjustments are necessary, the students shall be notified of the
  adjustment by the third Monday in January.
        (4) Any unexpended and unencumbered funds remaining on September
  30, 2000 from the amounts appropriated in section 120 for the tuition
  grant program shall not lapse on September 30, 2000, but shall continue
  to be available for expenditure for tuition grants provided in the
  2000-2001 fiscal year.  The use of these unexpended fiscal year
  1999-2000 funds shall terminate at the end of the 2000-2001
  fiscal year.
        (5) The Michigan higher education assistance authority shall
  continue a proportional tuition grant maximum award level for
  recipients enrolled less than full-time in a given semester or term.
        (6) If the Michigan higher education assistance authority increases
  the maximum award per eligible student from that provided in the
    previous fiscal year, it shall not have the effect of reducing the number of eligible students receiving awards in relation to the total
  number of eligible applicants.  Any increase in the maximum grant shall
  be proportional for all eligible students receiving awards.
        Sec. 303. (1) Included in the appropriation in section 120 is
  funding for the Michigan work-study program established under 1986 PA
  288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to
  390.1332.  An effort should be made by each institution participating
  in the Michigan work-study program to assure that not less than 10% of
  those undergraduate, graduate, and professional students eligible to
  participate in the program are placed with for-profit employers no
  later than December 31 of each year for which funding is provided under
  this act.
        (2) The Michigan higher education assistance authority shall
  allocate funds to institutions eligible for work-study money based upon
  each institution's specific Pell grant index and each institution's
  utilization rate of work-study funds for the 3 most recent years for
  which statistics are available.
        (3) The Michigan higher education assistance authority shall set
  aside not more than 5% of the total work-study appropriation to process
  requests from participating institutions for allocation adjustments.
  Allocation adjustments shall be based on criteria set by the authority
  prior to making the allocations under subsection (2).
        Sec. 304. (1) Payments of the amounts included in section 120 for
  the general degree reimbursement program established under 1974 PA 75,
  MCL 390.1021 to 390.1027, shall be made for all degrees identified in
  section 1(1) of 1974 PA 75, MCL 390.1021, except doctor of dental
  surgery, doctor of dental medicine, juris doctor law, and allied health
  degrees.
        (2) The reimbursement rate per eligible degree shall be the equally
    prorated amount permitted by the appropriation, except that the amount of the reimbursement for each associate degree shall be « of
  the rate of reimbursement for the other degrees eligible under
  subsection (1) for the general degree reimbursement program.
        (3) From the general degree reimbursement program, $135,300.00
  shall be provided to Spring Arbor College for the southern Michigan
  state prison program.
        (4) From the general degree reimbursement program, $200,500.00
  shall be provided to the University of Detroit - Mercy for graduate
  research aid.
        (5) From the general degree reimbursement program, $30,100.00 shall
  be provided to Marygrove College for learning clinics.
        (6) From the general degree reimbursement program, $50,000.00 shall
  be provided to Suomi College for career education programs. 
        (7) The appropriation in section 120 for tuition restraint
  incentive grants for independent colleges and universities is
  contingent upon the repeal of the Michigan college tuition and fees
  credit, section 274 of the income tax act, 1967 PA 281, MCL 206.274,
  for the 1999 tax year, and shall be allocated on a proportionate basis
  to independent colleges and universities using the general degree
  reimbursement program.  However, the distribution of the allocation to
  each independent college or university determined under this subsection
  shall be made only if the independent college or university adopts a
  resident undergraduate tuition and fee increase for the 1999-2000
  academic year of 3% or less and certifies such to the state budget
  director.
        Sec. 305. The reimbursement rate per eligible degree under the
  allied health degree reimbursement program established under 1974 PA
  75, MCL 390.1021 to 390.1027, shall be the equally prorated amount
  permitted by the appropriation included in section 120.
          Sec. 306. Funds disbursed through the degree reimbursement programs shall not be used by any recipient institution for theology or
  divinity programs.
        Sec. 307. The auditor general shall audit selected enrollments,
  degrees, and awards at selected independent colleges and universities
  receiving awards administered by the department of treasury.  The
  audits shall be based upon definitions and requirements established by
  the state budget director and the senate and house fiscal agencies. The
  auditor general shall submit a report of findings to the senate and
  house appropriations committees not later than May 1, 2000.
        Sec. 308.  The sums appropriated in section 120 for the student
  financial aid and degree reimbursement programs shall be paid out of
  the state treasury and shall be distributed to the respective
  institutions under a quarterly payment system as follows:
        (a) For the state competitive scholarship, tuition incentive, and
  tuition grant programs, 40% shall be paid at the beginning of the
  state's first fiscal quarter, 40% at the beginning of the state's
  second fiscal quarter, 10% at the beginning of the state's third fiscal
  quarter, and 10% at the beginning of the state's fourth fiscal quarter.
        (b) For the work-study program, payments shall be made in 11
  monthly installments from October 1 to August 31 of any year.
        (c) For the part-time independent student program and Michigan
  education opportunity grant program, 50% shall be paid at the beginning
  of the state's first fiscal quarter, 25% at the beginning of the
  state's second fiscal quarter, and 25% at the beginning of the state's
  third fiscal quarter.
        (d) For the general degree reimbursement program, allied health
  degree reimbursement program, Michigan resident dental grant program,
  and the Robert C. Byrd honors scholarship program, 50% shall be paid at
    the beginning of the state's first fiscal quarter and 50% at the beginning of the state's second fiscal quarter after the number of
  earned degrees conferred and total amounts to be paid are certified.
        Sec. 309. The Michigan higher education assistance authority shall
  determine the needs analysis criteria for students to qualify for the
  competitive scholarship program and tuition grant program. To be
  consistent with federal requirements, student wages may be taken into
  consideration when determining the amount of the award.
        Sec. 310. (1) The funds appropriated in section 120 for the tuition
  incentive program/high school completion program shall be distributed
  as provided in this section and pursuant to the administrative
  procedures for the tuition incentive program/high school completion
  program of the family independence agency.
        (2) As used in this section:
        (a) "Phase I" means the first part of the tuition incentive
  assistance program defined as the academic period of 80 semester or 120
  term credits, or less, leading to an associate degree or certificate.
        (b) "Phase II" means the second part of the tuition incentive
  assistance program which provides assistance in the third and fourth
  year of 4-year degree programs.
        (c) "Department" means the family independence agency.
        (3) A person shall meet the following basic criteria and financial
  thresholds to be eligible for tuition incentive benefits:
        (a) To be eligible for phase I, a person shall meet all of the
  following criteria:
        (i) Apply for certification to the department before graduating
  from high school or completing the general education development (GED)
  certificate.
        (ii) Be less than 20 years of age at the time of high school
    graduation or GED completion.        (iii) Be a United States citizen and a resident of Michigan
  according to institutional criteria.
        (iv) Be at least a half-time student, earning less than 80 semester
  or 120 term credits at a participating educational institution within 4
  years of high school graduation or GED certificate completion.
        (b) To be eligible for phase II, a person shall meet either of the
  following criteria in addition to the criteria in subdivision (a):
        (i) Complete at least 56 transferable semester or 84 transferable
  term credits.
        (ii) Obtain an associate degree or certificate at a participating
  institution.
        (c) To be eligible for phase I or phase II, a person must be
  financially eligible as determined by the department.  A person is
  financially eligible for the tuition incentive program if that person
  was medicaid eligible for 24 months within the 36 months before
  application. Certification of eligibility may begin in the sixth grade
  and continue until the time of enrollment in a participating
  institution.
        (4) For phase I, the department shall provide payment on behalf of
  a person eligible under subsection (3).  The department shall reject
  billings that are excessive or outside the guidelines for the type of
  educational institution.
        (5) For phase I, all of the following apply:
        (a) Payments for associate degree or certificate programs shall not
  be made for more than 80 semester or 120 term credits for any
  individual student at any participating institution.
        (b) For persons enrolled at a Michigan community college, the
  department shall pay the current in-district tuition and mandatory
    fees.  For persons residing in an area that is not included in any community college district, the out-of-district tuition rate may be
  authorized.
        (c) For persons enrolled at a Michigan public university, the
  department shall pay lower level resident tuition and mandatory fees
  for the current year.
        (d) For persons enrolled at a Michigan independent, nonprofit
  degree granting college or university or a Michigan federal tribally
  controlled community college, the department shall pay mandatory fees
  for the current year and a per credit payment that does not exceed the
  average community college in-district per credit tuition rate as
  reported on August 1, for the immediately preceding academic year.
        (6) A person participating in phase II may be eligible for
  additional funds not to exceed $500.00 per semester or $400.00 per term
  up to a maximum of $2,000.00 subject to the following conditions:
        (a) Credits are earned in a 4-year program at a Michigan degree
  granting 4-year college or university.
        (b) The tuition reimbursement is for coursework completed within 30
  months of completion of the phase I requirements.
        (7) Program payments shall not be used by any recipient for
  theology or divinity courses.
        (8) The department shall work closely with participating
  institutions to develop an application and eligibility determination
  process that will provide the highest level of participation and ensure
  that all requirements of the program are met.
        (9) Applications for the tuition incentive program may be approved
  at any time after the student begins the sixth grade. If a
  determination of financial eligibility is made, that determination is
  valid as long as the student meets all other program requirements and
  conditions.
          (10) Each institution shall ensure that all known available restricted grants for tuition and fees are used prior to billing the
  tuition incentive program for any portion of a student's tuition and
  fees.
        (11) The department shall ensure that the tuition incentive program
  is well publicized and that potentially eligible medicaid clients are
  provided information on the program. The department shall provide the
  necessary funding and staff to fully operate the program.
        (12) Any unexpended and unencumbered funds remaining on September
  30, 2000 from the amounts appropriated in section 120 for the tuition
  incentive program shall not lapse on September 30, 2000, but shall
  continue to be available for expenditure for the tuition incentive
  program in the fiscal year ending September 30, 2001.
        Sec. 311. To enable the legislature to evaluate the appropriation
  needs of higher education, each independent college and university
  shall make available to the legislature and the state budget director,
  upon request, data regarding grants for the preceding, current, and
  ensuing fiscal years.
        Sec. 312. The funds appropriated in section 120 for the center for
  advanced technologies - engineering program provided in conjunction
  with the coalition for new manufacturing education are designated to
  focus:hope to reimburse the costs of the manufacturing-based education.
        Sec. 313.  In addition to the funds appropriated in part 1, there
  is hereby appropriated from the Michigan merit award trust fund a sum
  sufficient to fund the Michigan merit award program pursuant to
  guidelines established by the Michigan Merit Award Commission.
  STATE UNIVERSITIES
        Sec. 401. (1) Included in section 115 is $5,861,708.00 to Wayne
  State University for the Joseph F. Young, Sr. psychiatric research and
    training program.  Wayne State University shall use these funds for psychiatric laboratory and clinical research, training, and treatment
  services.  Within the available appropriation, services shall not be
  denied to any patient who meets established research guidelines for
  treatment on the basis of personal financial circumstances, age,
  geographic residence, or projected/actual length of treatment as
  medically warranted.
        (2) Wayne State University shall report the following information
  to the department of community health by November 1, 2000:
        (a) The number and type of psychiatric research projects funded by
  the appropriation described in subsection (1).
        (b) The number and type of students trained and the location of
  training funded by the appropriation.
        (c) Demographic data regarding the number and profile of patients
  to receive psychiatric services funded by the appropriation and a
  profile of the services provided.
        (d) A summary budget outlining major expenditure categories and any
  first- and third-party reimbursements.
        (3) Copies of these reports shall also be provided to the house and
  senate fiscal agencies and the state budget director.
        Sec. 402. (1) There is created the higher education institutional
  data inventory advisory committee. The committee shall be appointed by
  the state budget director and shall consist of the following members:
        (a) One representative from the house fiscal agency.
        (b) One representative from the senate fiscal agency.
        (c) One representative from the state budget director's office.
        (d) Three representatives of the presidents council of state
  universities. The presidents council shall appoint 1 representative
  each from a masters, a doctoral, and a research university.
        (2) The committee shall provide for the general scope and direction
    for implementing the conversion and modernization of the state's higher education databases, for which funding is provided in
  section 118.
        (3) The committee shall prepare a plan for the conversion and
  modernization effort. The plan shall include, but is not limited to,
  all of the following:
        (a) The development of a data dictionary.
        (b) The integration of appropriate federal, national, regional, and
  state databases.
        (c) The assurance of the accuracy of the data.
        (4) The committee shall consider inclusion of data items that are
  currently reported under section 703.
        Sec. 403. The amounts included in part 1 for public universities
  recognize four separate university groupings reflecting comparable
  instructional costs assuming systemwide average expenditures for each
  instructional program for each student level as reported by each
  university in HEIDI.  Funding floors for the four classifications are
  established as follows:
        (a) Funding floor of $4,500 per resident student -- Grand Valley
  State University, Lake Superior State University, Northern Michigan
  University, Saginaw Valley State University, and University of Michigan
  - Flint;
        (b) Funding floor of $4,600 per resident student -- Central
  Michigan University, Eastern Michigan University, and Ferris State
  University;
        (c) Funding floor of $4,700 per resident student -- Oakland
  University, University of Michigan - Dearborn, and Western Michigan
  University; and,
        (d) Funding floor of $8,500 per resident student -- Michigan
  Technological University, Michigan State University, University of
    Michigan - Ann Arbor, and Wayne State University.        Sec. 404. From the funds appropriated in part 1, each state
  university shall establish a system to track students that graduate
  from the university.  The system shall minimally provide information on
  the students' field of study and year of graduation, whether they are
  employed or continuing their education, the field in which they are
  employed or their subsequent field of academic study, their job title,
  their salary, and their city, town, or other place of residence.
  MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS
        Sec. 501. (1) Included in the appropriation for each public
  university in part 1 is funding for the Martin Luther King, Jr. - Cesar
  Chavez - Rosa Parks future faculty program, that is intended to
  increase the pool of minority candidates pursuing full-time faculty
  teaching careers in postsecondary education in this state.  Each
  university shall apply the percentage increase applicable to every
  university in the calculation of appropriations in part 1 to the amount
  of funds allocated to the future faculty program.
        (2) The program shall be administered by each university in a
  manner prescribed by the Michigan department of education.
        Sec. 502. (1) Included in the appropriation for each public
  university in part 1 is funding for the Martin Luther King, Jr. - Cesar
  Chavez - Rosa Parks college day program that is intended to introduce
  school children underrepresented in postsecondary education to the
  potential of a college education.
        (2) Individual program plans of each university shall include a
  budget of equal contributions from this program, the participating
  public university, the participating school district, and the
  participating independent degree granting college.  College day funds
  shall not be expended to cover indirect costs.  Not more than 20% of
    the university match shall be attributable to indirect costs. Each university shall apply the percentage increase applicable to every
  university in the calculation of appropriations in part 1 to the amount
  of funds allocated to the college day program.
        (3) The program shall be administered by each university in a
  manner prescribed by the Michigan department of education.
        Sec. 503. (1) Included in section 119 is funding for the Martin
  Luther King, Jr. - Cesar Chavez - Rosa Parks select student support
  services program for developing academically and economically
  disadvantaged student retention programs for 4-year public and
  independent educational institutions in this state.
        (2) An award made under this program to any 1 institution shall not
  be greater than $150,000.00, and the amount awarded shall be matched on
  a 70% state, 30% college or university basis.
        (3) The program shall be administered by the Michigan department of
  education.
        Sec. 504. (1) Included in section 119 is funding for the Martin
  Luther King, Jr. - Cesar Chavez - Rosa Parks college/university
  partnership program between 4-year universities and public community
  colleges, which is intended to increase the number of underrepresented
  minority students who transfer from community colleges into
  baccalaureate programs.
        (2) The grants shall be made under this program to Michigan public
  universities. An award to any 1 institution shall not be greater than
  $150,000.00, and the amount awarded shall be matched on a 70% state,
  30% university basis.
        (3) The program shall be administered by the Michigan department of
  education.
        Sec. 505. (1) Included in the appropriation in section 119 is
  funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks
    visiting professors program which is intended to increase the number of minority instructors in the classroom and provide role models for
  underrepresented minority students.
        (2) The program shall be administered by the Michigan department of
  education.
        Sec. 506. Each state institution of higher education receiving
  funds under section 503, 504, 505, or 507 shall notify the Michigan
  department of education by April 15, 2000 as to whether it will expend
  by the end of its fiscal year the funds received under section 503,
  504, 505, or 507.  Notwithstanding the award limitations in sections
  503 and 504, the amount of funding reported as not being expended will
  be reallocated to the institutions that intend to expend all funding
  received under section 503, 504, 505, or 507.
        Sec. 507. (1) Included in the appropriation in section 119 is
  funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks
  initiative for the Morris Hood, Jr. educator development program which
  is intended to increase the number of minority students, especially
  males, who enroll in and complete K-12 teacher education programs at
  the baccalaureate level.
        (2) The program shall be administered by each state-approved
  teacher education institution in a manner prescribed by the Michigan
  department of education.
  UNIVERSITY SERVICE TO K-12 EDUCATION
        Sec. 601. (1) From the amount appropriated in part 1 for state
  universities, the state universities shall systematically inform
  Michigan high schools regarding the academic status of students from
  each high school in a manner prescribed by the presidents council,
  state universities of Michigan in cooperation with the Michigan
  association of secondary school principals.
        (2) The Michigan high schools shall systematically inform the state
    universities about the use of information received under this section in a manner prescribed by the Michigan association of secondary
  school principals in cooperation with the presidents council, state
  universities of Michigan.
        (3) The Michigan association of secondary school principals in
  cooperation with the presidents council, state universities of Michigan
  shall provide a summary report to the house and senate fiscal agencies
  and the state budget director about the use of the student achievement
  information received by Michigan high schools under this section.
  GENERAL REPORTS AND AUDITS
        Sec. 701. (1) The auditor general shall audit enrollments at 5
  randomly selected public universities.  The audits shall be based upon
  the definitions and requirements established by the state budget
  director and the senate and house fiscal agencies.  The audits shall be
  based on uniform reporting categories and shall include higher
  education institutional data inventory (HEIDI) data.  The auditor
  general shall submit a report of findings to the house and senate
  appropriations committees and the state budget director no later than
  July 1, 2000.
        (2) Student credit hours reports shall not include the following:
        (a) Student credit hours generated through correspondence courses,
  credit by examination, or inmate prison programs regardless of teaching
  location.
        (b) Student credit hours generated in new degree programs after
  January 1, 1975, that have not been specifically authorized for funding
  by the legislature, except spin-off programs converted from existing
  core programs that do all of the following:
        (i) Represent new options, fields, or concentrations within
  existing programs.
          (ii) Are consistent with the current institutional role and mission.
        (iii) Are accommodated within the continuing funding base of the
  institution.
        (iv) Do not require a new degree level beyond that which the
  institution is currently authorized to grant within that discipline or
  field.
        (v) Do not require funding from the state other than that provided
  by the student credit hours generated within the program, either before
  program initiation or within the first 3 years of program operation.
        Sec. 702. The principal executive officer of each institution of
  higher education receiving an appropriation under this act shall expend
  a portion of the funds appropriated to that institution to make a
  report to the auditor general, the house and senate fiscal agencies,
  and the state budget director within 60 days after the auditor general
  issues his or her annual report on the operation of the institution.
  The institution's report shall specify all of the following:
        (a) The recommendations of the auditor general implemented by the
  institution, including projected dates and resources required, if any,
  to achieve compliance.
        (b) The recommendations of the auditor general not implemented by
  the institution or implemented by the institution as modified.
        (c) The rationale for not implementing a recommendation of the
  auditor general or of implementing a recommendation as modified.
        Sec. 703. (1) Each state university shall report the following
  information for the 1998-99 academic year to the house and senate
  fiscal agencies and the state budget director on or before October 31,
  1999:
        (a) Separately, the number of tenured faculty, tenure-track
    faculty, nontenure-track faculty, and graduate assistants who taught an undergraduate class section.
        (b) The total number of undergraduate credit hours and section
  credits taught by each of the following:
        (i) Tenured faculty.
        (ii) Tenure-track faculty.
        (iii) Nontenure-track faculty.
        (iv) Graduate assistants.
        (2) For the purposes of subsection (1), the following definitions
  apply:
        (a) "Tenured faculty" means a faculty member who has earned tenure.
        (b) "Tenure-track faculty" means a faculty member who has not yet
  earned tenure but is eligible to earn tenure.
        (c) "Nontenure-track faculty" means a faculty member who is not
  eligible to earn tenure.
        (d) "Graduate assistant" means an individual who is a master's or
  doctoral degree candidate.
        (3) Each state university shall report the following information
  for the 1998-99 academic year to the house and senate fiscal agencies
  and the state budget director on or before October 31, 1999:
        (a) Separately, the number of part-time and full-time faculty.             
        (b) Separately, the number of tenured and nontenured faculty.
        (4) For the purposes of subsection (3), the following definitions
  apply:
        (a) "Part-time faculty" means an individual who does not have a
  full-time appointment as a faculty member.
        (b) "Full-time faculty" means an individual who has a full-time
  appointment as a faculty member.
        (c) "Tenured faculty" means an individual who has earned tenure and
    who does not hold an administrative post.        (d) "Nontenured faculty" means an individual who has not earned
  tenure.
        Sec. 704. The auditor general shall conduct not less than 3
  performance audits of the state universities during the fiscal year
  ending September 30, 2000.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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