FY 2001-02 HIGHER EDUCATION BUDGET - H.B. 4258 (CR-1): CONFERENCE REPORT

FY 2000-01 Year-to-Date Gross Appropriation $1,905,000,608
Changes from FY 2000-01 Year-to-Date:
Items Included by the Senate and House
1. Midwest Higher Education Compact. Dues increase. 7,500
2. Tuition Incentive Program (TIP). Retain FY 2000-01 funding level of $5,250,000. 0
Conference Agreement on Items of Difference
3. Per Student Funding Floors. The House consolidates the floor groupings from 5 to 4, and adds $100 to each, for floors of: $4,600, $4,800, $5,800, and $9,100. The Senate uses only one $4,700 floor to provide funds for Central, Eastern, Grand Valley, Oakland, Saginaw Valley, and UM-Flint. The Conferees include floor funding for Central, Grand Valley, Oakland, Saginaw Valley, and UM-Dearborn. 463,261
4. University Operations. The Governor applies a 1.5% across-the-board increase prior to the addition of floor funding; the House and Senate add 1.5% and 3.5%, respectively, after the floor dollars are added. The Conferees add 1.47% across-the-board. 23,593,601
5. Need-Based Financial Aid. The Senate adds $20 million from the Merit Award Trust Fund for need-based aid at the 15 universities, distributed based on their share of the FY 2000-01 Operations appropriations. The Conference Report does not include this funding. 0
6. Indian Tuition Waivers. The Senate transfers $100,000 from Northern to Lake Superior to allow Lake Superior to serve as the fiscal agent for Bay Mills Tribal College. The Conferees do not include this transfer. 0
7. King-Chavez-Parks Programs. The Governor and House provide 2.0% increases for Select Student Support Services, College-University Partnerships, and Morris Hood, Jr. Educator Development; the Senate provides 3.5% increases; the Conferees provide 1.47% increases. 43,370
8. State and Regional Programs. The Governor and House recommend 2.0% increases, and the Senate recommends 3.5% increases, for the Agricultural Experiment Station (AES), Cooperative Extension Service (CES), Michigan Molecular Institute, and the Japan Center. The House and Senate do not move Project GREEEN funding into a separate line-item as the Governor recommends, but the Senate does move the AES and CES line-items to the Michigan State appropriation unit. The Conferees provide 1.5% increases for AES, CES, and MMI but reduce the Japan Center to $305,300. The FY 2000-01 AES and CES format is retained. 903,801
9. Grants and Financial Aid. The Governor and House provide 2.0% increases, and the Senate provides 3.5% increases, for each of the State-funded programs, and all recommend $1 million in new Federal funds for Competitive Scholarships. The House and Senate appropriate an additional $28.7 and $20.0 million, respectively, from the Michigan Merit Award Trust Fund for Competitive Scholarships, to replace State GF/GP that is shifted to fund other increases. The Conferees provide 1.47% GF/GP increases for all programs. 2,806,375
10. Michigan Merit Award. The Governor, House, Senate and Conferees increase funding for the awards based on Department of Treasury projections. 15,023,850
Total Changes 42,841,758
FY 2001-02 Conference Report Gross Appropriation $1,947,842,366
Amount Over/(Under) GF/GP Target: $0
FY 2001-02 HIGHER EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2000-01 Year-to-Date:
Items Included by the Senate and House
1. Reports on the Internet. Governor, House, and Senate change from pilot program to required reporting mode. (Sec. 208)
2. Restricted Fund Revenue. House and Senate require Department of Treasury to provide an annual report on restricted fund revenues, expenditures, and balances. (Sec. 216)
3. 2/3 / 1/3. Governor, House, and Senate delete Legislative intent to increase toward a 2-to-1 ratio for State appropriations versus tuition revenue.
4. Oakland University. Governor, House, and Senate delete recognition of Auburn Hills location.
5. Fire Safety Systems. House and Senate require a report by January 1, 2003 on automatic sprinkler and other fire safety systems in university dormitories. (Sec. 435)
6. Community College Transfer Students. House and Senate require universities to inform community colleges regarding the academic status of transfer students. (Sec. 602)
7. Financial Aid. House and Senate modify existing requirement for universities to report on need and merit-based aid, to focus on undergraduate students. (Sec. 710)
Conference Agreement on Items of Difference
8. Buy American. House adds preference for Michigan businesses; Senate & Conferees retain FY 2000-01 language. (Sec. 209)
9. Tuition Tax Credit. Conferees include $27.5 million appropriation contingent on repeal. (Sec. 214)
10. Luxury Vehicles. House prohibits expenditure of State dollars for luxury vehicles or chauffeurs for university officials; Senate & Conferees delete. (Sec. 217)
11. Tuition Grants. Senate & Conferees set parameters for prior Kendall College students to receive grants. (Sec. 302(7))
12. Tuition Incentive Program. House & Conferees allow appropriation of State GF/GP if Merit Award Trust Fund dollars are not sufficient; Governor and Senate delete. (Sec. 310(15))
13. Tuition Restraint. House retains 4.0% tuition limit; Governor, Senate, and Conferees delete.
14. Per-Student Floor Funding. House & Conferees consolidate floor groupings from 5 to 4, and add $100 to each, for new floors of: $4,600, $4,800, $5,800, and $9,100; Senate deletes. (Sec. 409)
15. Per-Student Floor Funding. House adds Legislative intent to progressively and consistently make appropriations to achieve the funding floors specified in Sec. 409; Senate & Conferees delete. (Sec. 410)
16. Tier Funding Work Group. House creates a bipartisan House/Senate work group to review tier funding criteria and make recommendations by February 1, 2002; Senate deletes; Conferees include House work group. (Sec. 411)
17. Project GREEEN. Governor, House, Senate, and Conferees require Michigan State University to submit a report by September 30, 2002. Conferees include 1.5% increase. (Sec. 433)
18. Economic Development. House, Senate & Conferees require a quarterly report from the Presidents Council summarizing the universities' work with the Michigan Economic Development Corporation. (Sec. 434)
19. King-Chavez-Parks Fellowships. Senate & Conferees require a good faith effort standard regarding defaults. (Sec. 501)
20. King-Chavez-Parks College Day. Senate requires an equal dollar match from participating education units. Conferees retain "budget of equal contributions" language. (Sec. 502)
21. King-Chavez-Parks Partnerships. Senate & Conferees characterize targeted students as "academically and economically disadvantaged". (Sec. 504)
22. Student Performance Reporting. House removes report due date; Senate & Conferees retain FY 2000-01 language. (Sec. 601)
23. New Academic Programs. Senate & Conferees add Presidents Council list. (Sec. 710a)
24. English Proficiency of Faculty. House retains report; Governor, Senate & Conferees delete. (Sec. 704)

Date Completed: 7-26-01 - Fiscal Analyst: E. Jeffries