Summary: Executive Budget Recommendation

Summary: As Passed by the House

HIGHER EDUCATION

FY 2004-05 Senate Bill 1067

Analyst: Kyle I. Jen

	FY 2003-04 YTD (as of2/12/04)	Revised Exec. Rec.	Senate	House	Enacted	*Difference: House from FY 2003-04 YTD*
	FY 2003-04 YTD (as of2/12/04)	Revised Exec. Rec.	Senate	House	Enacted	*Amount*	%
IDG/IDT	$0	$0	$0	$0		$0	--
Federal	4,480,700	4,500,000	4,500,000	4,500,000		19,300	0.4
Local	0	0	0	0		0	--
Private	0	0	0	0		0	--
Restricted	89,750,000	66,750,000	90,750,000	77,915,200		(11,834,800)	(13.2)
GF/GP	1,559,432,500	1,536,714,400	1,603,335,600	1,603,334,100		43,901,600	2.8
Gross	$1,653,663,200	$1,607,964,400	$1,698,585,600	$1,685,749,300		*$32,086,100*	*1.9*
FTEs	1.0	1.0	1.0	1.0		0.0	0.0

Overview

The Higher Education budget currently provides funding for the operations of the 15 state universities; need-based and merit-based financial aid programs for students attending state universities, community colleges, and independent colleges and universities; and support for several statewide programs─including Michigan State University’s Agriculture Experiment Station and Extension Service. Funding for state university operations makes up 84 percent of the FY 2003-04 budget.

Major Budget Changes from FY 2003-04 YTD Appropriations:	FY 2003-04 YTD (as of 2/12/04)	House Change
*1. Operations─Tuition Restraint* Exec. Rec., Senate, and House: Assumes all 15 universities comply with tuition restraint provisions. Appropriation for each university is increased by an amount equal to 3.0 percent of the original FY 2003-04 enacted appropriation, but—since compliant universities would receive identical increases for FY 2003-04 under language enacted in conjunction with Executive Order 2003-23 (or new section 1201)—ultimate result would be a flat appropriation. Appropriations for universities not adhering to tuition restraint provisions would be reduced by 3.0 percent of the original FY 2003-04 enacted appropriation. (See boilerplate section 436.)	Gross Restricted GF/GP	$1,390,263,500 9,500,000 $1,380,763,500	$43,903,000 0 $43,903,000
*2. Operations─Floor Funding* House: Includes $100 placeholders (Merit Award Trust Fund) for universities with appropriations/fiscal-year-equated student (FYES) of $3,890 or less under Exec. Rec./Senate. These universities are Central Michigan, Grand Valley State, Oakland, and Saginaw Valley State.	Gross Restricted GF/GP	$1,390,263,500 9,500,000 $1,380,763,500	$400 400 $0
*3. Bay Mills Indian Tuition Waiver Funding* House: Shifts $100,000 pass-through payment for Indian Tuition Waivers at Bay Mills Community College from Northern Michigan's operations appropriation to Lake Superior State's operations appropriation and adds $2,000 for administrative costs of making payment. (See new boilerplate section 461.)	Gross GF/GP	$100,000 $100,000	$2,000 $2,000
*4. Agriculture Experiment Station and Cooperative Extension* Exec. Rec.: Reduces appropriations for Agriculture Experiment Station and Cooperative Extension by 3.0 percent ($1.9 million total). Senate and House: Restores funding to current-year levels.	Gross GF/GP	$61,768,100 $61,768,100	$0 $0
*5. Midwestern Higher Education Compact* Senate: Includes $100 GF/GP placeholder for compact dues (full amount of annual dues is $82,500; FY 2003-04 appropriation in that amount was vetoed). House: Adds $165,000 (Merit Award Trust Fund) for costs of both FY 2003-04 and FY 2004-05 dues.	Gross Restricted GF/GP	$0 0 $0	$165,000 165,000 $0
*6. Tuition Grants* Exec. Rec.: Eliminates funding for Tuition Grant Program─a need-based financial aid program for students attending independent universities and colleges. Senate: Restores funding to current-year level. House: Concurs with Senate, with $100 item of difference.	Gross GF/GP	$64,768,100 $64,768,100	($100) ($100)
7. *Michigan* Merit Award Program** Original Exec. Rec. and Senate: Maintains funding for Merit Award Program at the FY 2003-04 level of $67 million, based on the assumption of another one-time shift in the appropriation schedule for the awards. Following this shift, funding for Merit Awards would be appropriated on the same basis as other state financial aid programs, with funds appropriated in the same fiscal year in which they are actually paid out to universities and colleges. Beginning in FY 2005-06, an appropriation of approximately $120 to $130 million will be necessary to fully fund the $2,500 awards ($1,000 for students attending out-of-state institutions) under the current provisions of the program. Revised Exec. Rec.: Reduces appropriation by $4.0 million to reflect lower estimate for program costs and by additional $20.0 million to reflect assumed savings from proposal to pay award at end of college academic year following confirmation that student has completed year with a 2.0 grade point average. House: Concurs with $4.0 million technical revision; assumes lower savings amount of $10.0 million from proposed changes to program.	Gross Restricted	$67,000,000 67,000,000	($14,000,000) ($14,000,000)
*8. Tuition Incentive Program (TIP)* Exec. Rec., Senate, and House: Increases appropriation for Tuition Incentive Program─a need-based financial aid program for Medicaid-eligible individuals─to reflect projected increase in costs.	Gross Restricted	$9,250,000 9,250,000	$1,000,000 $1,000,000
*9. Veterans Survivor Tuition Waiver* House: Adds $1.0 million appropriation (Merit Award Trust Fund) for veterans survivor tuition program currently funded by Veterans Trust Fund revenue appropriated in Military and Veterans Affairs budget. Under House Bills 5865 and 5866, responsibility for program would be shifted from Veterans Trust Fund Board to Michigan Higher Education Assistance Authority.	Gross Restricted	$0 0	$1,000,000 $1,000,000
*10. Items of Difference* House: Includes $100 items of difference from Senate-passed bill for all line items containing state funds and not otherwise changed, with exception of Agriculture Experiment Station and Cooperative Extension line items. (Also, see item 6 above.)	Gross Restricted GF/GP	NA NA NA	($3,500) (200) ($3,300)

Major Budget Changes from FY 2003-04 YTD Appropriations:

FY 2003-04 YTD

(as of 2/12/04)

House

Change

1. Operations─Tuition Restraint

Exec. Rec., Senate, and House: Assumes all 15 universities comply with tuition restraint provisions. Appropriation for each university is increased by an amount equal to 3.0 percent of the original FY 2003-04 enacted appropriation, but—since compliant universities would receive identical increases for FY 2003-04 under language enacted in conjunction with Executive Order 2003-23 (or new section 1201)—ultimate result would be a flat appropriation. Appropriations for universities not adhering to tuition restraint provisions would be reduced by 3.0 percent of the original FY 2003-04 enacted appropriation. (See boilerplate section 436.)

Gross

Restricted

GF/GP

$1,390,263,500

9,500,000

$1,380,763,500

$43,903,000

$43,903,000

2. Operations─Floor Funding

House: Includes $100 placeholders (Merit Award Trust Fund) for universities with appropriations/fiscal-year-equated student (FYES) of $3,890 or less under Exec. Rec./Senate. These universities are Central Michigan, Grand Valley State, Oakland, and Saginaw Valley State.

Gross

Restricted

GF/GP

$1,390,263,500

9,500,000

$1,380,763,500

$400

400

3. Bay Mills Indian Tuition Waiver Funding

House: Shifts $100,000 pass-through payment for Indian Tuition Waivers at Bay Mills Community College from Northern Michigan's operations appropriation to Lake Superior State's operations appropriation and adds $2,000 for administrative costs of making payment. (See new boilerplate section 461.)

Gross

GF/GP

$100,000

$100,000

$2,000

$2,000

4. Agriculture Experiment Station and Cooperative Extension

Exec. Rec.: Reduces appropriations for Agriculture Experiment Station and Cooperative Extension by 3.0 percent ($1.9 million total).

Senate and House: Restores funding to current-year levels.

Gross

GF/GP

$61,768,100

$61,768,100

5. Midwestern Higher Education Compact

Senate: Includes $100 GF/GP placeholder for compact dues (full amount of annual dues is $82,500; FY 2003-04 appropriation in that amount was vetoed).

House: Adds $165,000 (Merit Award Trust Fund) for costs of both FY 2003-04 and FY 2004-05 dues.

Gross

Restricted

GF/GP

$165,000

165,000

6. Tuition Grants

Exec. Rec.: Eliminates funding for Tuition Grant Program─a need-based financial aid program for students attending independent universities and colleges.

Senate: Restores funding to current-year level.

House: Concurs with Senate, with $100 item of difference.

Gross

GF/GP

$64,768,100

$64,768,100

($100)

($100)

7. Michigan Merit Award Program

Original Exec. Rec. and Senate: Maintains funding for Merit Award Program at the FY 2003-04 level of $67 million, based on the assumption of another one-time shift in the appropriation schedule for the awards. Following this shift, funding for Merit Awards would be appropriated on the same basis as other state financial aid programs, with funds appropriated in the same fiscal year in which they are actually paid out to universities and colleges. Beginning in FY 2005-06, an appropriation of approximately $120 to $130 million will be necessary to fully fund the $2,500 awards ($1,000 for students attending out-of-state institutions) under the current provisions of the program.

Revised Exec. Rec.: Reduces appropriation by $4.0 million to reflect lower estimate for program costs and by additional $20.0 million to reflect assumed savings from proposal to pay award at end of college academic year following confirmation that student has completed year with a 2.0 grade point average.

House: Concurs with $4.0 million technical revision; assumes lower savings amount of $10.0 million from proposed changes to program.

Gross

Restricted

$67,000,000

67,000,000

($14,000,000)

($14,000,000)

8. Tuition Incentive Program (TIP)

Exec. Rec., Senate, and House: Increases appropriation for Tuition Incentive Program─a need-based financial aid program for Medicaid-eligible individuals─to reflect projected increase in costs.

Gross

Restricted

$9,250,000

9,250,000

$1,000,000

$1,000,000

9. Veterans Survivor Tuition Waiver

House: Adds $1.0 million appropriation (Merit Award Trust Fund) for veterans survivor tuition program currently funded by Veterans Trust Fund revenue appropriated in Military and Veterans Affairs budget. Under House Bills 5865 and 5866, responsibility for program would be shifted from Veterans Trust Fund Board to Michigan Higher Education Assistance Authority.

Gross

Restricted

$1,000,000

$1,000,000

10. Items of Difference

House: Includes $100 items of difference from Senate-passed bill for all line items containing state funds and not otherwise changed, with exception of Agriculture Experiment Station and Cooperative Extension line items. (Also, see item 6 above.)

Gross

Restricted

GF/GP

($3,500)

(200)

($3,300)

Major Boilerplate Changes from FY 2003-04:
*Sec. 209. American Goods and Services* – REVISED Exec. Rec. adds language giving preference to goods and services manufactured or provided by Michigan businesses. Senate and House concur.
*Sec. 212(3). Appropriations Report* – RETAINED Requires report from fiscal agencies detailing procedures used to arrive at appropriations amounts. Exec. Rec. deletes. Senate and House retain.
*Sec. 212a. Resident/Nonresident Enrollment Data* – NEW Requires, in addition to all currentHigher Education Institutional Data Inventory (HEIDI) reporting requirements, reporting by universities of headcount and FYES data based on uniform definition of "resident student." House adds this section.
*Sec. 302. Tuition Grant Program* – RETAINED Provides for distribution of Tuition Grant Program funding. Exec. Rec. deletes. Senate and House retain.
**Sec. 308. Payment Schedule– RETAINED/REVISED** Exec. Rec. revises the quarterly payment schedule for state financial aid and grant programs to 25%/25%/25%/25%. Senateand House retain current 40%/40%/10%/10%, 50%/25%/25%/0%, and 50%/50%/0%/0% schedules, except House moves Dental Clinics Grant from 50%/50%/0%/0% schedule to 25%/25%/25%/25% schedule.
*Sec. 310. Tuition Incentive Program (TIP)* – REVISED Exec. Rec. removes prohibition against use of Tuition Incentive Program payments for theology or divinity courses. Senate and House concur. House adds 2.0 grade point average requirement, with one-year delay in requirement for students receiving TIP awards prior to FY 2004-05.
*Sec. 401. Joseph F. Young Psychiatric Research* – REVISED Exec. Rec. reduces earmark from Wayne State University appropriation for Joseph F. Young, Sr. Psychiatric Research and Training Program by 8.0%. Senate reduces earmark by 2.0%. House reduces Senate amount by $100.
*Sec. 402. Douglas Lake Biological Station* – RETAINED Designates the University of Michigan Douglas Lake Biological Station as a unique resource. Exec. Rec. deletes. Senateand House retain.
*Sec. 408. Undergraduate Instruction* – DELETED States legislative recognition that undergraduate instruction is the first and foremost obligation of public universities. Exec. Rec. deletes. Senate and House concur.
*Sec. 418. Law School Collaborative Efforts* – DELETED Prohibits use of state funds to undertake a collaborative effort with another university that would increase the enrollment of law students. Exec. Rec. deletes. Senateand House concur.
*Sec. 426. Private Bookstores* – RETAINED/REVISED States legislative intent regarding access to required textbook lists by private bookstores. Exec. Rec. deletes. Senate retains. House adds intent for Presidents Council to report on textbook prices.
*Sec. 433. Project GREEEN* – RETAINED Exec. Rec. reduces earmarks for Project GREEEN by 3.0 percent in conjunction with reducing the Agriculture Experiment Station and Cooperative Extension appropriations. Senate and House retain current-year levels.
*Sec. 434. Economic Development* – DELETED Requires quarterly reports on meetings between Presidents Council and Michigan Economic Development Corporation. Exec. Rec. deletes. Senateand House concur.
Sec. 436. Tuition Restraint– REVISED Exec. Rec. revises existing language to provide that a portion of each university’s appropriation equal to 6.0 percent of its original FY 2003-04 enacted appropriation only be paid if the university certifies by June 30, 2004 that it did not adopt an increase in its 2003-04 resident undergraduate tuition and fee rates after December 1, 2003 and that it will not adopt an increase in its 2004-05 resident undergraduate tuition and fee rate exceeding the projected increase in the Detroit Consumer Price Index (CPI) for 2005 from the January 2004 Revenue Estimating Conference (2.3 or 2.4 percent). Also includes a clause allowing universities that have already implemented a 2003-04 tuition increase (adopted after December 1, 2003) to rebate that increase and remain eligible for the appropriation increase. Senate concurs but provides that the House and Senate Fiscal Agencies be involved in establishing reporting requirements and states that the appropriations for compliant universities will not be reduced in FY 2004-05. House concurs with Senate, with the following changes: (1) sets tuition increase limit at 3.0% or $250, rather than the projected Detroit CPI, (2) adds language allowing a university to retain a 2003-04 tuition and fee increase adopted after December 1, 2003 under certain circumstances, (3) defines "tuition and fee rate" more specifically to allow for the highest authorized FY 2003-04 rate as the base rate, (4) provides that tuition restraint funds appropriated for noncompliant universities be reappropriated to compliant universities on an equal per-university basis, and (5) defines "fee" to mean any fee paid by more than half of all students at least once during their university enrollment.
*Sec. 437. Retirement System Stabilization Subaccount* – RETAINED/REVISED States legislative intent that the Michigan Public School Employee Retirement System stabilization subaccount be used to reduce the contribution rate for the seven universities with employees in the system. Exec. Rec. deletes. Senate retains and specifies a subsidy of $4.9 million. House concurs with Senate.
*Sec. 439. Dormitory Smoking Policies* – DELETED Requires any universities that allow smoking in dormitories to report the reasons for that policy. Exec. Rec. deletes. Senateand House concur.
**Sec. 440. Tuition Data– NEW** Adds section requiring tuition and fee data to be submitted to HEIDI database by August 31, 2004. Exec. Rec. adds this section. Senateand House concur.
**Sec. 450. Floor Funding– NEW** Stateslegislative intent for a per-student funding floor of $3,800 based on FY 2002-03 fiscal year-equated students. Specifies that these funds would be appropriated from the unreserved GF/GP balance at the close of FY 2003-04. Senate adds this section. House concurs but increases floor funding amount to $4,000.
**Sec. 460. Student and Presidential Housing– NEW/DELETED** Requires a report from each university on the condition of and costs associated with both student housing facilities and any housing facilities provided for the university's president or chancellor. Senate adds this section. House does not include section.
**Sec. 461. Bay Mills Indian Tuition Waiver Funding– NEW** Requires $100,000 payment from Lake Superior State's operations appropriation to Bay Mills Community College for costs of Indian Tuition Waiver Program. House adds this section.
**Sec. 701. “Distance Learning Instruction” Definition– REVISED** Exec. Rec. adds definition of term “distance learning instruction” for purposes of excluding student credit hours generated through distance learning, under certain circumstances, from those reported to HEIDI database. Senate concurs. House concurs but makes adjustment to include credit hours from field programs in HEIDI data.
**Sec. 701a. New Degree Programs– RETAINED/REVISED** Lists new degree programs established by universities. Exec. Rec. deletes. Senate concurs. House includes new list forwarded by Presidents Council.
*Sec. 710. Report on Financial Aid* – DELETED Requires state universities to report certain financial aid data. Exec. Rec. deletes. Senateand House concur.
**Sec. 711. Underutilized Degree Program Study– NEW/DELETED** Requires a study to determine the extent of underutilized degree programs offered by universities. Universities would be required to document the rationale for maintaining any degree programs not producing a specified number of degrees per year (bachelor’s: 25, master’s: 15, doctor’s: 5). Exec. Rec. adds this section. Senate does not include it. House concurs with Exec. Rec.
*Sec. 1201. FY 2003-04 Tuition Restraint* – NEW Provides that an amount equal to 3.0 percent of each college's original FY 2003-04 enacted appropriation be paid only if the university certifies byJune 30, 2004 that it will comply with the same tuition restraint provisions specified for FY 2004-05 in section 436. (Enacting section 1 would repeal section 452 of 2003 PA 237, which currently governs FY 2003-04 tuition restraint.) Senate adds this section and associated enacting section. House concurs with Senate, with the same changes as for section 436 and additional language stating legislative intent that, if the Northville Psychiatric Hospital property is not sold by October 1, 2004 and the funds appropriated in this section are not paid until FY 2004-05, the funds will be paid in full by October 15, 2004.
**Sec. 1302. Notification of Scholarship Applicants– RETAINED** States legislative intent that applicants for State Competitive Scholarships and Tuition Grants be notified by July 31 of the status of their awards. Exec. Rec. deletes. Senate retains and moves deadline to June 30. House concurs with Senate but retains July 31 deadline. (FY 2002-03 language in FY 2003-04 budget bill; FY 2003-04 language in FY 2004-05 budget bill.)
*Sec. 1303. Discrimination/Preferential Treatment* – NEW Prohibits funding to a state university that discriminates against, or grants preferential treatment to, admission applicants on the basis of race, religion, creed, or national origin. House adds this section.

Major Boilerplate Changes from FY 2003-04:

Sec. 209. American Goods and Services – REVISED

Exec. Rec. adds language giving preference to goods and services manufactured or provided by Michigan businesses. Senate and House concur.

Sec. 212(3). Appropriations Report – RETAINED

Requires report from fiscal agencies detailing procedures used to arrive at appropriations amounts. Exec. Rec. deletes. Senate and House retain.

Sec. 212a. Resident/Nonresident Enrollment Data – NEW

Requires, in addition to all currentHigher Education Institutional Data Inventory (HEIDI) reporting requirements, reporting by universities of headcount and FYES data based on uniform definition of "resident student." House adds this section.

Sec. 302. Tuition Grant Program – RETAINED

Provides for distribution of Tuition Grant Program funding. Exec. Rec. deletes. Senate and House retain.

Sec. 308. Payment Schedule– RETAINED/REVISED

Exec. Rec. revises the quarterly payment schedule for state financial aid and grant programs to 25%/25%/25%/25%. Senateand House retain current 40%/40%/10%/10%, 50%/25%/25%/0%, and 50%/50%/0%/0% schedules, except House moves Dental Clinics Grant from 50%/50%/0%/0% schedule to 25%/25%/25%/25% schedule.

Sec. 310. Tuition Incentive Program (TIP) – REVISED

Exec. Rec. removes prohibition against use of Tuition Incentive Program payments for theology or divinity courses. Senate and House concur. House adds 2.0 grade point average requirement, with one-year delay in requirement for students receiving TIP awards prior to FY 2004-05.

Sec. 401. Joseph F. Young Psychiatric Research – REVISED

Exec. Rec. reduces earmark from Wayne State University appropriation for Joseph F. Young, Sr. Psychiatric Research and Training Program by 8.0%. Senate reduces earmark by 2.0%. House reduces Senate amount by $100.

Sec. 402. Douglas Lake Biological Station – RETAINED

Designates the University of Michigan Douglas Lake Biological Station as a unique resource. Exec. Rec. deletes. Senateand House retain.

Sec. 408. Undergraduate Instruction – DELETED

States legislative recognition that undergraduate instruction is the first and foremost obligation of public universities. Exec. Rec. deletes. Senate and House concur.

Sec. 418. Law School Collaborative Efforts – DELETED

Prohibits use of state funds to undertake a collaborative effort with another university that would increase the enrollment of law students. Exec. Rec. deletes. Senateand House concur.

Sec. 426. Private Bookstores – RETAINED/REVISED

States legislative intent regarding access to required textbook lists by private bookstores. Exec. Rec. deletes. Senate retains. House adds intent for Presidents Council to report on textbook prices.

Sec. 433. Project GREEEN – RETAINED

Exec. Rec. reduces earmarks for Project GREEEN by 3.0 percent in conjunction with reducing the Agriculture Experiment Station and Cooperative Extension appropriations. Senate and House retain current-year levels.

Sec. 434. Economic Development – DELETED

Requires quarterly reports on meetings between Presidents Council and Michigan Economic Development Corporation. Exec. Rec. deletes. Senateand House concur.

Sec. 436. Tuition Restraint– REVISED

Exec. Rec. revises existing language to provide that a portion of each university’s appropriation equal to 6.0 percent of its original FY 2003-04 enacted appropriation only be paid if the university certifies by June 30, 2004 that it did not adopt an increase in its 2003-04 resident undergraduate tuition and fee rates after December 1, 2003 and that it will not adopt an increase in its 2004-05 resident undergraduate tuition and fee rate exceeding the projected increase in the Detroit Consumer Price Index (CPI) for 2005 from the January 2004 Revenue Estimating Conference (2.3 or 2.4 percent). Also includes a clause allowing universities that have already implemented a 2003-04 tuition increase (adopted after December 1, 2003) to rebate that increase and remain eligible for the appropriation increase. Senate concurs but provides that the House and Senate Fiscal Agencies be involved in establishing reporting requirements and states that the appropriations for compliant universities will not be reduced in FY 2004-05. House concurs with Senate, with the following changes: (1) sets tuition increase limit at 3.0% or $250, rather than the projected Detroit CPI, (2) adds language allowing a university to retain a 2003-04 tuition and fee increase adopted after December 1, 2003 under certain circumstances, (3) defines "tuition and fee rate" more specifically to allow for the highest authorized FY 2003-04 rate as the base rate, (4) provides that tuition restraint funds appropriated for noncompliant universities be reappropriated to compliant universities on an equal per-university basis, and (5) defines "fee" to mean any fee paid by more than half of all students at least once during their university enrollment.

Sec. 437. Retirement System Stabilization Subaccount – RETAINED/REVISED

States legislative intent that the Michigan Public School Employee Retirement System stabilization subaccount be used to reduce the contribution rate for the seven universities with employees in the system. Exec. Rec. deletes. Senate retains and specifies a subsidy of $4.9 million. House concurs with Senate.

Sec. 439. Dormitory Smoking Policies – DELETED

Requires any universities that allow smoking in dormitories to report the reasons for that policy. Exec. Rec. deletes. Senateand House concur.

Sec. 440. Tuition Data– NEW

Adds section requiring tuition and fee data to be submitted to HEIDI database by August 31, 2004. Exec. Rec. adds this section. Senateand House concur.

Sec. 450. Floor Funding– NEW

Stateslegislative intent for a per-student funding floor of $3,800 based on FY 2002-03 fiscal year-equated students. Specifies that these funds would be appropriated from the unreserved GF/GP balance at the close of FY 2003-04. Senate adds this section. House concurs but increases floor funding amount to $4,000.

Sec. 460. Student and Presidential Housing– NEW/DELETED

Requires a report from each university on the condition of and costs associated with both student housing facilities and any housing facilities provided for the university's president or chancellor. Senate adds this section. House does not include section.

Sec. 461. Bay Mills Indian Tuition Waiver Funding– NEW

Requires $100,000 payment from Lake Superior State's operations appropriation to Bay Mills Community College for costs of Indian Tuition Waiver Program. House adds this section.

Sec. 701. “Distance Learning Instruction” Definition– REVISED

Exec. Rec. adds definition of term “distance learning instruction” for purposes of excluding student credit hours generated through distance learning, under certain circumstances, from those reported to HEIDI database. Senate concurs. House concurs but makes adjustment to include credit hours from field programs in HEIDI data.

Sec. 701a. New Degree Programs– RETAINED/REVISED

Lists new degree programs established by universities. Exec. Rec. deletes. Senate concurs. House includes new list forwarded by Presidents Council.

Sec. 710. Report on Financial Aid – DELETED

Requires state universities to report certain financial aid data. Exec. Rec. deletes. Senateand House concur.

Sec. 711. Underutilized Degree Program Study– NEW/DELETED

Requires a study to determine the extent of underutilized degree programs offered by universities. Universities would be required to document the rationale for maintaining any degree programs not producing a specified number of degrees per year (bachelor’s: 25, master’s: 15, doctor’s: 5). Exec. Rec. adds this section. Senate does not include it. House concurs with Exec. Rec.

Sec. 1201. FY 2003-04 Tuition Restraint – NEW

Provides that an amount equal to 3.0 percent of each college's original FY 2003-04 enacted appropriation be paid only if the university certifies byJune 30, 2004 that it will comply with the same tuition restraint provisions specified for FY 2004-05 in section 436. (Enacting section 1 would repeal section 452 of 2003 PA 237, which currently governs FY 2003-04 tuition restraint.) Senate adds this section and associated enacting section. House concurs with Senate, with the same changes as for section 436 and additional language stating legislative intent that, if the Northville Psychiatric Hospital property is not sold by October 1, 2004 and the funds appropriated in this section are not paid until FY 2004-05, the funds will be paid in full by October 15, 2004.

Sec. 1302. Notification of Scholarship Applicants– RETAINED

States legislative intent that applicants for State Competitive Scholarships and Tuition Grants be notified by July 31 of the status of their awards. Exec. Rec. deletes. Senate retains and moves deadline to June 30. House concurs with Senate but retains July 31 deadline. (FY 2002-03 language in FY 2003-04 budget bill; FY 2003-04 language in FY 2004-05 budget bill.)

Sec. 1303. Discrimination/Preferential Treatment – NEW

Prohibits funding to a state university that discriminates against, or grants preferential treatment to, admission applicants on the basis of race, religion, creed, or national origin. House adds this section.