FY 2004-05 COMMUNITY COLLEGES BUDGET S.B. 1062 (H-1): HOUSE-PASSED

FY 2004-05 Senate-Passed Gross Appropriation	$285,747,000
House Changes to Senate-Passed:
1. Items of Difference. The House added $100 to every line-item to create items of difference with the Senate-passed bill.	5,800
2. Tuition Restraint. The House changed the tuition increase limit for the Tuition Restraint proposal from not exceeding the estimated 2005 Detroit CPI, as approved by the Senate, to not exceeding 3.0%.	N/A
Total Changes	$5,800
FY 2004-05 House-Passed Gross Appropriation	$285,752,800

FY 2004-05 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Senate-Passed:

1. Tuition Restraint. The House sets tuition restraint limit at 3.0%, rather than the projected 2005 Detroit CPI (2.3%) as included by the Senate and Governor.

2. Tax Increment Financing Authority Report. The House retains current-year language deleted by the Governor and the Senate requiring the Department of Treasury to produce a report estimating the amount of revenue lost by community colleges as a result of Tax Increment Financing Authorities (TIFAs).

3. Funding Special Maintenance. The House retains current-year language deleted by the Governor and the Senate that states legislative intent to develop financing alternatives for funding special maintenance projects at colleges.

4. Tuition and Fee Reporting. The Senate included language that requires the total cost of attending college based on a 30 credit hour schedule, also be included in tuition and fee reports. The House deleted this provision.

5. Tuition Reciprocity Agreements. The House included new language stating legislative intent that, 1) tuition reciprocity agreements be submitted for review and approval by the appropriations committees at least once every three years, and 2) that, under such agreements, out-of-state students pay the in-state, out of district rate at the Michigan Community Colleges.

6. Payments in Lieu of Taxes. The House included new language stating intent that a workgroup be formed to evaluate the impact of making payments in lieu of taxes to community colleges whose districts contain state-owned land.

7. Optional Retirement Plan. The House included new language stating intent that a workgroup be formed to evaluate the impact of expanding eligibility for the Optional Retirement Plan (a defined contribution plan available to full-time community college faculty and administrative staff as an alternative to the MPSERS defined benefit plan) to include part-time faculty.

8. President and Student Housing. The House did not include language added by the Senate that requires a report on the condition of, and costs associated with both student housing facilities and any housing provided for the college's president or chancellor.

9. FY 2003-04 Tuition Restraint. The House concurred with the Senate on tuition restraint, but set the limit at 3.0% rather than the projected 2005 increase in the Detroit CPI (2.3%) as included by the Senate and Governor.

Date Completed: 6-7-04 Fiscal Analyst: Mike Hansen Bill Analysis @ http://www.senate.michigan.gov/sfa July 13, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIccl_hp