March 19, 2003, Introduced by Rep. Sak and referred to the Committee on Appropriations.
EXECUTIVE BUDGET BILL
A bill to make appropriations for community colleges and certain
state purposes related to education for the fiscal year ending
September 30, 2004; to provide for the expenditure of those
appropriations; to establish or continue certain funds, programs, and
categories; and to prescribe the powers and duties of certain state
departments, institutions, agencies, employees, and officers.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 PART 1
2 LINE-ITEM APPROPRIATIONS
3 Sec. 101. Subject to the conditions set forth in this bill, the
1 amounts listed in this part are appropriated for community colleges and
2 certain other state purposes relating to education for the fiscal year
3 ending September 30, 2004, from the funds indicated in this part. The
4 following is a summary of the appropriations in this part:
6 APPROPRIATIONS SUMMARY:
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7 GROSS APPROPRIATION $ 289,013,100
8 Total interdepartmental grants and intradepartmental
9 transfers 0
10 ADJUSTED GROSS APPROPRIATION $ 289,013,100
11 Total federal revenues 0
12 Total local revenues 0
13 Total private revenues 0
14 Total other state restricted revenues 0
15 State general fund/general purpose $ 289,013,100
16 Sec. 102. OPERATIONS
17 Alpena Community College $ 4,780,500
18 Bay de Noc Community College 4,616,800
19 Delta College 13,331,900
20 Glen Oaks Community College 2,236,800
21 Gogebic Community College 3,928,400
22 Grand Rapids Community College 16,769,300
23 Henry Ford Community College 20,436,700
24 Jackson Community College 11,312,800
25 Kalamazoo Valley Community College 11,542,800
26 Kellogg Community College 9,068,800
1 Kirtland Community College 2,752,400
2 Lake Michigan College 4,880,800
3 Lansing Community College 28,999,400
4 Macomb Community College 30,941,500
5 Mid Michigan Community College 4,127,600
6 Monroe County Community College 4,015,800
7 Montcalm Community College 2,904,700
8 C.S. Mott Community College 14,661,600
9 Muskegon Community College 8,343,600
10 North Central Michigan College 2,826,100
11 Northwestern Michigan College 8,513,800
12 Oakland Community College 19,518,300
13 St. Clair County Community College 6,537,800
14 Schoolcraft College 11,455,400
15 Southwestern Michigan College 6,149,300
16 Washtenaw Community College 11,642,900
17 Wayne County Community College 15,500,600
18 West Shore Community College 2,144,000
19 GROSS APPROPRIATION $ 283,940,400
20 Appropriated from:
21 State general fund/general purpose $ 283,940,400
22 Sec. 103. GRANTS
23 At-risk student success program $ 3,322,700
24 Renaissance zone tax reimbursement funding 1,750,000
25 GROSS APPROPRIATION $ 5,072,700
26 Appropriated from:
27 State general fund/general purpose $ 5,072,700
1 PART 2
2 PROVISIONS CONCERNING APPROPRIATIONS
4 Sec. 201. Pursuant to section 30 of article IX of the state
5 constitution of 1963, total state spending from state resources under
6 part 1 for fiscal year 2003-2004 is $289,013,100.00 and state spending
7 from state resources to be paid to units of local government for fiscal
8 year 2003-2004 is $289,013,100.00. The itemized statement below
9 identifies appropriations from which spending to units of local
10 government will occur:
11 Operations $ 283,940,400
12 At-risk student success program 3,322,700
13 Renaissance zone tax reimbursement program 1,750,000
14 TOTAL $ 289,013,100
15 Sec. 202. The appropriations authorized under this bill are subject
16 to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
17 Sec. 203. Unless otherwise specified, the department of career
18 development shall use the Internet to fulfill the reporting
19 requirements of this bill. This requirement may include transmission
20 of reports via electronic mail to the recipients identified for each
21 reporting requirement, or it may include placement of reports on an
22 Internet or Intranet site.
23 Sec. 204. (1) The money appropriated in this bill is appropriated
24 for community colleges with fiscal years ending June 30, 2004, and
25 shall be paid out of the state treasury and distributed by the state
26 treasurer to the respective community colleges in 11 monthly
27 installments on the sixteenth of each month, or the next succeeding
1 business day, beginning with October 16, 2003. Each community college
2 shall accrue its July and August 2004 payments to its institutional
3 fiscal year ending June 30, 2004. However, if a community college
4 fails to submit all verified Michigan community colleges activities
5 classification structure data for school year 2002-2003 to the
6 department of career development by November 1, 2003, the monthly
7 installments shall be withheld from that community college until those
8 data are submitted. The department of career development shall publish
9 the activities classification structure data book for Michigan
10 community colleges on or before March 1, 2004, for use by the
11 legislature during budget development for the fiscal year ending
12 September 30, 2005. The amount from the money appropriated in part 1
13 that is allocated under section 103 to address the special needs of at-
14 risk students shall be paid 50% in the state’s first fiscal quarter and
15 50% in the state’s second fiscal quarter.
16 (2) Except as otherwise provided by law, each of the amounts
17 appropriated shall be used solely for the respective purposes stated in
18 this bill. The money appropriated by this bill may be used to match
19 the cost of any available programs under the Carl D. Perkins
20 vocational and applied technology education act, Public Law 88-210, 98
21 Stat. 2435, including local administration.
22 Sec. 205. (1) The auditor general or an independent public
23 accounting firm appointed by the auditor general shall audit data for
24 the fiscal year ending on June 30, 2003, as submitted to the department
25 of career development by 7 randomly selected community colleges. A
26 community college shall maintain and provide those records necessary
27 for the auditor general or certified public accountant appointed by the
1 auditor general to determine the accuracy of the reported data. The
2 audits shall be based upon the definitions and requirements contained
3 in the Manual for Uniform Financial Reporting, Michigan Public
4 Community Colleges, published by the Michigan department of career
5 development in 2001, and the Activities Classification Structure Manual
6 for Michigan Community Colleges, 1996 revision of the final report of
7 the activities classification structure task force (July 1981),
8 published by the department of education. Before the submission of a
9 final audit report, a community college may appeal the findings of the
10 preliminary report under an appeal process to be established by the
11 auditor general. The auditor general shall submit a report of the
12 findings to the house and senate appropriations committees, the
13 department of career development, and the state budget director before
14 June 1, 2004.
15 (2) The auditor general or a certified public accountant
16 appointed by the auditor general may conduct performance audits of
17 community colleges as the auditor general considers necessary.
18 (3) Not more than 60 days after an audit report is released by
19 the office of the auditor general, the principal executive officer of
20 the community college that was audited shall submit to the house and
21 senate appropriations committees, the house and senate fiscal agencies,
22 the department of career development, the auditor general, and the
23 state budget director a plan to comply with audit recommendations. The
24 plan shall contain projected dates and resources required, if any, to
25 achieve compliance with the audit recommendations, or a documented
26 explanation of the college's noncompliance with the audit
27 recommendations concerning the matters on which the audited community
1 college and office of the auditor general disagree.
2 Sec. 206. The department of career development shall review the
3 taxonomy of the 7 community colleges selected for the audit under
4 section 212 that is based on the Activities Classification Structure
5 Manual for Michigan Community Colleges, 1996 revision of the final
6 report of the activities classification structure task force (July
7 1981), published by the department of education.
8 Sec. 207. (1) A community college shall retain certified class
9 summaries, class lists, registration documents, and student transcripts
10 that are consistent with the taxonomy of courses. For each enrollment
11 period during the fiscal year, these certified documents shall identify
12 clearly by course the number of in-district and out-of-district student
13 credit and contact hours. The class summaries and class lists shall be
14 consistent with each other and shall include the course prefix and
15 numbers, course title, course credit and contact hours, credit and
16 contact hours generated by each student, and activity classifications
17 consistent with the taxonomy. An auditable process shall be used by
18 the community college to determine the unduplicated head count for in-
19 district students, out-of-district students, and prisoners for each
20 enrollment period during the fiscal year.
21 (2) Contracts between the community college and agencies that
22 reimburse the community college for the costs of instruction shall be
23 retained for audit purposes.
24 Sec. 208. Each community college shall have an annual audit of all
25 income and expenditures performed by an independent auditor and shall
26 furnish the independent auditor's management letter and an annual
27 audited accounting of all general and current funds income and
1 expenditures including audits of college foundations to the senate and
2 house fiscal agencies, the auditor general, the department of career
3 development, and the state budget director before November 15, 2003.
4 If a community college fails to furnish the audit materials, the
5 monthly state aid installments shall be withheld from that college
6 until the information is submitted. All reporting shall conform to the
7 requirements set forth in the Manual for Uniform Financial Reporting,
8 Michigan Public Community Colleges, published by the Michigan
9 department of career development in 2001.
10 Sec. 209. (1) A community college shall pay the employer's
11 contributions to the Michigan public school employees' retirement
12 system created by the public school employees retirement act of 1979,
13 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of receiving money
14 appropriated under this bill.
15 (2) A community college shall not pay an employer's contribution
16 to more than 1 retirement fund providing benefits for an employee.
17 Sec. 210. An appropriation contained in this bill shall not be used
18 for the construction of buildings for, or operations of, a community
19 college not expressly authorized in part 1. Money appropriated in part
20 1 shall not be used to pay for the construction or maintenance of a
21 self-liquidating project.
22 Sec. 211. (1) Each community college shall report the following to
23 the department of career development, no later than November 1, 2003:
24 (a) The number of North American Indian students enrolled each
25 term for the previous fiscal year, using guidelines and procedures
26 developed by the department of career development and the Michigan
27 commission on Indian affairs.
1 (b) The number of Indian tuition waivers granted each term, and
2 the monetary value of the waivers for the previous fiscal year.
3 (2) Colleges shall use the criteria cited in 1976 PA 174, MCL
4 390.1251 to 390.1253, to determine eligibility for tuition waivers, and
5 shall grant those waivers to individuals who meet the criteria and
6 request tuition waivers.
7 (3) The department of career development shall compile the
8 information received under subsection (1) and shall submit this
9 compilation to the house and senate appropriations subcommittees on
10 community colleges, the senate and house fiscal agencies, and the state
11 budget director by January 7, 2004.
12 Sec. 212. The appropriation in part 1 for renaissance zone
13 reimbursements shall be made to each eligible recipient no later than
14 60 days after the department of treasury certifies to the state budget
15 director that it has received all necessary information to properly
16 determine the amounts due each eligible recipient under section 12 of
17 the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.
18 Sec. 213. Upon request, a community college shall inform interested
19 Michigan high schools of the aggregate academic status of its students
20 for the prior academic year in a manner prescribed by the Michigan
21 community college association and in cooperation with the Michigan
22 association of secondary school principals.
23 Sec. 214. (1) Each community college shall report to the house and
24 senate fiscal agencies, the state budget director, and the department
25 of career development by August 31, 2003, the tuition and mandatory fee
26 rates paid by a full-time in-district student and a full-time out-of-
27 district student as established by the college governing board for the
1 2003-2004 academic year. Each community college shall also report any
2 revisions to the reported 2003-2004 academic year tuition and mandatory
3 fee rates adopted by the college governing board to the house and
4 senate fiscal agencies, the state budget director and the department of
5 career development within 15 days of being adopted.
6 (2) The department of career development shall prepare and
7 provide to community colleges a standard format for reporting tuition
8 and fee rates pursuant to subsection 1.
9 Sec. 215. (1) Each community college shall report to the department
10 of career development the numbers and types of associate degrees and
11 other certificates awarded during the previous fiscal year. The report
12 shall be made not later than November 15, 2003.
13 (2) The department of career development shall compile the
14 information received under subsection (1) and shall submit this
15 compilation to the house and senate appropriations subcommittees on
16 community colleges, the senate and house fiscal agencies, and the state
17 budget director by January 7, 2004.
18 Sec. 216. A community college receiving funding under this bill and
19 also subject to the student right-to-know and campus security act,
20 Public Law 101-542, 104 Stat. 2381, shall make a copy of all material
21 prepared in accordance with the public information reporting
22 requirements under the crime awareness and campus security act of 1990,
23 title II of the student right-to-know and campus security act, Public
24 Law 101-542, 104 Stat. 2384, available in hard copy and electronic
25 format accessible through the Internet for school districts, parents,
26 and students.
1 Sec. 301. Unless otherwise stated, all data items used in
2 determining state aid in this bill are as defined in the Manual for
3 Uniform Financial Reporting, Michigan Public Community Colleges,
4 published by the Michigan department of career development in 2001,
5 which shall be the basis for reporting data, and the Activities
6 Classification Structure Manual for Michigan Community Colleges, 1996
7 revision of the final report of the activities classification structure
8 task force (July 1981), published by the department of education, as
9 amended by the department of career development, which shall be used to
10 document financial needs of the community colleges.
11 Sec. 302. A community college shall not include in the enrollment
12 data reported for determining state aid under this bill any student
13 credit hours or student contact hours for a student incarcerated in a
14 Michigan penal institution. Exclusion of these students is intended to
15 avoid the payment of state aid under this bill for the same individuals
16 for whom reimbursement is provided by the state correctional system.
18 Sec. 401. (1) The community college at-risk student success program
19 is continued. The funding shall be prorated among community colleges
20 based on the number of student contact hours for developmental and
21 preparatory instruction reported by each community college to the
22 department of career development for use in the Activities
23 Classification Structure Manual for Michigan Community Colleges, 1996
24 revision of the final report of the activities classification structure
25 task force (July 1981), published by the department of education. Of
26 the amount appropriated in part 1 for the at-risk student success
27 program, $1,120,000.00 is allocated for base grants of $40,000.00 each,
1 to address the special needs of at-risk students at community colleges
2 or the acquisition or upgrade of technology related equipment and
3 software.
4 (2) Of the amount appropriated in part 1 for the at-risk student
5 success program, the balance of the appropriated money shall be
6 distributed on a proration utilizing the sum of the most recent 3 years
7 developmental/ preparatory contact hours divided by the sum of the 3-
8 year total contact hours at each college. Each community college's
9 percentage shall be divided by the sum of all the percentages
10 systemwide to obtain each community college's prorated grant amount.
11 (3) For the fiscal year ending September 30, 2004, the at-risk
12 student success program money is allocated as follows:
13 Alpena Community College $ 68,700
14 Bay de Noc Community College 82,400
15 Delta College 99,400
16 Glen Oaks Community College 127,500
17 Gogebic Community College 71,500
18 Grand Rapids Community College 98,000
19 Henry Ford Community College 146,500
20 Jackson Community College 101,800
21 Kalamazoo Valley Community College 100,200
22 Kellogg Community College 143,000
23 Kirtland Community College 146,600
24 Lake Michigan College 162,100
25 Lansing Community College 147,600
26 Macomb Community College 84,400
27 Mid Michigan Community College 124,000
1 Monroe County Community College 90,700
2 Montcalm Community College 67,800
3 C.S. Mott Community College 101,900
4 Muskegon Community College 185,300
5 North Central Michigan College 121,300
6 Northwestern Michigan College 129,700
7 Oakland Community College 141,700
8 St. Clair County Community College 88,500
9 Schoolcraft College 134,800
10 Southwestern Michigan College 152,400
11 Washtenaw Community College 157,200
12 Wayne County Community College 129,500
13 West Shore Community College 118,200
14 (4) As used in this bill, "at-risk students" means students who
15 meet 1 or more of the following criteria:
16 (a) Are initially placed in 1 or more developmental courses as a
17 result of standardized testing or as a result of failure to make
18 satisfactory academic progress.
19 (b) Are diagnosed as learning disabled.
20 (c) Require English as a second language (ESL) assistance.
21 (5) Grant funding under this section shall be utilized to address
22 the special needs of at-risk students or for equipment or upgrade of
23 information technology hardware or software. Activities related to
24 services provided to at-risk students include, but are not limited to,
25 pretesting for academic ability, counseling contacts, and special
26 programs. Equipment or information technology hardware or software
27 purchased under this section need not be associated with the operation
1 of a program designed to address the needs of at-risk students.
2 (6) Grant funding under this section shall not be used for
3 indirect costs including, but not limited to, rent, utilities, or,
4 except as provided in this section, college administration.
5.. (7) Each community college shall report to the department of
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6 career development a summary of all accomplishments under, expenditures
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7 for, and compliance with the intent of this program, including the
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8 number of at-risk students served. The report is subject to audit as
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9 provided for in section 212(1). The report shall be submitted not
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10 later than 90 days after the end of the state's fiscal year.