FY 2006-07 COMMUNITY COLLEGES BUDGET S.B. 1082 (P.A. 341 of 2006): ENACTED







FY 2005-06 Year-to-Date Gross Appropriation $281,552,400
Changes from FY 2005-06 Year-to-Date:
  Items Included by the Senate and House
1. Renaissance Zone Reimbursements. The budget increased funding from $2,900,000 to $3,200,000 to reflect projected reimbursements pursuant to 1996 PA 376. 300,000
  Conference Agreement on Items of Difference
2. Operations.
a) Governor *???? Recommended an across-the-board 2.0% increase for college operations.
b) Senate *???? Restored one-half ($225,000) of the $450,000 reduction made to Wayne County Community College's (WCCC) appropriation in FY 2003-04.
* Allocated $443,000 to three colleges, Bay de Noc, Kalamazoo Valley, and Mid Michigan in an effort to move toward a funding floor of $6,500. These schools did not receive other adjustments in the Senate version (Task Force model distribution).
* Distributed the balance of the 2.0% increase through the Task Force model.
* Replaced $43.9 million in General Fund support with School Aid Fund.
c) House *???? Restored one-half ($225,000) of the $450,000 reduction made to WCCC.
* Provided $200,000 each for Bay de Noc and Mid Michigan Community College.
* Distributed the balance of the 2.5% increase through the Task Force model.
* Created a new line-item for Economic Development Grants of $251,100.
* Created a new line-item for Accelerated Licensing Certification grants of $100.
* Created a new line-item for Nursing Expansion grants of $100.
* Included FY 2005-06 supplemental of $200,000 each for Bay De Noc and Mid Michigan Community College.
d) Conference Committee on Items of Difference *???? Maintained the $225,000 FY 2005-06 supplemental in WCCC's base.
* Provided a $200,000 separate adjustment for Bay de Noc.
* Distributed the balance of available funding through the Task Force model.
* Funded all adjustments entirely from the General Fund.
* Did not include new line items created by the House.
* Did not include House proposed supplemental appropriations for FY 2005-06.


The above Conference adjustments reflect funding based on the Leadership Target which increased funding for the Community College Appropriation Bill by $8,327,000 over the FY 2005-06 Year-to-Date appropriation. After adjusting for funding required for Renaissance Zone Reimbursements (Item #1 above), a 2.9% overall increase was available for community college operations.
8,027,000
Total Changes $8,327,000
  FY 2006-07 Enacted Gross Appropriation $289,879,400
FY 2006-07 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:
  Items Included by the Senate and House
1. Entrepreneurship Curriculum. The Governor removed language requiring the Department of Labor and Economic Growth to work collaboratively with community colleges to develop an accelerated entrepreneurship curriculum, including an associate degree. The House and Senate restored the section and specified a due date of February 1, 2007, for the annual reporting requirement. (Sec. 208)
2. Abortion Coverage in Employee Health Insurance. The Senate and House restored language eliminated by the Governor that prohibits the use of State funds for health insurance that includes abortion services for college employees. (Sec. 230)
3. Benefits for Unmarried Partners. The Senate and House restored language eliminated by the Governor that prohibits the use of State appropriations to provide benefits to unmarried partners of college employees. (Sec. 231)
4. Payments in Lieu of Taxes. The Senate and House modified language that previously required a workgroup and report concerning Payments in Lieu of Taxes to community colleges with districts that contain nontaxable land. The new language requires continued discussions regarding payments in lieu of taxes. (Sec. 242)
Conference Agreement on Items of Difference
5. University Acceptance of College Credits. The Senate and the Governor removed language that creates a workgroup to make recommendations regarding university acceptance of college credits by students enrolled through the postsecondary enrollment options act. The House included the language. The Conference Committee concurred with the House. (Sec. 235)
6. Nursing Program Expansion. The Conference Committee included new language that creates a workgroup to evaluate and make recommendations concerning the expansion of nursing programs at community colleges. This section also requires a report on findings and recommendations (including funding) by March 1, 2007, and states legislative intent to fund approved recommendations of the workgroup. (Sec. 236)
7. Performance Indicator Task Force/Full Funding of Gast-Mathieu Formula. The Conference Committee modified current year language and a new section included by the House to state legislative intent that the task force formula developed by the Performance Indicators Task Force be used for funding distributions in future years. Data collected for the Gast-Mathieu Formula will also continue to be collected and maintained. The section states legislative intent that Task Force performance measures and recommendations will be reviewed and more fully implemented for future distributions of State funding. (Sec. 304).
8. Tax Increment Finance Authorities. The Senate and the Governor removed language that required the Department of Treasury to report on the property tax revenue lost by colleges as a result of tax increment finance authorities and tax abatements. The House included the language. The Conference Committee concurred with the House. (Sec. 513)
9. Construction Contracts. The House included new language that prohibits a community college from entering into a contract for construction that discriminates against a person based upon legally prohibited characteristics, or membership in a labor organization, or requires any bidders or contractors to adhere to agreements with one or more labor organization. The Conference Committee removed this section.

Date Completed: 8-24-06 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa hiccl_en.doc