1088: ENACTED (8-17-06) - FY 2006-07 HIGHER EDUCATION BUDGET

FY 2006-07 HIGHER EDUCATION BUDGET S.B. 1088 (P.A. 340 of 2006): ENACTED

Changes from FY 2005-06 Year-to-Date:
Items Included by the Senate and House
1. Agricultural Experiment Station. House and Senate agreed to a 2.0% increase.	663,300
2. State Competitive Scholarships. Federal Fund reduction resulted in total FY 2006-07 funding level of $34.1 million.	(500,000)
3. Michigan Merit Awards. Expenditures are projected to increase to $127.7 million.	1,300,000
4. Tuition Incentive Program. Expenditures are projected to increase to $14.0 million.	2,000,000
5. Children of Veterans Tuition Grants. $500,000 in GF/GP funding is replaced with $1.0 million of restricted revenue from a State income tax check-off.	500,000
Conference Agreement on Items of Difference
6. House Funding Model. Conference used the model with a few changes from FY 2005-06: 2004-05 FYES used for enrollment; math degrees and education degrees in the sub-areas of math, science, technical, and special education, weighted at 2.0 instead of 1.0; research match rate lowered from 83.7% to 78.2% with cap for UM-Ann Arbor; and an overall limit of 2.9%.	32,643,900
7. Per-Student Floor Funding. Senate had $3,750 floor; Conference floor: $3,775.	2,540,000
8. Pell Grant Funding. Conference included $450 for each FY 2004-05 Pell Grant awarded at Lake Superior, Northern, and Wayne State.	4,805,200
9. Other Operations Adjustments. Senate added 1.8% inflation for all schools; House added funding for MPSERS, Indian Tuition Waivers, and NMU Superior Dome; Conference added funding for six universities: Michigan State, Michigan Tech, Oakland, UM-Ann Arbor, UM-Flint, and Wayne State.	3,272,900
10. Cooperative Extension Service (CES). House added $300,000 to fund local 4-H programs; Conference did not include 4-H funds but did provide a 2.0% increase for CES.	572,100
11. Nursing Scholarship Program. Senate added $250,000 to this $4.0 million Program and added nursing master's degrees as eligible for funding; Conference concurred.	250,000
Total Changes	$53,047,400
FY 2006-07 Enacted Gross Appropriation	$1,787,491,300

FY 2006-07 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:

Items Included by the Senate and House

1. University Payment Schedule. Governor, Senate, and House deleted reference to FY 2005-06 House formula, AES, and CES. (Sec. 212(1))

2. Appropriations Report from Fiscal Agencies. Governor deleted, Senate and House retained. (Sec. 212(3))

3. State Financial Aid Payment Schedule. Governor replaced 40%/40%/10%/10% quarterly payments with equal quarterly payments; Senate and House retained current schedule. (Sec. 308)

4. Douglas Lake. Governor deleted legislative intent to preserve research value, Senate and House retained.(Sec. 402)

Conference Agreement on Items of Difference

5. Construction Contracts. House added prohibition for discrimination, Conference deleted. (Sec. 221)

6. Tuition Grants. Governor eliminated program but allowed current grant recipients to receive their grants as undergraduates, at the State Competitive Scholarships grant maximum; Senate retained FY 2005-06 program with application deadline of July 1, 2006; House added June 1, 2007, deadline and grant minimum of $2,400. Conference included $2,000 minimum and deadline of July 1, 2006. (Sec. 302)

7. Tuition Incentive Program (TIP). Governor and House added FAFSA filing as a criterion for Phase I eligibility, and achievement of junior-level status at a four-year institution as a criterion for Phase II eligibility; House deducted Federal aid from TIP payment; Senate added only a requirement for students to request FAFSA filing information. Conference concurred with Senate. (Sec. 310(3))

8. Nursing Scholarship Program. Senate/Conference added master degree in nursing programs as eligible for funds. (Sec. 312)

9. Michigan Leadership, Education and Development (MiLEAD) Initiative. Governor added a new program to provide $1.0 million grants to higher education institutions for residential programs for at-risk youth to earn college credits while they perform conservation-based community service; Senate added eligibility for independent colleges and universities; House did not include MiLEAD. Conference concurred with Senate. (Sec. 313)

10. Reporting Requirements. House added for Children of Veterans and Tuition Grants, Conference added for Children of Veterans only. (Secs. 314 & 315)

11. HEIDI Advisory Committee. House deleted; Conference revised. (Sec. 405)

12. House Funding Model. Governor replaced with new four-part formula for all State universities (except MSU, UM-Ann Arbor, and Wayne State) based on tuition revenue, financial aid expenditures, Pell Grant awards, and weighted degree completions; Senate did not include either the Governor's or the House's formulas; House revised to reflect their proposed funding changes. Conference concurred with the House. (Sec. 418)

13. Superior Dome. House earmarked $600,000 of Northern's appropriation; Conference deleted. (Sec. 419)

14. Lists of Required Textbooks. Governor deleted legislative intent for timely access to lists by private bookstores/student groups, and intent to allow students to decide where to purchase textbooks, Senate and House retained; House allowed university-administered accounts to be used. Conference concurred with House. (Sec. 426)

15. Cooperative Extension Service. House earmarked $300,000 for local 4-H programs; Conference deleted. (Sec. 434)

16. Michigan Public School Employees Retirement System (MPSERS). Governor and Senate deleted legislative intent that stabilization subaccount funds be used to subsidize payroll contributions of the seven MPSERS universities due to depletion of the subaccount; House added MPSERS $1.7 million subsidy. Conference deleted. (Sec. 437)

17. Per-Student Floor Funding. Senate added $3,750 per-student funding floor; Governor and House did not include; Conference added $3,775 floor. (Sec. 450)

18. New Academic Programs. Governor/Senate deleted FY 2005-06 list; House/Conference added FY 2006-07 list. (Sec. 701a)

19. Education Degrees. Senate added requirement for reports on efforts to increase education degrees conferred for teaching of middle and high school math, physics, chemistry, biology, and certain foreign languages; House required report on degrees in critical shortage areas. Conference blended Senate and House. (Sec. 711)

20. Research and Technology Transfer. Senate added requirement for reports on research, technology transfer, job creation, and graduates with advanced degrees in math, science, health care, and engineering; House allowed concerted effort. Conference concurred with the House. (Sec. 712)

Date Completed: 8-17-06 Fiscal Analyst: Ellen Jeffries Bill Analysis @ http://www.senate.michigan.gov/sfa hihed_en.docn