FY 2006-07 HIGHER EDUCATION BUDGET S.B. 1088 (S-1): SENATE-PASSED






Senate Bill 1088 (S-1 as passed by the Senate)
Committee: Appropriations

Changes from FY 2005-06 Year-to-Date:
  1. Per-Student Floor Funding. The Senate included a $3,750 per-student floor that provides funds to four universities: Central ($304,400), Grand Valley ($3,159,900), Oakland ($1,191,800), and Saginaw Valley ($1,184,000). 5,840,100
2. Across-the-Board Increases for University Operations. The Governor recommended a 2.0% increase for Michigan State, University of Michigan-Ann Arbor, and Wayne State, and a 1.0% increase for the other 12 State universities. The Senate provided a 1.8% inflation increase (based on the January 2006 Consensus Revenue Estimating Conference) for all 15 universities 25,556,700
3. Formula Funding. At 12 of the State universities, the Governor allocated $1.5 million to each of four categories based on tuition revenue, financial aid expenditures, Pell Grant awards, and degree completions; Senate did not include. 0
4. Senate Floor Adjustments. Floor amendments added $2.3 million to allow each university to be funded at the higher of the Governor's recommendation or the Senate Appropriations Committee recommendation. Also adopted were amendments to increase by 2.0% the Agricultural Experiment Station ($663,300) and the Cooperative Extension Service ($572,100). 3,496,100
5. Competitive Scholarships and Tuition Grants. For Competitive Scholarships, the Governor added $3.0 million GF/GP to replace MHEAA revenue and transferred $29.5 million GF/GP from the Tuition Grant Program, which she eliminated. The Governor did allow current undergraduate Tuition Grant recipients to continue to receive their grants but at the Competitive Scholarship maximum of $1,300 instead of the $2,000 Tuition Grant maximum. The Senate did not change either of these grant programs but did concur with the Governor's $500,000 Federal fund reduction for Competitive Scholarships. (500,000)
6. Nursing Scholarship Program. Senate added master degree in nursing programs as eligible for funds and provided an additional $250,000 for the Program. 250,000
7. Michigan Merit Awards. The Governor projected total FY 2006-07 expenditures of $127.7 million, with $55.9 million for the second payment for the class of 2005 and $55.4 million for the first payment for the class of 2006; no payments are included for class of 2006 out-of-State students. The FY 2005-06 appropriation is $126.4 million. 1,300,000
8. Tuition Incentive Program (TIP). The Governor recommended a $2.0 million GF/GP increase for TIP due to an increase in caseload; an FY 2006-07 appropriation of $14.0 million would fund over 7,600 students, with $7.4 million GF/GP and $6.6 million from the Merit Award Trust Fund. 2,000,000
9. Children of Veterans Tuition Grants. The Governor replaced $500,000 in State GF/GP with State Restricted revenue and provided an additional $500,000 in State Restricted revenue from an income tax check-off for full-year funding of the tuition grants at $1.0 million. 500,000
10. Michigan Leadership, Education and Development (MiLEAD). The Governor added a new program, funded from the Civilian Conservation Corps Fund in DNR, that would link academic learning at postsecondary institutions with conservation-based community service needs. 5,000,000
Total Changes $43,442,900
  FY 2006-07 Senate Gross Appropriation $1,777,886,800
FY 2006-07 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:
  1. University Payment Schedule. Governor and Senate deleted reference to FY 2005-06 House formula, AES, and CES. (Sec. 212(1))
2. Appropriations Report from Fiscal Agencies. Governor deleted, Senate retained. (Sec. 212(3))
3. Tuition Grants. Governor eliminated program but allows current freshmen grant recipients to continue to receive their grants as undergraduates, at the same grant maximum as State Competitive Scholarships (Sec. 301(6)); Senate retained current-year program with an application deadline of July 1, 2006. (Sec. 302)
4. State Financial Aid Payment Schedule. Governor replaced 40%/40%/10%/10% quarterly payments with equal quarterly payments; Senate retained current schedule. (Sec. 308)
5. Tuition Incentive Program (TIP). Governor 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; Senate added only a requirement for students to request FAFSA filing information. (Sec. 310(3))
6. Nursing Scholarship Program. Senate added master degree in nursing programs as eligible for funds. (Sec. 312)
7. 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. (Sec. 313)
8. Douglas Lake. Governor deleted legislative intent to preserve research value, Senate retained. (Sec. 402)
9. FY 2005-06 House Formula/Senate Per-Student Floor Funding. 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. (Sec. 418)
10. 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 retained. (Sec. 426)
11. 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. (Sec. 437)
12. Per-Student Floor Funding. Senate added $3,750 per-student funding floor. (Sec. 450)
13. New Academic Programs. Governor and Senate deleted FY 2005-06 list. (Sec. 701a)
14. 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. (Sec. 711)
15. 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.

Date Completed: 3-30-06 Fiscal Analyst: Ellen Jeffries Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. 07hihed_sp.doc