SENATE BILL No. 1088

 

 

February 28, 2006, Introduced by Senators CHERRY and EMERSON and referred to the Committee on Appropriations.

 

 

 

     A bill to make appropriations for the state institutions of

 

higher education and certain state purposes related to education

 

for the fiscal year ending September 30, 2007; to provide for the

 

expenditure of the appropriations; and to prescribe the powers and

 

duties of certain state departments, institutions, agencies,

 

employees, and officers.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. Subject to the conditions set forth in this bill,

 

the amounts listed in this part are appropriated for higher

 

education for the fiscal year ending September 30, 2007, from the

 


funds indicated in this part.  The following is a summary of the

 

appropriations in this part:

 

HIGHER EDUCATION

 

APPROPRIATION SUMMARY:

 

   Full-time equated classified positions............ 1.0

 

GROSS APPROPRIATION.................................... $  1,741,840,700

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $  1,741,840,700

 

   Federal revenues:

 

Total federal revenues.................................         3,000,000

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................       153,800,000

 

State general fund/general purpose..................... $  1,585,040,700

 

   Sec. 102.  CENTRAL MICHIGAN UNIVERSITY

 

Operations............................................. $     81,736,200

 

GROSS APPROPRIATION.................................... $     81,736,200

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................           538,440

 

State general fund/general purpose..................... $     81,197,760

 

   Sec. 103.  EASTERN MICHIGAN UNIVERSITY

 

Operations............................................. $     77,628,100

 

GROSS APPROPRIATION.................................... $     77,628,100

 


    Appropriated from:

 

State general fund/general purpose..................... $     77,628,100

 

   Sec. 104.  FERRIS STATE UNIVERSITY

 

Operations............................................. $      49,478,600

 

GROSS APPROPRIATION.................................... $     49,478,600

 

    Appropriated from:

 

State general fund/general purpose..................... $     49,478,600

 

   Sec. 105.  GRAND VALLEY STATE UNIVERSITY

 

Operations............................................. $      62,449,200

 

GROSS APPROPRIATION.................................... $     62,449,200

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         5,000,000

 

State general fund/general purpose..................... $     57,449,200

 

   Sec. 106.  LAKE SUPERIOR STATE UNIVERSITY

 

Operations............................................. $      12,988,600

 

GROSS APPROPRIATION.................................... $     12,988,600

 

    Appropriated from:

 

State general fund/general purpose..................... $     12,988,600

 

   Sec. 107.  MICHIGAN STATE UNIVERSITY

 

Operations............................................. $    289,404,900

 

Agricultural experiment station........................        33,163,800

 

Cooperative extension service..........................        28,604,300

 

GROSS APPROPRIATION.................................... $    351,173,000

 

    Appropriated from:

 

State general fund/general purpose..................... $    351,173,000

 

   Sec. 108.  MICHIGAN TECHNOLOGICAL UNIVERSITY

 


Operations............................................. $      48,880,400

 

GROSS APPROPRIATION.................................... $     48,880,400

 

    Appropriated from:

 

State general fund/general purpose..................... $     48,880,400

 

   Sec. 109.  NORTHERN MICHIGAN UNIVERSITY

 

Operations............................................. $      45,879,000

 

GROSS APPROPRIATION.................................... $     45,879,000

 

    Appropriated from:

 

State general fund/general purpose..................... $     45,879,000

 

   Sec. 110.  OAKLAND UNIVERSITY

 

Operations............................................. $      51,719,700

 

GROSS APPROPRIATION.................................... $     51,719,700

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         1,941,768

 

State general fund/general purpose..................... $     49,777,932

 

   Sec. 111.  SAGINAW VALLEY STATE UNIVERSITY

 

Operations............................................. $      28,302,700

 

GROSS APPROPRIATION.................................... $     28,302,700

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         2,019,792

 

State general fund/general purpose..................... $     26,282,908

 

   Sec. 112.  UNIVERSITY OF MICHIGAN - ANN ARBOR

 

Operations............................................. $     322,695,900

 

GROSS APPROPRIATION.................................... $    322,695,900

 

    Appropriated from:

 


State general fund/general purpose..................... $    322,695,900

 

   Sec. 113.  UNIVERSITY OF MICHIGAN - DEARBORN

 

Operations............................................. $      25,286,900

 

GROSS APPROPRIATION.................................... $     25,286,900

 

    Appropriated from:

 

State general fund/general purpose..................... $     25,286,900

 

   Sec. 114.  UNIVERSITY OF MICHIGAN - FLINT

 

Operations............................................. $      21,420,100

 

GROSS APPROPRIATION.................................... $     21,420,100

 

    Appropriated from:

 

State general fund/general purpose..................... $     21,420,100

 

   Sec. 115.  WAYNE STATE UNIVERSITY

 

Operations............................................. $     218,959,600

 

GROSS APPROPRIATION.................................... $    218,959,600

 

    Appropriated from:

 

State general fund/general purpose..................... $    218,959,600

 

   Sec. 116.  WESTERN MICHIGAN UNIVERSITY

 

Operations............................................. $    111,398,800

 

GROSS APPROPRIATION.................................... $    111,398,800

 

    Appropriated from:

 

State general fund/general purpose..................... $    111,398,800

 

   Sec. 117.  STATE AND REGIONAL PROGRAMS

 

   Full-time equated positions....................... 1.0

 

Higher education database modernization and

 

   conversion--1.0 FTE position......................... $        200,000

 

Midwestern higher education compact....................            90,000

 

GROSS APPROPRIATION.................................... $        290,000

 


    Appropriated from:

 

State general fund/general purpose..................... $        290,000

 

   Sec. 118.  MARTIN LUTHER KING, JR. - CESAR CHAVEZ -

 

ROSA PARKS PROGRAM

 

Select student supportive services..................... $      1,956,100

 

Michigan college/university partnership program........           586,800

 

Morris Hood, Jr. educator development program..........           148,600

 

GROSS APPROPRIATION.................................... $      2,691,500

 

    Appropriated from:

 

State general fund/general purpose..................... $      2,691,500

 

   Sec. 119.  GRANTS AND FINANCIAL AID

 

State competitive scholarships......................... $     63,598,600

 

Michigan work-study program............................         7,326,300

 

Part-time independent student program..................         2,653,300

 

Michigan education opportunity grants..................         2,084,200

 

Robert C. Byrd honors scholarship program..............         1,500,000

 

Nursing scholarship and grant programs.................         4,000,000

 

Michigan merit award program...........................       127,700,000

 

Children of veterans tuition grant program.............         1,000,000

 

Michigan leadership, education and development

 

   initiative (MiLEAD)..................................         5,000,000

 

Tuition incentive program..............................        14,000,000

 

GROSS APPROPRIATION.................................... $    228,862,400

 

    Appropriated from:

 

   Federal revenues:

 

Higher education act of 1965, title IV, 20 USC.........         1,500,000

 

Higher education act of 1965, title IV, part A.........         1,500,000

 


   Special revenue funds:

 

Michigan merit award trust fund........................       138,300,000

 

Michigan civilian conservation corps endowment fund....         5,000,000

 

Contributions to children of veteran’s tuition

 

   grant program........................................         1,000,000

 

State general fund/general purpose..................... $     81,562,400

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2006-2007 is $1,738,840,700.00 and

 

state spending from state resources to be paid to local units of

 

government for fiscal year 2006-2007 is $3,759.100.00. The itemized

 

statement below identifies the estimated appropriations from which

 

spending to local units of government will occur:

 

Part-time independent student program.................. $   1,255,700

 

Michigan education opportunity grant...................        932,900

 

Michigan work study....................................      1,570,500

 

TOTAL.................................................. $   3,759,100

 

     Sec. 202. The appropriations authorized under this bill are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

     Sec. 208. Unless otherwise specified, the institutions of

 

higher education receiving appropriations in part 1 shall use the

 

Internet to fulfill the reporting requirements of this bill.  This

 


requirement may include transmission of reports via electronic mail

 

to the recipients identified for each reporting requirement, or it

 

may include placement of reports on an Internet or Intranet site.

 

     Sec. 209. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods and

 

services, or both, are available.  Preference should be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses if they are competitively priced and of comparable

 

value.

 

     Sec. 212. (1) The funds appropriated in part 1 to state

 

institutions of higher education shall be paid out of the state

 

treasury and distributed by the state treasurer to the respective

 

institutions in 11 monthly installments on the sixteenth of each

 

month, or the next succeeding business day, beginning with October

 

16, 2006.  Except for Wayne State University, each institution

 

shall accrue its July and August 2007 payments to its institutional

 

fiscal year ending June 30, 2007

 

     (2) All universities shall submit higher education

 

institutional data inventory (HEIDI) data and associated financial

 

and program information requested by and in a manner prescribed by

 

the state budget director.  For universities with fiscal years

 

ending June 30, 2006, these data shall be submitted to the state

 

budget director by October 15, 2006.  Universities with a fiscal

 

year ending September 30, 2006 shall submit preliminary HEIDI data

 

by November 15, 2006 and final data by December 15, 2006.  If a

 

university fails to submit HEIDI data and associated financial aid

 


program information in accordance with this reporting schedule, the

 

state treasurer shall withhold the monthly installments under

 

subsection (1) to the university until those data are submitted.

 

     Sec. 213. Funds received by the state from the federal

 

government or private sources for the use of a college or

 

university are appropriated for the purposes for which they are

 

provided.  The acceptance and use of federal or private funds do

 

not place an obligation upon the legislature to continue the

 

purposes for which the funds are made available.

 

     Sec. 214. If section 274 of the income tax act of 1967, 1967

 

PA 281, MCL 206.274, is not repealed and if a state institution of

 

higher education that receives funds under this bill notifies the

 

department of treasury regarding its tuition and fee rates in order

 

to qualify as an eligible institution for the Michigan tuition tax

 

credit under section 274 of the income tax act of 1967, 1967 PA

 

281, MCL 206.274, the institution shall also submit the

 

notification and applicable documentation of tuition and fee

 

changes to the house and senate fiscal agencies.

 

     Sec. 215. A state institution of higher education that

 

receives funds under this bill shall furnish all program and

 

financial information that is required by and in a manner

 

prescribed by the state budget director or the house or senate

 

appropriations committee.

 

 

 

GRANTS AND FINANCIAL AID

 

     Sec. 301. (1) Payments of the amounts included in part 1 for

 

the state competitive scholarship program shall be distributed

 


pursuant to 1964 PA 208, MCL 390.971 to 390.981 and pursuant to the

 

provisions of subsection (6).

 

     (2) The Michigan higher education assistance authority shall

 

implement a proportional competitive scholarship maximum award

 

level for recipients enrolled less than full-time in a given

 

semester or term.

 

     (3) If a student who receives an award under this section has

 

his or her tuition and fees paid under the Michigan educational

 

trust program, pursuant to the Michigan education trust act, 1986

 

PA 316, MCL 390.1421 to 390.1444, and still has financial need, the

 

funds awarded under this section may be used for educational

 

expenses other than tuition and fees.

 

     (4) If the Michigan higher education assistance authority

 

increases the maximum award per eligible student from that provided

 

in the previous fiscal year, it shall not have the effect of

 

reducing the number of eligible students receiving awards in

 

relation to the total number of eligible applicants.  Any increase

 

in the maximum grant shall be proportional for all eligible

 

students receiving awards.

 

     (5) Students who receive aid under 1964 PA 208, MCL 390.971 to

 

390.981, shall be awarded scholarships on the basis of merit and

 

financial need.  Veterans administration benefits shall not be

 

considered in determining eligibility under 1964 PA 208, MCL

 

390.971 to 390.981.

 

     (6) Included in the amounts appropriated in part 1 for the

 

state competitive scholarship program is an amount not to exceed

 

$29,468,100.00 to provide 2006-2007 academic year awards to

 


eligible undergraduate students who received a tuition grant

 

pursuant to 1966 PA 313, MCL 390.991 to 390.997a in the 2005-2006

 

academic year.  The maximum award amount shall not exceed the

 

maximum award per eligible student provided under the state

 

competitive scholarship program.

 

     Sec. 303. (1) Included in the appropriation in part 1 is

 

funding for the Michigan work-study program established under 1986

 

PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to

 

390.1332.  An effort should be made by each institution

 

participating in the Michigan work-study program to assure that not

 

less than 10% of those undergraduate, graduate, and professional

 

students eligible to participate in the program are placed with

 

for-profit employers no later than December 31 of each year for

 

which funding is provided under this bill.

 

     (2) The Michigan higher education assistance authority shall

 

allocate funds to institutions eligible for work-study money based

 

upon each institution's specific Pell grant index and each

 

institution's utilization rate of work-study funds for the 3 most

 

recent years for which statistics are available.

 

     (3) The Michigan higher education assistance authority shall

 

set aside not more than 5% of the total work-study appropriation to

 

process requests from participating institutions for allocation

 

adjustments.  Allocation adjustments shall be based on criteria set

 

by the authority prior to making the allocations under subsection

 

(2).

 

     Sec. 307. The auditor general may audit selected enrollments,

 

degrees, and awards at selected independent colleges and

 


universities receiving awards administered by the department of

 

treasury.  The audits shall be based upon definitions and

 

requirements established by the Michigan higher education

 

assistance authority, the state budget director, and the senate and

 

house fiscal agencies.  The auditor general shall accept the Free

 

Application for Federal Student Aid (FAFSA) form as the standard of

 

residency documentation.  The auditor general shall submit a report

 

of findings to the senate and house appropriations committees and

 

state budget director by May 1, 2007.

 

     Sec. 308. The sums appropriated in part 1 for the student

 

financial aid programs shall be paid out of the state treasury and

 

shall be distributed to the respective institutions under a

 

quarterly payment system as follows:

 

     (a) For the state competitive scholarship, nursing

 

scholarship, part-time independent student, and Michigan education

 

opportunity grant programs, 25% shall be paid at the beginning of

 

the state's first fiscal quarter, 25% at the beginning of the

 

state's second fiscal quarter, 25% at the beginning of the state's

 

third fiscal quarter, and 25% at the beginning of the state's

 

fourth fiscal quarter.

 

     (b) For the work-study program, payments shall be made in 11

 

monthly installments from October 1 to August 31 of any year.

 

     (c) For the Robert C. Byrd honors scholarship and tuition

 

incentive programs, 50% shall be paid at the beginning of the

 

state's first fiscal quarter and 50% at the beginning of the

 

state's second fiscal quarter.

 

     Sec. 309. The Michigan higher education assistance authority

 


shall determine the needs analysis criteria for students to qualify

 

for the competitive scholarship program.  To be consistent with

 

federal requirements, student wages may be taken into consideration

 

when determining the amount of the award.

 

     Sec. 310. (1) The funds appropriated in part 1 for the tuition

 

incentive program/high school completion program shall be

 

distributed as provided in this section and pursuant to the

 

administrative procedures for the tuition incentive program/high

 

school completion program of the department of treasury.

 

     (2) As used in this section:

 

     (a) "Phase I" means the first part of the tuition incentive

 

assistance program defined as the academic period of 80 semester or

 

120 term credits, or less, leading to an associate degree or

 

certificate.

 

     (b) "Phase II" means the second part of the tuition incentive

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

     (c) "Department" means the department of treasury.

 

     (3) A person shall meet the following basic criteria and

 

financial thresholds to be eligible for tuition incentive benefits:

 

     (a) To be eligible for phase I, a person shall meet all of the

 

following criteria:

 

     (i) Apply for certification to the department before graduating

 

from high school or completing the general education development

 

(GED) certificate.

 

     (ii) Be less than 20 years of age at the time of high school

 

graduation or GED completion.

 


     (iii) Be a United States citizen and a resident of Michigan

 

according to institutional criteria.

 

     (iv) Be at least a half-time student, earning less than 80

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or GED

 

certificate completion.

 

     (v) File a FAFSA.

 

     (b) To be eligible for phase II, a person shall meet one of

 

the following criteria in addition to the criteria in subdivision

 

(a):

 

     (i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

     (ii) Achieve junior level status at a four-year institution.

 

     (iii) Obtain an associate degree or certificate at a

 

participating institution.

 

     (c) To be eligible for phase I or phase II, a person must be

 

financially eligible as determined by the department.  A person is

 

financially eligible for the tuition incentive program if that

 

person was Medicaid eligible for 24 months within the 36 months

 

before application. Certification of eligibility may begin in the

 

sixth grade.

 

     (4) For phase I, the department shall provide payment on

 

behalf of a person eligible under subsection (3).  The department

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.

 

     (5) For phase I, all of the following apply:

 

     (a) Payments for associate degree or certificate programs

 


shall not be made for more than 80 semester or 120 term credits for

 

any individual student at any participating institution.

 

     (b) For persons enrolled at a Michigan community college, the

 

department shall pay the current in-district tuition and mandatory

 

fees.  For persons residing in an area that is not included in any

 

community college district, the out-of-district tuition rate may be

 

authorized.

 

     (c) For persons enrolled at a Michigan public university, the

 

department shall pay lower level division resident tuition and

 

mandatory fees for the current year.

 

     (d) For persons enrolled at a Michigan independent, nonprofit

 

degree granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college

 

in-district per-credit tuition rate as reported on August 1, for

 

the immediately preceding academic year.

 

     (6) A person participating in phase II may be eligible for

 

additional funds not to exceed $500.00 per semester or $400.00 per

 

term up to a maximum of $2,000.00 subject to the following

 

conditions:

 

     (a) Credits are earned in a 4-year program at a Michigan

 

degree granting 4-year college or university.

 

     (b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.

 

     (7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 


determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 

met.

 

     (8) Applications for the tuition incentive program may be

 

approved at any time after the student begins the sixth grade.  If

 

a determination of financial eligibility is made, that

 

determination is valid as long as the student meets all other

 

program requirements and conditions.

 

     (9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing

 

the tuition incentive program for any portion of a student's

 

tuition and fees.

 

     (10) The department shall ensure that the tuition incentive

 

program is well publicized and that potentially eligible Medicaid

 

clients are provided information on the program.  The department

 

shall provide the necessary funding and staff to fully operate the

 

program.

 

     Sec. 311. To enable the legislature and the state budget

 

director to evaluate the appropriation needs of higher education,

 

each independent college and university shall make available to the

 

legislature or state budget director, upon request, data regarding

 

grants for the preceding, current, and ensuing fiscal years.

 

     Sec. 312. From the funds appropriated in part 1 for nursing

 

scholarship and grant programs, the Michigan higher education

 

assistance authority shall administer any nursing scholarship or

 

nursing school grant programs authorized under the Michigan nursing

 

scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.

 


     Sec. 313. (1) The funds appropriated in part 1 for the

 

Michigan leadership, education and development initiative (MiLEAD)

 

shall be used to provide grants to higher education institutions

 

for residential programs for at-risk youth to provide them with

 

college credits while they perform conservation-based community

 

service.

 

     (2) MiLEAD grants of up to $1,000,000.00 each may be awarded

 

by the Michigan department of natural resources to Michigan public

 

community colleges and universities to provide one-year residency

 

programs for a minimum of 36 students.  The college or university

 

shall identify critical conservation projects as approved by the

 

Michigan department of natural resources that provide MiLEAD

 

participants with a paid work experience and provide participants

 

with necessary remedial coursework and additional education

 

opportunities resulting in college credit. 

 

     (3) Each community college or university receiving a MiLEAD

 

grant shall document the educational, work, and life skills

 

outcomes for each MiLEAD participant and provide an annual report

 

to the Michigan department of natural resources in a form specified

 

by the department.

 

 

 

STATE UNIVERSITIES

 

     Sec. 405. (1) There is created the higher education

 

institutional data inventory advisory committee.  The committee

 

shall be appointed by the state budget director and shall consist

 

of the following members:

 

     (a) One representative from the house fiscal agency.

 


     (b) One representative from the senate fiscal agency.

 

     (c) One representative from the state budget director's

 

office.

 

     (d) Three representatives of the presidents council of state

 

universities.  The presidents council shall appoint 1

 

representative each from a masters, a doctoral, and a research

 

university.

 

     (2) The committee shall be responsible for maintaining and

 

enhancing the state higher education database for which funding is

 

included in part 1.

 

     Sec. 418. (1) A one percent increase for university operations

 

funding contained in part 1 for those universities except Michigan

 

State University, University of MichiganAnn Arbor, and Wayne

 

State University, is allocated to each eligible university using a

 

four-part incentive-based formula to encourage universities to keep

 

higher education affordable and accessible, to encourage outreach

 

efforts to low-income students, and to encourage degree completion. 

 

Each formula component allocates one-quarter of one percent of the

 

increase as follows:

 

     (2) The affordability component is calculated as follows:

 

     (a) The sum of the fiscal year 2006 state appropriations and

 

fiscal year 2005 general fund tuition and fee revenue is divided by

 

the total 2005 fiscal year equated students (FYES) as reported by

 

each university in the higher education institutional data

 

inventory (HEIDI).

 

     (b) A statewide average combined state appropriation and

 

tuition revenue per FYES is computed.  Those eligible universities

 


with combined state appropriation and tuition revenue per FYES

 

below the state average receive a payment under this component

 

equal to the difference between the statewide average and that

 

university’s combined state appropriation and tuition revenue per

 

FYES, prorated to the available funding for this component of

 

$1,512,700.00.

 

     (3) The accessibility component is calculated as follows:

 

     (a) The percentage of 2004-2005 general fund financial aid

 

expenditures compared to combined fiscal year 2005 state

 

appropriations plus tuition and fees for each university as

 

reported in HEIDI is computed.  An accessibility index is then

 

calculated by dividing each university’s financial aid percentage

 

by the sum of all of the financial aid percentages.

 

     (b) Each eligible university receives a payment under this

 

component equal to that university’s percentage share of the

 

accessibility index multiplied by the available funding for this

 

component of $1,512,700.00.

 

     (4) The participation component is calculated as follows:

 

     (a) The percentage of pell grant awards compared to

 

undergraduate FYES for each university as reported in HEIDI is

 

computed.  A participation effort index is then calculated by

 

dividing each university’s pell grant percentage by the sum of all

 

of the pell grant percentages.

 

     (b) Each eligible university receives a payment under this

 

component equal to that university’s percentage share of the

 

participation index multiplied by the available funding for this

 

component of $1,512,700.00.

 


     (5) The degree completion component is calculated as follows:

 

     (a) Degrees conferred by each eligible university for 2004-

 

2005 as reported in the federal integrated postsecondary education

 

data system (IPEDS) are weighted as follows:

 

     (b) By academic level:

 

     (i) Each associate degree and degree earned in less than two

 

years is weighted at 0.5.

 

     (ii) Each bachelor’s, master’s, doctoral and professional

 

degree is weighted at 1.0.

 

     (c) By program category:

 

     (i) Each degree earned in a general category is weighted at

 

1.0.

 

     (ii) Each degree earned in math, science, engineering and

 

health is weighted at 2.0.

 

     (d) Each eligible university receives a payment under this

 

component equal to that university’s proportion of total weighted

 

degrees multiplied by the available funding for this component of

 

$1,512,700.00.

 

     Sec. 433. (1) Included in part 1 is $2,953,400.00 for the

 

agricultural experiment station and $2,619,000.00 for the

 

cooperative extension service for project GREEEN.  Project GREEEN

 

is intended to address critical regulatory, food safety, economic,

 

and environmental problems faced by this state's plant-based

 

agriculture, forestry, and processing industries.  "GREEEN" is an

 

acronym for generating research and extension to meet environmental

 

and economic needs.

 

     (2) The department of agriculture and Michigan State

 


University, in consultation with agricultural commodity groups and

 

other interested parties, shall develop project GREEEN and its

 

program priorities.

 

     (3) Not later than September 30, 2007, a report shall be

 

submitted by Michigan State University to the state budget

 

director, the house and senate appropriations subcommittees on

 

agriculture and on higher education, and the house and senate

 

fiscal agencies for the preceding fiscal year regarding project

 

GREEEN projects.  The report shall include, but is not limited to,

 

the dollar amount of each project and a review of each project's

 

performance and accomplishments.

 

     Sec. 436.  It is the intent of the legislature that if any

 

Michigan public university increases its resident undergraduate

 

tuition and required fees from academic year 2005-2006 to academic

 

year 2006-2007, then that university shall increase its fiscal year

 

2006-2007 general fund expenditures for student financial aid by at

 

least the same percentage as the percentage change in resident

 

undergraduate tuition and required fees.  Each public university

 

shall report its proposed fiscal year 2006-2007 general fund

 

expenditures for student financial aid compared to its projected

 

fiscal year 2005-2006 general fund expenditures for student

 

financial aid, and its projected academic year 2006-2007 resident

 

undergraduate tuition and required fee changes from academic year

 

2005-2006, to the state budget director and the house and senate

 

appropriations subcommittees on higher education by November 15,

 

2006.

 

     Sec. 440. All universities shall submit the amount of tuition

 


and fees actually charged to a full-time resident undergraduate

 

student for academic year 2006-2007 as part of their higher

 

education institutional data inventory (HEIDI) data by August 31,

 

2006.  A university shall report any revisions for any semester of

 

the reported academic year tuition and fee charges to HEIDI within

 

15 days of being adopted.

 

     Sec. 461. From the amount appropriated in part 1 to Lake

 

Superior State University for operations, $100,000.00 shall be paid

 

to Bay Mills Community College for the costs of waiving tuition for

 

North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

 

 

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

 

     Sec. 501. (1) Included in the appropriation for each public

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks future faculty program, that is intended

 

to increase the pool of minority candidates pursuing faculty

 

teaching careers in postsecondary education.  Each university shall

 

apply the percentage change applicable to every university in the

 

calculation of appropriations in part 1 to the amount of funds

 

allocated to the future faculty program.

 

     (2) The program shall be administered by each university in a

 

manner prescribed by the Michigan department of labor and economic

 

growth.  The Michigan department of labor and economic growth shall

 

use a good faith effort standard to evaluate whether a fellowship

 

is in default.

 

     Sec. 502. (1) Included in the appropriation for each public

 

university in part 1 is funding for the Martin Luther King, Jr. -

 


Cesar Chavez - Rosa Parks college day program that is intended to

 

introduce schoolchildren underrepresented in postsecondary

 

education to the potential of a college education.

 

     (2) Individual program plans of each university shall include

 

a budget of equal contributions from this program, the

 

participating public university, the participating school district,

 

and the participating independent degree granting college.  College

 

day funds shall not be expended to cover indirect costs.  Not more

 

than 20% of the university match shall be attributable to indirect

 

costs.  Each university shall apply the percentage change

 

applicable to every university in the calculation of appropriations

 

in part 1 to the amount of funds allocated to the college day

 

program.

 

     (3) The program shall be administered by each university in a

 

manner prescribed by the Michigan department of labor and economic

 

growth.

 

     Sec. 503. (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks select student support

 

services program for developing academically and economically

 

disadvantaged student retention programs for 4-year public and

 

independent educational institutions in this state.

 

     (2) An award made under this program to any 1 institution

 

shall not be greater than $150,000.00, and the amount awarded shall

 

be matched on a 70% state, 30% college or university basis.

 

     (3) The program shall be administered by the Michigan

 

department of labor and economic growth.

 

     Sec. 504. (1) Included in part 1 is funding for the Martin

 


Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

 

partnership program between 4-year public and independent colleges

 

and universities and public community colleges, which is intended

 

to increase the number of academically and economically

 

disadvantaged students who transfer from community colleges into

 

baccalaureate programs.

 

     (2) The grants shall be made under this program to Michigan

 

public and independent colleges and universities. An award to any 1

 

institution shall not be greater than $150,000.00, and the amount

 

awarded shall be matched on a 70% state, 30% college or university

 

basis.

 

     (3) The program shall be administered by the Michigan

 

department of labor and economic growth.

 

     Sec. 505. (1) Included in the appropriation for each public

 

university in part 1 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks visiting professors program which is

 

intended to increase the number of underrepresented minority

 

instructors in the classroom and provide role models for

 

underrepresented minority students.

 

     (2) The program shall be administered by the Michigan

 

department of labor and economic growth.

 

     Sec. 506. (1) Included in the appropriation in part 1 is

 

funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

 

Parks initiative for the Morris Hood, Jr. educator development

 

program which is intended to increase the number of minority

 

students, especially males, who enroll in and complete K-12 teacher

 

education programs at the baccalaureate level.

 


     (2) The program shall be administered by each state-approved

 

teacher education institution in a manner prescribed by the

 

Michigan department of labor and economic growth.

 

     (3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program.

 

     Sec. 507. Each state institution of higher education receiving

 

funds under sections 503, 504, or 506 shall notify the Michigan

 

department of labor and economic growth by April 15, 2007 as to

 

whether it will expend by the end of its fiscal year the funds

 

received under sections 503, 504, or 506.  Notwithstanding the

 

award limitations in sections 503 and 504, the amount of funding

 

reported as not being expended will be reallocated to the

 

institutions that intend to expend all funding received under

 

sections 503, 504, or 506.

 

 

 

STUDENT PERFORMANCE REPORTING

 

     Sec. 601. (1) From the amount appropriated in part 1 for state

 

universities, the state universities shall systematically inform

 

Michigan high schools regarding the academic status of students

 

from each high school in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan association of secondary school principals.

 

     (2) The Michigan high schools shall systematically inform the

 

state universities about the use of information received under this

 

section in a manner prescribed by the Michigan association of

 


secondary school principals in cooperation with the presidents

 

council, state universities of Michigan.

 

     Sec. 602. From the amount appropriated in part 1 for state

 

universities, the state universities shall inform Michigan

 

community colleges regarding the academic status of community

 

college transfer students in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the

 

Michigan community college association.

 

 

 

GENERAL REPORTS AND AUDITS

 

     Sec. 701. (1) The auditor general shall review higher

 

education institutional data inventory (HEIDI) enrollment data

 

submitted by all public universities and may perform audits of

 

selected public universities if determined necessary.  The review

 

and audits shall be based upon the definitions, requirements, and

 

uniform reporting categories established by the state budget

 

director and the senate and house fiscal agencies.  The auditor

 

general shall submit a report of findings to the house and senate

 

appropriations committees and the state budget director no later

 

than July 1, 2007.

 

     (2) Student credit hours reports shall not include the

 

following:

 

     (a) Student credit hours generated through instructional

 

activity by faculty or staff in classrooms located outside

 

Michigan, with the exception of instructional activity related to

 

study-abroad programs or field programs.

 

     (b) Student credit hours generated through distance learning

 


instruction for students not paying the institution's resident

 

tuition rate.

 

     (c) Student credit hours generated through credit by

 

examination.

 

     (d) Student credit hours generated through inmate prison

 

programs regardless of teaching location.

 

     (e) Student credit hours generated in new degree programs

 

after January 1, 1975, that have not been specifically authorized

 

for funding by the legislature, except spin-off programs converted

 

from existing core programs that do all of the following:

 

     (i) Represent new options, fields, or concentrations within

 

existing programs.

 

     (ii) Are consistent with the current institutional role and

 

mission.

 

     (iii) Are accommodated within the continuing funding base of the

 

institution.

 

     (iv) Do not require a new degree level beyond that which the

 

institution is currently authorized to grant within that discipline

 

or field.

 

     (v) Do not require funding from the state other than that

 

provided by the student credit hours generated within the program,

 

either before program initiation or within the first 3 years of

 

program operation.

 

     (3) The auditor general shall periodically audit higher

 

education institutional data inventory (HEIDI) data as submitted by

 

the state universities for compliance with the definitions approved

 

by the HEIDI advisory committee for the HEIDI database.

 


     (4) "Distance learning instruction" as used in subsection (2)

 

means instruction that occurs in other than a traditional classroom

 

setting where the student and instructor are in the same physical

 

location and for which a student receives course credits and is

 

charged tuition and fees.  Examples of distance learning

 

instruction are instruction delivered solely through the Internet,

 

cable television, teleconference, or mail.

 

     Sec. 702. The principal executive officer of each institution

 

of higher education receiving an appropriation under this bill

 

shall expend a portion of the funds appropriated to that

 

institution to make a report to the auditor general, the house and

 

senate fiscal agencies, and the state budget director within 60

 

days after the auditor general issues his or her report on the

 

operation of the institution.  The institution's report shall

 

specify all of the following:

 

     (a) The recommendations of the auditor general implemented by

 

the institution, including projected dates and resources required,

 

if any, to achieve compliance.

 

     (b) The recommendations of the auditor general not implemented

 

by the institution or implemented by the institution as modified.

 

     (c) The rationale for not implementing a recommendation of the

 

auditor general or of implementing a recommendation as modified.

 

     Sec. 708. The auditor general may conduct performance audits

 

of state universities during the fiscal year ending September 30,

 

2007 as the auditor general considers necessary.

 

     Sec. 709. An institution receiving funds under this bill and

 

also subject to the student right-to-know and campus security act,

 


Public Law 101-522, 104 Stat. 2381, shall make a copy of all

 

material prepared pursuant to the public information reporting

 

requirements under the crime awareness and campus security act of

 

1990, title II of the student right-to-know and campus security

 

act, Public Law 101-542, 104 Stat. 2381, available in electronic

 

Internet format on their websites.