FY 2008-09 HIGHER EDUCATION BUDGET S.B. 1099: GOVERNOR'S RECOMMENDATION






Senate Bill 1099 (as introduced) Vehicle for Governor's Recommendation line items is Senate Bill 1154.
Committee: Appropriations

Changes from FY 2007-08 Year-to-Date:
  1. Restoration of August 2007 Payment Delay. This one-time payment is eliminated. (138,736,000)
2. University Operations. The Governor provided a total increase of 3.0%, with individual university increases ranging from 2.3% to 6.2%. The increases are distributed based on three factors: a) number of undergraduate Pell Grant awards; b) amount of research and commercial licensing activity; and c) number of academic degrees conferred, with a higher weight given to math, science, engineering, and health degrees. Columns 3 - 6 on the attachment outline the amounts for each factor by university. 43,581,700
3. Agricultural Experiment Station (AES) and Cooperative Extension Service (CES). The Governor added 3.0% increases for AES ($1,019,900) and CES ($879,700) resulting in FY 2008-09 total appropriations of $35,016,100 and $30,202,000, respectively. 1,899,600
4. Midwest Higher Education Compact. The Governor included funding for an increase in annual dues from $90,000 to $95,000. 5,000
5. Michigan Merit Awards. The Governor recommended a reduction in the program from $60.0 million in FY 2007-08 to $5.2 million in FY 2008-09, due to the phase out of Merit Awards which have been replaced with Promise Grants. (54,800,000)
6. Michigan Promise Grants. The Governor increased funding from $43.5 million to $90.5 million for this program that provides $4,000 merit-based grants to students who complete two years of postsecondary education with a GPA of at least 2.5. High school students who do well on the Merit Exam can receive half of their funding during their first two years of postsecondary study. 47,000,000
7. Tuition Incentive Program (TIP). Due to caseload growth, the Governor increased this program from $21.1 million in FY 2007-08 to $25.2 million in FY 2008-09. TIP promises to pay two years of community college tuition, and up to $2,000 at a four-year institution, for Medicaid-eligible middle school and high school students who graduate from high school. There were 9,046 TIP students in FY 2005-06 and 10,462 in FY 2006-07, an increase of 15.7%. 4,100,000
Total Changes ($96,949,700)
  FY 2008-09 Governor's Recommendation $1,799,426,000
FY 2008-09 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:
  1. Payments to Local Units of Government. Governor eliminated the recording of these payments. (Sec. 201)
2. Preference for Michigan Vehicles. Governor deleted intent for universities to lease and/or purchase only vehicles assembled or manufactured in Michigan. (Sec. 210)
3. Late HEIDI Data Submission. Governor changed penalty from required to permissive. (Sec. 212(3))
4. Appropriations Report from Fiscal Agencies. Governor deleted. (Sec. 212(4))
5. Tuition Tax Credit Report. Governor deleted notification to fiscal agencies. (Sec. 214)
6. Tuition Grants. Governor changed application deadline from July 1 to June 1, deleted reference to a grant amount and deleted carry-forward provisions. (Sec. 302)
7. Douglas Lake. Governor deleted intent to preserve research value. (Sec. 402)
8. Required Textbooks. Governor deleted intent for timely access to lists and student accounts by private bookstores. (Sec 426)
9. Project GREEEN. Governor increased each of the AES and CES earmarks by 3.0%. (Sec. 433)
10. Future Farmers of America. Governor deleted $80,000 earmark. (Sec. 434)
11. Tuition Restraint. Governor added expectation that universities will limit resident undergraduate tuition increases to 2.3%. (Sec. 436)
12. Per Student Floor Funding. Governor deleted intent to provide $3,775 per student. (Sec. 450)
13. Suicide Prevention. Governor deleted intent for universities to develop education programs. (Sec. 462)
14. Macomb County. Governor deleted requirement for report on county residents enrolled at public universities. (Sec. 463)
15. Research/Technology Commercialization Report. Governor deleted requirement. (Sec. 464)
16. Coordination of Purchases/Services Among Universities. Governor changed from intent to requirement. (Sec. 466)
17. Performance Standards. Governor deleted intent to establish for the public universities. (Sec. 467)
18. University Operations. Governor added description for three-part funding formula. (Sec. 468)
19. Pell Grant Report. Governor added requirement. (Sec. 469)
20. Community College Transfer Students. Governor changed from intent to requirement that universities work with community colleges to facilitate transfer of credits. (Sec. 603)
21. Audit of HEIDI Enrollment Data. Governor added HEIDI Advisory Committee as consultant and deleted fiscal agencies. (Sec. 701(1) and (3))
22. New Academic Programs. Governor deleted FY 2007-08 list of approved programs. (Sec. 701a)
23. Federal Privacy Act. Governor changed from intent to requirement that universities comply with disclosure provisions of the act. (Sec. 714)

Date Completed: 2-14-08 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. 09hihed_gr