COMMUNITY COLLEGES

FY 2009 10 Appropriation

Public Act 111 of 2009 House Bill 4435

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Analyst: Ben Gielczyk

Mark Wolf

November 5, 2009

	FY 2008-09	FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: Enacted* *From FY 2008-09 YTD*
	YTD	Executive	House	Senate	Conference	Enacted	*Amount*	%
IDG/IDT	$0	$0	$0	$0	$0	$0	$0	0.0
Federal	0	0	97,000,000	0	0	0	0	0.0
Local	0	0	0	0	0	0	0	0.0
Private	0	0	0	0	0	0	0	0.0
Restricted	0	0	0	0	0	0	0	0.0
GF/GP	299,360,500	299,360,500	299,360,500	295,880,500	299,360,500	299,360,500	0	0.0
Gross	$299,360,500	$299,360,500	$396,360,500	$295,880,500	$299,360,500	$299,360,500	$0	*0.0*
FTEs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions throughJune 1, 2009.

Overview

The Community Colleges budget includes funds for operational support of the state s 28 community colleges, the At-Risk Student Success Program, and renaissance zone tax reimbursement to the colleges. Community colleges also receive operating revenue from local property taxes and student tuition and fees.

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Enacted Change

From YTD

1. Community College Operations

Executive maintained FY 2008-09 funding levels for each community college. House maintained overall FY 2008-09 funding level, but recalibrated individual line items for Indian tuition waiver costs. Senate concurred with Executive. Conference concurred with Executive and Senate.

Gross

GF/GP

$292,557,800

$292,557,800

2. Renaissance Zone Reimbursements

Executive maintained FY 2008-09 funding levels for each community college. Appropriation reimburses college districts for lost property tax revenue due to renaissance zones in district. House concurred with Executive. Senate eliminated funding for renaissance zone reimbursements. Conference concurred with Executive and House.

Gross

GF/GP

$3,480,000

$3,480,000

3. At-Risk Student Success Program

Executive maintained FY 2008-09 funding levels for each community college. Appropriation amounts to individual colleges were adjusted based on updated at-risk student data. House concurred. Senate concurred. Conference concurred.

Gross

GF/GP

$3,322,700

$3,322,700

4. ARRA State Fiscal Stabilization Fund - General Government Services

House included $97,000,000 of the State Fiscal Stabilization Fund - General Government Services (ARRA) portion to fund workforce development, job creation, and job retraining at the community colleges. Senate did not include. Conference did not include.

Gross

Federal

N/A

N/A

Major Boilerplate Changes From FY 2008-09
*Sec. 211. Payment Schedule* MAINTAINED Specifies payment schedule for appropriations; Executive revised to include 11-month payment schedule for At-Risk Program. House restored current-year distribution schedule. Senate concurred with House. Conference concurred with House and Senate.
*Sec. 217. Capital Outlay* MAINTAINED Prohibits appropriations being used for construction or maintenance of self-liquidating project; Executive deleted requirement that colleges comply with current JCOS use and finance policy. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.
**Sec. 224. Collaboration with Four-Year Universities -MAINTAINED** Encourages community colleges to explore ways of increasing collaboration and cooperation with universities. Executive modified section to make it a general policy statement and removed subsection (4) which called for a legislative summit on a strategy for meeting the employment needs of the state. House restored current-year legislative intent language and restored subsection (4) . Senate concurred with House. Conference concurred with House and Senate.
*Sec. 239.* *State* *University* *Appropriations* DELETED States intent that any action to increase FY 2007-08 appropriations for state universities be accompanied by similar action for community colleges. Executive deleted section. House restored current-year language. Senate deleted section. Conference deleted section.
**Sec. 241. Nursing Education Programs and Grants- REVISED** General policy statement encouragingcommunity colleges to expand nursing program offerings and enrollments. Executive added language for new student financial aid program by removing references toMichigan's nursing scholarship program and replacing it with references toMichigan's promise grants and the newly proposedMichigan college access grants. House restored current year nursing scholarship language and revised subsection (1) to encourage community colleges to place students at all levels of nursing and to recruit and hire master's degreed nurses as instructors. Senate concurred with House. Conference concurred with Senate and House.
*Sec. 242. Payments in Lieu of Taxes* MAINTAINED States intent for continued discussion regarding payments to college districts with significant portions of nontaxable land. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with Senate and House.
*Sec. 243.* *Michigan* *New Jobs Training Program (MNJTP) -* DELETED States legislative intent to develop and pass legislation that would authorize community colleges to issue debt to fund customized workforce development training. Executive, House, Senate, and Conference deleted.
**Sec. 246. Nursing Shortage Workgroup -DELETED** States intent that a workgroup be formed which would include representatives from community colleges, state universities, and the health care community to address and resolve the nursing shortage in the state ofMichigan. Executive, House, Senate, and Conference deleted section.
**Sec. 247. Community College Automobile Purchases -REVISED** States that community colleges shall purchase automobiles made in the state ofMichigan or elsewhere in theUnited States of America. Executive included leased automobiles and specified that foreign automobiles are those assembled or manufactured outside of theUnited States. House, Senate, and Conference concurred.
**Sec. 248. Tuition Restraint Policy -NEW** States expectation that community colleges receiving federal stimulus funds not increase tuition and fees charged toMichigan residents for the remainder of 2008-09 and for 2009-10. Executive included new section. House revised by specifying that community colleges receiving federal stimulus funds not raise tuition and fees for in-district students bymore than the annual average percentage increase in the United States consumer price index in the immediately preceding tax year plus one-half percent. Senate did not include. Conference included section indicating it is the intent of the legislature to encourage community colleges to not raise tuition more than 0.5% above theUnited States consumer price index in the immediately preceding year.
**Sec. 249. Consolidation or Dissolution -NEW** States intent that legislature study the feasibility of developing and enacting legislation that would provide rules and guidelines for the consolidation of community college districts or development of intercollege agreements. Executive did not include. House included as new section. Senate replaced section with language encouraging community colleges to achieve efficiencies through joint ventures, collaborations, adjusting the size and frequency of classes, web-based instruction, consolidation of services, and coordinating and sharing proposed capital outlay improvements. Conference concurred with Senate.
**Sec. 250. Additional Funding -NOT INCLUDED** States that if additional funding becomes available for community college operations, that additional funding shall first be allocated to colleges that incurred the highest percentage reduction due to the elimination of renaissance zone reimbursements. As used in this section, percentage reduction is renaissance zone payment as a percentage of state funding for college operations. Senate added as new section. Conference did not include.
**Sec. 251. Part-Time Faculty -NOT INCLUDED** States intent that a discussion take place regarding the treatment of part-time faculty pay, benefits, and job security; specifically those part-time faculty with the equivalent of a full-time academic workload. Executive did not include. House included as new section. Senate did not include. Conference did not include.
*Sec. 304. Performance Indicator Formula* REVISED States intent that formula developed by performance indicator task force be used for funding distribution in future years. Executive deleted. House deleted subsection (1) but retained subsection (2). Senate concurred with House. Conference concurred with House and Senate.
**Sec. 401. At-Risk Student Success Program -REVISED** Specifies distribution of at-risk student success grant money. Executive modified the at-risk student success program appropriation amounts to each community college based on new at-risk student data. House, Senate, and Conference concurred.
**Sec. 404. Renaissance Zone Reimbursements -MAINTAINED** States distribution schedule for renaissance zone reimbursements. Executive and House retained. Senate deleted section. Conference restored current-year language.
**Sec. 405. Fiscal Stabilization Funds -NEW** Specifies distribution of and restrictions on general government services ARRA fiscal stabilization funds. Executive did not include. House included as new section. Senate did not include. Conference revised language to state that community colleges will cooperate with the state on the creation of a P-20 longitudinal data system.
**Sec. 506. Indian Tuition Waiver -MAINTAINED** Specifies that community colleges report the number of North American Indian students enrolled and the number of Indian Tuition Waivers granted for the previous fiscal year. House included new subsection encouraging a discussion on the use of the term "Indian" as a descriptive term forMichigan tribal issues involving community colleges. Senate did not include House-added section. Conference concurred with Senate.
*Sec. 511.* *Perkins* *ActState* Plan MAINTAINED** Requires DELEG to provide Perkins Act state plan to Legislature prior to submission to U.S. Department of Education. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.
*Sec. 513. Tax Loss Data* MAINTAINED Requires Department of Treasury to collect data on revenue losses to colleges related to TIFAs and tax abatements. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.
**Sec. 514. Unrestricted Assets Data -NOT INCLUDED** States intent that community colleges with unrestricted assets above 25.7 percent of overall annual operating revenue submit a report outlining intended use or purpose for carrying the unrestricted assets. Executive did not include. House included as new section. Senate did not include. Conference did not include.

Major Boilerplate Changes From FY 2008-09

Sec. 211. Payment Schedule MAINTAINED

Specifies payment schedule for appropriations; Executive revised to include 11-month payment schedule for At-Risk Program. House restored current-year distribution schedule. Senate concurred with House. Conference concurred with House and Senate.

Sec. 217. Capital Outlay MAINTAINED

Prohibits appropriations being used for construction or maintenance of self-liquidating project; Executive deleted requirement that colleges comply with current JCOS use and finance policy. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.

Sec. 224. Collaboration with Four-Year Universities -MAINTAINED

Encourages community colleges to explore ways of increasing collaboration and cooperation with universities. Executive modified section to make it a general policy statement and removed subsection (4) which called for a legislative summit on a strategy for meeting the employment needs of the state. House restored current-year legislative intent language and restored subsection (4) . Senate concurred with House. Conference concurred with House and Senate.

Sec. 239. State University Appropriations DELETED

States intent that any action to increase FY 2007-08 appropriations for state universities be accompanied by similar action for community colleges. Executive deleted section. House restored current-year language. Senate deleted section. Conference deleted section.

Sec. 241. Nursing Education Programs and Grants- REVISED

General policy statement encouragingcommunity colleges to expand nursing program offerings and enrollments. Executive added language for new student financial aid program by removing references toMichigan's nursing scholarship program and replacing it with references toMichigan's promise grants and the newly proposedMichigan college access grants. House restored current year nursing scholarship language and revised subsection (1) to encourage community colleges to place students at all levels of nursing and to recruit and hire master's degreed nurses as instructors. Senate concurred with House. Conference concurred with Senate and House.

Sec. 242. Payments in Lieu of Taxes MAINTAINED

States intent for continued discussion regarding payments to college districts with significant portions of nontaxable land. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with Senate and House.

Sec. 243. Michigan New Jobs Training Program (MNJTP) - DELETED

States legislative intent to develop and pass legislation that would authorize community colleges to issue debt to fund customized workforce development training. Executive, House, Senate, and Conference deleted.

Sec. 246. Nursing Shortage Workgroup -DELETED

States intent that a workgroup be formed which would include representatives from community colleges, state universities, and the health care community to address and resolve the nursing shortage in the state ofMichigan. Executive, House, Senate, and Conference deleted section.

Sec. 247. Community College Automobile Purchases -REVISED

States that community colleges shall purchase automobiles made in the state ofMichigan or elsewhere in theUnited States of America. Executive included leased automobiles and specified that foreign automobiles are those assembled or manufactured outside of theUnited States. House, Senate, and Conference concurred.

Sec. 248. Tuition Restraint Policy -NEW

States expectation that community colleges receiving federal stimulus funds not increase tuition and fees charged toMichigan residents for the remainder of 2008-09 and for 2009-10. Executive included new section. House revised by specifying that community colleges receiving federal stimulus funds not raise tuition and fees for in-district students bymore than the annual average percentage increase in the United States consumer price index in the immediately preceding tax year plus one-half percent. Senate did not include. Conference included section indicating it is the intent of the legislature to encourage community colleges to not raise tuition more than 0.5% above theUnited States consumer price index in the immediately preceding year.

Sec. 249. Consolidation or Dissolution -NEW

States intent that legislature study the feasibility of developing and enacting legislation that would provide rules and guidelines for the consolidation of community college districts or development of intercollege agreements. Executive did not include. House included as new section. Senate replaced section with language encouraging community colleges to achieve efficiencies through joint ventures, collaborations, adjusting the size and frequency of classes, web-based instruction, consolidation of services, and coordinating and sharing proposed capital outlay improvements. Conference concurred with Senate.

Sec. 250. Additional Funding -NOT INCLUDED

States that if additional funding becomes available for community college operations, that additional funding shall first be allocated to colleges that incurred the highest percentage reduction due to the elimination of renaissance zone reimbursements. As used in this section, percentage reduction is renaissance zone payment as a percentage of state funding for college operations. Senate added as new section. Conference did not include.

Sec. 251. Part-Time Faculty -NOT INCLUDED

States intent that a discussion take place regarding the treatment of part-time faculty pay, benefits, and job security; specifically those part-time faculty with the equivalent of a full-time academic workload. Executive did not include. House included as new section. Senate did not include. Conference did not include.

Sec. 304. Performance Indicator Formula REVISED

States intent that formula developed by performance indicator task force be used for funding distribution in future years. Executive deleted. House deleted subsection (1) but retained subsection (2). Senate concurred with House. Conference concurred with House and Senate.

Sec. 401. At-Risk Student Success Program -REVISED

Specifies distribution of at-risk student success grant money. Executive modified the at-risk student success program appropriation amounts to each community college based on new at-risk student data. House, Senate, and Conference concurred.

Sec. 404. Renaissance Zone Reimbursements -MAINTAINED

States distribution schedule for renaissance zone reimbursements. Executive and House retained. Senate deleted section. Conference restored current-year language.

Sec. 405. Fiscal Stabilization Funds -NEW

Specifies distribution of and restrictions on general government services ARRA fiscal stabilization funds. Executive did not include. House included as new section. Senate did not include. Conference revised language to state that community colleges will cooperate with the state on the creation of a P-20 longitudinal data system.

Sec. 506. Indian Tuition Waiver -MAINTAINED

Specifies that community colleges report the number of North American Indian students enrolled and the number of Indian Tuition Waivers granted for the previous fiscal year. House included new subsection encouraging a discussion on the use of the term "Indian" as a descriptive term forMichigan tribal issues involving community colleges. Senate did not include House-added section. Conference concurred with Senate.

Sec. 511. Perkins ActState Plan MAINTAINED

Requires DELEG to provide Perkins Act state plan to Legislature prior to submission to U.S. Department of Education. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.

Sec. 513. Tax Loss Data MAINTAINED

Requires Department of Treasury to collect data on revenue losses to colleges related to TIFAs and tax abatements. Executive deleted section. House restored current-year language. Senate concurred with House. Conference concurred with House and Senate.

Sec. 514. Unrestricted Assets Data -NOT INCLUDED

States intent that community colleges with unrestricted assets above 25.7 percent of overall annual operating revenue submit a report outlining intended use or purpose for carrying the unrestricted assets. Executive did not include. House included as new section. Senate did not include. Conference did not include.