FY 2010-11 COMMUNITY COLLEGES BUDGET S.B. 1151: GOVERNOR'S RECOMMENDATION


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Senate Bill 1151 (as introduced) Vehicle for Governor's Recommendation line items is S.B. 1183.
Committee: Appropriations

Changes from FY 2009-10 Year-to-Date:
  1. Continuation Funding. The Governor maintained funding for community college operations and at-risk funding at the FY 2009-10 level. 0
Total Changes ($260,000)
  FY 2010-11 Governor's Recommendation $299,100,500
FY 2010-11 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:
  1. Payment Distribution Schedule. Requires At-risk categorical grant to be paid in full to colleges by November 1. The Governor changed this provision to provide for an eleven month payment schedule consistent with State aid for operations. (Sec. 211)
2. Appropriation Limitations. Prohibits the use of appropriations in Part 1 for the construction or maintenance of a self-liquidating project. Provides that community colleges shall comply with current Joint Capital Outlay Subcommittee (JCOS) use and finance requirements. The Governor removed the provision requiring compliance with JCOS use and finance requirements. (Sec. 217)
3. Legislative Summit. Encourages community colleges to organize and participate in a legislative summit on a strategy for meeting the employment needs of the entire state. The Governor removed this provision.
4. Nursing Education Programs. States legislative intent that community colleges expand their current nursing education programs and increase enrollments. Subsection 2 provides that community college students are eligible to apply for financial assistance through the Michigan nursing scholarship program and Michigan nursing corps grants. Community colleges are encouraged to coordinate with the chief nurse executive in the Department of Community Health and with 4-year universities to improve access to nursing programs and to assist students to successfully enter the nursing workforce. The Governor removed the reference to legislative intent in subsection 1 and provisions in subsection 2 related to financial aid in order to reflect current student financial aid programs. (Sec. 241)
5. Payments in Lieu of Taxes. States legislative intent that the Michigan Community College Association, the Legislature, and other interested parties continue the discussion regarding payments in lieu of taxes, especially for community college districts that contain significant portions of nontaxable land. The Governor removed this section. (Sec. 242)
6. Tuition Restraint. States legislative intent to acknowledge the community colleges' success at providing an affordable quality education and to encourage each community college to make every effort possible not to raise in-district tuition and fees charged to Michigan residents by more that the annual average percentage increase in the United States Consumer Price Index, plus 0.5%. The Governor removed this section. (Sec. 248)
7. District Consolidation. Encourages 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. Requires MCCA to prepare a written report detailing these efficiency practices. In the Governor's FY 2009-10 budget signing letter, the Governor stated that the section purports to impose a duty on the MCCA to prepare a report, but provides no funding and therefore is not a valid condition on an appropriation. The Governor eliminated the legislative intent reference and the reporting requirement. (Sec. 249)
8. Performance Indicators Task Force. Provides that it is the intent of the Legislature that performance measures be reviewed and more fully implemented for distribution of State funding in future years and that the performance indicators task force review and implement one or more measurable data items for the local strategic value indicator and review and implement one or more measurable data items for an administrative cost formula component. The Governor removed this section. (Sec. 304)
9. Perkins Act. At least 30 days before submission of a new State plan for approval under the Perkins Act, the DELEG shall provide copies of the proposed plan to the members of the Senate and House Appropriations Subcommittees on community colleges for their review and comment. In the Governor's FY 2009-10 budget signing letter, the Governor stated that the section purports to impose a duty on DELEG, but provides no funding for DELEG and therefore is not a valid condition on an appropriation. The Governor removed this section. (Sec. 511)
10. Tax Increment Finance Authorities (TIFAs) Report. Requires the Department of Treasury to compile and publish a report on the property tax revenue loss for each community college as a result of TIFAs and tax abatement programs. In the Governor's FY 2009-10 budget signing letter, the Governor stated that the section purports to impose a duty on the Department of Treasury, but provides no funding for that department and therefore is not a valid condition on an appropriation. The Governor removed this section. (Sec. 513)
11. Other DELEG Reporting Requirements. The Governor removed provisions requiring DELEG to submit reports from this budget bill and included the provisions in the DELEG Budget.

Date Completed: 2-19-10 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiccl_gr.doc