1151: ENACTED (9-23-10) - FY 2010-11 COMMUNITY COLLEGES BUDGET

FY 2010-11 COMMUNITY COLLEGES BUDGET S.B. 1151 (P.A. 165 of 2010): ENACTED

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FY 2009-10 Year-to-Date Gross Appropriation	$299,360,500
Changes from FY 2009-10 Year-to-Date:
Items Included by the Senate and House
1. Renaissance Zone Tax Reimbursement Funding. The Governor, Senate and House reduced Renaissance Zone reimbursements by $260,000 based on estimated FY 2010-11 payments. Table 1 shows current Department of Treasury estimates for FY 2010-11 community college Renaissance Zone reimbursements. The Leadership Target Agreement eliminated Renaissance Zone reimbursements. Table 1 FY 2010-11 Estimated Renaissance Zone Reimbursements College Reimbursement College Reimbursement Alpena $7,782 Mid-Michigan 5,981 Bay de Noc 2,187 Monroe 1,068 Delta 190,607 Montcalm 341,039 Glen Oaks 4,777 Mott 53,355 Gogebic 5,047 Muskegon 68,459 Grand Rapids 418,018 Northwestern 26,924 Jackson 134,446 Oakland 53,923 Kalamazoo Valley 125,842 St. Clair 19,524 Kellogg 260,993 Southwestern 348 Lake Michigan 178,792 Wayne County 679,624 Lansing 52,195 West Shore 57,997 Macomb 180,031 Statewide Estimated Reimbursement $2,868,959 Source: Dept. of Treasury Note: Boilerplate Section 404 (Renaissance Zone) was also removed.	(3,480,000)
Conference Agreement on Items of Difference
2. Continuation Funding. The Governor maintained funding for community college operations and at-risk funding at the FY 2009-10 level. The Senate reduced funding for operations by $9,160,000 (3.1%). The House restored funding for operations. The Conference concurred with the House.	0
Total Changes	($3,480,000)
FY 2010-11 Enacted Gross Appropriation	$295,880,500

FY 2010-11 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:

Items Included by the Senate and House

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. The Senate and House maintained the November 1 full payment. (Sec. 211)

2. Joint Capital Outlay Subcommittee (JCOS). The Governor removed the provision requiring compliance with JCOS use and finance requirements. The Senate and House restored current year language. (Sec. 217)

3. Legislative Summit. Governor, Senate, and House removed language that encourages community colleges to organize and participate in a legislative summit on a strategy for meeting the employment needs of the entire State. (Sec. 224(4))

4. Nursing Education Programs. Governor, Senate, and House removed provisions related to financial aid. (Sec. 241)

5. Payments in Lieu of Taxes. States legislative intent that 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. The Senate and House restored it. (Sec. 242)

6. Tuition Restraint. States legislative intent 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 U. S. Consumer Price Index, plus 0.5%. The Governor, Senate, and House removed this section. (Sec. 248)

7. Efficiencies. 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. The Governor, Senate, and House eliminated 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. The Senate and House restored it. (Sec. 304)

9. Other Changes. The Governor, Senate, and House removed provisions that required DELEG to submit reports and included the provisions in the DELEG budget bill. (Secs. 501, 506, 509) Sections imposing duties on Treasury and DELEG, but providing no funding for those function were eliminated by the Governor, Senate, and House. (Secs. 511,513) The Governor altered various sections by removing references to legislative intent. The Senate and House restored those references. (Secs. 224, 241, 249)

Conference Agreement on Items of Difference

10. Prevailing Wages on State Projects. The House added language stating funds appropriated in this act shall not be used to construct or improve a community college building unless the community college and contractor state in the construction contract that the community college and contractor will not knowingly or repeatedly violate the provisions of the State prevailing wage law (1965 PA 166). The Conference removed this section. (Sec. 250)

11. Expenditures on Internet. The House added language providing that it is the intent of the legislature that community colleges shall develop, post, and maintain a user friendly and publicly accessible Internet site, with all expenditures made by the college within a fiscal year. The posting must include the purpose for which the expenditure is made. A community college shall not expend more than $100.00 from the appropriations in Part 1 to implement the requirements of this section. The Conference removed this section. (Sec. 254)

12. P-20 Longitudinal Data System. Requires community colleges receiving funds under this act to cooperate with the State to comply with the provisions of the American Recovery and Reinvestment Act of 2009 requiring the establishment of a statewide P-20 Longitudinal Data System. The House modified the language to provide that community colleges shall cooperate with all measures taken by the State to establish a statewide P-20 Education Longitudinal Data System to comply with the State Fiscal Stabilization Fund provisions of the American Recovery and Reinvestment Act of 2009. The Conference concurred with the Senate. (Sec. 405)

13. Unrestricted Assets Report. The House included new language requiring community colleges with unrestricted assets equal to more than 25.7% of overall annual operating revenue at the close of the college's 2009-2010 fiscal year to prepare a report outlining the college's intended use or purpose for carrying the unrestricted assets. The Conference removed this section. (Sec. 514)

Date Completed: 9-23-10 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa hiccl_en.doc