FY 2010-11 HIGHER EDUCATION BUDGET S.B. 1157 (S-1): SENATE-PASSED.


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Senate Bill 1157 (S-1 as passed by the Senate)
Committee: Appropriations

Changes from FY 2009-10 Year-to-Date:
  1. University Operations, Agricultural Experiment Station (AES), Cooperative Extension Service (CES). Governor and Senate replaced $68.2 million in Federal American Recovery and Reinvestment Act (ARRA) funds with State GF/GP. Senate then reduced by 3.1% across-the-board which is the amount allowed under the State Budget Office's maintenance of effort calculations for ARRA funds. (47,804,700)
2. State Competitive Scholarship Program. Governor and Senate removed unavailable Federal funds which would result in total funding for this need-and-merit-based program of $16.2 million. (1,400,000)
3. Tuition Grant Program. Governor eliminated $31.7 million for these need-based grants for students at independent colleges and universities. Senate restored. 0
4. Michigan Merit Awards. Governor and Senate eliminated the $100 placeholder due to final phase-out of the awards. (100)
5. Tuition Incentive Program (TIP). Governor eliminated Phase II of TIP which provides up to $2,000 per student for bachelor's degree programs, and capped reimbursement for public universities at the average in-district community college tuition rate. Under current law, TIP promises to pay two years of associate's degree tuition (Phase I) 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 nearly 14,000 TIP students in FY 2008-09 with approximately 12,800 in Phase I and 1,200 in Phase II. Senate restored TIP policy to its current status, adjusted for caseload/cost increases, and funded the FY 2010-11 $37.4 million program from $30.1 million in Merit Award Trust Fund revenue and $7.3 million in Federal Temporary Assistance for Needy Families revenue. 6,200,000
6. Children of Veterans Tuition Grant Program. Governor and Senate added funds to address estimated caseload spending increases; total funding for the program would be $1,151,500, financed from $851,500 GF/GP and $300,000 from an existing income tax check-off. 151,500
7. Police Officer/Fire Fighter Survivor Tuition Program. Governor and Senate transferred this GF/GP program from the Department of State Police. 48,500
Total Changes ($42,804,800)
  FY 2010-11 Senate-Passed Gross Appropriation $1,569,438,500
FY 2010-11 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:
  1. Buy American. Governor and Senate changed from intent to requirement. (Sec. 209)
2. Preference for Michigan Vehicles. Governor changed from intent to requirement, if vehicle is competitively priced and of comparable value; Senate retained intent. (Sec. 210)
3. Deprived and Depressed. Governor added requirement for universities to ensure businesses in deprived and distressed communities can compete for contracts, services, and supplies; Senate did not include. (Sec. 211)
4. Late HEIDI Data Submission. Governor changed penalty from required to permissive; Senate required. (Sec. 212(2))
5. Appropriations Report from Fiscal Agencies. Governor deleted; Senate restored. (Sec. 212(3))
6. Tuition Tax Credit Report. Governor deleted notification to fiscal agencies; Senate restored. (Sec. 214)
7. ARRA Compliance. Governor and Senate changed establishment of P-16 longitudinal data system to a P-20 system. (Sec. 216)
8. Conflicts of Interest. Governor and Senate deleted intent for university governing boards to examine operations for potential conflicts of interest. (Sec. 217)
9. Tuition Grants. Governor deleted due to program elimination; Senate restored. (Sec. 302)
10. Tuition Incentive Program (TIP). Governor eliminated Phase II which provides up to $2,000 per student for bachelor's degree programs, and capped reimbursement for public universities at the average in-district community college tuition rate; Senate restored. (Sec. 310)
11. Financial Aid Report. Governor changed due date from February 15 to March 31; Senate retained Feb. 15. (Sec. 315)
12. Financial Aid Workgroup. Governor and Senate deleted legislative intent. (Sec. 316)
13. Intent to Fund. Governor deleted legislative intent to fund various financial aid programs (Secs. 317, 318, 319); Senate retained Tuition Grants (Sec. 317) and Comp Scholarships (Sec. 319).
14. Douglas Lake. Governor deleted intent to preserve research value; Senate restored. (Sec. 402)
15. Required Textbooks. Governor and Senate deleted intent for timely access to lists/accounts by private bookstores and intent for universities to establish review process for new textbooks; Senate added new policy requirements. (Sec. 426)
16. AES and CES. Governor and Senate deleted intent to add $3.5 million for bioeconomy research. (Sec. 433(3))
17. Future Farmers of America. Governor deleted $80,000 earmark; Senate restored. (Sec. 434)
18. ARRA Report. Governor and Senate deleted requirement. (Sec. 436)
19. Per Student Floor Funding. Governor deleted intent to provide $3,775 per student; Senate restored. (Sec. 450)
20. Indian Tuition. Governor and Senate deleted intent to pay for unfunded costs. (Sec. 451)
21. Macomb County. Governor and Senate deleted enrollment report requirement. (Sec. 463)
22. Timely Graduation. Governor and Senate deleted intent for universities to facilitate. (Sec. 471)
23. Student Veterans. Governor deleted university report requirement; Senate restored. (Sec. 480)
24. Competitive Bidding. Senate added intent for universities to use bid process for custodial and food services. (Sec. 482)
25. Human Embryonic Research. Senate added intent for universities to report. (Sec. 484)
26. Counseling Programs. Senate added intent for universities to report on efforts to accommodate students' beliefs. (Sec. 486)
27. HEIDI Enrollment Audits. Governor deleted fiscal agencies as advisors; Senate restored. (Sec. 701(1))
28. New Academic Programs. Governor and Senate deleted FY 2009-10 list of approved programs. (Sec. 701(a))

Date Completed: 3-24-10 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. hihed_sp.doc