FY 2009-10 COMMUNITY COLLEGES BUDGET H.B. 4435: GOVERNOR'S RECOMMENDATION


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House Bill 4435 (as introduced)
Committee: Appropriations

FY 2008-09 Year-to-Date Gross Appropriation $299,360,500
Changes from FY 2008-09 Year-to-Date:
  1. Continuation Budget. The Governor maintained funding for the Community College Budget at the FY 2008-09 level. 0
Total Changes
  FY 2009-10 Governor's Recommendation $299,360,500
FY 2009-10 COMMUNITY COLLEGES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Year to Date:
  1. Payment Distribution of Schedule. Provides for the payment of funds to colleges in eleven equal monthly payments. Provides for accrual of July and August payments. Withholds payments if Activities Classification Structure (ACS) data are not submitted by November 1. Requires At-risk categorical grant to be paid in full to colleges by November 1. Subsection 2 provides that appropriations shall be used solely for the respective purposes stated in this Act and also may be used to match the cost of any available programs under the Carl D. Perkins Vocational and Applied Technology Education Act. The Governor removed the provision that requires the At-risk categorical grant to be paid in full to colleges by November 1. (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 eliminated the provision regarding compliance with JCOS use and finance requirements. (Sec. 217)
3. Collaboration with Four-Year Universities. The Governor eliminated a subsection that states; Community colleges are encouraged to organize and participate in a legislative summit on a strategy for meeting the employment needs of the entire state. The community colleges shall report the results of the summit to the senate and house appropriations subcommittees on community colleges. (Sec. 224)
4. Parity to Higher Education Budget. The Governor eliminated a section stating legislative intent that increases to state-supported 4-year universities will be accompanied by similar increases for state-supported community colleges.
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. The Governor eliminated this section.
6. Purchase of Foreign Automobiles Prohibition. Funds appropriated in part 1 shall not be used for the purchase of foreign automobiles if competitively priced and of comparable quality automobiles made in the state of Michigan or elsewhere in the United States of America are available. The Governor modified the language by including leases along with purchases and replacing "foreign automobiles" with "vehicle assembled or manufactured outside of the United States." (Sec. 247)
7. Tuition Restraint. The Governor included new language stating: "It is expected that a public university or community college receiving federal stimulus funds will not raise tuition and fees charged to Michigan residents for the remainder of 2008-2009 and for 2009-2010." (Sec. 248)
8. Performance Indicators Task Force. Provides that it is the intent of the legislature that performance measures be reviewed and more fully implemented 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.
9. Perkins Act. Before submission of a new state plan to the U.S. Department of Education for approval under the Perkins act, the Department of Labor and Economic Growth shall provide copies of the proposed plan to the appropriations subcommittees on community colleges for review and comment. The Governor removed this section.
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. The Governor eliminated this section.
11. Other Changes. The Governor eliminated sections that one-time sections related to Michigan New Jobs Training Program, and a nursing workgroup study that has been completed.

Date Completed: 2-13-09 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