FY 2009-10 HIGHER EDUCATION BUDGET H.B. 4441: GOVERNOR'S RECOMMENDATION


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House Bill 4441 (as introduced)
Committee: Appropriations

Changes from FY 2008-09 Year-to-Date:
  1. King-Chavez-Parks Initiative. The Governor eliminated the six programs in this Initiative whose purpose is to increase the number of academically or economically disadvantaged students and faculty at Michigan's colleges and universities: College Day ($1,191,235), Future Faculty ($1,206,611), Visiting Professors ($168,870), and competitive grants to increase student retention, transfers, and completion of K-12 teacher education ($2,691,500). (5,258,300)
2. Pass-through from Lake Superior to Bay Mills for Indian Tuition. Governor eliminated. (100,000)
3. University Operations. The Governor reduced each university by 3.0%. Column 5 of the attached table lists the amount for each university. (43,937,700)
4. Agricultural Experiment Station (AES) and Cooperative Extension Service (CES). The Governor eliminated the AES ($34.3 million) and CES ($29.6 million) line items, reduced funding by 50.0%, and created a new $32.0 million line item for "Cooperative State Agricultural Research and Extension Service". (31,951,700)
5. Michigan College Access Grants. The Governor eliminated $108.5 million for six need-based financial aid programs: State Competitive Scholarships ($35.5 million), Tuition Grants for students at independent colleges ($56.7 million), Work Study Grants ($7.3 million), Part-Time Independent Grants ($2.7 million), Education Opportunity Grants ($2.1 million), and Nursing Scholarships ($4.2 million), and replaced them with a new $89.8 million program, Michigan College Access Grants. The result is a net reduction in State need-based financial aid of $18.8 million.   (18,752,300)
6. Michigan Merit Awards. $100 is retained as a placeholder as the program continues to phase out. (5,199,900)
7. Michigan Promise Grants. This program provides merit-based grants of up to $4,000 to students who score well on the high school Merit Exam and/or complete two years of postsecondary education with at least a 2.5 grade point average. Costs for the portion of the grants paid after completion of two years of postsecondary education will begin in FY 2009-10. The Governor added $59.5 million for FY 2009-10 to reflect these new costs; the total appropriation would be $140.0 million.   59,500,000
Total Changes ($39,699,900)
  FY 2009-10 Governor's Recommendation $1,719,405,300
FY 2009-10 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Year to Date:
  1. Payments to Local Units of Government. Governor eliminated the recording of these payments. (Sec. 201)
2. Preference for Michigan Vehicles. Governor changed from intent to requirement if the vehicle is competitively priced and of comparable value. (Sec. 210)
3. Late HEIDI Data Submission. Governor changed penalty from required to permissive. (Sec. 212(2))
4. Appropriations Report from Fiscal Agencies. Governor deleted. (Sec. 212(3))
5. Tuition Tax Credit Report. Governor deleted notification to fiscal agencies. (Sec. 214)
6. Postsecondary Student Data System. Governor deleted requirement for progress report. (Sec. 216)
7. Conflicts of Interest. Governor deleted intent for each university governing board to examine its operations for potential conflicts of interest. (Sec. 217)
8. State Competitive Scholarships. Governor deleted due to program elimination. (Sec. 301)
9. Tuition Grants. Governor deleted due to program elimination. (Sec. 302)
10. Work Study. Governor deleted due to program elimination. (Sec. 303)
11. Michigan College Access Grants. Governor established new needs-based financial aid program that uses an expected family contribution of $7,750 or less from the FAFSA as a qualification for the grant. The grant is estimated to be $1,000 annually per student and could be received for no more than 10 semesters. (Sec. 304)
12. Student Wages. Governor deleted consideration of student wages in determining financial aid awards. (Sec. 309)
13. Michigan Nursing Scholarship Act. Governor deleted reference due to program elimination. (Sec. 312)
14. Children of Veterans Tuition Grant Program. Governor deleted report requirement. (Sec. 314)
15. Financial Aid Report. Governor changed due date from January 15 to March 31. (Sec. 315)
16. Douglas Lake. Governor deleted intent to preserve research value. (Sec. 402)
17. Required Textbooks. Governor deleted intent for timely access by private bookstores of lists/accounts. (Sec. 426)
18. Combined AES and CES. Governor increased GREEEN earmark to $8.0 million, added $8.0 million earmark for animal agriculture initiative, and expanded reporting requirements. (Sec. 433)
19. Future Farmers of America. Governor deleted $80,000 earmark. (Sec. 434)
20. Tuition Restraint. Governor added expectation that any public university receiving Federal stimulus funds will not raise tuition and fees in 2008-09 or 2009-10. (Sec. 436)
21. Per Student Floor Funding. Governor deleted intent to provide $3,775 per student. (Sec. 450)
22. Indian Tuition. Governor deleted intent to pay for unfunded costs from FY 2007-08 balances. (Sec. 451)
23. Bay Mills Indian Tuition. Governor deleted $100,000 pass through from Lake Superior State. (Sec. 461)
24. Suicide Prevention. Governor deleted intent for universities to develop education programs. (Sec. 462)
25. Macomb County. Governor deleted enrollment report requirement. (Sec. 463)
26. Research Commercialization Report. Governor deleted penalty for late submission. (Sec. 464)
27. Performance Standards. Governor deleted intent to establish for public universities. (Sec. 467)
28. Pell Grant Report. Governor restricted report to undergraduate students. (Sec. 469)
29. Timely Graduation. Governor deleted intent for universities to facilitate. (Sec. 471)
30. King-Chavez-Parks Programs. Governor deleted due to program elimination. (Secs. 501-507)
31. Enrollment Audit Consultants. Governor added HEIDI Advisory Committee and deleted fiscal agencies. (Sec. 701)
32. New Academic Programs. Governor deleted FY 2008-09 list of approved programs. (Sec. 701a)
33. Nursing Education/Shortage. Governor moved status report requirement to DELEG bill. (Sec. 715)

Date Completed: 3-18-09 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_gr.doc