FY 2009-10 HIGHER EDUCATION BUDGET H.B. 4441 (S-1, Draft 1): SENATE SUBCOMMITTEE REC.


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House Bill 4441 (S-1, Draft 1 as reported) Throughout this document Senate means Subcommittee.
Committee: Appropriations

FY 2008-09 Year-to-Date Gross Appropriation $1,759,105,200
Changes from FY 2008-09 Year-to-Date:
  1. University Operations. Governor reduced each university by 3.0%; House restored the 3.0% ($43.9 million) but funded it from Federal stimulus revenue. Due to a prorated reduction in Federal stimulus funds, the Senate was required to reduce the Federal amount for each university by 13.1%, resulting in a 0.4% reduction from FY 2008-09 for each university's operations. (6,101,700)
2. King-Chavez-Parks Initiative. Governor eliminated 6 programs that try to increase the number of academically/economically disadvantaged students at Michigan's colleges and universities: College Day ($1,191,235), Future Faculty ($1,206,611), Visiting Profs ($168,870), and grants to increase student retention, transfers, and completion of K-12 teacher education ($2,691,500). House/Senate restored KCP; House funded 3.0% ($80,700) from Federal stimulus funds; Senate funded the $2.7 million competitive grants from Federal Gear-Up dollars, and reduced the Gear-Up Program to $308,500. (2,691,500)
3. Pass-through from Lake Superior to Bay Mills for Indian Tuition. Governor eliminated; House/Senate retained, and added a pass-through from Central to Saginaw Chippewa Tribal College. 29,700
4. Indian Tuition. House added Federal stimulus dollars for unfunded waiver costs; Sen. and Gov. did not. 0
5. Agricultural Experiment Station (AES) and Cooperative Extension Service (CES). 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". House retained current year funding but financed 3.0% from Federal stimulus revenue; House added $3.5 million GF/GP for bioeconomy research at MSU; Senate restored $4,196,800 from Federal stimulus funds and added $3,941,000 GF/GP to reduce AES and CES by 0.4% each, in alignment with the university operations' reduction. (255,800)
6. State and Regional Programs. Sen. eliminated funds for Higher Ed database & Midwest Compact dues. (295,000)
7. Need-Based Financial Aid. 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 Grants ($4.2 million), and replaced them with the new $89.8 million Michigan College Access Grants, resulting in a net reduction in State need-based financial aid of $18.8 million. House retained current year programs but funded 3.0% ($3.0 million) from Federal stimulus dollars. Sen. retained Competitive Scholarships at $16.3 million, Tuition Grants at $31.7 million, and $200,000 for Nursing Grants. (60,347,700)
8. Michigan Merit Awards. $100 is retained as a placeholder as the program phases out. (5,199,900)
9. Michigan Promise Grants. These merit-based grants of up to $4,000 are for 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 are scheduled to begin in FY 2009-10. Governor/House added $59.5 million to reflect the FY 2009-10 cost of $140.0 million; Senate eliminated the program.   (80,500,000)
10. Tuition Incentive Program (TIP). Due to caseload growth, Governor/House/Senate increased TIP from $25.2 million in FY 2008-09 to $31.2 million in FY 2009-10. TIP promises to pay two years of community college tuition 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 10,462 TIP students in FY 2006-07 and 12,041 in FY 2007-08, an increase of 15.1%. 6,000,000
11. Comparison to Governor's Recommendation. The Senate is $109.7 million Gross and $37.9 million GF/GP under the Governor.
 

Total Changes ($149,361,900)
  FY 2009-10 Senate Appropriations Subcommittee Gross Appropriation $1,609,743,300


Changes from FY 2008-09 Year to Date:
  1. Postsecondary Student Data System. Governor/House/Senate deleted requirement for progress report. (Sec. 216)
2. American Recovery/Reinvestment Act (ARRA). House/Senate required universities to comply. (New Sec. 216)
3. Conflicts of Interest. Governor/Senate deleted intent for each university governing board to examine its operations for potential conflicts of interest; House retained. (Sec. 217)
4. State Competitive Scholarships. Governor deleted due to program elimination; House/Senate retained. (Sec. 301)
5. Tuition Grants. Governor deleted due to program elimination; House/Senate retained; Senate capped each school at $3.0 million and restricted to undergraduates. (Sec. 302)
6. Work Study. Governor/Senate deleted due to program elimination; House retained. (Sec. 303)
7. Michigan College Access Grants. Governor established new needs-based financial aid program with annual grant estimated to be $1,000 per student for no more than 10 semesters; House/Senate did not include. (Sec. 304)
8. Student Wages. Gov. deleted consideration in determining financial aid awards; House/Senate retained. (Sec. 309)
9. Michigan Nursing Scholarships. Gov. deleted due to program elimination; House/Senate retained. (Sec. 312)
10. Children of Veterans Tuition Grants. Governor/House/Senate deleted; replaced by Sec. 315. (Sec. 314)
11. Financial Aid Report. Gov. changed due date from January 15 to March 31; House to February 15; Senate to February 14. (Sec. 315)
12. Financial Aid Workgroup. House/Senate added intent for workgroup to examine State programs. (Sec. 316)
13. Douglas Lake. Governor deleted intent to preserve research value; House/Senate retained. (Sec. 402)
14. Required Textbooks. Governor/Senate deleted intent for timely access by private bookstores of lists/accounts; House retained and added option of fixed fee for access; Senate added intent for universities to establish process to review new textbook requests. (Sec. 426)
15. 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; House/Senate did not concur with combination or with new earmarks; House added $3.5 million for bioeconomy research at MSU, Senate added intent. (Sec. 433)
16. Future Farmers of America. Governor/House deleted $80,000 earmark; Senate retained (Sec. 434)
17. Tuition Restraint. Gov. added expectation that any university receiving Federal stimulus funds not raise tuition and fees in 2008-09 or 2009-10; House/Senate required tuition mitigation and facility renovation with ARRA funds. (Sec. 436)
18. Per Student Floor Funding. Gov./House deleted intent to provide $3,775 per student; Senate retained. (Sec. 450)
19. Indian Tuition. Gov./Senate deleted intent to pay for unfunded costs; House retained (Sec. 451); House/Senate added $29,700 pass-through from Central to Saginaw Chippewa Tribal College (Sec. 460); Gov deleted $100,000 pass-through from Lake Superior to Bay Mills Tribal College, House/Senate retained (Sec.461).
20. Suicide Prevention. Gov./House/Senate deleted intent for universities to develop education programs. (Sec. 462)
21. Macomb County. Governor/Senate deleted enrollment report requirement; House retained. (Sec. 463)
22. Research Commercialization Report. Gov./House/Senate deleted penalty for late submission. (Sec. 464)
23. Performance Standards. Gov./House/Senate deleted intent to establish for public universities. (Sec. 467)
24. Pell Grant Report. Governor/House/Senate restricted report to undergraduate students. (Sec. 469)
25. Timely Graduation. Governor deleted intent for universities to facilitate; House/Senate retained. (Sec. 471)
26. Veterans. Senate added intent to assist on each campus with tuition, fees, credit transfers, and application deadlines. (Sec. 480)
27. King-Chavez-Parks Programs. Gov. deleted due to program elimination; House/Senate retained. (Secs. 501-507)
28. Enrollment Audit Consultants. Gov./House added HEIDI Advisory Committee, deleted fiscal agencies; Senate retained fiscal agencies. (Sec. 701)
29. New Academic Programs. Senate added FY 2009-10 approved programs. (Sec. 701a)
30. Nursing Education/Shortage. Governor/House/Senate moved status report requirement to DELEG bill. (Sec. 715)

Date Completed: 6-16-09 Fiscal Analyst: Ellen Jeffries FY 2009-10 HIGHER EDUCATION BUDGET BOILERPLATE HIGHLIGHTS This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hihed_cs.doc