FY 2009-10 HIGHER EDUCATION BUDGET H.B. 4441 (S-1): SENATE-PASSED


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House Bill 4441 (S-1 as passed by the Senate) 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, 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; Senate added $100 placeholder. 100
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 reduced $4,196,800 from the $32.0 million in Federal stimulus funds and added $3,941,000 GF/GP to reduce AES and CES by 0.4% each, in alignment with the universities' operations reductions. (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 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. Senate 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, but retained a $100 placeholder.   (80,499,900)
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
Total Changes ($149,361,700)
  FY 2009-10 Senate-Passed Gross Appropriation $1,609,743,500


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, restricted to undergraduates (Sec. 302) and added intent to add funds when revenue is available. (Sec. 317)
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. Promise Grants. Senate added intent to add funds when revenue is available. (Sec. 318)
14. Douglas Lake. Governor deleted intent to preserve research value; House/Senate retained. (Sec. 402)
15. 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)
16. 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)
17. Future Farmers of America. Governor/House deleted $80,000 earmark; Senate retained (Sec. 434)
18. 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)
19. Per Student Floor Funding. Gov./House deleted intent to provide $3,775 per student; Senate retained. (Sec. 450)
20. 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).
21. Suicide Prevention. Gov./House/Senate deleted intent for universities to develop education programs. (Sec. 462)
22. Macomb County. Governor/Senate deleted enrollment report requirement; House retained. (Sec. 463)
23. Research Commercialization Report. Gov./House/Senate deleted penalty for late submission. (Sec. 464)
24. Performance Standards. Gov./House/Senate deleted intent to establish for public universities. (Sec. 467)
25. Pell Grant Report. Governor/House/Senate restricted report to undergraduate students. (Sec. 469)
26. Timely Graduation. Governor deleted intent for universities to facilitate; House/Senate retained. (Sec. 471)
27. Student Veterans. Senate added intent to assist on each campus with tuition, fees, credit transfers, and application deadlines. (Sec. 480)
28. King-Chavez-Parks Programs. Gov. deleted due to program elimination; House/Senate retained. (Secs. 501-507)
29. Enrollment Audit Consultants. Gov./House added HEIDI Advisory Committee, deleted fiscal agencies; Senate retained fiscal agencies. (Sec. 701)
30. New Academic Programs. Senate added FY 2009-10 approved programs. (Sec. 701a)
31. Nursing Education/Shortage. Governor/House/Senate moved status report requirement to DELEG bill. (Sec. 715)

Date Completed: 6-25-09 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_sp.doc