FY 2015-16 COMMUNITY COLLEGES BUDGET S.B. 117: GOVERNOR'S RECOMMENDATION
Senate Bill 117 (as introduced) Vehicle for Governor’s Recommendation line items is Senate Bill 134.
Committee: Appropriations
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CHANGES FROM FY 2014-15 YEAR-TO-DATE |
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FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE |
FY 2014-15 YEAR-TO-DATE |
FY 2015-16 GOV.'S REC. |
AMOUNT |
PERCENT |
|
FTE Positions.............................................................. |
N/A |
N/A |
N/A |
N/A |
|
GROSS......................................................................... |
364,724,900 |
393,825,600 |
29,100,700 |
8.0 |
|
Less: |
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|
|
|
|
Interdepartmental Grants Received..................... |
0 |
0 |
0 |
0.0 |
|
ADJUSTED GROSS.................................................. |
364,724,900 |
393,825,600 |
29,100,700 |
8.0 |
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Less: |
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|
|
|
|
Federal Funds.......................................................... |
0 |
0 |
0 |
0.0 |
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Local and Private.................................................... |
0 |
0 |
0 |
0.0 |
|
TOTAL STATE SPENDING....................................... |
364,724,900 |
393,825,600 |
29,100,700 |
8.0 |
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Less: |
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|
|
|
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Other State Restricted Funds................................ |
197,614,100 |
256,714,800 |
59,100,700 |
29.9 |
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GENERAL FUND/GENERAL PURPOSE.............. |
167,110,800 |
137,110,800 |
(30,000,000) |
(18.0) |
|
PAYMENTS TO LOCALS.......................................... |
364,724,900 |
393,825,600 |
29,100,700 |
8.0 |
|
$364,724,900 |
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1. Michigan Public School Employees Retirement System (MPSERS) Rate Cap. The Governor included $17.2 million School Aid Fund (SAF) to continue funding the difference between the employer's capped contribution rate for unfunded accrued liabilities (20.96%) and the actual unfunded actuarial accrued liability contributions rate. MPSERS reform legislation requires the State to pay the difference between these amounts. The FY 2015-16 amount totals $69.5 million. |
17,200,000 |
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2. Independent Part-Time Student Grants. The Governor included $6.0 million SAF to initiate a revised version of the Part-Time Independent Student Grants created by Public Act 102 of 1986. The grants were established to foster the pursuit of postsecondary education by part-time students who have financial need. The maximum grant was $600 per year for not more than two 12-month periods at any given educational institution. The last year these grants received funding was in FY 2008-09 when grants totaled $2.6 million. The Governor recommended amending Public Act 102 to revise the grant program by limiting grants to community college students, removing the $600 limit and providing the Department of Treasury with the authority to set the limit each academic year, and changing the two-year limit for each student to three years. The Governor also included new language in the Community College budget (Sec. 215) encouraging community colleges to prioritizes grant funds for aid to students who have enrolled in an academic program after not being enrolled for more than a semester or term, who have previously earned credits in an academic program, and who have not yet earned a certificate or degree. |
6,000,000 |
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3. Performance Funding. The Governor included a $4.3 million SAF (1.4%) increase for community college operations distributed through a modified version of the Performance Indicators Task Force Formula that has been used in recent years. The Governor eliminated the Local Strategic Value portion of the formula which was previously used to distribute 15% of the formula allocations. The Governor transferred the 15.0% to the Weighted Degree portion of the formula, increasing that distribution from 17.5% of the formula to 32.5%. The Governor also added computer and information systems to the programs included in the highest weighted degree calculation. The Governor requires active participation in the Michigan Transfer Network as a new prerequisite to receive performance funding. Table 1 includes details of allocations by college. |
4,300,700 |
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4. Renaissance Zone Reimbursements. Payments are made pursuant to Public Act 376 of 1996. The Act requires the State to reimburse a community college district each year for all tax revenue lost as a result of the exemption of property under the Act. The Governor increased funding from $3.5 million to $5.1 million based on current projections. The $1.6 million increase is funded from the SAF. |
1,600,000 |
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5. Funding Shift. The Governor shifted $30.0 million from the State General Fund to the SAF. This shift does not account for the proposed FY 2014-15 supplemental that would shift $167.1 million from the State General Fund to the SAF, funding the entire FY 2014-15 Community College budget from the SAF. The Governor's FY 2015-16 recommendation for community colleges funds $137.1 million of the budget from the State General Fund and $256.7 from the SAF. |
0 |
|
$29,100,700 |
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FY 2015-16 Governor's Recommendation........................................................................... |
$393,825,600 |
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Boilerplate Changes from FY 2014-15 Year-to-Date: |
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1. Transparency. Requires each community college to make available through links on its website homepage its annual operating budget, links to the most recent activities classification structure report, current collective bargaining agreements, health care plans, audits and financial reports, projected general fund revenue and expenditures and debt service obligations, estimated costs incurred due to Affordable Health Care Act (ACA), opportunities for earning college credit through dual enrollment and compliance with best practices. Includes certain format requirements consistent with K-12 reporting. Provides that the State Budget Director determines compliance and allows for withholding of State aid payments for noncompliance. The Governor eliminated estimated costs of ACA, Board of Trustees resolution regarding compliance with best practices, the State Budget Director's authority to withhold funds for failure to comply with transparency site requirements, and dual enrollment reporting requirements. (Sec. 209) |
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2. Block Transfers. (1) It is the intent of the Legislature that the Michigan Association of Collegiate Registrars and Admission Officers implement any agreement or agreements among the community colleges and universities concerning the transferability of college courses resulting from the recommendations of the committee created under former section 210a. (2) It is the intent of the Legislature that the Michigan Association of Collegiate Registrars and Admissions Officers, the Michigan Community College Association, and the Presidents Council, State universities of Michigan shall together submit an implementation update report to the Senate and House Appropriations Subcommittees on Community Colleges and Higher Education, the Senate and House Fiscal Agencies, and the State Budget Director by March 1, 2015. The Governor removed the one-time reporting requirement and transferred the implementation requirement in (1) to a new Sec. 213 (2). (Sec. 210b) |
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3. Independent Part-Time Student Grants. The Governor included new language encouraging colleges to prioritize Independent Part-Time Student grants for aid to students who have enrolled in an academic program after not being enrolled for more than a semester or term, who have previously earned credits in an academic program, and who have not yet earned a certificate or degree. (Sec. 215) |
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4. Associate Degree Report. Requires community colleges to report to the Workforce Development Agency (WDA) the numbers and type of associate degrees and other certificates awarded during the previous fiscal year. The Governor added a sentence stating colleges shall work with the WDA and Center for Educational Performance and Information (CEPI) to develop a systematic approach for accomplishing this task. (Sec. 226) |
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5. Performance Indicators Task Force. Delineates formula used for FY 2014-15 based on 2006 recommendations of the Performance Indicators Task Force. Sets criteria for Local Strategic Value component of the formula and requires certification of compliance by each college through a board of trustees' resolution. The Governor eliminated the Local Strategic Value portion of formula and increased weighted degrees to 32.5 of formula distribution. The Governor also added a prerequisite that colleges must actively participate in and submit timely updates to the Michigan Transfer Network in order to receive performance funding. |
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6. Deleted Provisions. The Governor deleted: Anticipated appropriations for subsequent fiscal year (Sec. 201a); prohibits use of appropriations for construction or maintenance of self-liquidating projects and requires compliance with Section 238 if the Management and Budget Act and Joint Capital Outlay Subcommittee use and finance requirements -- includes penalty for noncompliance (Sec. 208); encourages community colleges to achieve efficiencies through collaborations (Sec. 212); one-time reporting requirement for ACS advisory committee ((Sec. 217) (4); prohibition on use of appropriations for purchase or lease of foreign automobiles (Sec. 227); and prohibition on disciplinary action against an employee for communicating with a member of the Legislature or legislative staff (Sec. 228). The Governor also removed legislative intent references in sections 210, 213, 222, and 229. |
Table 1
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FY 2015-16 COMMUNITY COLLEGE APPROPRIATIONS: GOVERNOR'S RECOMMENDATION |
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College |
FY 2014-15 Enacted |
Non-Formula Adjustments1) |
50% Proportionate to Base |
32.5% Weighted Degree Formula |
10.0% Student Contact Hours |
7.5% Administrative Costs |
Total Formula Distribution |
Total Adjustments |
Appropriation |
Percent Change |
|
Alpena |
$5,390,700 |
|
$37,735 |
$19,318 |
$3,454 |
$10,830 |
$71,300 |
$71,300 |
$5,462,000 |
1.3% |
|
Bay de Noc |
5,419,500 |
|
37,937 |
20,474 |
4,477 |
5,865 |
68,800 |
68,800 |
5,488,300 |
1.3% |
|
Delta |
14,498,900 |
|
101,493 |
71,842 |
19,550 |
14,879 |
207,800 |
207,800 |
14,706,700 |
1.4% |
|
Glen Oaks |
2,516,100 |
|
17,613 |
16,355 |
2,404 |
917 |
37,300 |
37,300 |
2,553,400 |
1.5% |
|
Gogebic |
4,451,400 |
|
31,160 |
12,647 |
2,456 |
8,709 |
55,000 |
55,000 |
4,506,400 |
1.2% |
|
Grand Rapids |
17,947,500 |
|
125,633 |
58,467 |
30,047 |
14,905 |
229,100 |
229,100 |
18,176,600 |
1.3% |
|
Henry Ford |
21,623,800 |
|
151,367 |
62,611 |
28,941 |
10,023 |
252,900 |
252,900 |
21,876,700 |
1.2% |
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Jackson |
12,087,300 |
|
84,612 |
48,962 |
10,885 |
10,763 |
155,200 |
155,200 |
12,242,500 |
1.3% |
|
Kalamazoo Valley |
12,503,100 |
|
87,522 |
68,888 |
19,277 |
16,131 |
191,800 |
191,800 |
12,694,900 |
1.5% |
|
Kellogg |
9,813,500 |
|
68,695 |
38,404 |
11,296 |
15,369 |
133,800 |
133,800 |
9,947,300 |
1.4% |
|
Kirtland |
3,167,700 |
|
22,174 |
20,354 |
3,442 |
10,591 |
56,600 |
56,600 |
3,224,300 |
1.8% |
|
Lake Michigan |
5,342,900 |
|
37,400 |
17,888 |
7,802 |
8,794 |
71,900 |
71,900 |
5,414,800 |
1.3% |
|
Lansing |
30,877,600 |
|
216,144 |
144,455 |
33,686 |
18,144 |
412,300 |
412,300 |
31,289,900 |
1.3% |
|
Macomb |
32,816,600 |
|
229,717 |
112,293 |
47,070 |
16,683 |
405,800 |
405,800 |
33,222,400 |
1.2% |
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Mid Michigan |
4,682,000 |
|
32,774 |
29,516 |
7,758 |
9,420 |
79,500 |
79,500 |
4,761,500 |
1.7% |
|
Monroe |
4,492,900 |
|
31,450 |
19,164 |
6,832 |
14,709 |
72,200 |
72,200 |
4,565,100 |
1.6% |
|
Montcalm |
3,226,700 |
|
22,587 |
17,323 |
3,258 |
11,925 |
55,100 |
55,100 |
3,281,800 |
1.7% |
|
Mott |
15,686,100 |
|
109,803 |
69,719 |
20,632 |
14,696 |
214,800 |
214,800 |
15,900,900 |
1.4% |
|
Muskegon |
8,901,000 |
|
62,307 |
25,594 |
9,129 |
15,768 |
112,800 |
112,800 |
9,013,800 |
1.3% |
|
North Central |
3,172,400 |
|
22,207 |
11,140 |
4,429 |
13,138 |
50,900 |
50,900 |
3,223,300 |
1.6% |
|
Northwestern |
9,078,800 |
|
63,552 |
29,645 |
9,707 |
13,385 |
116,300 |
116,300 |
9,195,100 |
1.3% |
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Oakland |
21,123,300 |
|
147,864 |
99,235 |
49,697 |
10,744 |
307,500 |
307,500 |
21,430,800 |
1.5% |
|
St. Clair |
7,061,600 |
|
49,431 |
24,815 |
8,154 |
10,630 |
93,000 |
93,000 |
7,154,600 |
1.3% |
|
Schoolcraft |
12,513,700 |
|
87,596 |
77,999 |
24,980 |
11,844 |
202,400 |
202,400 |
12,716,100 |
1.6% |
|
Southwestern |
6,576,400 |
|
46,035 |
19,832 |
5,506 |
5,210 |
76,600 |
76,600 |
6,653,000 |
1.2% |
|
Washtenaw |
13,077,300 |
|
91,542 |
122,114 |
24,612 |
14,435 |
252,700 |
252,700 |
13,330,000 |
1.9% |
|
Wayne County |
16,727,600 |
|
117,094 |
130,515 |
27,962 |
11,742 |
287,300 |
287,300 |
17,014,900 |
1.7% |
|
West Shore |
2,414,900 |
|
16,904 |
8,160 |
2,630 |
2,303 |
30,000 |
30,000 |
2,444,900 |
1.2% |
|
Subtotal Operations |
$307,191,300 |
$0 |
$2,150,348 |
$1,397,729 |
$430,073 |
$322,552 |
$4,300,700 |
$4,300,700 |
$311,492,000 |
1.4% |
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Independent Pt-Time Student Grants |
$0 |
$6,000,000 |
|
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|
|
|
6,000,000 |
6,000,000 |
--- |
|
MPSERS Retiree Health Care |
1,733,600 |
0 |
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|
|
|
|
0 |
1,733,600 |
0.0% |
|
MPSERS Reform Costs |
52,300,000 |
17,200,000 |
|
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|
|
|
17,200,000 |
69,500,000 |
32.9% |
|
Ren. Zone Reimbursement |
3,500,000 |
1,600,000 |
|
|
|
|
|
1,600,000 |
5,100,000 |
45.7% |
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Total Appropriations |
$364,724,900 |
$24,800,000 |
$2,150,348 |
$1,397,729 |
$430,073 |
$322,552 |
$4,300,700 |
$29,100,700 |
$393,825,600 |
8.0% |
|
School Aid Fund |
197,614,100 |
54,800,000 |
2,150,348 |
1,397,729 |
430,073 |
322,552 |
4,300,700 |
59,100,700 |
$256,714,800 |
29.9% |
|
GF/GP |
$167,110,800 |
($30,000,000) |
$0 |
$0 |
$0 |
$0 |
$0 |
($30,000,000) |
$137,110,800 |
(18.0%) |
|
1) Non-Formula Adjustments include funding for Independent Part-Time Student Grants, cost increases for MPSERS Reform and Renaissance Zones; and a $30.0 million funding shift from State General Fund to the School Aid Fund. The FY 2014-15 Enacted column does not reflect the pending FY 2014-15 supplemental that will shift $167.1 million from GF/GP to the School Aid Fund, funding the entire FY 2014-15 Community College budget from the School Aid Fund. |
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.