FY 2022-23 HIGHER EDUCATION BUDGET S.B. 842 (S-2): SENATE APPROPRIATIONS REC.
Senate Bill 842 (S-2 as reported) Throughout this document Senate means Appropriations Committee.
Committee: Appropriations
*As of April 12, 2022.
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Gross |
GF/GP |
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FY 2021-22 Year-to-Date Appropriation................................................. |
$1,807,751,200 |
$1,317,821,500 |
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1. One-Time Operations Increase. The Governor included a 5.0% one-time increase for university operations. The increase was calculated across-the-board based on FY 2021-22 ongoing operations funding, and includes 5.0% adjustments for MSU AgBioResearch and MSU Extension. The Senate included a 5.0% one-time performance funding increase using a new formula, appropriated from the School Aid Fund and GF/GP. The Senate formula has three components, equally weighted: FY 2020-21 student headcount, FY 2020-21 all degrees conferred, and an across-the-board amount. The formula also includes a 5.0% floor for the sum total of the one-time and ongoing increases included in the Senate bill. Further detail on the formula is available in Table 3. The Senate’s one-time increase also includes a 5.0% increase for both MSU AgBioResearch and MSU Extension. |
76,323,900 |
30,529,300 |
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2. Ongoing Operations Increase. The Governor included a 5.0% ongoing increase for university operations. The increase was calculated across-the-board based on FY 2021-22 ongoing operations funding, and includes 5.0% adjustments for MSU AgBioResearch and MSU Extension. The Senate included a 5.0% ongoing increase using the formula described in Item 1, above, appropriated from the School Aid Fund and GF/GP. The Senate’s ongoing increase also includes a 5.0% increase for both MSU AgBioResearch and MSU Extension. |
76,323,900 |
30,529,300 |
|
3. Michigan Achievement Scholarships. The Senate included a new scholarship program that would provide 2022 Michigan high school graduates with a grant of up to $3,000 per year for community college or tribal college students and up to $6,000 per year for public university or independent college or university students. The awards may only be used to pay any remaining tuition and fee amounts after all other gift aid. Accompanying boilerplate section 248 contains additional program guidelines. |
361,000,000 |
361,000,000 |
|
4. MPSERS Obligation Payoff. The Senate included School Aid Fund dollars to pay off the outstanding unfunded actuarily accrued retirement liabilities of the seven universities that are members of the Michigan Public School Employees Retirement System. Those universities are Central Michigan, Eastern Michigan, Ferris State, Lake Superior State, Northern Michigan, Michigan Tech., and Western Michigan. |
581,200,000 |
0 |
|
5. King-Chavez-Parks (KCP) Programs. The Senate eliminated the six KCP programs. This includes the three programs appropriated in a separate line item totaling $2.7 million (Select Student Support Services, College/University Partnership, and Morris Hood, Jr. Educator Development) and the three programs totaling $2.3 million with funding included as part of each university’s base operations appropriation (College Day, Future Faculty Fellowships, and Visiting Professors). |
(4,970,000) |
(4,970,000) |
|
6. Critical Skills Pilot Program. The Senate included funding for a pilot program at Michigan Tech. to increase the number of critical skills degrees issued by the university. Accompanying boilerplate states intent that this would be a 4-year pilot. |
2,500,000 |
2,500,000 |
|
7. Student Retention Program. The Senate included $131,300 for each university to develop a student retention program. These funds were added to the base operations amount of each university. |
1,969,500 |
1,969,500 |
|
8. Pregnant and Parenting Student Services. The Senate included $33,300 that each university may use to establish a pregnant and parenting student services program. These funds were added to the base operations amount of each university. |
499,500 |
499,500 |
|
9. GF/GP to School Aid Fund Shift. The Senate made a GF/GP to School Aid Fund shift in university operations of $269.4 million. |
0 |
(269,410,800) |
|
10. Per-FYES Funding Floor. The Governor included a new initiative to provide an increase to the universities with the lowest State operations amounts per FYES over a period of four years. The stated goal is to ensure each university receives at least $4,500 in ongoing State operations funds per FYES. Grand Valley, Oakland, Saginaw Valley, U of M - Dearborn, and U of M - Flint would receive additional funding under this proposal. The Senate did not include this item. |
0 |
0 |
|
11. MPSERS UAAL Stabilization Payment. The Governor and Senate included an adjustment for MPSERS (UAAL costs that exceed the statutory payroll rate cap of 20.96%. This adjustment would bring the total amount for this item to $70,000. |
(13,425,000) |
0 |
|
12. MPSERS Normal Cost Adjustment. The Governor and Senate reduced the MPSERS normal cost offset to reflect the contributions necessary to support the reduction to the assumed rate of return on investment funds that has been enacted over the past few years. This adjustment would bring the total amount for this item to $4.7 million. |
(90,000) |
0 |
|
13. Limit TIP Phase I Payments. The Governor included a boilerplate change that would limit Phase I payments under the Tuition Incentive Program (TIP) to 2.5 times the average in-district community college tuition. This reduction reflects the savings of $6.1 million that would be realized from that change. The Senate did not include this policy change or the accompanying cost savings. |
0 |
0 |
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14. North American ITW Adjustment. The Governor and Senate reduced North American ITW payments based on the most recent cost data provided by the universities. The total payments for FY 2022-23 would be $12.1 million. |
(344,700) |
(344,700) |
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15. Remove FY 2021-22 One-Time Items. The Governor removed three one-time items: $84.7 million for MPSERS Paydown, $14.6 million for a 1.0% one-time operations payment increase, and $500,000 for the Japan Center for Michigan Universities. |
(100,500,000) |
(100,500,000) |
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16. Comparison to the Governor’s Recommendation. The Senate is $935,623,400 Gross over, and $12,676,600 GF/GP under the Governor. |
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Total Changes...................................................................................... |
$980,487,100 |
$51,802,100 |
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FY 2022-23 Senate Appropriations Committee Recommendation............. |
$2,788,238,300 |
$1,369,623,600 |
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FY 2022-23 Boilerplate Changes from FY 2021-22 Year-to-Date: |
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1. Per-FYES Funding Floor. The Governor included a new section detailing a funding formula that would increase the universities with the lowest per-FYES State operating appropriations from their current levels to $4,500 per FYES over a period of four years. The Senate did not include this section. (Sec. 236k) |
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2. Campus Safety Information. The Governor removed the requirement that universities certify compliance with the requirements of this section, as well as the ability for the State Budget Director to withhold payments to colleges that fail to do so. The Senate did not include these changes. (Sec. 245a) |
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3. Michigan Achievement Scholarship - Program Guidelines. The Senate included a new financial aid grant program that would provide last-dollar grants for tuition and fees to 2022 graduates of up to $3,000 per year at a community or tribal college and $6,000 per year at a university or independent college or university. (Sec. 248) |
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4. State Competitive Scholarship Amounts. The Governor increased award amounts for this program from $1,000 to $1,200. The Senate increased the amount to $1,500. No corresponding funding increase was included, as the program routinely lapses funds sufficient to pay for this increase. (Sec. 251) |
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5. Michigan Tuition Grants - Institutional Limitation. The Governor removed language that specifies that the $4.8 million institutional limit for Tuition Grants does not apply to other financial aid programs. The Senate did not include this change. (Sec. 252) |
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6. Michigan Tuition Grants – Increase Grant Amount. The Governor increased the maximum grant amount from $2,800 to $2,900. The Senate increased the amount to $3,000. No corresponding funding increase was included, as the program routinely lapses funds sufficient to pay for this increase. (Sec. 252) |
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7. Tuition Incentive Program - Limit Payment Size. The Governor included new language that would limit payments made to universities under Phase I of this program to a per-credit payment that does not exceed 2.5 times the average community college in-district tuition rate. The Senate did not include this limit. (Sec. 256) |
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8. Tuition Incentive Program – Qualification. The Governor and Senate modified the TIP program to require recipients to be Medicaid-eligible for 24 of the 36 months before high school graduation rather than 24 of the 36 months before application. (Sec. 256) |
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9. Critical Skills Pilot. The Senate included a new section directing the $2.5 million appropriated for this program to go to Michigan Tech. to establish a critical skills program with the goal of increasing the number of critical skills graduates. States legislative intent that the appropriation last four years. (Sec. 262a) |
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10. Tuition Restraint - Increase Threshold. The Governor and Senate increased the allowable tuition increase under this section from 4.2%, or $590, to 5.0%, or $722, consistent with current policy that allows increases of twice the rate of inflation. (Sec. 265) |
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11. Performance Funding. The Governor removed the performance funding formula, and instead tied existing statutory qualifications for performance funding to increases in operational support payments, which would be proportional to each university’s FY 2021-22 operations funding. The Senate included a new performance funding formula with three components, equally weighted: FY 2020-21 student headcount, FY 2020-21 all degrees conferred, and an across-the-board amount. The formula also includes a 5.0% floor for the sum total of the one-time and ongoing increases included in the Senate bill. Further detail on the formula is available in Table 3. (Sec. 265a) |
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12. Declining Enrollment. The Senate included a new section stating the intent of the Legislature that representatives from universities with enrollment declines of over 10% over ten years may be asked to testify before the House or Senate regarding that decline in enrollment. (Sec. 266a) |
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13. ITW for Saginaw Chippewa Tribal College and Keweenaw Bay Ojibwa Community College. The Governor and Senate reduced the pass-through payment for ITW reimbursement to Saginaw Chippewa Tribal College from $82,400 to $31,000, and increased KBOCC’s from $50,000 to $87,800 to reflect most recent ITW costs. (Sec. 269 and 270c) |
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14. Discouraged Instruction Activity. The Governor removed a section stating the intent of the Legislature that public universities not use State funds to offer instructional activities that target companies or groups of companies for unionization or decertification of a union. (Sec. 271a) |
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15. Human Embryonic Stem Cell Research. The Governor removed and Senate retained a section stating the intent of the Legislature that public and private organizations stem cell research provide certain information to the Director of the Department of Health and Human Services. (Sec. 274) |
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16. Campus Free Speech Report. The Governor removed and Senate retained a section of legislative intent language requesting a report from each university on strategic planning and other activities related to free speech on campus. (Sec. 275f) |
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17. COVID-19 Federal Funds Report. The Governor and Senate removed a report on COVID-19-related Federal funds received by community colleges. (Sec. 275g) |
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18. Campus Advocacy Policy. The Governor removed and Senate retained a section of legislative intent requesting that each university adopt an advocacy policy for faculty, staff, students, and other people on campus. (Sec. 275h) |
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19. Postsecondary Achievement Goal. The Governor included a new section stating a goal that 60% of Michigan residents achieve some type of postsecondary credential by 2030. The Senate did not include this section. (Sec. 275h) |
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20. COVID-19 Mandatory Vaccine Exemptions. The Governor removed a section requiring a community college that has a mandatory COVID-19 vaccine policy to grant exceptions to that policy under certain circumstances. The Senate modified this section to a prohibition of a vaccine mandate, and specified that a university in violation will have its monthly operations payment withheld. (Sec. 275i) |
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21. Pregnant and Parenting Student Services. The Senate included boilerplate specifying that $33,300 of each university’s operations payment may be used to establish this program on campus. Any unused funds must be returned. (Sec. 275j) |
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22. Student Retention Program. The Senate included boilerplate specifying that $131,300 of each university’s operations payment may be used to establish this program on campus. Any unused funds must be returned. (Sec. 278) |
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23. KCP Programs. The Senate removed all seven KCP program and reporting boilerplate sections, corresponding with the removal of program funds. (Sec. 276, 277, 279, 280, 281, 281a and 282) |
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24. Bachelor of Nursing Report. The Governor removed a report on articulation agreements on Bachelor of Nursing programs between community colleges and universities (Sec. 286b) |