TUITION RECIPROCAL AGREEMENTS

House Bill 4008

Sponsor:  Rep. Bruce Caswell

Committee:  Higher Education and Career Preparation

Complete to 3-18-05

A SUMMARY OF HOUSE BILL 4008 AS INTRODUCED 1-27-05

Public Act 251 of 1972 provides for the reciprocal exchange of higher education services between states and allows out-of-state students to enjoy tuition rates below typical out-of-state tuition.  House Bill 4008 would specify that a reciprocal agreement could not establish an indefinite term or establish a fixed term of more than three years.  If a reciprocal agreement provided for renewal or extension of the agreement, that provision could not provide for an automatic renewal or extension, establish an indefinite term for renewal or extension, or establish a fixed term of more than three years for any renewal or extension. 

Further, the bill says the tuition rate for a student attending a public college in Michigan under a reciprocal agreement would be the rate for in-state, out-of-district students.

Also, the term "reciprocal agreement" would be amended so as to apply to a contractual arrangement that renews or extends an existing reciprocal agreement.

Currently under the law, a reciprocal agreement can include provisions to reduce or waive nonresident tuition and fees for residents of the states of Wisconsin, Illinois, Indiana, and Ohio, as well as the Province of Ontario, if they are admitted to designated public institutions of higher education in Michigan.  The reciprocal agreements are entered into by the State Board of Education; however, they are not valid until approved by the Appropriations committees of the House and Senate.  The bill would retain these provisions.  In addition, the bill would require that a renewal or extension of a reciprocal agreement also would have to be approved by the Appropriations committees in order to be valid.  

MCL 390.501 – 390.504

FISCAL IMPACT:

The bill would have no direct fiscal impact on state or local government.  More frequent review of existing tuition reciprocity agreements by the two Appropriations committees could, however, result in changes to the provisions of those agreements that would have impacts on the revenues and/or expenditures of the institutions involved in the agreements.

As background, there are currently six tuition reciprocity agreements approved under the provisions of Public Act 251 of 1972:

·  Bay de Noc and Gogebic Community Colleges ─ Wisconsin Northeast Vocational Technical and Adult Education District

- Bay de Noc and Gogebic Community Colleges ─ University of Wisconsin Center – Marinette County

· St. Clair County Community College ─ Lambton College of Applied Arts and Technology (Lambton County, Ontario)

· Eastern Michigan University ─ University of Toledo (Ohio)

· Jackson Community College ─ Northwest State Community College (Henry County, Ohio)

· Monroe Community College ─ Owens Community College (Toledo, Ohio)

Provisions addressing eligible residents, programs included under the agreements, tuition rates paid by participating students, and other topics vary considerably among the different agreements.  The three agreements with Ohio institutions are all effective for the period of July 1, 2003 to June 30, 2005.  The remaining three agreements are all automatically renewing and have, therefore, not come up for review and approval by the two Appropriations committees since the 1980s (1981 for the two Bay de Noc agreements; 1988 for the St. Clair County agreement).

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                                                                                           Legislative Analyst:   J. Hunault

                                                                                                  Fiscal Analyst:   Kyle Jen

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.