EXECUTIVE BUDGET BILL
February 28, 2008, Introduced by Senators BARCIA and SWITALSKI and referred to the Committee on Appropriations.
A bill to make appropriations for the state institutions of
higher education and certain state purposes related to education
for the fiscal year ending September 30, 2009; to provide for the
expenditures of those appropriations; and to prescribe the powers
and duties of certain state departments, institutions, agencies,
employees, and officers.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE 1
SUMMARY AND GENERAL PROVISIONS
Sec. 101. Subject to the conditions set forth in this bill,
the amounts listed in this bill are appropriated for the state
institutions of higher education and certain state purposes related
to education for the fiscal year ending September 30, 2009, from
the funds indicated in this bill. The following is a summary of the
appropriations in this bill:
HIGHER EDUCATION
APPROPRIATION SUMMARY:
Full-time equated classified positions.............. 1.0
GROSS APPROPRIATION.................................... $ 1,799,426,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 1,799,426,000
Appropriated from:
Federal revenues:
Total federal revenues................................. 7,400,000
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 116,100,000
State general fund/general purpose..................... $ 1,675,926,000
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under this bill for fiscal year 2008-2009 is $1,792,026,000.00 and
state spending from state resources to be paid to local units of
government for fiscal year 2008-2009 is $0.00.
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
ARTICLE 2
RESEARCH UNIVERSITIES
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill, the
amounts listed in this part are appropriated for research
universities for the fiscal year ending September 30, 2009, from
the funds indicated in this part.
Sec. 102. MICHIGAN STATE UNIVERSITY
Operations............................................. $ 297,991,200
Agricultural experiment station........................ 35,016,100
Cooperative extension service.......................... 30,202,000
GROSS APPROPRIATION.................................... $ 363,209,300
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 363,209,300
Sec. 103. UNIVERSITY OF MICHIGAN - ANN ARBOR
Operations............................................. $ 333,629,800
GROSS APPROPRIATION.................................... $ 333,629,800
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 333,629,800
Sec. 104. WAYNE STATE UNIVERSITY
Operations............................................. $ 225,984,000
GROSS APPROPRIATION.................................... $ 225,984,000
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 225,984,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 203. As used in this bill, "research university" means a
public university classified as a "research university (very high
research activity)" under the 2005 classification of institutions
of higher education conducted by the Carnegie foundation for the
advancement of teaching.
Sec. 208. Unless otherwise specified, the institutions of
higher education receiving appropriations in part 1 shall use the
Internet to fulfill the reporting requirements of this bill. This
requirement may include transmission of reports via electronic mail
to the recipients identified for each reporting requirement, or it
may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods and
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
value. In addition, preference should be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 212. (1) The funds appropriated in part 1 to state
institutions of higher education shall be paid out of the state
treasury and distributed by the state treasurer to the respective
institutions in 11 equal monthly installments on the sixteenth of
each month, or the next succeeding business day, beginning with
October 16, 2008. Except for Wayne State University, each
institution shall accrue its July and August 2009 payments to its
institutional fiscal year ending June 30, 2009.
(2) All universities shall submit higher education
institutional data inventory (HEIDI) data and associated financial
and program information requested by and in a manner prescribed by
the state budget director. For universities with fiscal years
ending June 30, 2008, these data shall be submitted to the state
budget director by October 15, 2008. Universities with a fiscal
year ending September 30, 2008 shall submit preliminary HEIDI data
by November 15, 2008 and final data by December 15, 2008. If a
university fails to submit HEIDI data and associated financial aid
program information in accordance with this reporting schedule, the
state treasurer may withhold the monthly installments under
subsection (1) to the university until those data are submitted.
Sec. 213. Funds received by the state from the federal
government or private sources for the use of a college or
university are appropriated for the purposes for which they are
provided. The acceptance and use of federal or private funds do not
place an obligation upon the legislature to continue the purposes
for which the funds are made available.
Sec. 215. A state institution of higher education that
receives funds under this bill shall furnish all program and
financial information that is required by and in a manner
prescribed by the state budget director or the house or senate
appropriations committee.
UNIVERSITY OPERATIONS
Sec. 433. (1) Included in part 1 is $3,042,000.00 for the
agricultural experiment station and $2,697,600.00 for the
cooperative extension service for project GREEEN. Project GREEEN is
intended to address critical regulatory, food safety, economic, and
environmental problems faced by this state's plant-based
agriculture, forestry, and processing industries. "GREEEN" is an
acronym for generating research and extension to meet environmental
and economic needs.
(2) The department of agriculture and Michigan State
University, in consultation with agricultural commodity groups and
other interested parties, shall develop project GREEEN and its
program priorities.
(3) Not later than September 30, 2009, a report shall be
submitted by Michigan State University to the state budget
director, the house and senate appropriations subcommittees on
agriculture and on higher education, and the house and senate
fiscal agencies for the preceding fiscal year regarding project
GREEEN projects. The report shall include, but is not limited to,
the dollar amount of each project and a review of each project's
performance and accomplishments.
Sec. 436. It is expected that each university will limit its
resident undergraduate tuition and required fees increase from
academic year 2007-2008 to academic year 2008-2009 to no more than
the projected inflationary increase of 2.3 percent. Additionally,
if any state university increases its resident undergraduate
tuition and required fees from academic year 2007-2008 to academic
year 2008-2009, then that university shall increase its fiscal year
2008-2009 general fund expenditures for student financial aid by at
least the same percentage as the percentage change in resident
undergraduate tuition and required fees. Each state university
shall report its proposed fiscal year 2008-2009 general fund
expenditures for student financial aid compared to its projected
fiscal year 2007-2008 general fund expenditures for student
financial aid, and its projected academic year 2008-2009 resident
undergraduate tuition and required fee changes from academic year
2007-2008, to the state budget director and the house and senate
appropriations subcommittees on higher education by November 15,
2008.
Sec. 440. All universities shall submit the amount of tuition
and fees actually charged to a full-time resident undergraduate
student for academic year 2008-2009 as part of their higher
education institutional data inventory (HEIDI) data by August 31,
2008. A university shall report any revisions for any semester of
the reported academic year 2008-2009 tuition and fee charges to
HEIDI within 15 days of being adopted.
Sec. 466. State universities shall coordinate their purchases
of goods and services whenever possible. This may include, but is
not limited to, group purchases for vehicles, utilities, supplies,
electronic equipment, maintenance equipment, books, and contractual
services. To the extent possible, the state universities shall use
both the "Michigan delivering extended agreements locally" (MiDEAL)
purchasing services of the state department of management and
budget that makes state contracts available to local units of
government, colleges, and universities and the purchasing services
available through the state's membership in the Midwestern Higher
Education Compact (MHEC). Not later than January 1 of each year,
the presidents council, state universities of Michigan shall submit
to the members of the house and senate appropriations subcommittees
on higher education, the house and senate fiscal agencies, and the
state budget director a report on group or pooled purchases and the
savings achieved by the state universities in the previous fiscal
year.
Sec. 468. The increase for university operations funding
contained in part 1 is allocated to each university using a three-
part incentive-based formula to promote greater participation of
low-income students in higher education, to reward university
research and technology transfer, and to recognize the success of
the university in graduating students.
Sec. 469. Each university shall report the number of students
that graduated in academic year 2007-2008 and received a Pell grant
at any time during their enrollment at that university to the state
budget director and the house and senate fiscal agencies by
November 14, 2008.
MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS
Sec. 501. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks future faculty program, that is intended
to increase the pool of academically or economically disadvantaged
candidates pursuing faculty teaching careers in postsecondary
education. Preference may not be given to applicants on the basis
of race, color, ethnicity, gender, or national origin. Institutions
should encourage applications from applicants who would otherwise
not adequately be represented in the graduate student and faculty
populations. Each state university shall apply the percentage
change applicable to every state university in the calculation of
appropriations in part 1 to the amount of funds allocated to the
future faculty program.
(2) The program shall be administered by each state university
in a manner prescribed by the Michigan department of labor and
economic growth. The Michigan department of labor and economic
growth shall use a good faith effort standard to evaluate whether a
fellowship is in default.
Sec. 502. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks college day program that is intended to
introduce academically or economically disadvantaged schoolchildren
to the potential of a college education. Preference may not be
given to participants on the basis of race, color, ethnicity,
gender, or national origin. Institutions should encourage
participation from those who would otherwise not adequately be
represented in the student population.
(2) Individual program plans of each state university shall
include a budget of equal contributions from this program, the
participating state university, the participating school district,
and the participating independent degree-granting college. College
day funds shall not be expended to cover indirect costs. Not more
than 20% of the university match shall be attributable to indirect
costs. Each state university shall apply the percentage change
applicable to every state university in the calculation of
appropriations in part 1 to the amount of funds allocated to the
college day program.
(3) The program described in this section shall be
administered by each state university in a manner prescribed by the
Michigan department of labor and economic growth.
Sec. 505. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks visiting professors program which is
intended to increase the number of instructors in the classroom to
provide role models for academically or economically disadvantaged
students. Preference may not be given to participants on the basis
of race, color, ethnicity, gender, or national origin. Institutions
should encourage participation from those who would otherwise not
adequately be represented in the student population.
(2) The program described in this section shall be
administered by the Michigan department of labor and economic
growth.
STUDENT PERFORMANCE REPORTING
Sec. 601. (1) From the amount appropriated in part 1 for state
universities, the state universities shall systematically inform
Michigan high schools regarding the academic status of students
from each high school in a manner prescribed by the presidents
council, state universities of Michigan in cooperation with the
Michigan association of secondary school principals.
(2) The Michigan high schools shall systematically inform the
state universities about the use of information received under this
section in a manner prescribed by the Michigan association of
secondary school principals in cooperation with the presidents
council, state universities of Michigan.
Sec. 602. From the amount appropriated in part 1 for state
universities, the state universities shall inform Michigan
community colleges regarding the academic status of community
college transfer students in a manner prescribed by the presidents
council, state universities of Michigan in cooperation with the
Michigan community college association.
Sec. 603. State universities shall work with the state
community colleges to encourage the transfer of students from the
community colleges to the state universities and to facilitate the
transfer of credits from the community colleges to the state
universities.
GENERAL REPORTS AND AUDITS
Sec. 701. (1) The auditor general shall review higher
education institutional data inventory (HEIDI) enrollment data
submitted by all state universities and may perform audits of
selected state universities if determined necessary. The review and
audits shall be based upon the definitions, requirements, and
uniform reporting categories established by the state budget
director in consultation with the HEIDI advisory committee. The
auditor general shall submit a report of findings to the house and
senate appropriations committees and the state budget director no
later than July 1, 2009.
(2) Student credit hours reports shall not include the
following:
(a) Student credit hours generated through instructional
activity by faculty or staff in classrooms located outside
Michigan, with the exception of instructional activity related to
study-abroad programs or field programs.
(b) Student credit hours generated through distance learning
instruction for students not eligible for the institution's in-
state main campus resident tuition rate.
(c) Student credit hours generated through credit by
examination.
(d) Student credit hours generated through inmate prison
programs regardless of teaching location.
(e) Student credit hours generated in new degree programs
after January 1, 1975, that have not been specifically authorized
for funding by the legislature, except spin-off programs converted
from existing core programs that do all of the following:
(i) Represent new options, fields, or concentrations within
existing programs.
(ii) Are consistent with the current institutional role and
mission.
(iii) Are accommodated within the continuing funding base of the
institution.
(iv) Do not require a new degree level beyond that which the
institution is currently authorized to grant within that discipline
or field.
(v) Do not require funding from the state other than that
provided by the student credit hours generated within the program,
either before program initiation or within the first 3 years of
program operation.
(3) The auditor general shall periodically audit higher
education institutional data inventory (HEIDI) data as submitted by
the state universities for compliance with the definitions for the
HEIDI database established by the state budget director in
consultation with the HEIDI advisory committee.
(4) "Distance learning instruction" as used in subsection (2)
means instruction that occurs solely in other than a traditional
classroom setting where the student and instructor are in the same
physical location and for which a student receives course credits
and is charged tuition and fees. Examples of distance learning
instruction are instruction delivered solely through the Internet,
cable television, teleconference, or mail.
Sec. 702. The principal executive officer of each institution
of higher education receiving an appropriation under this bill
shall expend a portion of the funds appropriated to that
institution to make a report to the auditor general, the house and
senate fiscal agencies, and the state budget director within 60
days after the auditor general issues his or her report on the
operation of the institution. The institution's report shall
specify all of the following:
(a) The recommendations of the auditor general implemented by
the institution, including projected dates and resources required,
if any, to achieve compliance.
(b) The recommendations of the auditor general not implemented
by the institution or implemented by the institution as modified.
(c) The rationale for not implementing a recommendation of the
auditor general or of implementing a recommendation as modified.
Sec. 708. The auditor general may conduct performance audits
of state universities during the fiscal year ending September 30,
2009 as the auditor general considers necessary.
Sec. 709. An institution of higher education receiving funds
under this bill and also subject to the student right-to-know and
campus security act, Public Law 101-522, 104 Stat. 2381, shall make
a copy of all material prepared pursuant to the public information
reporting requirements under the crime awareness and campus
security act of 1990, title II of the student right-to-know and
campus security act, Public Law 101-542, 104 Stat. 2381, available
in electronic Internet format on their websites.
Sec. 714. An institution receiving funds under this bill and
also subject to the family educational rights and privacy act
(FERPA), 20 USC section 1232g, 34 CFR part 99, shall, when
requested, provide information from the records of a student to any
person or persons to whom the student has authorized disclosure on
a written consent form pursuant to 34 CFR 99.30.
ARTICLE 3
STATE UNIVERSITIES
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill,
the amounts listed in this part are appropriated for state
universities for the fiscal year ending September 30, 2009, from
the funds indicated in this part.
Sec. 102. CENTRAL MICHIGAN UNIVERSITY
Operations............................................. $ 83,825,700
GROSS APPROPRIATION.................................... $ 83,825,700
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 83,825,700
Sec. 103. EASTERN MICHIGAN UNIVERSITY
Operations............................................. $ 79,562,900
GROSS APPROPRIATION.................................... $ 79,562,900
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 79,562,900
Sec. 104. FERRIS STATE UNIVERSITY
Operations............................................. $ 51,297,900
GROSS APPROPRIATION.................................... $ 51,297,900
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 51,297,900
Sec. 105. GRAND VALLEY STATE UNIVERSITY
Operations............................................. $ 64,937,700
GROSS APPROPRIATION.................................... $ 64,937,700
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 64,937,700
Sec. 106. LAKE SUPERIOR STATE UNIVERSITY
Operations............................................. $ 13,788,900
GROSS APPROPRIATION.................................... $ 13,788,900
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 13,788,900
Sec. 107. MICHIGAN TECHNOLOGICAL UNIVERSITY
Operations............................................. $ 51,178,400
GROSS APPROPRIATION.................................... $ 51,178,400
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 51,178,400
Sec. 108. NORTHERN MICHIGAN UNIVERSITY
Operations............................................. $ 47,233,400
GROSS APPROPRIATION.................................... $ 47,233,400
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 47,233,400
Sec. 109. OAKLAND UNIVERSITY
Operations............................................. $ 53,469,200
GROSS APPROPRIATION.................................... $ 53,469,200
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 53,469,200
Sec. 110. SAGINAW VALLEY STATE UNIVERSITY
Operations............................................. $ 29,355,700
GROSS APPROPRIATION.................................... $ 29,355,700
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 29,355,700
Sec. 111. UNIVERSITY OF MICHIGAN - DEARBORN
Operations............................................. $ 26,771,900
GROSS APPROPRIATION.................................... $ 26,771,900
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 26,771,900
Sec. 112. UNIVERSITY OF MICHIGAN - FLINT
Operations............................................. $ 22,581,500
GROSS APPROPRIATION.................................... $ 22,581,500
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 22,581,500
Sec. 113. WESTERN MICHIGAN UNIVERSITY
Operations............................................. $ 114,700,800
GROSS APPROPRIATION.................................... $ 114,700,800
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 114,700,800
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 208. Unless otherwise specified, the institutions of
higher education receiving appropriations in part 1 shall use the
Internet to fulfill the reporting requirements of this bill. This
requirement may include transmission of reports via electronic mail
to the recipients identified for each reporting requirement, or it
may include placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods and
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
value. In addition, preference should be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 212. (1) The funds appropriated in part 1 to state
institutions of higher education shall be paid out of the state
treasury and distributed by the state treasurer to the respective
institutions in 11 equal monthly installments on the sixteenth of
each month, or the next succeeding business day, beginning with
October 16, 2008. Each institution shall accrue its July and August
2009 payments to its institutional fiscal year ending June 30,
2009.
(2) All universities shall submit higher education
institutional data inventory (HEIDI) data and associated financial
and program information requested by and in a manner prescribed by
the state budget director by October 15, 2008. If a university
fails to submit HEIDI data and associated financial aid program
information in accordance with this reporting schedule, the state
treasurer may withhold the monthly installments under subsection
(1) to the university until those data are submitted.
Sec. 213. Funds received by the state from the federal
government or private sources for the use of a college or
university are appropriated for the purposes for which they are
provided. The acceptance and use of federal or private funds do not
place an obligation upon the legislature to continue the purposes
for which the funds are made available.
Sec. 215. A state institution of higher education that
receives funds under this bill shall furnish all program and
financial information that is required by and in a manner
prescribed by the state budget director or the house or senate
appropriations committee.
UNIVERSITY OPERATIONS
Sec. 436. It is expected that each university will limit its
resident undergraduate tuition and required fees increase from
academic year 2007-2008 to academic year 2008-2009 to no more than
the projected inflationary increase of 2.3 percent. Additionally,
if any state university increases its resident undergraduate
tuition and required fees from academic year 2007-2008 to academic
year 2008-2009, then that university shall increase its fiscal year
2008-2009 general fund expenditures for student financial aid by at
least the same percentage as the percentage change in resident
undergraduate tuition and required fees. Each state university
shall report its proposed fiscal year 2008-2009 general fund
expenditures for student financial aid compared to its projected
fiscal year 2007-2008 general fund expenditures for student
financial aid, and its projected academic year 2008-2009 resident
undergraduate tuition and required fee changes from academic year
2007-2008, to the state budget director and the house and senate
appropriations subcommittees on higher education by November 15,
2008.
Sec. 440. All universities shall submit the amount of tuition
and fees actually charged to a full-time resident undergraduate
student for academic year 2008-2009 as part of their higher
education institutional data inventory (HEIDI) data by August 31,
2008. A university shall report any revisions for any semester of
the reported academic year 2008-2009 tuition and fee charges to
HEIDI within 15 days of being adopted.
Sec. 461. From the amount appropriated in part 1 to Lake
Superior State University for operations, $100,000.00 shall be paid
to Bay Mills Community College for the costs of waiving tuition for
North American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.
Sec. 466. State universities shall coordinate their purchases
of goods and services whenever possible. This may include, but is
not limited to, group purchases for vehicles, utilities, supplies,
electronic equipment, maintenance equipment, books, and contractual
services. To the extent possible, the state universities shall use
both the "Michigan delivering extended agreements locally" (MiDEAL)
purchasing services of the state department of management and
budget that makes state contracts available to local units of
government, colleges, and universities and the purchasing services
available through the state's membership in the Midwestern Higher
Education Compact (MHEC). Not later than January 1 of each year,
the presidents council, state universities of Michigan shall submit
to the members of the house and senate appropriations subcommittees
on higher education, the house and senate fiscal agencies, and the
state budget director a report on group or pooled purchases and the
savings achieved by the state universities in the previous fiscal
year.
Sec. 468. The increase for university operations funding
contained in part 1 is allocated to each university using a three-
part incentive-based formula to promote greater participation of
low-income students in higher education, to reward university
research, and to recognize the success of the university in
graduating students.
Sec. 469. Each university shall report the number of students
that graduated in academic year 2007-2008 and received a Pell grant
at any time during their enrollment at that university to the state
budget director and the house and senate fiscal agencies by
November 14, 2008.
MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS
Sec. 501. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks future faculty program, that is intended
to increase the pool of academically or economically disadvantaged
candidates pursuing faculty teaching careers in postsecondary
education. Preference may not be given to applicants on the basis
of race, color, ethnicity, gender, or national origin. Institutions
should encourage applications from applicants who would otherwise
not adequately be represented in the graduate student and faculty
populations. Each state university shall apply the percentage
change applicable to every state university in the calculation of
appropriations in part 1 to the amount of funds allocated to the
future faculty program.
(2) The program shall be administered by each state university
in a manner prescribed by the Michigan department of labor and
economic growth. The Michigan department of labor and economic
growth shall use a good faith effort standard to evaluate whether a
fellowship is in default.
Sec. 502. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks college day program that is intended to
introduce academically or economically disadvantaged schoolchildren
to the potential of a college education. Preference may not be
given to participants on the basis of race, color, ethnicity,
gender, or national origin. Institutions should encourage
participation from those who would otherwise not adequately be
represented in the student population.
(2) Individual program plans of each state university shall
include a budget of equal contributions from this program, the
participating state university, the participating school district,
and the participating independent degree-granting college. College
day funds shall not be expended to cover indirect costs. Not more
than 20% of the university match shall be attributable to indirect
costs. Each state university shall apply the percentage change
applicable to every state university in the calculation of
appropriations in part 1 to the amount of funds allocated to the
college day program.
(3) The program described in this section shall be
administered by each state university in a manner prescribed by the
Michigan department of labor and economic growth.
Sec. 505. (1) Included in the appropriation for each state
university in part 1 is funding for the Martin Luther King, Jr. -
Cesar Chavez - Rosa Parks visiting professors program which is
intended to increase the number of instructors in the classroom to
provide role models for academically or economically disadvantaged
students. Preference may not be given to participants on the basis
of race, color, ethnicity, gender, or national origin. Institutions
should encourage participation from those who would otherwise not
adequately be represented in the student population.
(2) The program described in this section shall be
administered by the Michigan department of labor and economic
growth.
STUDENT PERFORMANCE REPORTING
Sec. 601. (1) From the amount appropriated in part 1 for state
universities, the state universities shall systematically inform
Michigan high schools regarding the academic status of students
from each high school in a manner prescribed by the presidents
council, state universities of Michigan in cooperation with the
Michigan association of secondary school principals.
(2) The Michigan high schools shall systematically inform the
state universities about the use of information received under this
section in a manner prescribed by the Michigan association of
secondary school principals in cooperation with the presidents
council, state universities of Michigan.
Sec. 602. From the amount appropriated in part 1 for state
universities, the state universities shall inform Michigan
community colleges regarding the academic status of community
college transfer students in a manner prescribed by the presidents
council, state universities of Michigan in cooperation with the
Michigan community college association.
Sec. 603. State universities shall work with the state
community colleges to encourage the transfer of students from the
community colleges to the state universities and to facilitate the
transfer of credits from the community colleges to the state
universities.
GENERAL REPORTS AND AUDITS
Sec. 701. (1) The auditor general shall review higher
education institutional data inventory (HEIDI) enrollment data
submitted by all state universities and may perform audits of
selected state universities if determined necessary. The review and
audits shall be based upon the definitions, requirements, and
uniform reporting categories established by the state budget
director in consultation with the HEIDI advisory committee. The
auditor general shall submit a report of findings to the house and
senate appropriations committees and the state budget director no
later than July 1, 2009.
(2) Student credit hours reports shall not include the
following:
(a) Student credit hours generated through instructional
activity by faculty or staff in classrooms located outside
Michigan, with the exception of instructional activity related to
study-abroad programs or field programs.
(b) Student credit hours generated through distance learning
instruction for students not eligible for the institution's in-
state main campus resident tuition rate.
(c) Student credit hours generated through credit by
examination.
(d) Student credit hours generated through inmate prison
programs regardless of teaching location.
(e) Student credit hours generated in new degree programs
after January 1, 1975, that have not been specifically authorized
for funding by the legislature, except spin-off programs converted
from existing core programs that do all of the following:
(i) Represent new options, fields, or concentrations within
existing programs.
(ii) Are consistent with the current institutional role and
mission.
(iii) Are accommodated within the continuing funding base of the
institution.
(iv) Do not require a new degree level beyond that which the
institution is currently authorized to grant within that discipline
or field.
(v) Do not require funding from the state other than that
provided by the student credit hours generated within the program,
either before program initiation or within the first 3 years of
program operation.
(3) The auditor general shall periodically audit higher
education institutional data inventory (HEIDI) data as submitted by
the state universities for compliance with the definitions for the
HEIDI database established by the state budget director in
consultation with the HEIDI advisory committee.
(4) "Distance learning instruction" as used in subsection (2)
means instruction that occurs solely in other than a traditional
classroom setting where the student and instructor are in the same
physical location and for which a student receives course credits
and is charged tuition and fees. Examples of distance learning
instruction are instruction delivered solely through the Internet,
cable television, teleconference, or mail.
Sec. 702. The principal executive officer of each institution
of higher education receiving an appropriation under this bill
shall expend a portion of the funds appropriated to that
institution to make a report to the auditor general, the house and
senate fiscal agencies, and the state budget director within 60
days after the auditor general issues his or her report on the
operation of the institution. The institution's report shall
specify all of the following:
(a) The recommendations of the auditor general implemented by
the institution, including projected dates and resources required,
if any, to achieve compliance.
(b) The recommendations of the auditor general not implemented
by the institution or implemented by the institution as modified.
(c) The rationale for not implementing a recommendation of the
auditor general or of implementing a recommendation as modified.
Sec. 708. The auditor general may conduct performance audits
of state universities during the fiscal year ending September 30,
2009 as the auditor general considers necessary.
Sec. 709. An institution of higher education receiving funds
under this bill and also subject to the student right-to-know and
campus security act, Public Law 101-522, 104 Stat. 2381, shall make
a copy of all material prepared pursuant to the public information
reporting requirements under the crime awareness and campus
security act of 1990, title II of the student right-to-know and
campus security act, Public Law 101-542, 104 Stat. 2381, available
in electronic Internet format on their websites.
Sec. 714. An institution receiving funds under this bill and
also subject to the family educational rights and privacy act
(FERPA), 20 USC section 1232g, 34 CFR part 99, shall, when
requested, provide information from the records of a student to any
person or persons to whom the student has authorized disclosure on
a written consent form pursuant to 34 CFR 99.30.
ARTICLE 4
STATE AND REGIONAL PROGRAMS, GRANTS, AND FINANCIAL AID
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill,
the amounts listed in this part are appropriated for certain state
purposes related to education for the fiscal year ending September
30, 2009, from the funds indicated in this part.
Sec. 102. STATE AND REGIONAL PROGRAMS
Full-time equated positions....................... 1.0
Higher education database modernization and
conversion--1.0 FTE position......................... $ 200,000
Midwestern higher education compact.................... 95,000
GROSS APPROPRIATION.................................... $ 295,000
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 295,000
Sec. 103. MARTIN LUTHER KING, JR. - CESAR CHAVEZ -
ROSA PARKS PROGRAM
Select student supportive services..................... $ 1,956,100
Michigan college/university partnership program........ 586,800
Morris Hood, Jr. educator development program.......... 148,600
GROSS APPROPRIATION.................................... $ 2,691,500
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 2,691,500
Sec. 104. GRANTS AND FINANCIAL AID
State competitive scholarships......................... $ 35,530,500
Tuition grants......................................... 56,668,100
Michigan work-study program............................ 7,326,300
Part-time independent student program.................. 2,653,300
Michigan education opportunity grants.................. 2,084,200
Robert C. Byrd honors scholarship program.............. 1,500,000
Nursing scholarship and grant programs................. 4,250,000
Michigan merit award program........................... 5,200,000
Michigan promise grant program......................... 90,500,000
Tuition incentive program.............................. 25,200,000
Children of veterans tuition grant program............. 1,000,000
Project gear-up........................................ 3,000,000
GROSS APPROPRIATION.................................... $ 234,912,400
Appropriated from:
Federal revenues:
Higher education act of 1965, title IV, 20 USC......... 2,900,000
Higher education act of 1965, title IV, part A......... 1,500,000
United States department of education, office of
elementary and secondary education, gear-up.......... 3,000,000
Special revenue funds:
Michigan merit award trust fund........................ 115,800,000
Contributions to children of veterans tuition grant
program.............................................. 300,000
State general fund/general purpose..................... $ 111,412,400
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GRANTS AND FINANCIAL AID
Sec. 301. (1) Payments of the amounts included in part 1 for
the state competitive scholarship program shall be distributed
pursuant to 1964 PA 208, MCL 390.971 to 390.981.
(2) The Michigan higher education assistance authority shall
implement a proportional competitive scholarship maximum award
level for recipients enrolled less than full-time in a given
semester or term.
(3) If a student who receives an award under this section has
his or her tuition and fees paid under the Michigan educational
trust program, pursuant to the Michigan education trust act, 1986
PA 316, MCL 390.1421 to 390.1442, and still has financial need, the
funds awarded under this section may be used for educational
expenses other than tuition and fees.
(4) If the Michigan higher education assistance authority
increases the maximum award per eligible student from that provided
in the previous fiscal year, it shall not have the effect of
reducing the number of eligible students receiving awards in
relation to the total number of eligible applicants. Any increase
in the maximum grant shall be proportional for all eligible
students receiving awards.
(5) Students who receive aid under 1964 PA 208, MCL 390.971 to
390.981, shall be awarded scholarships on the basis of merit and
financial need. Veterans administration benefits shall not be
considered in determining eligibility under 1964 PA 208, MCL
390.971 to 390.981.
Sec. 302. (1) The amounts appropriated in part 1 for the state
tuition grant program shall be distributed pursuant to 1966 PA 313,
MCL 390.991 to 390.997a.
(2) Tuition grant awards shall be made to all eligible
Michigan residents who apply before June 1, 2008 and who are
qualified. Tuition grant awards shall not be made to students newly
enrolled in a juris doctor law degree program after the 1995-1996
academic year.
(3) The Michigan higher education assistance authority shall
determine an actual maximum tuition grant award per student that
ensures that the aggregate payments for the tuition grant program
do not exceed the appropriation contained in part 1 for the state
tuition grant program. By December 15, 2008, and again by February
1, 2009, the authority shall analyze the status of award
commitments, shall make any necessary adjustments, and shall
confirm that those award commitments will not exceed the
appropriation contained in part 1 for the tuition grant program.
The determination and actions shall be reported to the state budget
director and the house and senate fiscal agencies no later than
February 15, 2009. If award adjustments are necessary, the students
shall be notified of the adjustment by the third Monday in
February.
(4) The Michigan higher education assistance authority shall
continue a proportional tuition grant maximum award level for
recipients enrolled less than full-time in a given semester or
term.
(5) If the Michigan higher education assistance authority
increases the maximum award per eligible student from that provided
in the previous fiscal year, it shall not have the effect of
reducing the number of eligible students receiving awards in
relation to the total number of eligible applicants. Any increase
in the maximum grant shall be proportional for all eligible
students receiving awards for fiscal year 2008-2009.
Sec. 303. (1) Included in the appropriation in part 1 is
funding for the Michigan work-study program established under 1986
PA 288, MCL 390.1371 to 390.1382, and 1986 PA 303, MCL 390.1321 to
390.1332. An effort should be made by each institution
participating in the Michigan work-study program to assure that not
less than 10% of those undergraduate, graduate, and professional
students eligible to participate in the program are placed with
for-profit employers no later than December 31 of each year for
which funding is provided under this bill.
(2) The Michigan higher education assistance authority shall
allocate funds to institutions eligible for work-study money based
upon each institution's specific Pell grant index and each
institution's utilization rate of work-study funds for the 3 most
recent years for which statistics are available.
(3) The Michigan higher education assistance authority shall
set aside not more than 5% of the total work-study appropriation to
process requests from participating institutions for allocation
adjustments. Allocation adjustments shall be based on criteria set
by the authority prior to making the allocations under subsection
(2).
Sec. 307. The auditor general may audit selected enrollments,
degrees, and awards at selected independent colleges and
universities receiving awards administered by the department of
treasury. The audits shall be based upon definitions and
requirements established by the Michigan higher education
assistance authority, the state budget director, and the senate and
house fiscal agencies. The auditor general shall accept the Free
Application for Federal Student Aid (FAFSA) form as the standard of
residency documentation. The auditor general shall submit a report
of findings to the senate and house appropriations committees and
state budget director by May 1, 2009.
Sec. 308. The sums appropriated in part 1 for the student
financial aid programs shall be paid out of the state treasury and
shall be distributed to the respective institutions under a
quarterly payment system as follows:
(a) For the state competitive scholarship, nursing
scholarship, tuition incentive, and tuition grant programs, 40%
shall be paid at the beginning of the state's first fiscal quarter,
40% at the beginning of the state's second fiscal quarter, l0% at
the beginning of the state's third fiscal quarter, and l0% at the
beginning of the state's fourth fiscal quarter.
(b) For the work-study program, payments shall be made in 11
monthly installments from October 1 to August 31 of any year.
(c) For the part-time independent student program and the
Michigan education opportunity grant program, 50% shall be paid at
the beginning of the state's first fiscal quarter, 25% at the
beginning of the state's second fiscal quarter, and 25% at the
beginning of the state's third fiscal quarter.
(d) For the Robert C. Byrd honors scholarship program, 50%
shall be paid at the beginning of the state's first fiscal quarter
and 50% at the beginning of the state's second fiscal quarter.
Sec. 309. The Michigan higher education assistance authority
shall determine the needs analysis criteria for students to qualify
for the state competitive scholarship program and tuition grant
program. To be consistent with federal requirements, student wages
may be taken into consideration when determining the amount of the
award.
Sec. 310. (1) The funds appropriated in part 1 for the tuition
incentive program shall be distributed as provided in this section
and pursuant to the administrative procedures for the tuition
incentive program of the department of treasury.
(2) As used in this section:
(a) "Phase I" means the first part of the tuition incentive
assistance program defined as the academic period of 80 semester or
120 term credits, or less, leading to an associate degree or
certificate.
(b) "Phase II" means the second part of the tuition incentive
assistance program which provides assistance in the third and
fourth year of 4-year degree programs.
(c) "Department" means the department of treasury.
(3) A person shall meet the following basic criteria and
financial thresholds to be eligible for tuition incentive benefits:
(a) To be eligible for phase I, a person shall meet all of the
following criteria:
(i) Apply for certification to the department before graduating
from high school or completing the general education development
(GED) certificate.
(ii) Be less than 20 years of age at the time of high school
graduation or GED completion.
(iii) Be a United States citizen and a resident of Michigan
according to institutional criteria.
(iv) Be at least a half-time student, earning less than 80
semester or 120 term credits at a participating educational
institution within 4 years of high school graduation or GED
certificate completion.
(v) Request information on filing a FAFSA.
(b) To be eligible for phase II, a person shall meet either of
the following criteria in addition to the criteria in subdivision
(a):
(i) Complete at least 56 transferable semester or 84
transferable term credits.
(ii) Obtain an associate degree or certificate at a
participating institution.
(c) To be eligible for phase I or phase II, a person must be
financially eligible as determined by the department. A person is
financially eligible for the tuition incentive program if that
person was Medicaid eligible for 24 months within the 36 months
before application. Certification of eligibility may begin in the
sixth grade.
(4) For phase I, the department shall provide payment on
behalf of a person eligible under subsection (3). The department
shall reject billings that are excessive or outside the guidelines
for the type of educational institution.
(5) For phase I, all of the following apply:
(a) Payments for associate degree or certificate programs
shall not be made for more than 80 semester or 120 term credits for
any individual student at any participating institution.
(b) For persons enrolled at a Michigan community college, the
department shall pay the current in-district tuition and mandatory
fees. For persons residing in an area that is not included in any
community college district, the out-of-district tuition rate may be
authorized.
(c) For persons enrolled at a Michigan public university, the
department shall pay lower division resident tuition and mandatory
fees for the current year.
(d) For persons enrolled at a Michigan independent, nonprofit
degree-granting college or university, or a Michigan federal
tribally controlled community college, or Focus: HOPE, the
department shall pay mandatory fees for the current year and a per-
credit payment that does not exceed the average community college
in-district per-credit tuition rate as reported on August 1, for
the immediately preceding academic year.
(6) A person participating in phase II may be eligible for
additional funds not to exceed $500.00 per semester or $400.00 per
term up to a maximum of $2,000.00 subject to the following
conditions:
(a) Credits are earned in a 4-year program at a Michigan
degree-granting 4-year college or university.
(b) The tuition reimbursement is for coursework completed
within 30 months of completion of the phase I requirements.
(7) The department shall work closely with participating
institutions to develop an application and eligibility
determination process that will provide the highest level of
participation and ensure that all requirements of the program are
met.
(8) Applications for the tuition incentive program may be
approved at any time after the student begins the sixth grade. If a
determination of financial eligibility is made, that determination
is valid as long as the student meets all other program
requirements and conditions.
(9) Each institution shall ensure that all known available
restricted grants for tuition and fees are used prior to billing
the tuition incentive program for any portion of a student's
tuition and fees.
(10) The department shall ensure that the tuition incentive
program is well publicized and that potentially eligible Medicaid
clients are provided information on the program. The department
shall provide the necessary funding and staff to fully operate the
program.
Sec. 311. To enable the legislature and the state budget
director to evaluate the appropriation needs of higher education,
each independent college and university shall make available to the
legislature or state budget director, upon request, data regarding
grants for the preceding, current, and ensuing fiscal years.
Sec. 312. From the funds appropriated in part 1 for nursing
scholarship and grant programs, the Michigan higher education
assistance authority shall administer any nursing scholarship or
nursing school grant programs authorized under the Michigan nursing
scholarship act, 2002 PA 591, MCL 390.1181 to 390.1189.
Sec. 314. By December 1 of each year, the Michigan higher
education assistance authority shall submit a report to the state
budget director, the house and senate appropriations subcommittees
on higher education, and the house and senate fiscal agencies for
the preceding fiscal year on the children of veterans tuition grant
program. The report shall include, but is not limited to, the total
number of tuition grants paid by the authority in the preceding
fiscal year, the total dollar amount of those tuition grants, and
the number of students receiving tuition grants and the total
amount of those tuition grants at each eligible institution.
STATE AND REGIONAL PROGRAMS
Sec. 405. The funds appropriated in part 1 for higher
education database modernization and conversion shall be expended
to maintain, coordinate, and improve the higher education
institutional data inventory (HEIDI) established under section 1299
of the management and budget act, 1984 PA 431, MCL 18.1299. The
advisory committee established under that section shall meet
regularly to review data definitions and requirements in order to
advise the state budget director regarding changes to those
definitions and requirements that would result in more useful and
reliable data being provided to state policymakers and university
officials.
MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS
Sec. 503. (1) Included in part 1 is funding for the Martin
Luther King, Jr. - Cesar Chavez - Rosa Parks select student support
services program for developing academically or economically
disadvantaged student retention programs for 4-year state and
independent educational institutions in this state. Preference may
not be given to participants on the basis of race, color,
ethnicity, gender, or national origin. Institutions should
encourage participation from those who would otherwise not
adequately be represented in the student population.
(2) An award made under this program to any 1 institution
shall not be greater than $150,000.00, and the amount awarded shall
be matched on a 70% state, 30% college or university basis.
(3) The program described in this section shall be
administered by the Michigan department of labor and economic
growth.
Sec. 504. (1) Included in part 1 is funding for the Martin
Luther King, Jr. - Cesar Chavez - Rosa Parks college/university
partnership program between 4-year state and independent colleges
and universities and public community colleges, which is intended
to increase the number of academically or economically
disadvantaged students who transfer from community colleges into
baccalaureate programs. Preference may not be given to participants
on the basis of race, color, ethnicity, gender, or national origin.
Institutions should encourage participation from those who would
otherwise not adequately be represented in the transfer student
population.
(2) The grants shall be made under the program described in
this section to Michigan state and independent colleges and
universities. An award to any 1 institution shall not be greater
than $150,000.00, and the amount awarded shall be matched on a 70%
state, 30% college or university basis.
(3) The program described in this section shall be
administered by the Michigan department of labor and economic
growth.
Sec. 506. (1) Included in the appropriation in part 1 is
funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa
Parks initiative for the Morris Hood, Jr. educator development
program which is intended to increase the number of academically or
economically disadvantaged students who enroll in and complete K-12
teacher education programs at the baccalaureate level. Preference
may not be given to participants on the basis of race, color,
ethnicity, gender, or national origin. Institutions should
encourage participation from those who would otherwise not
adequately be represented in the teacher education student
population.
(2) The program described in this section shall be
administered by each state-approved teacher education institution
in a manner prescribed by the Michigan department of labor and
economic growth.
(3) Approved teacher education institutions may and are
encouraged to use student support services funding in coordination
with the Morris Hood, Jr. funding to achieve the goals of the
program described in this section.
Sec. 507. Each state institution of higher education receiving
funds under section 503, 504, or 506 shall notify the Michigan
department of labor and economic growth by April 15, 2009 as to
whether it will expend by the end of its fiscal year the funds
received under section 503, 504, or 506. Notwithstanding the award
limitations in sections 503 and 504, the amount of funding reported
as not being expended will be reallocated to the institutions that
intend to expend all funding received under section 503, 504, or
506.