FY 2018-19 HIGHER EDUCATION BUDGET S.B. 857 (S-1) CR-1: CONFERENCE REPORT
*As of May 3, 2018.
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$1,629,224,400 |
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Items Included by the Senate and House |
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1. Competitive Scholarships. Public Act 208 of 1964 established State Competitive Scholarships. Undergraduate students at Michigan two-year and four-year, public and private institutions are eligible for up to 10 semesters if they have financial need and a qualifying SAT score. Governor recommended increasing funding by 6.0 million Federal Temporary Assistance for Needy Families (TANF) (22.8%), from $26,361,700 to $32,361,700, offset by a $6.0 million reduction to the Tuition Grant Program (see item #2 below). These adjustments are recommended based on eligible students and fully funding the grant award amounts set in the State School Aid Act (Sections 251 and 252). Governor recommended the same adjustment in an FY 2017-18 Supplemental (DTMB Supplemental Request 2018-5). Senate and House included the $6.0 million increase for Competitive Scholarships in FY 2018-19, but did not include the FY 2017-18 supplemental in this bill. Conference included the FY 2017-18 adjustment along with the FY 2018-19 increase that was included by the Senate and House. |
6,000,000 |
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2. Tuition Grants. Public Act 313 of 1966 established Tuition Grants. Undergraduate students at Michigan private institutions are eligible for up to 10 semesters, if they have financial need. Governor recommended decreasing funding for Tuition Grants by $6.0 million TANF, from $38,021,500 to $32,021,500, based on enrollments and projected amounts needed to fund the grant award amount set in the State School Aid Act. Governor recommended the same adjustment in an FY 2017-18 Supplemental (DTMB Supplemental Request 2018-5). Senate and House did not include the proposed $6.0 million reduction for FY 2018-19, and also did not include the proposed FY 2017-18 supplemental reduction in this bill. Conference maintained the $38.0 million funding level for Tuition Grants in FY 2018-19, but did reduce Tuition Grants in FY 2017-18 to fund the FY 2017-18 $6.0 million increase for Competitive Scholarships in that year. |
0 |
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3. Tuition Incentive Program (TIP). The TIP is a financial aid program targeted toward low-income middle school and high school students. It was established in FY 1986-87 through language in the Department of Social Services appropriation bill and was transferred to the Higher Education budget in FY 1992-93. The TIP provides an incentive to students to complete high school and go on to college by pledging to pay their tuition and fees for associate degree or certificate programs (Phase I), as well as up to $2,000 at a four-year institution (Phase II). Students in grades 6 through 12 who are Michigan Medicaid-eligible for 24 months in a 36-consecutive-month period can qualify for TIP. Governor increased funding from by $1.5 million TANF, from 58.3 million to $59.8 million. Senate and House concurred with Governor. Conference increased TIP funding by another $4.5 million TANF, resulting in a $6.0 million increase and bringing FY 2018-19 total funding to $64.3 million in order to fund the elimination of cost containment measures in Section 256. (See Item #10 in boilerplate section of this analysis.) |
6,000,000 |
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4. Michigan Public School Employees' Retirement System (MPSERS). Adjustments for the seven universities (Central, Eastern, Ferris, Lake Superior, Michigan Tech, Northern, and Western) include a decrease of $1,572,000 School Aid Fund (SAF) based on the rate cap for the UAAL; and a one-time increase of $250,000 (SAF) due to decreasing the assumed rate of return for the normal cost offset. Senate and House concurred with Governor. |
(1,322,000) |
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5. North American Indian Tuition Waiver. Public Act 174 of 1976 provides for free tuition for Michigan resident North American Indians who attend Michigan public community colleges and universities, and certain Federal tribally controlled community colleges. State appropriations in university operation budgets have not kept pace with actual costs. In FY 2016-17, universities absorbed $6.5 million in waiver costs. The FY 2017-18 budget included a separate appropriation of $300,000 to partially offset the shortfall in State funding. Governor recommended removing the $300,000 in FY 2018-19. Senate and House maintained funding. |
0 |
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Conference Agreement on Items of Difference |
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1. University Operations. Governor included an overall $28.6 million SAF (2.0%) increase for university operations. The formula continues performance metrics used in recent years. Half of the funding increase is allocated proportional to FY 2010-11 (across-the-board). The balance of the funding is allocated using metrics that include; weighted undergraduate completions in critical skills, research and development expenditures, six-year graduation rates, total degree completions, administrative costs, and percentage of students receiving Pell Grants. The Governor proposed a minor modification to the formula by increasing weighting for associate degrees and certificates in the critical skills metric. Senate did not concur with Governor's revised weighting for the critical skills metric and maintained the existing performance funding formula for the 2.0% SAF increase. Senate included an additional $14.3 million GF/GP, resulting in an overall 3.0% increase for university operations. The additional funds are allocated proportional to FY 2010-11 operations funding (across-the-board) and are required to be used for campus safety programs, sexual assault prevention programs, and student mental health programs. House did not concur with Governor's revised weighting for the critical skills metric and maintained the existing performance funding formula, but reduced the increase for university operations by $14.3 million SAF (1.0%). Conference included a $28.6 million SAF (2.0%) increase based on the distribution formula used by the Senate and House. No distribution was based on the Senate's campus initiatives funding category. Table 1 provides details of formula allocations. Table 2 compares FY 2017-18 Year-to-Date funding; and the FY 2018-19 Governor's recommendation, Senate, House, and Conference versions of the budget. |
28,566,800 |
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2. Funding Shift. Governor and Senate shifted $120.0 million in funding for university operations from the State General Fund to the SAF. House shifted an additional $14.3 million to the SAF. Conference shifted a total of 234.5 million from the State General Fund to the SAF. This results in a total Higher Education SAF appropriation of $500.1 million. |
0 |
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3. MSU AgBioResearch. MSU AgBioResearch performs agricultural research to promote efficient production, marketing, distribution, and use of farm products. Governor included a $678,300 GF/GP (2.0%) increase. Senate provided a $1,017,400 GF/GP (3.0%) increase. House reduced increase to $339,100 GF/GP (1.0%). Conference included a $678,300 GF/GP (2.0%) increase, bringing total FY 2018-19 funding to $34,591,400. |
678,300 |
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4. MSU Extension. MSU Extension identifies and solves farm, home, and community problems through the practical application of research findings. MSU Extension operates Michigan's Expanded Food and Nutrition Education Program (EFNEP), serves as a resource for youth 4-H programs, and provides information on family financial planning. Governor included a $585,100 GF/GP (2.0%) increase. Senate included an $877,600 GF/GP (3.0%) increase. House reduced increase to $292,500 GF/GP (1.0%). Conference included a $585,100 GF/GP (2.0%) increase, bringing total FY 2018-19 funding to $29,837,700. |
585,100 |
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5. FY 2018-19 One-Time Gross Appropriations. The Governor, Senate, and House included a $250,000 SAF increase to the current-year one-time appropriation of $419,000 due to decreasing the assumed rate of return for the MPSERS normal cost offset. This results in an FY 2018-19 one-time appropriation of $669,000 SAF. |
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$40,508,200 |
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FY 2018-19 Conference Report Ongoing/One-Time Gross Appropriation............................. |
$1,669,732,600 |
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Amount Over/(Under) GF/GP Target: |
$0 |
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Boilerplate Changes from FY 2017-18 Year-to-Date: |
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Items Included by the Senate and House |
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1. Tuition Restraint. Governor updated the cap for increases in resident undergraduate tuition and fee rates to the greater of 3.8% or $490 (greater of 3.8% or $475 in FY 2017-18); eliminated language that states "fee” includes the annual amount a student is charged for coverage by the university-affiliated group health insurance policy; removed provision that stated universities exceeding the cap will not receive planning or construction authorizations for a State funded capital outlay project in the subsequent two fiscal years; removed provision stating that other sanctions may be imposed at any time by the Legislature for universities exceeding tuition cap; and updated date references. Senate and House concurred with the tuition rate cap of 3.8% or $490 and updating date references, but did not include any of the other changes recommended by Governor. Conference extended the penalty for exceeding tuition restraint to the loss of performance funding for three fiscal years (FY 2018-19, FY 2019-20 and FY 2020-21). The prohibition on receiving planning or construction authorizations for a State funded capital outlay project in the subsequent two fiscal years was also extended to three years. (Sec. 265) |
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2. Performance Funding. Governor removed the legislative intent statement that, beginning in the next State fiscal year, a university classified as improving is assigned a score of 1; included increased weighting for certificates and associate degrees in critical skills metric, eliminated the legislative intent statement to allocate more funding based on performance metrics in future years; and updated date references. Senate and House updated date references but did not include any other change recommended by Governor. Conference extended the penalty for exceeding tuition restraint and not complying with other prerequisites to three fiscal years (FY 2018-19, FY 2019-20 and FY 2020-21). (Sec. 265a) |
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3. Indian Tuition Waiver. Governor removed the legislative intent statement that funds be allocated from the General Fund for unfunded North American Indian tuition waiver costs incurred by public universities. Governor also removed language regarding the distribution of additional funds appropriated for waiver costs. Senate and House restored both provisions. (Sec. 268 (1)(2)) |
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4. Yellow Ribbon GI Education Enhancement Program. Requires universities to meet the provisions of section 5003 of the post-911 veterans educational assistance act of 2008, 38 USC 3301 to 3327, including voluntary participation in the Yellow Ribbon GI Education Enhancement Program established in that act in 38 USC 3317. Requires reporting to Higher Education Subcommittees, fiscal agencies, and the Michigan Association of State Universities on whether or not it has chosen to participate in the Yellow Ribbon GI Education Enhancement Program. Requires establishment of an on-campus veterans’ liaison to provide information and assistance to all student veterans flexible enrollment deadlines for veterans and admission application process that includes a specific question as to whether an applicant for admission is a veteran, an active member of the military, a member of the National Guard or military reserves, or the spouse or dependent of a veteran, active member of the military, or member of the National Guard or military reserves, in order to more quickly identify potential educational assistance available to that applicant. Also requires universities to consider all veterans residents of this state for determining their tuition rates and fees, waive enrollment fees for all veterans, and report by October 1 of each year, regarding services provided specifically to veterans and active military duty personnel. Governor removed this section. Senate and House restored it. (Sec. 275) |
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5. Higher Education Institutional Data Inventory (HEIDI) Audit. Governor recommended changing the frequency that the Auditor General is required to audit data submitted by universities from "periodically" to "not less than every four years." Senate and House concurred with Governor. (Sec. 289) |
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6. Restored Provisions. Senate and House restored the following provisions that were removed by Governor: Intent regarding appropriations for the next fiscal year (Sec. 236a); provision stating the acceptance and use of Federal or private funds does not place an obligation upon the Legislature to continue the purposes for which the funds are made available (portion of Sec. 242); intent regarding protection/preservation of U of M Douglas Lake Biological Station (Sec. 261); discouraged instruction activity (Sec. 271a); and human embryonic stem cell research report (Sec. 274). |
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Conference Agreement on Items of Difference |
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7. Budget Transparency. Requires public university to maintain a public transparency website available through a link on its website homepage with specified budget and other information. Governor removed State Budget Director's authority to determine compliance and withhold funds for noncompliance. Senate and House did not concur with Governor and maintained current year language. Senate transferred reports related to campus security policies and crime statistics to a new Campus Safety Information and Resources section (see Item # 8 below). Conference concurred with Senate. (Sec. 245) |
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8. Campus Safety Information and Resources. Senate added new language requiring public universities to develop, maintain, and update a "campus safety information and resources" link, prominently displayed on the homepage of its website. Information required to be included on the "campus safety information and resources" section of each public university's website shall include, but not be limited to, all of the following information:
· Emergency contact numbers for police, fire, health, and other services. · Hours, locations, phone numbers, and electronic mail contacts for campus public safety offices and Title IX offices. · A listing of safety and security services provided by the university, including transportation, escort services, building surveillance, anonymous tip lines, and other available security services. · A public university’s policies applicable to minors on university property. · A directory of resources available at the university or surrounding community for students or employees who are survivors of sexual assault or sexual abuse. · An electronic copy of “A Resource Handbook for Campus Sexual Assault Survivors, Friends and Family,” published in 2018 by the office of the governor in conjunction with the first lady of Michigan. · Campus security policies and crime statistics pursuant to the Student Right-to-Know and Campus Security Act, public law 101-542, 104 stat 2381.
The State Budget Director shall determine whether a public university has complied with this section and may withhold a public university's monthly State aid payments until the public university complies with this section. House did not include this new section. Conference included, but requires universities to certify to the State Budget Director by August 31, 2018 that they are in compliance with this section, instead of Budget Director determining compliance. (Sec. 245a) |
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9. State Tuition Grant Program. Provides that grants for the State Tuition Grant Program shall be distributed pursuant to 1966 PA 313 and includes other criteria. The Department of Treasury determines an actual maximum state tuition grant award per student, which shall not be less than $2,000. The section also provides that not more than $3.2 million in tuition grants shall be awarded to eligible students enrolled in the same independent nonprofit institution. Governor increased the per student award stated in this section from $2,000 to $2,100. Senate increased per student award to $2,400. House increased per student award to $2,300. Conference set per student award at $2,400. Governor, Senate, and House removed the provision that limited duration of grant eligibility to ten years after eligibility is first determined. Governor and Senate eliminated the termination date for use of carry-forward funds. House maintained termination date. Conference concurred with Senate.
Governor, Senate, and House increased the maximum award to students enrolled in the same independent nonprofit college by $700,000, from $3.5 million to $4.2 million. Senate added new language providing that the $4.2 million per institution limit does not apply to any other student financial aid program or combination with any other student financial aid program. Conference concurred with Senate. (Sec. 252) |
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10. Tuition Incentive Program (TIP). Provides criteria for the TIP. Governor eliminated the carry-forward authorization for unexpended funds. Senate and House restored Governor and Senate extended the date for implementation of penalty for reporting requirement noncompliance, from FY 2018-19 to FY 2019-20. House eliminated extension. Conference concurred with Senate. Senate eliminated the $8.5 million TIP maximum payment cap for eligible students enrolled in same institution. House increased cap to $10.0 million and provided for funding priority in the next academic year to students who currently receive TIP. Conference concurred with Senate. Senate removed the 3 times the average community college in-district per-credit tuition reimbursement cap for students enrolled in public universities. Governor and House maintained. (The 3x cost containment measure was scheduled to be implemented in FY 2018-19.) Conference concurred with Senate. (Sec. 256) |
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11. Sec. 265b. Sexual Assault Prevention/ Title IX Standards. The House added language providing for a 10% reduction in funding for universities that fail to comply with Title IX reporting requirements in sections 274c and 274d or fails to certify to the State Budget Director, the appropriation subcommittees on higher education, and the fiscal agencies by August 31, 2018 that it complies with other specified requirements related to Title IX investigations. Conference included the following language: (1) Appropriations to public universities in section 236 for the fiscal year ending September 30, 2019 for operations funding shall be reduced by 10% pursuant to the procedures described in subdivision (a) for a public university that fails to submit certification to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies by August 31, 2018 that the university complies with sections 274c and 274d and that it complies with all of the requirements described in subdivisions (b) to (i), as follows: (a) If a university fails to submit certification, the state budget director shall withhold 10% of that university's annual operations funding until the university submits certification. If a university fails to submit certification by the end of the fiscal year, the 10% of its annual operations funding that is withheld shall lapse to the general fund. (b) For title IX investigations of alleged sexual misconduct, the university prohibits the use of medical experts that have an actual or apparent conflict of interest. (c) For title IX investigations of alleged sexual misconduct, the university prohibits the issuance of divergent reports to complainants, respondents, and administration and instead requires that identical reports be issued to them. (d) Consistent with the university's obligations under 20 USC 1092(f), the university notifies each individual who reports having experienced sexual assault by a student, faculty member, or staff member of the university that the individual has the option to report the matter to law enforcement, to the university, to both, or to neither, as the individual may choose. (e) The university provides both of the following: (i) For all freshmen and incoming transfer students enrolled, an in-person sexual misconduct prevention presentation or course, which must include contact information for the title IX office of the university. (ii) For all students not considered freshmen or incoming transfer students, an online or electronic sexual misconduct prevention presentation or course. (f) The university prohibits seeking compensation from the recipient of any medical procedure, treatment, or care provided by a medical professional who has been convicted of a felony arising out of the medical procedure, treatment, or care. (g) The university has or plans to have a third party review its title IX compliance office and related policies and procedures by the end of the 2018-2019 academic year. A copy of the third-party review shall be transmitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies. After the third-party review has been conducted for the 2018-2019 academic year, the university shall have a third-party review once every three years and a copy of the third-party review shall be transmitted to the state budget director, the house and senate appropriations subcommittees on higher education, and the house and senate fiscal agencies. (h) The university requires that the governing board and the president or chancellor of the university receive not less than quarterly reports from their title IX coordinator or title IX office. The report shall contain aggregated data of the number of sexual misconduct reports that the office received for the academic year, the types of reports received, including reports received against employees, and a summary of the general outcomes of the reports and investigations. A member of the governing board may request to review a title IX investigation report involving a complaint against an employee, and the university shall provide the report in a manner it considers appropriate. The university shall protect the complainant's anonymity, and the report shall not contain specific identifying information. (i) If allegations against an employee are made in more than 1 title IX complaint that resulted in the university finding that no misconduct occurred, the university requires that the title IX officer promptly notify the president or chancellor and a member of the university's governing board in writing and take all appropriate steps to ensure that the matter is being investigated thoroughly, including hiring an outside investigator for future cases involving that employee. A third-party title IX investigation under this subdivision does not prohibit the university from simultaneously conducting its own title IX investigation through its own title IX coordinator. (2) Each public university that receives an appropriation in section 236 shall also certify that its president or chancellor and a member of its governing board has reviewed all title IX reports involving the alleged sexual misconduct of an employee of the university, and shall send the certification to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director by August 31, 2018. (3) For purposes of this section, "sexual misconduct" includes, but is not limited to, any of the following: (a) Intimate partner violence. (b) Nonconsensual sexual conduct. (c) Sexual assault. (d) Sexual exploitation. (e) Sexual harassment. (f) Stalking. |
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12. Academic Program Partnerships. Governor and House included language (Sec. 265b in Governor's recommendation/Sec. 265c in House version of budget) requiring the Michigan Community College Association, the Michigan Association of State Universities, and the Michigan Independent Colleges and Universities, on behalf of their member colleges and universities, to submit a comprehensive report detailing the number of academic program partnerships between public community colleges; public universities, and private colleges and universities. This language was first included with the FY 2016-17 appropriation. It was removed in the FY 2017-18 budget. Senate did not include this section. Conference concurred with House. (Sec 265c) |
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13. Memorandums of Understanding with Local Law Enforcement. House added language that encourages public universities to enter into a memorandum of understanding with at least 1 local law enforcement agency with jurisdiction on or around campus for the communication and coordination of responses to incidents of sexual assault. Recommends that the memorandum of understanding include guidelines for proper communication and coordination of responses to incidents of reported sexual assault; procedures for filing a complaint with the university; information about local and campus resources for victims of sexual assault; specific details concerning how local law enforcement will inform the university about reports of sexual assault it receives involving students, faculty, or staff and a general time frame for how long it will take local law enforcement to conduct any investigation; and procedures for sharing information, including information concerning recent trends and strategies to prevent sexual assault, such as trauma-informed investigation practices that encourage reporting. Conference only includes statement encouraging universities to enter into a memorandum of understanding with at least one local law enforcement agency, and does not include recommendations as to what should be included in the memorandum of understanding. (Sec. 265d) |
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14. Campus Initiatives. Senate added new language providing that additional funding the Senate included for campus initiatives shall be limited to expenditures on Campus Safety Programs, Sexual Assault Prevention Programs, and Student Mental Health Programs. Conference did not include the additional funding, but included legislative intent language stating that a portion of the funds appropriated to universities in Section 236 shall be expended on those programs. (Sec. 265e) |
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15. Title IX Report. Requires public universities to report to higher education subcommittees, the fiscal agencies, and the State Budget Director their annual Title IX report. House added Attorney General, Department of Civil Rights, and county sheriff as report recipients and a new subsection (2) that requires a summary report that includes; fees incurred in civil and criminal litigation; the number of Title IX complaints; the average length of time for the investigation and resolution of complaints; the aggregate number of cases, investigations and complaints measured by categories of 15, 30, 60, and 90 day time periods; the number of appeals and resolution of those appeals, and the number of complaints filed by the university with law enforcement agencies. Conference adds only the Attorney General to report recipients and maintains summary report requirements with a few category adjustments regarding the procedure for reporting less than five cases. (Sec, 274d) |
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16. State Funding Purpose and Annual Accounting. Senate added language stating that pursuant to Section 4 of Article VIII of the State Constitution of 1963, appropriations of state taxpayer funding provided for in Section 236 shall be expended to maintain Michigan public universities. Each public university that receives State funding shall provide the legislature with an annual accounting of all of its income and expenditures. Conference did not include this section. (Sec. 274e in Senate version of bill) |
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17. Title IX Operations Audits. The House added language requiring the Auditor General to audit Title IX operations of all public universities at least once every three years. Conference did not include. (Sec. 274e in House version of bill) |
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18. President/Governing Board - Incident Report. Senate added language requiring each public university receiving funds under Section 236 shall require that the governing board and the president of the university receive not less than quarterly reports from their Title IX coordinator or Title IX office. The report shall contain aggregated data of the number of sexual misconduct reports that the office received for the academic year, the types of reports received, and a summary of the general outcomes of the reports and investigations. The report shall not contain specific identifying information. Conference included a modified version of this section (Sec. 274f in Senate version of the bill) in Section 265 b (h). |
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19. State Police Grants. The House added language stating that funding is provided within the Department of State Police budget for the sexual assault prevention and education initiative. This funding shall be used to provide and administer grants to public or nonpublic community colleges, colleges, and universities with a physical presence in this State to address the campus sexual assault issue and to improve the safety and security of students, faculty, and staff in campus environments in this State. An award of grant funds shall be used to support sexual assault programs, including education, awareness, prevention, reporting, and bystander-intervention programs; peer advocacy groups that are student-run organizations dedicated to safety on campuses and eliminating the silence on campuses related to sexual assault; and other actions covered by Title IX protections. Conference did not include. (Sec. 274f in House version of bill) |
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20. Performance Funding Task Force. The House added language that provides for a task force to be formed by August 15, 2019 to review, evaluate, discuss, and make recommendations regarding the performance funding formula provided for in section 265a. Requires report on recommendations by November 15, 2019. Conference did not include. (Sec. 292 in House version of bill) |
Date Completed: 5-7-18 Fiscal Analyst: Bill Bowerman
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.