[Please see the PDF version of this analysis, if available, to view this image.]
FY 2023-24 HIGHER EDUCATION BUDGET
S.B. 200 (S-4): SENATE APPROPRIATIONS REC.
Committee: Appropriations Throughout this document Senate means Committee Recommendation
|
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE |
FY 2022-23 YEAR-TO-DATE* |
FY 2023-24 |
CHANGES FROM FY 2022-23 YEAR-TO-DATE |
|
|
AMOUNT |
PERCENT |
|||
|
FTE Positions............................................................. |
0.0 |
0.0 |
N/A |
N/A |
|
GROSS....................................................................... |
2,016,635,700 |
2,332,091,200 |
315,455,500 |
15.6 |
|
Less: |
|
|
|
|
|
Interdepartmental Grants Received............................ |
0 |
0 |
0 |
0.0 |
|
ADJUSTED GROSS.................................................... |
2,016,635,700 |
2,332,091,200 |
315,455,500 |
15.6 |
|
Less: |
|
|
|
|
|
Federal Funds.......................................................... |
128,526,400 |
128,526,400 |
0 |
0.0 |
|
Local and Private...................................................... |
0 |
0 |
0 |
0.0 |
|
TOTAL STATE SPENDING......................................... |
1,888,109,300 |
2,203,564,800 |
315,455,500 |
16.7 |
|
Less: |
|
|
|
|
|
Other State Restricted Funds.................................... |
347,888,300 |
352,268,300 |
4,380,000 |
1.3 |
|
GENERAL FUND/GENERAL PURPOSE...................... |
1,540,221,000 |
1,851,296,500 |
311,075,500 |
20.2 |
|
PAYMENTS TO LOCALS............................................ |
0 |
0 |
0 |
0.0 |
*As of February 7, 2023.
|
Major Boilerplate Changes from FY 2022-23 Year-to-Date: |
|
1. Repealed Sections (sections in italics are rolled into consolidated reporting sections): 236h (FY22 MPSERS UAAL payment), 245 (budget transparency), 245a (campus safety information and resources), 246 (MPSERS reimbursement), 265 (tuition restraint), 265a (performance funding criteria), 265b (sexual assault prevention/Title IX standards), 265d (MOUs with local law enforcement), 265e (campus safety programs), 265f (college course equivalency exams), 265g (accelerated degree pathways), 266a (declining enrollment), 267 (tuition and fees HEIDI report), 271a (discouraged instruction activity), 274 (human embryonic stem cell research), 274c (sexual assault response training), 274d (Title IX report), 275f (campus free speech), 275g (COVID-19 report), 275h (advocacy policy), 275i (mandatory COVID-19 vaccination exemptions), 281a (King-Chavez-Parks report). |
|
2. New Sections: 241a (new report containing most of the content from reports required under Sec. 245 and 245a in current law), 241b (new report containing content from reports required under Sec. 265b, 274c, and 274d in current law), 241c (new report/requirements containing provisions from Sec. 265 and 267 in current law), 275k (charter school authorizer report), 284a (postsecondary data by legislative district) |
|
3. Modified Sections: 248 (Michigan Achievement Scholarship change calculation of other student aid; remove certain reporting reqs.), 251 (Michigan Competitive Scholarship application deadline), 252 (Tuition Grants application deadline), 283 (P-20 data system share data with postsecondary institutions) |
|
4. Other Issues: Tuition restraint set at the greater of 4.5% or $676. |
|
|
|
FY 2022-23 Year-to-Date Appropriation.................................................. |
$2,016,635,700 |
$1,540,221,000 |
|
|
|
|
CHANGE
FROM |
FY 2023-24 RECOMMENDED |
|||
|
Gross |
GF/GP |
Gross |
GF/GP |
||
|
Baseline Adjustments |
|
|
|
|
|
|
1. MPSERS Normal Cost Offset. The Senate included additional funds for MPSERS normal costs, which are the present value of the cost of future retirement benefits accrued during a year of employment. This appropriation varies annually, based on market conditions, payroll growth, and various other actuarial assumptions. |
4,450,000 |
0 |
9,100,000 |
0 |
|
|
2. North American Indian Tuition Waiver Adjustments. The Senate included an adjustment to ITW payments to colleges, based on the most recent ITW cost data submitted to the Department of Civil Rights. |
257,200 |
257,200 |
12,318,300 |
12,318,300 |
|
|
3. Michigan Competitive Scholarship (MCS) Phaseout. The Senate's budget reflects an anticipated reduction in MCS expenditures due to the eventual phaseout of the MCS associated with the Michigan Achievement Scholarship (MAS). Statute does not allow a student to receive an award from both the MCS and MAS; since the MAS has a significantly higher award amount for most students, it is anticipated that students who would be eligible for both will select the MAS. |
(3,000,000) |
(3,000,000) |
26,861,700 |
2,930,900 |
|
|
4. MPSERS Unfunded Actuarily Accrued Liabilities (UAAL) Stabilization Payment. The Senate removed appropriations for the State's share of MPSERS UAAL costs in excess of the 25.73% statutory cap. The FY 2021-22 budget contained $384.7 million to pay down this liability and to rebase the annual payments the 7 MPSERS universities pay toward the UAAL. The rebased payment amounts for each university will not exceed the cap during FY 2023-24, so no State payment is statutorily required. |
(70,000) |
0 |
0 |
0 |
|
|
New Programs/Program Increases |
|
|
|
|
|
|
5. University Operations Increase. The Senate included a 6.0% ongoing operations increase for universities, distributed proportionately to each university's FY 2022-23 operations amounts. This increase also reflects a 6.0% increase for MSU Extension and AgBioResearch. |
95,944,000 |
95,944,000 |
1,677,297,400 |
1,334,129,100 |
|
|
6. University Per-FYES Floor Payments. The Senate included additional funds for the second year of a 3-year policy intended to bring each university's per-FYES State aid up to a minimum of $4,500 per FYES. Oakland, Grand Valley, and U of M - Dearborn would receive additional funds under this item. |
5,644,400 |
5,644,400 |
23,354,100 |
23,354,100 |
|
|
7. Higher Education Coordinating Council. The Senate included funding and boilerplate to create a new council to perform various statewide functions as they relate to postsecondary education, including reporting, coordination of scholarship programs, and data analysis. |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
|
8. Postsecondary Scholarship Fund Deposit. The Senate included an additional $50.0 million ongoing GF/GP deposit to the Postsecondary Scholarship Fund. The Fund is the primary fund source for the Michigan Achievement Scholarship. Boilerplate language states the intent that appropriations to the Fund increase by $50.0 million each year until the MAS is fully implemented. |
50,000,000 |
50,000,000 |
300,000,000 |
300,000,000 |
|
|
One-Time Appropriations |
|
|
|
|
|
|
9. Information Technology, Equipment, and Maintenance (ITEM) Grants. The Senate included $141.3 million in one-time GF/GP for universities to use on various IT, equipment, and other capital costs, including sustainability efforts and the repayment of debt. Funds are allocated to universities based on their FY 2021-22 full-year equated student counts. |
141,277,500 |
141,277,500 |
141,277,500 |
141,277,500 |
|
|
10. MPSERS Participant Supplemental Payment. The Senate included $13.0 million for the seven universities that participate in MPSERS. Those universities received a smaller ongoing funding increase in the FY 2022-23 budget; this payment would make up the difference between what those universities received as an increase in FY 2022-23 and the minimum increase received by other universities. |
12,952,400 |
12,952,400 |
12,952,400 |
12,952,400 |
|
|
11. Critical Incident Mapping. The Senate included $2.5 million one-time GF/GP, distributed to universities proportionately to each university's FY 2023-24 operations amount, for critical incident mapping. |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
|
12. Michigan Geological Survey. The Senate included $2.0 million GF/GP for Western Michigan University to construct a new facility to house the Michigan Geological Survey. |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
|
13. Finlandia University Reenrollment Scholarship. The Senate included $1.0 million GF/GP for a one-time scholarship award of $3,000 for former students at Finlandia University to enroll at a Michigan public university or community college. |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
|
|
|
|
|
|
|
|
$315,455,500 |
$311,075,500 |
|
|
|
|
FY 2023-24 SENATE APPROPRIATIONS REC.............................................. |
$2,332,091,200 |
$1,851,296,500 |
|
|
Date Completed: 5-2-23 Fiscal Analyst: Josh Sefton