HOUSE BILL No. 4385

 

                           Executive Budget Bill

 

 

 

 

February 23, 2005, Introduced by Rep. Whitmer 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, 2006; 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:

 

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 higher education

 

for the fiscal year ending September 30, 2006, from the funds

 


indicated in this part.  The following is a summary of the

 

appropriations in this part:

 

HIGHER EDUCATION

 

APPROPRIATION SUMMARY:

 

   Full-time equated classified position............. 1.0

 

GROSS APPROPRIATION.................................... $  1,642,834,100

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION............................ $  1,642,834,100

 

   Federal revenues:

 

Total federal revenues.................................         3,500,000

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................       146,500,000

 

State general fund/general purpose..................... $  1,492,834,100

 

    Sec. 102.  CENTRAL MICHIGAN UNIVERSITY

 

Operations............................................. $     72,904,400

 

Tuition restraint incentive............................        4,892,600

 

GROSS APPROPRIATION.................................... $     77,797,000

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................           538,440

 

State general fund/general purpose..................... $     77,258,560

 

    Sec. 103.  EASTERN MICHIGAN UNIVERSITY

 

Operations............................................. $     70,979,600

 


Tuition restraint incentive............................        4,732,400

 

GROSS APPROPRIATION.................................... $     75,712,000

 

    Appropriated from:

 

State general fund/general purpose..................... $     75,712,000

 

    Sec. 104.  FERRIS STATE UNIVERSITY

 

Operations............................................. $     45,012,900

 

Tuition restraint incentive............................        2,998,000

 

GROSS APPROPRIATION.................................... $     48,010,900

 

    Appropriated from:

 

State general fund/general purpose..................... $     48,010,900

 

    Sec. 105.  GRAND VALLEY STATE UNIVERSITY

 

Operations............................................. $     53,260,900

 

Tuition restraint incentive............................        3,545,200

 

GROSS APPROPRIATION.................................... $     56,806,100

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         5,000,000

 

State general fund/general purpose..................... $     51,806,100

 

    Sec. 106.  LAKE SUPERIOR STATE UNIVERSITY

 

Operations............................................. $     11,632,800

 

Tuition restraint incentive............................          770,600

 

GROSS APPROPRIATION.................................... $     12,403,400

 

    Appropriated from:

 

State general fund/general purpose..................... $     12,403,400

 

    Sec. 107.  MICHIGAN STATE UNIVERSITY

 

Operations............................................. $    264,527,700

 

Tuition restraint incentive............................        17,603,000

 


Agricultural experiment station........................        29,863,800

 

Cooperative extension service..........................       21,904,300

 

GROSS APPROPRIATION.................................... $    333,898,800

 

    Appropriated from:

 

State general fund/general purpose..................... $    333,898,800

 

    Sec. 108.  MICHIGAN TECHNOLOGICAL UNIVERSITY

 

Operations............................................. $     44,724,500

 

Tuition restraint incentive............................        2,983,000

 

GROSS APPROPRIATION.................................... $     47,707,500

 

    Appropriated from:

 

State general fund/general purpose..................... $     47,707,500

 

    Sec. 109.  NORTHERN MICHIGAN UNIVERSITY

 

Operations............................................. $     42,078,800

 

Tuition restraint incentive............................        2,808,600

 

GROSS APPROPRIATION.................................... $     44,887,400

 

    Appropriated from:

 

State general fund/general purpose..................... $     44,887,400

 

    Sec. 110.  OAKLAND UNIVERSITY

 

Operations............................................. $     44,130,800

 

Tuition restraint incentive............................        2,945,200

 

GROSS APPROPRIATION.................................... $     47,076,000

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         1,941,768

 

State general fund/general purpose..................... $     45,134,232

 

    Sec. 111.  SAGINAW VALLEY STATE UNIVERSITY

 

Operations............................................. $     24,011,200

 


Tuition restraint incentive............................        1,600,400

 

GROSS APPROPRIATION.................................... $     25,611,600

 

   Appropriated from:

 

   Special revenue funds:

 

Michigan merit award trust fund........................         2,019,792

 

State general fund/general purpose..................... $     23,591,808

 

    Sec. 112.  UNIVERSITY OF MICHIGAN - ANN ARBOR

 

Operations............................................. $    295,100,600

 

Tuition restraint incentive............................       19,632,400

 

GROSS APPROPRIATION.................................... $    314,733,000

 

    Appropriated from:

 

State general fund/general purpose..................... $    314,733,000

 

    Sec. 113.  UNIVERSITY OF MICHIGAN - DEARBORN

 

Operations............................................. $     22,667,900

 

Tuition restraint incentive............................        1,511,600

 

GROSS APPROPRIATION.................................... $     24,179,500

 

    Appropriated from:

 

State general fund/general purpose..................... $     24,179,500

 

    Sec. 114.  UNIVERSITY OF MICHIGAN - FLINT

 

Operations............................................. $     19,482,400

 

Tuition restraint incentive............................        1,299,600

 

GROSS APPROPRIATION.................................... $     20,782,000

 

    Appropriated from:

 

State general fund/general purpose..................... $     20,782,000

 

    Sec. 115.  WAYNE STATE UNIVERSITY

 

Operations............................................. $    200,317,100

 

Tuition restraint incentive............................       13,696,800

 


GROSS APPROPRIATION.................................... $    214,013,900

 

    Appropriated from:

 

State general fund/general purpose..................... $    214,013,900

 

    Sec. 116.  WESTERN MICHIGAN UNIVERSITY

 

Operations............................................. $    101,887,200

 

Tuition restraint incentive............................        6,786,600

 

GROSS APPROPRIATION.................................... $    108,673,800

 

    Appropriated from:

 

State general fund/general purpose..................... $    108,673,800

 

    Sec. 117.  HIGHER EDUCATION DATABASE

 

   Full-time equated position........................ 1.0

 

Higher education database modernization and

 

   conversion--1.0 FTE position......................... $        200,000

 

GROSS APPROPRIATION.................................... $        200,000

 

    Appropriated from:

 

State general fund/general purpose..................... $        200,000

 

    Sec. 118.  MARTIN LUTHER KING,JR.  - CESAR CHAVEZ - ROSA PARKS

 

PROGRAM

 

Martin Luther King, Jr. - Cesar Chavez – Rosa Parks

 

   education opportunity grant program.................. $      4,998,300

 

Morris Hood, Jr. educator development program..........          148,600

 

GROSS APPROPRIATION.................................... $      5,146,900

 

    Appropriated from:

 

State general fund/general purpose..................... $      5,146,900

 

    Sec. 119.  GRANTS AND FINANCIAL AID

 

State competitive scholarships......................... $     34,630,500

 

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 program............................         4,000,000

 

Michigan merit award program...........................       121,000,000

 

Tuition incentive program..............................       12,000,000

 

GROSS APPROPRIATION.................................... $    185,194,300

 

    Appropriated from:

 

   Federal revenues:

 

Higher education act of 1965, title IV, 20 USC.........         2,000,000

 

Higher education act of 1965, title IV, part A.........         1,500,000

 

   Special revenue funds:

 

Michigan merit award trust fund........................       137,000,000

 

State general fund/general purpose..................... $     44,694,300

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

   Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2005-2006 is $1,639,334,100.00 and

 

state spending from state resources to be paid to local units of

 

government for fiscal year 2005-2006 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.

 


   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.

 

   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, 2005.  Except for Wayne State University, each

 

institution shall accrue its July and August 2006 payments to its

 

institutional fiscal year ending June 30, 2006.

 

   (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, 2005, these data shall be submitted to the state budget

 

director by October 15, 2005.  Universities with a fiscal year

 

ending September 30, 2005 shall submit preliminary HEIDI data by

 


November 15, 2005 and final data by December 15, 2005.  If a

 

university fails to submit HEIDI data and associated financial aid

 

program information in accordance with this reporting schedule, the

 

state treasurer shall 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.

 

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 390.1444, 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.

 

   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, 2006.

 

   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,

 

part-time independent student, Michigan education opportunity

 

grant, and  tuition incentive programs, 25% shall be paid at the

 

beginning of the state's first fiscal quarter, 25% at the beginning

 

of the state's second fiscal quarter, 25% at the beginning of the

 

state's third fiscal quarter, and 25% 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 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 competitive scholarship 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/high school completion program shall be

 

distributed as provided in this section and pursuant to the

 

administrative procedures for the tuition incentive program/high

 

school completion 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.

 

   (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 and continue until the time of enrollment in a

 

participating institution.

 

   (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 level 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, the Michigan

 

higher education assistance authority shall administer the nursing

 


scholarship program pursuant to 2002 PA 591, MCL 390.1181 to

 

390.1189.

 

STATE UNIVERSITIES

 

   Sec. 433. (1) Included in part 1 is $2,953,400.00 for the

 

agricultural experiment station and $2,619,000.00 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, 2006, 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.  (1) The amounts appropriated in part 1 for state

 

university tuition restraint incentives shall only be paid to a

 

state university certifying to the state budget director by no

 

later than August 31, 2005 that the state university meets all of

 


the following criteria:

 

   (a) That the state university will not adopt an increase in

 

resident undergraduate tuition and required fees in the 2005-2006

 

academic year greater than 5.0% or $307, whichever is greater, of

 

the average lower and upper division fall and winter resident

 

undergraduate tuition and required fees for that university for the

 

2004-2005 academic year.

 

   (b) That the state university will not adopt any new type of

 

student fees.

 

   (c) That the state university will increase institutional

 

resident undergraduate financial aid spending by at least the same

 

percentage as tuition and fees are increased.

 

   (2) Under the reporting requirement established under subsection

 

(3), a state university creating or increasing a tuition or fee

 

amount applying to a specific subset of students or courses shall

 

provide sufficient information to demonstrate that such action will

 

not cause the increase in the average amount of total tuition and

 

fees paid by resident undergraduate students in the 2005-2006

 

academic year to exceed the limit established in subsection (1).

 

   (3) The state budget director shall implement a uniform

 

reporting requirement to ensure that a state university receiving

 

an appropriation under sections 102 through 116 has satisfied the

 

tuition restraint requirements of this section.

 

   Sec. 440. All universities shall submit the amount of tuition

 

and fees actually charged to a full-time resident undergraduate

 

student for academic year 2005-2006 as part of their higher

 

education institutional data inventory (HEIDI) data by August 31,

 


2005.  A university shall report any revisions for any semester of

 

the reported academic year 2005-2006 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.

 

MARTIN LUTHER KING, JR. - CESAR CHAVEZ - ROSA PARKS PROGRAMS

 

   Sec. 501.  (1) Included in part 1 is funding for the Martin

 

Luther King, Jr. – Cesar Chavez – Rosa Parks education opportunity

 

grant program.  The purpose of the Martin Luther King, Jr. – Cesar

 

Chavez – Rosa Parks education opportunity grant program is to

 

increase the participation of underrepresented minority students

 

and to ensure their success in postsecondary education

 

institutions. 

 

   (2) Awards shall be made to Michigan public community colleges

 

and universities for programs to assist underrepresented minority

 

high school students to realize the economic benefit of a college

 

education, to improve retention and success of underrepresented

 

minority students in college, and to help underrepresented minority

 

students graduate.

 

   (3) 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 50% state, 50% college or university basis.

 

   (4) The program shall be administered by the Michigan department

 

of labor and economic growth.

 

   (5) Each award recipient shall provide an annual report in a

 


form and manner determined by the Michigan department of labor and

 

economic growth that tracks each student served in the program and

 

specifies if the student enrolled in a postsecondary education

 

program made satisfactory educational progress, or graduated.

 

   (6) Notwithstanding the award limitation in subsection (3), any

 

remaining funding not allocated under the initial awards may be

 

awarded to an institution submitting an initial proposal that

 

exceeds this limitation or a subsequent proposal for an expanded

 

program.

 

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.

 


GENERAL REPORTS AND AUDITS

 

   Sec. 701. (1) The auditor general shall review higher education

 

institutional data inventory (HEIDI) enrollment data submitted by

 

all public universities and may perform audits of selected public

 

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 and the senate

 

and house fiscal agencies.  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,

 

2006.

 

   (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 paying the institution's 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 approved

 

for the HEIDI database.

 

   (4) "Distance learning instruction" as used in subsection (2)

 

means instruction that occurs 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, 2006

 

as the auditor general considers necessary.

 

   Sec. 709. An institution 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.