June 16, 2005, Introduced by Reps. Stewart, Kooiman, Booher, Caul, Farhat, Wenke, Moolenaar, David Law, Kahn, Garfield, Nofs, Amos and Vander Veen and referred to the Committee on Appropriations.

A bill to provide for the distribution of certain state

revenues to state universities; and to prescribe the powers and

duties of certain state departments and other boards and officials.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"workforce investment needs university funding act".

Sec. 3. As used in this act:

(a) "Current fiscal year" means the then current fiscal year

in which a payment calculation under this act is made.

(b) "Degree payment" means a payment to a state university

calculated under section 5(1)(b).

(c) "Department" means the department of management and

budget.

(d) "Enrollment payment" means a payment to a state university

calculated under section 5(1)(a).

(e) "Fiscal year" means a fiscal year of this state that

begins on October 1 of a calendar year and ends on September 30 of

the next calendar year.

(f) The number of "fiscal year equated students" at a state

university in a fiscal year is the sum of the following:

(*i*) The total number of semester credit hours of
courses taken

by undergraduate students in the fiscal year divided by 30.

(*ii*) The total number of semester credit hours of
courses taken

by students in master's programs in the fiscal year divided by 24.

(*iii*) The total number of semester credit hours of
courses taken

by students in doctoral programs in the fiscal year divided by 16.

(*iv*) The sum of 50% of the total number of students
taking

courses in professional degree programs in the fiscal year in the

fall and winter terms, plus 50% of the total number of students

taking courses in professional degree programs in the fiscal year

in the spring or summer term.

(g) "Research payment" means a payment to a state university

calculated under section 5(1)(c).

(h) "State university" means a university described in section

4, 5, or 6 of article VIII of the state constitution of 1963.

Sec. 5. (1) Beginning in the 2005-2006 fiscal year, the state

treasurer shall pay money appropriated by the legislature in a

fiscal year for state university operations to state universities

according to the following formula:

(a) The state treasurer shall pay between 35% and 40%, as

established by the legislature in the annual appropriation bill for

state universities for that fiscal year, of the amount available

for operations, to the state universities based on their

enrollment. The payment to a state university under this

subdivision is determined by multiplying the amount appropriated

for state universities under this subdivision by a fraction, the

numerator of which is the enrollment at the state university,

determined under section 7, and the denominator of which is the

enrollment at all of the state universities.

(b) The state treasurer shall pay between 35% and 40%, as

established by the legislature in the annual appropriation bill for

state universities for that fiscal year, of the amount available

for operations to the state universities, based on their degree

programs. The payment to a state university under this subdivision

is determined by multiplying the amount appropriated for state

universities under this subdivision by a fraction, the numerator of

which is the number of degrees awarded by the state university,

determined under section 9, and the denominator of which is the

number of degrees awarded by all of the state universities.

(c) The state treasurer shall pay between 23% and 28%, as

established by the legislature in the annual appropriation bill for

state universities for that fiscal year, of the amount available

for operations to the state universities, based on their research

activities as determined under section 11. The payment to a state

university under this subdivision is determined by multiplying the

amount appropriated for state universities under this subdivision

by a fraction, the numerator of which is the amount of eligible

research conducted by the state university, determined under

section 11, and the denominator of which is the amount of the

eligible research conducted by all of the state universities and is

subject to the maximum amount described in section 11.

(2) In a fiscal year, the state treasurer shall pay money

under subsection (1) out of the state treasury and distribute it in

11 equal installments on the sixteenth of each month, or the next

succeeding business day, beginning with October 16 of that fiscal

year.

Sec. 7. For purposes of section 5(1)(a), the enrollment of a

state university is the sum of the following, as determined by the

department:

(a) The number of resident fiscal year equated students that

were enrolled in the state university 2 fiscal years before the

current fiscal year.

(b) The number of nonresident fiscal year equated students

that were enrolled in the state university 2 fiscal years before

the current fiscal year, multiplied by a factor of between 0.5 and

0.75. In the annual appropriation bill for state universities, the

legislature shall determine the factor for that fiscal year.

Sec. 9. (1) For purposes of section 5(1)(b), the degrees

awarded by a state university are the sum of the following, as

determined by the department:

(a) The number of students awarded bachelor's degrees by the

state university 2 fiscal years before the current fiscal year,

multiplied by 1 of the following, as applicable:

(*i*) For degrees in agriculture or natural science, a
multiplier

of between 2.0 and 4.0, as determined by the legislature in the

annual appropriation bill for state universities for the current

fiscal year.

(*ii*) For degrees in engineering or technology, a
multiplier of

between 3.0 and 5.0, as determined by the legislature in the annual

appropriation bill for state universities for the current fiscal

year.

(*iii*) For degrees in health, a multiplier of between 3.0
and

5.0, as determined by the legislature in the annual appropriation

bill for state universities for the current fiscal year.

(*iv*) For all other degrees, a factor of 1.0.

(b) Subject to subsection (2), the number of students awarded

associate degrees by the state university 2 fiscal years before the

current fiscal year, multiplied by a factor of between 0.10 and

0.5, as determined by the legislature in the annual appropriation

bill for state universities for the current fiscal year, then

multiplied by 1 of the following, as applicable:

(*i*) For degrees in agriculture or natural science, a
multiplier

of between 2.0 and 4.0, as determined by the legislature in the

annual appropriation bill for state universities for the current

fiscal year.

(*ii*) For degrees in engineering or technology, a
multiplier of

between 3.0 and 5.0, as determined by the legislature in the annual

appropriation bill for state universities for the current fiscal

year.

(*iii*) For degrees in health, a multiplier of between 3.0
and

5.0, as determined by the legislature in the annual appropriation

bill for state universities for the current fiscal year.

(*iv*) For all other degrees, a factor of 1.0.

(c) The number of students awarded master's or doctoral

degrees by the state university 2 fiscal years before the current

fiscal year, multiplied by a factor of between 0.10 and 0.5, as

determined by the legislature in the annual appropriation bill for

state universities for the current fiscal year, then multiplied by

1 of the following, as applicable:

(*i*) For degrees in agriculture or natural science, a
multiplier

of between 2.0 and 4.0, as determined by the legislature in the

annual appropriation bill for state universities for the current

fiscal year.

(*ii*) For degrees in engineering or technology, a
multiplier of

between 3.0 and 5.0, as determined by the legislature in the annual

appropriation bill for state universities for the current fiscal

year.

(*iii*) For degrees in health, a multiplier of between 3.0
and

5.0, as determined by the legislature in the annual appropriation

bill for state universities for the current fiscal year.

(*iv*) For all other degrees, a factor of 1.0.

(d) The number of students awarded professional degrees by the

state university 2 fiscal years before the current fiscal year,

multiplied by a factor of between 0.10 and 1.0, as determined by

the legislature in the annual appropriation bill for state

universities for the current fiscal year, then multiplied by 1 of

the following, as applicable:

(*i*) For degrees in agriculture or natural science, a
multiplier

of between 2.0 and 4.0, as determined by the legislature in the

annual appropriation bill for state universities for the current

fiscal year.

(*ii*) For degrees in engineering or technology, a
multiplier of

between 3.0 and 5.0, as determined by the legislature in the annual

appropriation bill for state universities for the current fiscal

year.

(*iii*) For degrees in health, a multiplier of between 3.0
and

5.0, as determined by the legislature in the annual appropriation

bill for state universities for the current fiscal year.

(*iv*) For all other degrees, a factor of 1.0.

(2) As used in subsection (1)(b), the "number of qualified

associate degrees" awarded by a state university in a fiscal year

means the actual number of associate degrees awarded by the state

university in that fiscal year multiplied by a fraction the

numerator of which is the number of associate degrees conferred by

that state university in its 2003-2004 academic year and the

denominator of which is the total number of degrees conferred by

that state university in its 2003-2004 academic year.

Sec. 11. For purposes of section 5(1)(c), the amount of a

state university's eligible research payment is an amount equal to

the lesser of the following:

(a) The average amount of federal funds received by the state

university for research related to science or engineering 3 fiscal

years and 4 fiscal years before the current fiscal year, as

reported to the national science foundation by the federal

departments or agencies that awarded the federal funds.

(b) Forty percent of the total amount appropriated for

eligible research payments to all state universities in a fiscal

year.