FY 2019-20 COMMUNITY COLLEGES BUDGET S.B. 134 (S-1): SENATE APPROPRIATIONS REC.
Senate Bill 134 (S-1 as reported) Throughout this document Senate means Appropriations Committee.
Committee: Appropriations
*As of March 5, 2019.
|
|
Gross |
GF/GP |
|
FY 2018-19 Year-to-Date Appropriation............................................... |
$408,215,500 |
$0 |
|
|
|
|
|
1. Community College Operations Increase. The Governor included a 3% increase in community college operations. The increase would be distributed through the existing performance funding formula developed by the 2016 Performance Indicators Review Task Force. The formula allocates the money as follows: 30% proportional to FY19 base appropriation, 30% weighted contact hours, 10% performance improvement, 10% performance completion number, 10% performance completion rate, 5% administrative costs, 5% local strategic value. The Senate retained the performance funding formula, but provided a 1.5% increase instead. |
4,833,700 |
4,833,700 |
|
2. MPSERS Normal Cost Offset. The Governor moved the $6.4 million one-time FY19 item for this purpose to an ongoing appropriation and increased the amount by an additional $5.8 million GF/GP for a total normal cost offset of $12.2 million. This amount will support the additional costs associated with brining the assumed rate of return for MPSERS fund from 8% to 7.05%. The Senate concurred with this change, but funded the increased amount with School Aid Fund revenue rather than GF/GP. |
5,781,000 |
0 |
|
3. MPSERS Unfunded Accrued Liability Stabilization Adjustment. The Governor reduced this item to reflect a reduction in the amount of the State's share of costs above the statutory cap. This reduction would bring total MPSERS UAAL payments to $74.8 million. The Senate concurred with this change. |
(2,200,000) |
0 |
|
4. Renaissance Zone Reimbursements. The Governor reduced these payments to reflect a reduced estimate for the amount necessary to reimburse community colleges for lost property tax revenue due to renaissance zones. The Senate concurred with this change. |
(300,000) |
0 |
|
5. Comparison to the Governor's Recommendation. The Senate is $4,833,800 Gross and $8,114,800 GF/GP under the Governor. |
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|
|
Total Changes...................................................................................... |
$8,114,700 |
$4,833,700 |
|
FY 2019-20 Senate Appropriations Committee Gross Appropriation.. |
$416,330,200 |
$4,833,700 |
|
Boilerplate Changes from FY 2018-19 Year-to-Date: |
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1. Schedule of Payments to Community Colleges. The Governor removed language requiring the State Budget Director to notify the House and Senate Subcommittees before funds are withheld due to a failure to report certain information as required by statute. The Senate retained this language. (Sec. 206) |
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2. Use and Finance Noncompliance Penalty. The Governor removed a section that imposes a 1% reduction in State funding to a community college for each violation of certain requirement of the Management and Budget Act. The Senate retained this section. (Sec. 208) |
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3. Transparency Reporting - Noncompliance Penalty. The Governor removed language that allows the State Budget Director to withhold monthly payments to community colleges if the colleges do not comply with statutory transparency reporting requirements. The Senate retained this language. (Sec. 209) |
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4. Academic Program Partnerships. The Governor removed a section requiring the Michigan Community College Association, Michigan Independent Colleges and Universities, and the Michigan Association of State Universities to submit a report on academic partnership programs. The Senate retained this section. (Sec. 210f) |
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5. Cost Containment. The Governor removed a section requiring community colleges to pursue various efficiencies in their operations. The Senate retained this section. (Sec. 212) |
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6. Michigan Community College Data Inventory - Advisory Committee Selection. The Governor removed language requiring the MCCA members selected to serve on the MCCDI Advisory Committee to be from various community college classification groups. The Senate retained this language. (Sec. 217) |
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7. Tuition and Fees Report. The Governor removed language requiring community colleges to include the annual cost of tuition and fees based on a full-time course load of 30 credits in their tuition and fees report. The Senate retained this language. (Sec. 225) |
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8. Purchase of Foreign Automobiles. The Governor removed a prohibition on the purchase of foreign automobiles using State funds. The Senate retained this section. (Sec. 227) |
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9. Communications with Legislature. The Governor removed a section that prohibits disciplinary action against a community college employee for communicating with a member of the Legislature or legislative staff. The Senate retained this section. (Sec. 228) |
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10. Tuition Restraint. The Governor included a new section that would make the receipt of performance funding contingent upon keeping increases in tuition and fee rates for the 2019-20 academic year less than the greater of 3.2% or $128. The Senate did not include this new section. (Sec. 230a) |
Date Completed: 5-1-19 Fiscal Analyst: Josh Sefton
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.