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FY 2024-25 COMMUNITY COLLEGES BUDGET

S.B. 753 (S-2): SENATE-PASSED

(as passed by the Senate)

Committee: Appropriations

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2023-24 YEAR-TO-DATE*	FY 2024-25 SENATE-PASSED	CHANGES FROM FY 2023-24 YEAR-TO-DATE
			AMOUNT	PERCENT
FTE Positions.............................................................	0.0	0.0	N/A	N/A
GROSS......................................................................	544,517,500	470,341,700	(74,175,800)	(13.6)
Less:
Interdepartmental Grants Received............................	0	0	0	0.0
ADJUSTED GROSS...................................................	544,517,500	470,341,700	(74,175,800)	(13.6)
Less:
Federal Funds..........................................................	0	0	0	0.0
Local and Private......................................................	0	0	0	0.0
TOTAL STATE SPENDING.........................................	544,517,500	470,341,700	(74,175,800)	(13.6)
Less:
Other State Restricted Funds....................................	544,517,500	469,141,600	(75,375,900)	(13.8)
GENERAL FUND/GENERAL PURPOSE.....................	0	1,200,100	1,200,100	- -
PAYMENTS TO LOCALS............................................	544,517,500	469,491,700	(75,025,800)	(13.8)

*As of February 7, 2024.

Major Boilerplate Changes from FY 2023-24 Year-to-Date:

1. Repealed Sections. 216d (ITEM certification)

2. Sections with Technical Amendments. 205 (Deprived and Depressed Communities), 206 (Payment Distribution Schedule), 207a (MPSERS Reimbursements), 207b (MPSERS Reform Costs), 207c (Renaissance Zone Reimbursements), 217 (Michigan Community College Data Inventory), 222 (Annual Audit), 223 (Indian Tuition Waivers), 229 (Military Status), 229a (State Building Authority Rent), and 230 (Performance Indicators Taskforce)

3. Tuition Restraint. Maintains current law maximum percent increase of 4.5%; updates maximum dollar amount to $217.00. (Sec. 217b)

4. Other Boilerplate Changes. NEW 216e (Institutional Best Practices Incentive), NEW 217c (Charter School Authorizer Report), NEW 217d (Cost of Attendance Report)

FY 2023-24 Year-to-Date Appropriation..................................................

$544,517,500

$0

	CHANGE FROM FY 2023-24 Y-T-D		FY 2024-25 RECOMMENDED APPROPRIATION
	Gross	GF/GP	Gross		GF/GP
Baseline Adjustments
1. MPSERS Unfunded Actuarially Accrued Liabilities (UAAL) Stabilization Payment. The Senate reduced appropriations for MPSERS UAAL amounts over the statutory cap of 20.96% of affected payroll to reflect actuarily-determined need.	(43,700,000)	0	62,100,000	0
2. MPSERS Normal Cost Offset. The Senate reduced appropriations 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.	(1,200,000)	0	21,800,000	0
3. Remove FY 2023-24 One-Time Appropriations. The Senate removed the 5 one-time appropriations that were included in the FY 2023-24 budget. These items are: $32.8 million for ITEM grants; $5.0 million for career and education navigators for adults; $5.0 million for the Michigan Reconnect Entry Point Program; $5.0 million for critical incident mapping; and $530,000 for a workforce development grant.	(48,366,600)	0	0	0
4. North American Indian Tuition Waiver Adjustment. 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.	49,100	0	1,180,900	0
New Programs/Program Increases
5. Community College Operations. The Senate included a 2.5% increase for college operations using the existing statutory performance funding formula. The formula allocates operations increases as follows: 30% based on prior year funding, 30% based on weighted contact hours, 10% based on degree and certificate completions, 10% based on completion rate, 10% based on completion rate improvement, 5% based on administrative costs, and 5% based on local strategic value.	8,920,800	0	8,920,800	0
Eliminations/Reductions - NONE
One-Time Appropriations
6. Institutional Best Practices One-Time Incentive. The Senate included a one-time incentive pool that would be available to community colleges that certify that they have met the following criteria: 1) Require students to participate in institutional and academic orientation; 2) Require students to receive an academic map for their program; 3) The college has a policy for assessing and providing credit for prior learning; 4) The college uses a co-requisite model for delivering remedial or developmental education, and that those classes are offered at no cost; 5) Require students to meet with a designated academic advisor each semester. Payments would be distributed proportionately to each college's performance funding amount.	8,920,800	0	8,920,800	0
7. Local Heroes Program. The Senate included a one-time grant to the Michigan Community Colleges Association to support a program to increase the number of high school students who choose to dual enroll in a high school and to encourage those students to explore a career in education or public safety.	850,000	850,000	850,000	850,000
8. Kalamazoo Valley Community College Internet Accessibility. The Senate included a one-time grant to KVCC for improvements to internet accessibility.	350,000	350,000	350,000	350,000
9. Infrastructure, Technology, Equipment, Maintenance, and Safety (ITEMS) Grants. The Senate included a $100 placeholder for these grants. ITEMS grants were funded in the FY 2023-24 budget, and provided a lump sum to colleges for capital-type expenditures as well as improvements to campus safety.	100	100	100	100
Other - NONE

Total Changes...............................................................................................	($74,175,800)	$1,200,100
FY 2024-25 SENATE-PASSED......................................................................	$470,341,700	$1,200,100

Date Completed: 5-15-24 Fiscal Analyst: Josh Sefton