SENATE BILL NO. 735

January 22, 2020, Introduced by Senator LASATA and referred to the Committee on Appropriations.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 236 and 236a (MCL 388.1836 and 388.1836a), section 236 as amended by 2019 PA 162 and section 236a as amended by 2019 PA 62.

the people of the state of michigan enact:

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for higher education for the fiscal year ending September 30, 2020, 2021, from the funds indicated in this section. The following is a summary of the appropriations in this section:

(a) The gross appropriation is $1,691,395,000.00. $____________. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $1,691,395,000.00.$____________.

(b) The sources of the adjusted gross appropriation described in subdivision (a) are as follows:

(i) Total federal revenues, $134,026,400.00.$____________.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $349,419,300.00.$____________.

(v) State general fund/general purpose money, $1,207,949,300.00.$____________.

(2) Amounts appropriated for public universities are as follows:

(a) The appropriation for Central Michigan University is $89,227,800.00, $87,096,900.00 for operations, $532,800.00 for performance funding, and $1,598,100.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Eastern Michigan University is $77,556,000.00, $76,816,500.00 for operations, $437,200.00 for performance funding, and $302,300.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Ferris State University is $56,032,800.00, $54,732,400.00 for operations, $293,100.00 for performance funding, and $1,007,300.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Grand Valley State University is $73,388,500.00, $71,780,400.00 for operations, $533,100.00 for performance funding, and $1,075,000.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Lake Superior State University is $14,361,000.00, $13,349,300.00 for operations, $57,700.00 for performance funding, and $954,000.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Michigan State University is $353,872,800.00, $285,805,100.00 for operations, $1,526,600.00 for performance funding, $1,467,700.00 for costs incurred under the North American Indian tuition waiver, $34,937,300.00 for MSU AgBioResearch, and $30,136,100.00 for MSU Extension.

(g) The appropriation for Michigan Technological University is $50,568,100.00, $49,835,300.00 for operations, $266,300.00 for performance funding, and $466,500.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Northern Michigan University is $48,909,100.00, $47,576,200.00 for operations, $232,900.00 for performance funding, and $1,100,000.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Oakland University is $53,432,500.00, $52,719,900.00 for operations, $427,500.00 for performance funding, and $285,100.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Saginaw Valley State University is $30,807,700.00, $30,456,500.00 for operations, $127,300.00 for performance funding, and $223,900.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for University of Michigan Ann Arbor is $322,773,600.00, $320,255,800.00 for operations, $1,714,300.00 for performance funding, and $803,500.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for University of Michigan Dearborn is $26,327,200.00, $25,986,400.00 for operations, $180,600.00 for performance funding, and $160,200.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for University of Michigan Flint is $23,893,200.00, $23,493,800.00 for operations, $122,400.00 for performance funding, and $277,000.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Wayne State University is $203,413,900.00, $202,112,700.00 for operations, $884,000.00 for performance funding, and $417,200.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Western Michigan University is $112,290,100.00, $110,976,000.00 for operations, $546,200.00 for performance funding, and $767,900.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for public universities is $1,536,854,300.00, appropriated from the following:

(a) State school aid fund, $343,168,300.00.

(b) State general fund/general purpose money, $1,193,686,000.00.

(4) The amount appropriated for Michigan public school employees' retirement system reimbursement is $5,017,000.00, appropriated from the state school aid fund.

(5) The amount appropriated for state and regional programs is $315,000.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Higher education database modernization and conversion, $200,000.00.

(b) Midwestern Higher Education Compact, $115,000.00.

(6) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program, $586,800.00.

(c) Morris Hood, Jr. educator development program, $148,600.00.

(7) Subject to subsection (8), the amount appropriated for grants and financial aid is $145,283,200.00, allocated as follows:

(a) State competitive scholarships, $38,361,700.00.

(b) Tuition grants, $38,021,500.00.

(c) Tuition incentive program, $64,300,000.00.

(d) Children of veterans and officer's survivor tuition grant programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(8) The money appropriated in subsection (7) for grants and financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of Education, Office of Elementary and Secondary Education, GEAR-UP program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary assistance for needy families, $130,826,400.00.

(c) State general fund/general purpose money, $11,256,800.00.

(9) For fiscal year 2019-2020 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $1,234,000.00 for payments to participating public universities, appropriated from the state school aid fund. A university that receives money under this subsection shall use that money solely for the purpose of offsetting the normal cost contribution rate. As used in this subsection, "participating public universities" means public universities that are a reporting unit of the Michigan public school employees' retirement system under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and that pay contributions to the Michigan public school employees' retirement system for the state fiscal year.

Sec. 236a. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2021 2022 for the items listed in section 236. The fiscal year 2020-2021 2021-2022 appropriations are anticipated to be the same as those for fiscal year 2019-2020, 2020-2021, except that the amounts will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2020 2021 consensus revenue estimating conference. For fiscal year 2020-2021, 2021-2022, the amount appropriated for Michigan public school employees' retirement system reimbursement is projected to be $7,264,000.00.$____________.