Bill Text: MI HB4435 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Appropriations; community colleges; community and junior colleges; provide for fiscal year 2009-2010. Creates appropriation act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-10-13 - Assigned Pa 111'09 With Immediate Effect [HB4435 Detail]
Download: Michigan-2009-HB4435-Engrossed.html
HB-4435, As Passed House, April 2, 2009
SUBSTITUTE FOR
HOUSE BILL NO. 4435
A bill to make appropriations for community colleges and
certain state purposes related to education for the fiscal year
ending September 30, 2010; to provide for the expenditure of those
appropriations; to establish or continue certain funds, programs,
and categories; 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 act, the
amounts listed in this part are appropriated for community colleges
and certain other state purposes relating to education for the
fiscal year ending September 30, 2010, from the funds indicated in
this part. The following is a summary of the appropriations in this
part:
COMMUNITY COLLEGES
APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 396,360,500
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 396,360,500
Federal revenues:
Total federal revenues................................. 97,000,000
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 299,360,500
Sec. 102. OPERATIONS
Alpena Community College............................... $ 5,118,200
Bay de Noc Community College........................... 5,178,900
Delta College.......................................... 13,702,200
Glen Oaks Community College............................ 2,296,100
Gogebic Community College.............................. 4,280,500
Grand Rapids Community College......................... 17,272,100
Henry Ford Community College........................... 20,834,100
Jackson Community College.............................. 11,526,000
Kalamazoo Valley Community College..................... 11,866,100
Kellogg Community College.............................. 9,300,900
Kirtland Community College............................. 2,843,800
Lake Michigan College.................................. 5,004,700
Lansing Community College.............................. 29,755,500
Macomb Community College............................... 31,667,100
Mid Michigan Community College......................... 4,416,800
Monroe County Community College........................ 4,143,600
Montcalm Community College............................. 2,982,300
C.S. Mott Community College............................ 14,995,200
Muskegon Community College............................. 8,533,800
North Central Michigan College......................... 2,998,500
Northwestern Michigan College.......................... 8,786,600
Oakland Community College.............................. 20,083,500
St. Clair County Community College..................... 6,727,200
Schoolcraft College.................................... 11,767,600
Southwestern Michigan College.......................... 6,261,300
Washtenaw Community College............................ 12,146,000
Wayne County Community College......................... 15,848,700
West Shore Community College........................... 2,220,500
GROSS APPROPRIATION.................................... $ 292,557,800
Appropriated from:
State general fund/general purpose..................... $ 292,557,800
Sec. 103. GRANTS
At-risk student success program........................ $ 3,322,700
Renaissance zone tax reimbursement funding............. 3,480,000
Workforce development grants (ARRA).................... 97,000,000
GROSS APPROPRIATION.................................... $ 103,802,700
Appropriated from:
Federal revenues:
DED - state fiscal stabilization fund - general
government services (ARRA)........................... 97,000,000
State general fund/general purpose..................... $ 6,802,700
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 2009-2010 is $299,360,500.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2009-2010 is $299,360,500.00. The
itemized statement below identifies appropriations from which
spending to local units of government will occur:
Operations............................................. $ 292,557,800
At-risk student success program........................ 3,322,700
Renaissance zone tax reimbursement program............. 3,480,000
TOTAL.................................................. $ 299,360,500
Sec. 202. The appropriations authorized under this act are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. Unless otherwise specified, a community college
receiving appropriations in part 1 and the department of energy,
labor, and economic growth shall use the Internet to fulfill the
reporting requirements of this act. 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 or
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
quality. In addition, preference should be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 210. The principal executive officer of each community
college receiving appropriations in part 1 shall take all
reasonable steps to ensure businesses in deprived and depressed
communities compete for and perform contracts to provide services
or supplies, or both. Each principal executive officer shall
strongly encourage firms with which the community college contracts
to subcontract with certified businesses in depressed and deprived
communities for services or supplies, or both.
Sec. 211. (1) The money appropriated in this act is
appropriated for community colleges with fiscal years ending June
30, 2010 and shall be paid out of the state treasury and
distributed by the state treasurer to the respective community
colleges in 11 monthly installments on the sixteenth of each month,
or the next succeeding business day, beginning with October 16,
2009. Each community college shall accrue its July and August 2010
payments to its institutional fiscal year ending June 30, 2010.
However, if a community college fails to submit all verified
Michigan community colleges activities classification structure
data for school year 2008-2009 to the department of energy, labor,
and economic growth by November 1, 2009, the monthly installments
shall be withheld from that community college until those data are
submitted. The amount from the money appropriated in part 1 that is
allocated to address the special needs of at-risk students shall be
paid in full by the state treasurer by November 1, 2009. The amount
distributed to a community college or department shall not exceed
the net state allocation authorized by this act.
(2) Except as otherwise provided by law, each of the amounts
appropriated shall be used solely for the respective purposes
stated in this act. The money appropriated in this act may be used
to match the cost of any available programs under the Carl D.
Perkins vocational and applied technology education act of 1998, 20
USC 2301 to 2414, including local administration.
Sec. 216. (1) A community college shall pay the employer's
contributions to the Michigan public school employees' retirement
system created by the public school employees retirement act of
1979, 1980 PA 300, MCL 38.1301 to 38.1408, as a condition of
receiving money appropriated under this act.
(2) A community college shall not pay an employer's
contribution to more than 1 retirement fund providing benefits for
an employee.
Sec. 217. Money appropriated in part 1 shall not be used to
pay for the construction or maintenance of a self-liquidating
project. A community college shall comply with the current use and
finance requirements of the joint capital outlay subcommittee
(JCOS) for any construction, renovation, or other capital outlay
projects pursuant to JCOS policy.
Sec. 224. (1) Recognizing the critical importance of education
in strengthening Michigan's workforce, the legislature encourages
the state's public community colleges to explore ways of increasing
collaboration and cooperation with 4-year universities,
particularly in the areas related to training, instruction, and
program articulation.
(2) Recognizing the central role of community colleges in
responding to local employment needs and challenges, community
colleges shall develop and continue efforts to collaborate with
local employers and students to identify local employment needs and
strategies to meet them.
(3) Community colleges are encouraged to collaborate with each
other on innovations to identify and meet local employment needs.
(4) Community colleges are encouraged to organize and
participate in a legislative summit on a strategy for meeting the
employment needs of the entire state. The community colleges shall
report the results of the summit to the senate and house
appropriations subcommittees on community colleges.
Sec. 234. Community colleges shall do the following:
(a) Undertake active measures to promote equal opportunities,
eliminate discrimination, and foster a diverse student body and
administration among all people including, but not limited to,
women, minorities, seniors, veterans, and people with disabilities.
(b) Review, analyze, and eradicate activities that may tend to
discriminate.
Sec. 239. The legislature intends that any executive or
legislative proposal or action, subsequent to the adoption of a
recommendation for appropriations for community colleges for the
fiscal year ending September 30, 2010, to increase appropriations
to state-supported 4-year universities in excess of the governor's
original recommendation for the fiscal year ending September 30,
2010, will be accompanied by a similar action or proposal for
state-supported community colleges.
Sec. 241. (1) It is the intent of the legislature that
community colleges expand their current nursing education programs
and increase nursing education program enrollments. This expansion
may include, but is not limited to, creating partnerships with
hospitals and other health care providers, encouraging programs
that assist in placing students at all levels of nursing,
recruiting and hiring a larger number of individuals with masters
degrees in nursing as instructors, expanding the focus and
utilization of the nursing scholarship program, and redirecting
existing institutional resources toward nursing education programs.
(2) Community college nursing programs are part of a
comprehensive solution to Michigan’s nursing shortage. Community
college students are eligible to apply for financial assistance
through the Michigan nursing scholarship program established in the
Michigan nursing scholarship act, 2002 PA 591, MCL 390.1181 to
House Bill No. 4435 (H-1) as amended April 2, 2009
390.1189. The Michigan nursing corps grants described in section
431 of 2007 PA 118 and administered by the department of energy,
labor, and economic growth provide funding to address the shortage
of qualified nursing faculty. Community colleges are encouraged to
coordinate with the chief nurse executive in the department of
community health and with 4-year universities to improve access to
nursing programs and to assist students to successfully enter the
nursing workforce.
Sec. 242. It is the intent of the legislature that the
Michigan community college association, the legislature, and other
interested parties continue the discussion regarding payments in
lieu of taxes, especially for those community college districts
that contain significant portions of nontaxable land.
Sec. 247. Funds appropriated in part 1 shall not be used to
enter into a lease for, or to purchase, a vehicle assembled or
manufactured outside of the United States if competitively priced
and comparable quality vehicles made in the state of Michigan or
elsewhere in the United States of America are available.
Sec. 248. It is the intent of the legislature that a community
college that receives an appropriation in part 1 from state fiscal
stabilization funds received under the American recovery and
reinvestment act of 2009, Public Law 111-5, will not raise in-
district tuition and fees charged to Michigan residents in the
2009-2010 academic year by more than the annual average percentage
increase in the United States consumer price index in the
immediately preceding academic year, plus 0.5%.
[Sec. 249. It is the intent of the legislature to study the
House Bill No. 4435 (H-1) as amended April 2, 2009
feasibility of legislation that would provide rules and guidelines for a
path to consolidation of community college districts and the creation of
intercollege agreements pursuant to section 28 of article VII of the
state constitution of 1963. The legislature also intends to study the feasibility of appropriating additional funds to districts that have a local property tax to provide incentives to enter into those agreements.]
Sec. 251. It is the intent of the legislature that the
Michigan community college association, the legislature, and other
interested parties begin a discussion regarding part-time faculty
pay, benefits, and job security. Specific attention should be paid
to part-time faculty instructing at multiple institutions having
the equivalent of a full-time academic workload.
STATE AID - OPERATIONS
Sec. 301. Unless otherwise stated, all data items used in
determining state aid in this act are as defined in the 2001 Manual
for Uniform Financial Reporting, Michigan Public Community
Colleges, which shall be the basis for reporting data, and the
Activities Classification Structure Manual for Michigan Community
Colleges, as amended, which shall be used to document financial
needs of the community colleges.
Sec. 302. A community college shall not include in the
enrollment data reported for determining state aid under this act
any student credit hours or student contact hours for a student
incarcerated in a Michigan penal institution. Exclusion of these
students is intended to avoid the payment of state aid under this
act for the same individuals for whom reimbursement is provided by
the state correctional system.
Sec. 304. It is the intent of the legislature that the
recommendations and performance measures developed by the
performance indicators task force formed pursuant to section 242 of
2005 PA 154 be reviewed and more fully implemented for distribution
of state funding to community colleges in future years.
Specifically, it is the intent of the legislature that the
performance indicators task force review and implement 1 or more
measurable data items for the local strategic value indicator and
review and implement 1 or more measurable data items for an
administrative cost formula component.
GRANTS
Sec. 401. (1) The community college at-risk student success
program is continued. The funding shall be prorated among community
colleges based on the number of student contact hours for
developmental and preparatory instruction reported by each
community college to the department of energy, labor, and economic
growth pursuant to the Activities Classification Structure Manual
for Michigan Community Colleges, as amended. Of the amount
appropriated in part 1 for the at-risk student success program,
$1,120,000.00 is allocated for base grants of $40,000.00 each, to
address the special needs of at-risk students at community
colleges.
(2) Of the amount appropriated in part 1 for the at-risk
student success program, the balance of the appropriated money
shall be distributed on a proration utilizing the sum of the most
recent 3 years developmental/preparatory contact hours divided by
the sum of the 3-year total contact hours at each college. Each
community college's percentage shall be divided by the sum of all
the percentages systemwide to obtain each community college's
prorated grant amount.
(3) For the fiscal year ending September 30, 2010, the at-risk
student success program money is allocated as follows:
Alpena Community College............................... $ 83,000
Bay de Noc Community College........................... 69,100
Delta College.......................................... 106,400
Glen Oaks Community College............................ 111,300
Gogebic Community College.............................. 56,300
Grand Rapids Community College......................... 133,300
Henry Ford Community College........................... 163,300
Jackson Community College.............................. 132,800
Kalamazoo Valley Community College..................... 92,000
Kellogg Community College.............................. 152,600
Kirtland Community College............................. 128,400
Lake Michigan College.................................. 147,000
Lansing Community College.............................. 157,000
Macomb Community College............................... 84,200
Mid Michigan Community College......................... 133,600
Monroe County Community College........................ 104,100
Montcalm Community College............................. 75,600
C.S. Mott Community College............................ 113,300
Muskegon Community College............................. 81,100
North Central Michigan College......................... 109,800
Northwestern Michigan College.......................... 122,500
Oakland Community College.............................. 146,900
St. Clair County Community College..................... 123,100
Schoolcraft College.................................... 123,500
Southwestern Michigan College.......................... 152,300
Washtenaw Community College............................ 127,300
Wayne County Community College......................... 146,200
West Shore Community College........................... 146,700
(4) As used in this act, "at-risk students" means students who
meet 1 or more of the following criteria:
(a) Are initially placed in 1 or more developmental courses as
a result of standardized testing or as a result of failure to make
satisfactory academic progress.
(b) Are diagnosed as learning disabled.
(c) Require English as a second language (ESL) assistance.
(5) Grant funding under this section shall be utilized to
address the special needs of at-risk students. Activities related
to services provided to at-risk students include, but are not
limited to, pretesting for academic ability, counseling contacts,
and special programs. Equipment or information technology hardware
or software purchased under this section must be associated with
the operation of a program designed to address the needs of at-risk
students.
(6) Grant funding under this section shall not be used for
indirect costs including, but not limited to, rent, utilities, or,
except as provided in this section, college administration.
(7) Each community college shall report to the department of
energy, labor, and economic growth a summary of all accomplishments
under, expenditures for, and compliance with the intent of this
program, including the number of at-risk students served. The
report is subject to audit as provided for in section 502(1). The
report shall be submitted not later than 90 days after the end of
the state's fiscal year.
Sec. 404. The appropriation in part 1 for renaissance zone
reimbursements shall be made to each eligible recipient no later
than 60 days after the department of treasury certifies to the
state budget director that it has received all necessary
information to properly determine the amounts due each eligible
recipient under section 12 of the Michigan renaissance zone act,
1996 PA 376, MCL 125.2692.
Sec. 405. (1) The appropriation in part 1 from the state
fiscal stabilization fund for general government services shall be
distributed pursuant to the funding formula developed by the
performance indicators task force formed pursuant to section 242 of
2005 PA 154.
(2) Grant funding under this section shall be utilized to
address needs of the state in the areas of workforce development,
job creation, and worker retraining. Activities related to
workforce development, job creation, and worker retraining include,
but are not limited to, collaboration with regional employers and
workforce agencies, development of programs to meet new market
needs in growing industries, and expanding support systems to
ensure student success in these areas.
(3) Grant funding under this section shall not be used for
indirect costs including, but not limited to, rent, utilities, or,
except as provided in this section, college administration. No more
than 10% of funds distributed from this section may be used for
wage or benefit increases.
(4) Each community college shall report to the members of the
senate and house appropriations subcommittees on community
colleges, the senate and house fiscal agencies, and the department
of energy, labor, and economic growth a summary of all
accomplishments under, expenditures for, and compliance with the
intent of this section. The report is subject to audit under
section 502(1). The report shall be submitted not later than 90
days after the end of the state's fiscal year. By accepting the
funds that are distributed in this section, each community college
agrees to post the use of these funds on the college website at
least quarterly. The report will show spending under the categories
that are identified in subsection (2).
(5) If a community college does not accept the funds
appropriated in this section, the balance shall be redistributed
under subsection (1).
REPORTS AND AUDITS
Sec. 501. The department of energy, labor, and economic growth
shall publish the activities classification structure data book for
Michigan community colleges on or before March 1, 2010.
Sec. 502. (1) The auditor general or a certified public
accountant appointed by the auditor general may conduct performance
audits of community colleges as the auditor general considers
necessary.
(2) Not more than 60 days after an audit report is released by
the office of the auditor general, the principal executive officer
of the community college that was audited shall submit to the house
and senate appropriations committees, the house and senate fiscal
agencies, the department of energy, labor, and economic growth, the
auditor general, and the state budget director a plan to comply
with audit recommendations. The plan shall contain projected dates
and resources required, if any, to achieve compliance with the
audit recommendations, or a documented explanation of the college's
noncompliance with the audit recommendations concerning the matters
on which the audited community college and office of the auditor
general disagree.
Sec. 504. (1) A community college shall retain certified class
summaries, class lists, registration documents, and student
transcripts that are consistent with the taxonomy of courses. For
each enrollment period during the fiscal year, these certified
documents shall identify clearly by course the number of in-
district and out-of-district student credit and contact hours. The
class summaries and class lists shall be consistent with each other
and shall include the course prefix and numbers, course title,
course credit and contact hours, credit and contact hours generated
by each student, and activity classifications consistent with the
taxonomy. An auditable process shall be used by the community
college to determine the unduplicated head count for in-district
students, out-of-district students, and prisoners for each
enrollment period during the fiscal year.
(2) Contracts between the community college and agencies that
reimburse the community college for the costs of instruction shall
be retained for audit purposes.
Sec. 505. Each community college shall have an annual audit of
all income and expenditures performed by an independent auditor and
shall furnish the independent auditor's management letter and an
annual audited accounting of all general and current funds income
and expenditures including audits of college foundations to the
members of the senate and house appropriations subcommittees on
community colleges, the senate and house fiscal agencies, the
auditor general, the department of energy, labor, and economic
growth, and the state budget director before November 15, 2009. If
a community college fails to furnish the audit materials, the
monthly state aid installments shall be withheld from that college
until the information is submitted. All reporting shall conform to
the requirements set forth in the 2001 Manual for Uniform Financial
Reporting, Michigan Public Community Colleges.
Sec. 506. (1) Each community college shall report the
following to the department of energy, labor, and economic growth
no later than November 1, 2009:
(a) The number of North American Indian students enrolled each
term for the previous fiscal year, using guidelines and procedures
developed by the department of energy, labor, and economic growth
and the Michigan commission on Indian affairs.
(b) The number of North American Indian tuition waivers
granted each term, and the monetary value of the waivers for the
previous fiscal year.
(2) Colleges shall use the criteria cited in 1976 PA 174, MCL
390.1251 to 390.1253, to determine eligibility for tuition waivers,
and shall grant those waivers to individuals who meet the criteria
and request tuition waivers.
(3) The department of energy, labor, and economic growth shall
compile the information received under subsection (1) and shall
submit this compilation to the house and senate appropriations
subcommittees on community colleges, the senate and house fiscal
agencies, and the state budget director by January 7, 2010.
(4) Community colleges are encouraged to consider whether the
use of the term "Indian" as a descriptive term for Michigan tribal
issues involving community colleges is appropriate. That
consideration shall include a discussion of this issue that
includes members of the native tribes of Michigan.
Sec. 507. Upon request, a community college shall inform
interested Michigan high schools of the aggregate academic status
of its students for the prior academic year, in a manner prescribed
by the Michigan community college association and in cooperation
with the Michigan association of secondary school principals.
Sec. 508. (1) Each community college shall report to the house
and senate fiscal agencies, the state budget director, and the
department of energy, labor, and economic growth by August 31,
2009, the tuition and mandatory fees paid by a full-time in-
district student and a full-time out-of-district student as
established by the college governing board for the 2009-2010
academic year. This report should also include the annual cost of
attendance based on a full-time course load of 30 credits. Each
community college shall also report any revisions to the reported
2009-2010 academic year tuition and mandatory fees adopted by the
college governing board to the house and senate fiscal agencies,
the state budget director, and the department of energy, labor, and
economic growth within 15 days of being adopted.
(2) The department of energy, labor, and economic growth shall
prepare and provide to community colleges a standard format for
reporting tuition and fees pursuant to subsection (1).
Sec. 509. (1) Each community college shall report to the
department of energy, labor, and economic growth the numbers and
type of associate degrees and other certificates awarded during the
previous fiscal year. The report shall be made not later than
November 15, 2009.
(2) The department of energy, labor, and economic growth shall
compile the information received under subsection (1) and shall
submit this compilation to the house and senate appropriations
subcommittees on community colleges, the senate and house fiscal
agencies, and the state budget director by January 7, 2010.
Sec. 510. A community college receiving funding under this act
and also subject to the student right-to-know and campus security
act, Public Law 101-542, 104 Stat. 2381, shall make a copy of all
material prepared in accordance with 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. 2384, available
in hard copy and electronic format accessible through the Internet
for school districts, parents, and students.
Sec. 511. (1) At least 30 days before submission of a new
state plan to the United States department of education for
approval under the Perkins act, the department of energy, labor,
and economic growth shall provide copies of the proposed plan to
the members of the senate and house appropriations subcommittees on
community colleges for their review and comment. Copies of the
proposed plan shall be provided to the senate and house fiscal
agencies and the state budget director at the same time that they
are provided to the senate and house subcommittees.
(2) The Perkins grant application process and content shall be
streamlined to the extent possible.
(3) As used in this section, "Perkins act" means the Carl D.
Perkins vocational and applied technology education act of 1998, 20
USC 2301 to 2414.
Sec. 513. The department of treasury shall annually collect
and compile data on the tax revenue losses to community colleges
resulting from tax increment financing authorities (TIFA) and tax
abatements. The department of treasury shall produce a report
detailing the data. The report shall be completed and presented to
the house and senate appropriations subcommittees on community
colleges, the department of energy, labor, and economic growth, and
the department of management and budget not later than March 1,
2010. The report shall include, but is not limited to, the
following:
(a) Estimated revenue losses for each community college for
the calendar year 2009.
(b) Confirmed revenue losses for each community college for
the calendar years 2007 and 2008.
(c) Other requirements requested by the house and senate
appropriations subcommittees on community colleges.
Sec. 514. Community colleges with unrestricted assets equal to
more than 25.7% of overall annual operating revenue shall prepare a
report outlining the college's intended use or purpose for carrying
the unrestricted assets. The community college shall submit the
report to the house and senate appropriations subcommittees on
community colleges, the house and senate fiscal agencies, and the
department of management and budget no later than June 30, 2010.
