SENATE BILL NO. 118

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 201 and 236 (MCL 388.1801 and 388.1836), section 201 as amended by 2022 PA 144 and section 236 as amended by 2022 PA 212, and by adding sections 226f and 275k.

the people of the state of michigan enact:

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed in this section are appropriated for community colleges for the fiscal year ending September 30, 2023, from the funds indicated in this section. The following is a summary of the appropriations in this section:

(a) The gross appropriation is $530,258,000.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $530,258,000.00.

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

(i) Total federal revenues, $81,200,000.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $449,058,000.00.$448,558,000.00.

(v) State general fund/general purpose money, $0.00.$500,000.00.

(2) Subject to subsection (3), the amount appropriated for community college operations is $341,224,400.00, allocated as follows:

(a) The appropriation for Alpena Community College is $6,040,500.00, $5,753,300.00 for operations, $273,500.00 for performance funding, and $13,700.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Bay de Noc Community College is $5,986,700.00, $5,602,800.00 for operations, $274,200.00 for performance funding, and $109,700.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Delta College is $15,928,400.00, $15,160,500.00 for operations, $727,700.00 for performance funding, and $40,200.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Glen Oaks Community College is $2,802,100.00, $2,651,200.00 for operations, $150,900.00 for performance funding, and $0.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Gogebic Community College is $5,145,800.00, $4,873,700.00 for operations, $229,600.00 for performance funding, and $42,500.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Grand Rapids Community College is $19,950,600.00, $18,773,100.00 for operations, $993,100.00 for performance funding, and $184,400.00 for costs incurred under the North American Indian tuition waiver.

(g) The appropriation for Henry Ford College is $23,731,400.00, $22,533,100.00 for operations, $1,167,000.00 for performance funding, and $31,300.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Jackson College is $13,337,700.00, $12,756,200.00 for operations, $538,900.00 for performance funding, and $42,600.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Kalamazoo Valley Community College is $13,832,700.00, $13,099,900.00 for operations, $676,200.00 for performance funding, and $56,600.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Kellogg Community College is $10,781,400.00, $10,267,100.00 for operations, $487,300.00 for performance funding, and $27,000.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for Kirtland Community College is $3,601,000.00, $3,358,400.00 for operations, $219,500.00 for performance funding, and $23,100.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for Lake Michigan College is $5,990,800.00, $5,702,700.00 for operations, $275,700.00 for performance funding, and $12,400.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for Lansing Community College is $34,339,200.00, $32,852,000.00 for operations, $1,376,900.00 for performance funding, and $110,300.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Macomb Community College is $35,950,400.00, $34,276,100.00 for operations, $1,635,800.00 for performance funding, and $38,500.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Mid Michigan Community College is $5,555,700.00, $5,184,400.00 for operations, $273,700.00 for performance funding, and $97,600.00 for costs incurred under the North American Indian tuition waiver.

(p) The appropriation for Monroe County Community College is $5,005,000.00, $4,746,200.00 for operations, $257,400.00 for performance funding, and $1,400.00 for costs incurred under the North American Indian tuition waiver.

(q) The appropriation for Montcalm Community College is $3,767,400.00, $3,570,600.00 for operations, $188,300.00 for performance funding, and $8,500.00 for costs incurred under the North American Indian tuition waiver.

(r) The appropriation for C.S. Mott Community College is $17,127,100.00, $16,440,000.00 for operations, $658,300.00 for performance funding, and $28,800.00 for costs incurred under the North American Indian tuition waiver.

(s) The appropriation for Muskegon Community College is $9,775,400.00, $9,289,100.00 for operations, $444,300.00 for performance funding, and $42,000.00 for costs incurred under the North American Indian tuition waiver.

(t) The appropriation for North Central Michigan College is $3,779,800.00, $3,389,300.00 for operations, $226,600.00 for performance funding, and $163,900.00 for costs incurred under the North American Indian tuition waiver.

(u) The appropriation for Northwestern Michigan College is $10,162,300.00, $9,567,100.00 for operations, $439,700.00 for performance funding, and $155,500.00 for costs incurred under the North American Indian tuition waiver.

(v) The appropriation for Oakland Community College is $23,505,300.00, $22,211,700.00 for operations, $1,257,800.00 for performance funding, and $35,800.00 for costs incurred under the North American Indian tuition waiver.

(w) The appropriation for Schoolcraft College is $13,960,700.00, $13,196,200.00 for operations, $743,300.00 for performance funding, and $21,200.00 for costs incurred under the North American Indian tuition waiver.

(x) The appropriation for Southwestern Michigan College is $7,359,900.00, $6,979,400.00 for operations, $353,400.00 for performance funding, and $27,100.00 for costs incurred under the North American Indian tuition waiver.

(y) The appropriation for St. Clair County Community College is $7,805,200.00, $7,385,200.00 for operations, $401,400.00 for performance funding, and $18,600.00 for costs incurred under the North American Indian tuition waiver.

(z) The appropriation for Washtenaw Community College is $14,875,000.00, $13,855,900.00 for operations, $995,400.00 for performance funding, and $23,700.00 for costs incurred under the North American Indian tuition waiver.

(aa) The appropriation for Wayne County Community College is $18,384,700.00, $17,593,400.00 for operations, $782,700.00 for performance funding, and $8,600.00 for costs incurred under the North American Indian tuition waiver.

(bb) The appropriation for West Shore Community College is $2,742,200.00, $2,585,600.00 for operations, $135,400.00 for performance funding, and $21,200.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for community college operations is $341,224,400.00 and is appropriated from the state school aid fund.

(4) From the appropriations described in subsection (1), both of the following apply:

(a) Subject to section 207a, the amount appropriated for fiscal year 2022-2023 to offset certain fiscal year 2022-2023 retirement contributions is $1,733,600.00, appropriated from the state school aid fund.

(b) For fiscal year 2022-2023, there is allocated an amount not to exceed $10,800,000.00 for payments to participating community colleges, appropriated from the state school aid fund. A community college that receives money under this subdivision shall use that money solely for the purpose of offsetting the normal cost contribution rate.

(5) From the appropriations described in subsection (1), subject to section 207b, the amount appropriated for payments to community colleges that are participating entities of the retirement system is $92,600,000.00, appropriated from the state school aid fund.

(6) From the appropriations described in subsection (1), subject to section 207c, the amount appropriated for renaissance zone tax reimbursements is $2,200,000.00, appropriated from the state school aid fund. Each community college receiving funds in this subsection shall accrue these payments to its institutional fiscal year ending June 30, 2023.

(7) From the appropriations described in subsection (1), subject to section 216, the amount appropriated for the Michigan reconnect grant program short-term training grants is $6,000,000.00, appropriated from the coronavirus state fiscal recovery funds under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2.

(8) From the appropriations described in subsection (1), there is appropriated $9,200,000.00 from the coronavirus state fiscal recovery funds under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2, for fiscal year 2022-2023 only, to the nonprofit organization Talent 2025, for the creation and operation of the Michigan center for adult college success to focus on research, support models, and best practices on ensuring enrollment and completion of college degrees and certificates among adults returning to further their education due to being unemployed or underemployed, including, but not limited to, those whose employment opportunities have been adversely affected by the COVID-19 pandemic. The goal of the research is to identify barriers that prevent these individuals from completing degree and certificate programs, create greater support systems within colleges and universities for these students that address these barriers, and as a result increase the number of adults completing degree and certificate programs. This research is meant to serve the overarching aim of increasing the skills and training of Michiganders impacted by the COVID-19 pandemic. Talent 2025 shall provide information on request to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director on the use of these funds until the project is completed.

(9) From the appropriations described in subsection (1), subject to section 216a, there is appropriated $10,000,000.00, from the coronavirus state fiscal recovery funds under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2, for fiscal year 2022-2023 only, to the Michigan Community College Association, for the community college academic catch-up program.

(11) From the appropriations described in subsection (1), subject to section 216b, the amount appropriated for the Michigan ADN to BSN completion grant program is $56,000,000.00, appropriated from the coronavirus state fiscal recovery funds under the American rescue plan act of 2021, title IX, subtitle M of Public Law 117-2.

(12) The amount appropriated for pregnant and parenting student services is $500,000.00, appropriated from the state general fund/general purpose money, and is subject to section 226f.

Sec. 226f. (1) From the funds appropriated in section 201(12), a community college may establish and operate a pregnant and parenting student services office. If established, an office shall meet all of the following:

(a) Be located on the campus of the community college.

(b) Annually assess the performance of the community college and the office in meeting all of the following needs of students on campus who are pregnant or who are custodial parents or legal guardians of minors:

(i) Comprehensive student health care.

(ii) Family housing.

(iii) Child care.

(iv) Flexible or alternative academic scheduling.

(v) Education concerning responsible parenting for mothers and fathers.

(c) Identify public and private service providers qualified to meet the needs described in subdivision (b), both on campus and within the local community, and establish programs with qualified providers it selects to meet those needs.

(d) Assist students in locating and obtaining services that meet 1 or more of the needs described in subdivision (b).

(e) If appropriate, provide referrals on prenatal care and delivery, infant, or foster care, adoption, and family planning to individual students who request that information. An office shall not provide referrals for abortion services.

(2) By December 1, 2023, a community college that establishes a pregnant and parenting student services office shall report to the house and senate appropriations subcommittees on community colleges, the house and senate fiscal agencies, and the state budget director all of the following:

(a) An itemized list of office expenditures during the preceding fiscal year.

(b) A review and evaluation of the performance of the office in fulfilling its obligations under this section.

(c) The number of students served by the office.

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, 2023, from the funds indicated in this section. The following is a summary of the appropriations in this section and section 236j:

(a) The gross appropriation is $2,016,635,700.00. $2,017,135,700.00. After deducting total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted gross appropriation is $2,016,635,700.00.$2,017,135,700.00.

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

(i) Total federal revenues, $128,526,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $347,888,300.00.

(v) State general fund/general purpose money, $1,540,221,000.00.$1,540,721,000.00.

(c) The totals and subtotals reflected in subdivisions (a) and (b) do not include amounts appropriated under subsection (7)(f) or (8)(c) to avoid duplicating totals of amounts appropriated in this section and section 236j.

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

(a) The appropriation for Central Michigan University is $91,145,100.00, $87,600,000.00 for operations, $0.00 for per-student floor funding, $1,752,000.00 for operations increase, and $1,793,100.00 for costs incurred under the North American Indian tuition waiver.

(b) The appropriation for Eastern Michigan University is $79,152,400.00, $77,253,700.00 for operations, $0.00 for per-student floor funding, $1,545,100.00 for operations increase, and $353,600.00 for costs incurred under the North American Indian tuition waiver.

(c) The appropriation for Ferris State University is $56,952,900.00, $55,025,500.00 for operations, $0.00 for per-student floor funding, $1,100,500.00 for operations increase, and $826,900.00 for costs incurred under the North American Indian tuition waiver.

(d) The appropriation for Grand Valley State University is $81,253,800.00, $72,313,500.00 for operations, $7,661,000.00 for per-student floor funding, $0.00 for operations increase, and $1,279,300.00 for costs incurred under the North American Indian tuition waiver.

(e) The appropriation for Lake Superior State University is $14,361,900.00, $13,307,000.00 for operations, $0.00 for per-student floor funding, $266,100.00 for operations increase, and $788,800.00 for costs incurred under the North American Indian tuition waiver.

(f) The appropriation for Michigan State University is $372,054,800.00, $287,331,700.00 for operations, $0.00 for per-student floor funding, $14,349,600.00 for operations increase, $2,046,400.00 for costs incurred under the North American Indian tuition waiver, $36,684,200.00 for MSU AgBioResearch, and $31,642,900.00 for MSU Extension.

(g) The appropriation for Michigan Technological University is $51,951,000.00, $50,101,600.00 for operations, $0.00 for per-student floor funding, $1,002,000.00 for operations increase, and $847,400.00 for costs incurred under the North American Indian tuition waiver.

(h) The appropriation for Northern Michigan University is $50,751,100.00, $47,809,100.00 for operations, $0.00 for per-student floor funding, $1,780,700.00 for operations increase, and $1,161,300.00 for costs incurred under the North American Indian tuition waiver.

(i) The appropriation for Oakland University is $60,761,900.00, $53,147,400.00 for operations, $7,259,200.00 for per-student floor funding, $0.00 for operations increase, and $355,300.00 for costs incurred under the North American Indian tuition waiver.

(j) The appropriation for Saginaw Valley State University is $32,274,600.00, $30,583,800.00 for operations, $132,900.00 for per-student floor funding, $1,369,600.00 for operations increase, and $188,300.00 for costs incurred under the North American Indian tuition waiver.

(k) The appropriation for University of Michigan – Ann Arbor is $339,198,000.00, $321,970,100.00 for operations, $0.00 for per-student floor funding, $16,390,200.00 for operations increase, and $837,700.00 for costs incurred under the North American Indian tuition waiver.

(l) The appropriation for University of Michigan – Dearborn is $28,115,900.00, $26,167,000.00 for operations, $1,702,700.00 for per-student floor funding, $0.00 for operations increase, and $246,200.00 for costs incurred under the North American Indian tuition waiver.

(m) The appropriation for University of Michigan – Flint is $25,159,200.00, $23,616,200.00 for operations, $953,900.00 for per-student floor funding, $204,700.00 for operations increase, and $384,400.00 for costs incurred under the North American Indian tuition waiver.

(n) The appropriation for Wayne State University is $213,639,700.00, $202,996,700.00 for operations, $0.00 for per-student floor funding, $10,289,900.00 for operations increase, and $353,100.00 for costs incurred under the North American Indian tuition waiver.

(o) The appropriation for Western Michigan University is $114,351,900.00, $111,522,200.00 for operations, $0.00 for per-student floor funding, $2,230,400.00 for operations increase, and $599,300.00 for costs incurred under the North American Indian tuition waiver.

(3) The amount appropriated in subsection (2) for public universities is $1,611,124,200.00, appropriated from the following:

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

(b) State general fund/general purpose money, $1,267,955,900.00.

(4) The amount appropriated for Michigan public school employees' retirement system reimbursement is $70,000.00, appropriated from the state school aid fund.

(5) The amount appropriated for state and regional programs is $316,800.00, 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, $116,800.00.

(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 $397,783,200.00, allocated as follows:

(a) State competitive scholarships, $29,861,700.00.

(b) Tuition grants, $42,021,500.00.

(c) Tuition incentive program, $71,300,000.00.

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

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

(f) Michigan achievement scholarships, $250,000,000.00. From this amount, up to $10,000,000.00 may be used to award skills scholarships under section 248a.

(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, $125,326,400.00.

(c) Postsecondary scholarship fund, $250,000,000.00.

(d) State general fund/general purpose money, $19,256,800.00.

(9) For fiscal year 2022-2023 only, in addition to the allocation under subsection (4), from the appropriations described in subsection (1), there is allocated an amount not to exceed $4,650,000.00 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.

(10) The amount appropriated for pregnant and parenting student support services is $500,000.00, appropriated from the state general fund/general purpose money, and is subject to section 275k.

Sec. 275k. (1) Appropriations in section 236(10) for the pregnant and parenting student support services program are for developing academically or economically disadvantaged student retention programs for 4-year public and independent educational institutions in this state. Preference may not be given to participants on the basis of race, color, ethnicity, gender, or national origin. Institutions should encourage participation from those who would otherwise not adequately be represented in the student population.

(2) An award made under this program to an individual institution must not be greater than $50,000.00, and the amount awarded must be matched on a 70% state, 30% college or university basis.

(3) The department of labor and economic opportunity shall administer the program. All of the following apply to the program:

(a) The institution shall provide a physical location for the program on its campus.

(b) The department of labor and economic opportunity shall annually assess the performance of the institution in meeting the following needs of students on campus who are pregnant or who are a custodial parent or legal guardian of a minor:

(i) Comprehensive student health care.

(ii) Family housing.

(iii) Child care.

(iv) Flexible or alternative academic scheduling.

(v) Education concerning responsible parenting for mothers and fathers.

(c) The institution shall identify public and private service providers qualified to meet the needs described in subdivision (b), both on campus and within the local community, and establish programs with qualified providers it selects to meet those needs.

(d) The institution shall assist students in locating and obtaining services that meet 1 or more of the needs described in subdivision (b).

(e) If appropriate, the institution shall provide referrals on prenatal care and delivery, infant or foster care, adoption, and family planning to individual students who request that information. An approved program shall not provide referrals for abortion services.

(4) By December 1, 2023, institutions that establish a pregnant and parenting student support services program shall report to the house and senate subcommittees on higher education, the house and senate fiscal agencies, and the state budget director all of the following:

(a) A review and evaluation of the performance of the program in fulfilling its goals and objectives.

(b) The number of students served.

(c) The number and percentage of program graduates.

Enacting section 1. (1) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for community colleges for fiscal year 2022-2023 under article II of the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to 388.1830, as amended by 2022 PA 144 and this amendatory act, is estimated at $449,058,000.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2022-2023 is estimated at $449,058,000.00.

(2) In accordance with section 30 of article IX of the state constitution of 1963, total state spending from state sources for higher education for fiscal year 2022-2023 under article III of the state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891, as amended by 2022 PA 144, 2022 PA 212, and this amendatory act, is estimated at $1,888,609,300.00 and the amount of that state spending from state sources to be paid to local units of government for fiscal year 2022-2023 is estimated at $0.00.