2003 House Bill 4396 / Public Act 144

Introduced in the House

March 18, 2003

Introduced by Rep. Marc Shulman (R-39)

To provide a “template” or “place holder” for a Fiscal Year (FY) 2003-2004 Higher Education budget. This budget contains no appropriations, but these may be added later to make changes to current or future appropriations.

Referred to the Committee on Appropriations

May 8, 2003

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 13, 2003

Substitute offered

To replace the executive proposal for this budget, contained in <a href="http://www.michiganvotes.org/2003-HB-4417">House Bill 4417 </a>, with a budget which expresses policy differences between the Republican-majority in the House and Governor Jennifer Granholm on certain spending items. See House-passed version for details.

The substitute passed by voice vote

Amendment offered by Rep. Steve Bieda (D-25)

To restore the 6.74 percent across-the-board cut to all public universities proposed in the executive budget. The House version cuts Grand Valley State, Saginaw Valley State, Central Michigan, MSU, Oakland, and Western Michigan by 5.45 percent to 5.95 percent. These six schools currently receive less per-student funding than the other seven schools. The amendment would eliminate the provision funding those smaller cuts by transferring $4 million from the Tuition Incentive Program, which provides financial aid to Medicaid-eligible low income high school graduates.

The amendment failed 46 to 61 (details)

Amendment offered by Rep. Chris Kolb (D-53)

To stretch out over four years the $2,500 merit scholarship awards made to high school students who do well on the state MEAP test, rather than paying the amount all at once, beginning with the 2004 high school graduating class. The amendment would remove $60 million in tobacco lawsuit funding for merit scholarship awards from the 2003-2004 budget, per the governor's proposal.

The amendment failed 42 to 62 (details)

Amendment offered by Rep. Chris Kolb (D-53)

To replace five competitive- and needs-based financial aid and scholarship programs for students at independent or public colleges with a single needs-based Michigan Opportunity Scholarship program, as proposed in the executive budget.

The amendment failed 42 to 64 (details)

Amendment offered by Rep. Rich Brown (D-110)

To add $90,000 in funding to Northern Michigan University for a labor union education program.

The amendment failed 48 to 58 (details)

Amendment offered by Rep. David Woodward (D-26)

To require public universities which allow smoking in their dormitories to report to the legislature on why they do so.

The amendment passed 68 to 38 (details)

Amendment offered by Rep. Bruce Caswell (R-58)

To add $3.75 million to the Tuition Incentive Program, which provides financial aid to Medicaid-eligible low income high school graduates.

The amendment failed by voice vote

Amendment offered by Rep. Sandy Caul (R-99)

To clarify that the Tuition Incentive Program shall be funded for the the 2003-2004 school year.

The amendment passed by voice vote

Passed in the House 68 to 38 (details)

The House version of the Fiscal Year (FY) 2003-2004 Higher Education budget. (Note: Gov. Jennifer Granholm’s proposal for this budget is <a href="http://www.michiganvotes.org/2003-HB-4417">House Bill 4417 </a>.) This appropriates $1.715 billion in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $1.943 billion, which was the FY 2002-2003 amount enrolled in 2002, excluding any supplemental appropriations, line-item vetoes, or later cuts. Of this, $1.632 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2002-2003 amount enrolled in 2002 of $1.812 billion. Under the House version, state aid to Eastern Michigan, Ferris State, Lake Superior State, Michigan Tech, Northern Michigan, U-M, and Wayne State universities would be cut 6.74 percent from their current year appropriations. This was the cut proposed in the Executive budget for all universities. Six other universities, Grand Valley State, Saginaw Valley State, Central Michigan, MSU, Oakland, and Western Michigan, would receive cuts of 5.45 percent to 5.95 percent. These six schools currently receive less per-student funding than the other seven schools. The money to fund the smaller cuts to these schools was transferred from the Tuition Incentive Program which provides financial aid to Medicaid-eligible low income high school graduates. The House bill restores $60 million in tobacco lawsuit funding for the $2,500 merit scholarship awards made to high school students who do well on the state MEAP test. The governor proposed reducing these scholarships to $500, and using the money for low income health care. The source of this money is tobacco lawsuit receipts (See <a href="http://www.michiganvotes.org/2003-HB-4392">House Bill 4392 </a>.) Also, the House did not accept the governor’s proposal to replace five competitive- and needs-based financial aid and scholarship programs for students at independent or public colleges with a single needs-based Michigan Opportunity Scholarship program. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the Senate

May 14, 2003

Referred to the Committee on Appropriations

June 17, 2003

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the House version of this budget with a Senate version which expresses policy differences between the bodies on certain spending items. See Senate-passed version for details.

The substitute passed by voice vote

Amendment offered by Sen. Deborah Cherry (D-26)

The amendment failed 14 to 23 (details)

Amendment offered by Sen. Deborah Cherry (D-26)

To reduce by $32 million appropriations for the merit scholarship awards made to high school students who do well on the state MEAP test.

The amendment failed 16 to 22 (details)

Amendment offered by Sen. Michael Prusi (D-38)

To remove $10 million for a grant to Western Michigan University to create a life sciences research and commercialization center intended to keep in the Kalamazoo area 75 to 100 scientists and support staff formerly employed by the Pfizer/Pharmacia Corporation. This is in response to news that following the purchase by Pfizer of the Pharmacia Corporation, the company will close some drug research operations in the area. The $10 million will come from money that would have been used for a targeted tax credit that Pfizer will not receive, because current law makes the credit contingent on creating a certain number of new jobs.

The amendment failed 16 to 22 (details)

Passed in the Senate 23 to 15 (details)

The Senate version of the Fiscal Year (FY) 2003-2004 Higher Education budget. (Note: Gov. Jennifer Granholm’s proposed budget for this department is <a href="http://www.michiganvotes.org/2003-HB-4417">House Bill 4417 </a>.) This appropriates $1.818 billion in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $1.943 billion, which was the FY 2002-2003 amount enrolled in 2002, excluding any supplemental appropriations, line-item vetoes, or later cuts. Of this, $1.642 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2002-2003 amount enrolled in 2002 of $1.812 billion. Under the Senate version, a $4,000 per-student funding floor would be established for all state universities, which means large funding increases for Grand Valley, Oakland and Saginaw Valley State Universities. State aid to other universities would be cut by 3.3 percent to 6.74 percent from their current year levels. The Senate also includes $4 million requested by the governor and stripped by the House for the Tuition Incentive Program, which provides financial aid to Medicaid-eligible low income high school graduates. The Senate bill restores tobacco lawsuit funding for the $2,500 merit scholarship awards made to high school students who do well on the state MEAP test. The governor proposed reducing these scholarships to $500, and using the money for low income health care. The source of this money is tobacco lawsuit receipts (See <a href="http://www.michiganvotes.org/2003-HB-4392">House Bill 4392 </a>.) The Senate did not accept the governor’s proposal to replace five competitive- and needs-based financial aid and scholarship programs for students at independent or public colleges with a single needs-based Michigan Opportunity Scholarship program. Finally, the Senate added $10 million for a grant to Western Michigan University to create a life sciences research and commercialization center intended to keep in the Kalamazoo area 75 to 100 scientists and support staff formerly employed by the Pfizer/Pharmacia Corporation. This is in response to news that following the purchase by Pfizer of the Pharmacia Corporation, the company will close some drug research operations in the area. The $10 million will come from money that would have been used for a targeted tax credit that Pfizer will not receive, because current law makes the credit contingent on creating a certain number of new jobs. All told, the Senate bill is $102.7 million (gross spending), and $9.5 million (general fund spending) over the governor’s recommendation. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the House

June 17, 2003

June 19, 2003

Failed in the House 2 to 102 (details)

To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received in the Senate

June 24, 2003

Received in the House

June 24, 2003

In the Senate

July 16, 2003

Passed in the Senate 37 to 0 (details)

The House-Senate conference report for the Fiscal Year (FY) 2003-2004 Higher Education budget. (Note: Gov. Jennifer Granholm’s proposed budget for this department is <a href="http://www.michiganvotes.org/2003-HB-4417">House Bill 4417 </a>.) This appropriates $1.789 billion in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $1.943 billion, which was the FY 2002-2003 amount enrolled in 2002, excluding any supplemental appropriations, line-item vetoes, or later cuts. Of this, $1.632 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2002-2003 amount enrolled in 2002 of $1.812 billion. The conference report provides funding to universities ranging from an increase of 1.9 percent to cuts of 6.5 percent, with Saginaw Valley State and Grand Valley State Universities getting increases. It includes $4 million requested by the governor and stripped by the House for the Tuition Incentive Program, which provides financial aid to Medicaid-eligible low income high school graduates; tobacco lawsuit funding for the $2,500 merit scholarship awards made to high school students who do well on the state MEAP test is also included. The governor’s proposed elimination of private college scholarship programs is included in the conference report. $10 million for a grant to Western Michigan University to create a life sciences research and commercialization center intended to keep in the Kalamazoo area 75 to 100 scientists and support staff formerly employed by the Pfizer/Pharmacia Corporation has been transferred to a different bill. All told, the final bill is $14 million (gross spending) over the governor’s original recommendation, with no increase in general fund spending. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

In the House

July 16, 2003

Passed in the House 92 to 15 (details)

Signed with line-item veto by Gov. Jennifer Granholm

Aug. 5, 2003

Received in the House

Aug. 13, 2003

Referred to the Committee on Appropriations