2023 House Bill 4304

Appropriations: higher education; appropriations for fiscal year 2023-2024; provide for.

A bill to amend 1979 PA 94, entitled “The state school aid act of 1979,” by amending sections 236, 236b, 236c, 236j, 236k, 241, 248, 248a, 251, 252, 254, 256, 259, 260, 263, 263a, 264, 268, 269, 270c, 275, 276, 277, 278, 279, 280, 281, 282, and 283 (MCL 388.1836, 388.1836b, 388.1836c, 388.1836j, 388.1836k, 388.1841, 388.1848, 388.1848a, 388.1851, 388.1852, 388.1854, 388.1856, 388.1859, 388.1860, 388.1863, 388.1863a, 388.1864, 388.1868, 388.1869, 388.1870c, 388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, and 388.1883), sections 236, 236j, and 251 as amended and sections 248 and 248a as added by 2022 PA 212, sections 236b, 236c, 241, 252, 256, 259, 260, 263, 264, 268, 269, 270c, 275, 276, 277, 278, 279, 280, 281, and 282 as amended and section 236k as added by 2022 PA 144, section 254 as amended by 2017 PA 108, and sections 263a and 283 as amended by 2019 PA 62, and by adding sections 236d, 241a, 241b, 241c, 263b, 270, and 284a; and to repeal acts and parts of acts.

Mackinac Center Analysis

An appropriations bill for public universities for FY '24.

Introduced in the House

March 21, 2023

Introduced by Rep. Samantha Steckloff (D-19)

Referred to the Committee on Appropriations

April 26, 2023

Reported with substitute H-1

May 10, 2023

Substitute H-1 concurred in by voice vote

Amendment offered by Rep. Thomas Kuhn (R-57)

1. Amend page 25, following line 5, by inserting:

“(4) Appropriations to public universities in section 236 for the fiscal year ending September 30, 2024 for operations funding must be reduced by 10%, pursuant to the procedures described in subdivision (a) for a public that fails to submit certification described in subsection (2) to the state budget director, the house and senate appropriation subcommittees on higher education, and the house and senate fiscal agencies by October 1, 2023.

(a) If a public university fails to submit certification, the state budget director shall withhold 10% of that public university’s annual operations funding until the public university submits certification. If a public university fails to submit certification by the end of the fiscal year, the 10% of its annual operations funding that is withheld must lapse to the general fund.”.

2. Amend page 27, following line 17, by inserting:

“(5) Public universities that exceed the tuition and fee rate cap described in subsection (2) are not eligible to receive payments under section 236 for operations increase and per-student floor funding for fiscal year 2023-2024.

(6) Notwithstanding any other provision of this act, the legislature may at any time adjust appropriations for a public university that adopts an increase in tuition and fee rates for resident undergraduate students that exceeds the rate cap established in subsection (2).”.

The amendment failed by voice vote

Amendment offered by Rep. Jay DeBoyer (R-63)

1. Amend page 65, line 6, after “274d,” by striking out “275d,”.

2. Amend page 65, line 10, after “388.1874d,” by striking out “388.1875d,”.

The amendment failed by voice vote

Amendment offered by Rep. Thomas Kuhn (R-57)

1. Amend page 27, following line 17, by inserting:

“Sec. 241d. (1) A task force must be formed by September 1, 2023 to review, evaluate, discuss, and make recommendations regarding public university operations funding, with a focus on addressing disparities and ensuring that funding levels are equitable across tuition and state support. All of the following apply to this task force:

(a) The task force must consist of the following members:

(i) The chairs and minority vice chairs of the house and senate appropriations subcommittees on higher education and community colleges.

(ii) The state budget director or designee.

(iii) The director of the Michigan Association of State Universities or designee.

(iv) Three members from Michigan public universities, designated by the Association of State Universities, that represent various-sized universities and geographical distribution.

(b) The task force may engage legislative staff, the house and senate fiscal agencies, the state budget office, the department of treasury, former state officials, and other stakeholders with relevant technical expertise to support its work.

(c) The task force shall review whether the current performance metrics used for the performance funding formula are the most appropriate and reliable performance indicators available and determine the most efficient methodology for connecting state funding to those indicators. The task force shall also review, examine, and suggest methodology concerning equitable and appropriate funding levels to public universities.

(d) The task force shall publish a report containing its findings and recommendations by January 15, 2024.”.

2. Amend page 58, following line 5, by inserting:

“Sec. 275k. By September 30, 2024, each public university receiving an appropriation in section 236 shall submit a report to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director describing all funds the university received from foreign governments, including the amounts, the sources, and the purposes of each foreign contribution received.”.

3. Amend page 65, line 5, after “246,” by striking out “265, 265a, 265b, 265f, 266a, 271a, 274, 274c, 274d,”.

4. Amend page 65, line 6, after “274d,” by striking out the balance of the line through “281a” and inserting “and 275d”.

5. Amend page 65, line 8, after “388.1846,” by striking out “388.1865” through “388.1874d,”.

6. Amend page 65, line 10, after “388.1874d,” by striking out the balance of the line through “388.1881a” on line 11 and inserting “and 388.1875d”.

The amendment failed by voice vote

Passed in the House 56 to 52 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

May 11, 2023

Referred to the Committee of the Whole

June 28, 2023

Referred to the Committee on Appropriations