Issue Update

June Issue Update - Budget headed to Governor Snyder

The General and Education Omnibus bills have passed the House and Senate and are expected to be signed by Governor Snyder. The final version of the Education Omnibus includes an overall 2% increase for higher education funding in fiscal year 2019. Once run through Michigan's funding formula, this results in a proposed increase in MSU operations of 1.8%; returning MSU to 2011 funding levels without accounting for inflation during that timeframe.

The budget also includes Title IX sexual assault complaint reporting requirement including a penalty provision for failure to meet requirements. Universities that fail to meet these requirements will face a 10% penalty to university operating funds. 

Other key MSU highlights include: 

May Issue Update - Consensus Revenue Estimating Conference

Positive news reported out from the May 2018 Consensus Revenue Estimating Conference:

  • Net FY 2018 General Fund-General Purpose (GF-GP) revenue is projected at $10.46 billion, up $155.9 million from estimates agreed to in January.
  • Net FY 2018 School Aid Fund (SAF) revenue is now estimated at $13.24 billion, up $159.5 million from January.
  • Combined, GF-GP and SAF estimates are up approximately $315 million for FY 2018.

April Issue Update - FY19 House and Senate Higher Ed Funding Bills

Senate Bill 857 increased overall funding for Higher Education to 3% (an increase of 1% over the Governor recommendation), with the inclusion of increased reporting requirements for Title IX sexual assault, and adding $14.3 million dedicated to campus safety, sexual assault prevention, and mental health services.  

House Bill 5579 reduced the funding increase proposed by the Governor from 2% to 1%, which would be a .9% increase for MSU operations.

House Bill 5579 adds language that conditions loss of 10% of operations funding for universities that fail to comply with Title IX reporting requirements found in sections 274c and 274d and a number of other requirements, including:

  • Prohibiting the use of in-house medical experts in Title IX investigations.
  • Prohibiting the issuance of divergent Title IX investigation report.
  • Allowing the complainant to have the university notify a law enforcement agency in an investigation of a university employee.
  • Instituting an in-person sexual assault prevention course or presentation for all freshmen and sophomores and an electronic course or presentation for all other students.
  • Prohibiting compensation for medical procedures and related charges from medical professionals convicted of a felony.
  • Having a third-party investigator examine the Title IX office and policies before the 2018-19 academic year.
  • Requiring that Title IX reports against employees are shared with the university’s governing body.
  • Requiring a third-party Title IX investigation against an employee with more than one “no misconduct” finding.
  • Certifying that the president or chancellor and one governing body board member has reviewed all Title IX reports involving university employees.

These bills have been referred to the Senate and House Appropriation committees for review and action in each chamber.

February Issue Update - FY19 Governor Proposal for Higher Ed Funding

In February, Governor Snyder recommended an overall 2% increase for higher education for fiscal year (FY) 2019. Once run through Michigan’s funding formula, this sets up a 1.8% increase for MSU operations. This level of increase means MSU will closely return to its 2011 funding level (in raw dollars without inflation). The House and Senate Appropriations historically has moved in a direction to reduce higher education operational funding compared to the governor’s recommendation.

On another positive note, the Governor has recommended a 2% increase in AgBio and Michigan State University Extension funding compared to the FY18 budget. MSU continues to work closely with legislators related to our 2019 capital outlay request. For the second consecutive budget cycle, MSU has submitted our STEM Teaching and Learning facility for consideration for state funds. MSU has experienced a 40% increase in STEM-related curriculum in the last decade. This increase has put a strain on existing STEM related teaching space. It is expected that final approval by the Legislature on the FY19 state budget will be coming in mid-June.

MSU received approval from the Joint Capital Outlay Committee (JCOC) last year for the STEM Teaching and Learning facility. This is a $30 million contribution to the $72 million project. We are now moving to the planning phase and anticipate approval in April by JCOC.

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