Michigan Compiled Laws
Article II - State Aid to Community Colleges (388.1801...388.1830a)
Section 388.1830 - Community College Operations; Performance Funding; Distribution; Formula; Meeting Best Practice Measures; Resolution; Categories of Best Practices; Payments; Conditions; Adjustment for Increase in Tuition and Fee Rates; Task Force;...

Sec. 230.
(1) Subject to subsection (4), money included in the appropriations for community college operations under section 201(2) for performance funding is distributed based on the following formula:
(a) Allocated proportionate to fiscal year 2021-2022 base appropriations, 30%.
(b) Based on a weighted student contact hour formula as provided for in the 2016 recommendations of the performance indicators task force, 30%.
(c) Based on the performance improvement as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.
(d) Based on the performance completion number as provided for in the 2016 recommendations of the performance indicators task force, 10%.
(e) Based on the performance completion rate as provided for in the 2016 recommendations of the performance indicators task force and based on data provided by the center, 10%.
(f) Based on administrative costs, 5%.
(g) Based on the local strategic value component, as developed in cooperation with the Michigan Community College Association and described in subsection (2), 5%.
(2) Money included in the appropriations for community college operations under section 201(2) for local strategic value is allocated only to each community college that certifies to the state budget director, through a board of trustees resolution on or before October 15, 2022, that the college has met 4 out of 5 best practices listed in each category described in subsection (3). The resolution must provide specifics as to how the community college meets each best practice measure within each category. One-third of funding available under the strategic value component is allocated to each category described in subsection (3). Amounts distributed under local strategic value must be on a proportionate basis to each college's fiscal year 2021-2022 operations funding. Payments to community colleges that qualify for local strategic value funding must be distributed with the November installment payment described in section 206.
(3) For purposes of subsection (2), the following categories of best practices reflect functional activities of community colleges that have strategic value to the local communities and regional economies:
(a) For Category A, economic development and business or industry partnerships, the following:
(i) The community college has active partnerships with local employers including hospitals and health care providers.
(ii) The community college provides customized on-site training for area companies, employees, or both.
(iii) The community college supports entrepreneurship through a small business assistance center or other training or consulting activities targeted toward small businesses.
(iv) The community college supports technological advancement through industry partnerships, incubation activities, or operation of a Michigan technical education center or other advanced technology center.
(v) The community college has active partnerships with local or regional workforce and economic development agencies.
(b) For Category B, educational partnerships, the following:
(i) The community college has active partnerships with regional high schools, intermediate school districts, and career-tech centers to provide instruction through dual enrollment, concurrent enrollment, direct credit, middle college, or academy programs.
(ii) The community college hosts, sponsors, or participates in enrichment programs for area K-12 students, such as college days, summer or after-school programming, or Science Olympiad.
(iii) The community college provides, supports, or participates in programming to promote successful transitions to college for traditional age students, including grant programs such as talent search, upward bound, or other activities to promote college readiness in area high schools and community centers.
(iv) The community college provides, supports, or participates in programming to promote successful transitions to college for new or reentering adult students, such as adult basic education, a high school equivalency test preparation program and testing, or recruiting, advising, or orientation activities specific to adults. As used in this subparagraph, "high school equivalency test preparation program" means that term as defined in section 4.
(v) The community college has active partnerships with regional 4-year colleges and universities to promote successful transfer, such as articulation, 2+2, or reverse transfer agreements or operation of a university center.
(c) For Category C, community services, the following:
(i) The community college provides continuing education programming for leisure, wellness, personal enrichment, or professional development.
(ii) The community college operates or sponsors opportunities for community members to engage in activities that promote leisure, wellness, cultural or personal enrichment such as community sports teams, theater or musical ensembles, or artist guilds.
(iii) The community college operates public facilities to promote cultural, educational, or personal enrichment for community members, such as libraries, computer labs, performing arts centers, museums, art galleries, or television or radio stations.
(iv) The community college operates public facilities to promote leisure or wellness activities for community members, including gymnasiums, athletic fields, tennis courts, fitness centers, hiking or biking trails, or natural areas.
(v) The community college promotes, sponsors, or hosts community service activities for students, staff, or community members.
(4) Payments for performance funding under section 201(2) must be made to a community college only if that community college actively participates in the Michigan Transfer Network sponsored by the Michigan Association of Collegiate Registrars and Admissions Officers and submits timely updates, including updated course equivalencies at least every 6 months, to the Michigan transfer network. The state budget director shall determine if a community college has not satisfied this requirement. The state budget director may withhold payments for performance funding until a community college is in compliance with this subsection.
(5) Payments under section 201 for performance funding for fiscal year 2022-2023 must be made only to a public community college that certifies to the state budget director by the last business day of August that its board will not adopt an increase in tuition and fee rates for in-district students for the 2022-2023 academic year that is greater than 5.0% or $226.00, whichever is greater. As used in this subsection:
(a) "Fee" means any board-authorized fee that will be paid by more than 1/2 of all in-district students at least once during their enrollment at a community college. A community college increasing a fee that applies to a specific subset of students or courses shall provide sufficient information to prove that the increase applied to that subset will not cause the increase in the average amount of board-authorized total tuition and fees paid by in-district students in the 2022-2023 academic year to exceed the limit established in this section.
(b) "Tuition and fee rate" means the average of full-time rates paid by a majority of students in each class, based on an unweighted average of the rates authorized by the community college board and actually charged to students, deducting any uniformly rebated or refunded amounts, for the 2 semesters with the highest levels of full-time equated in-district enrollment during the academic year.
(6) Community colleges that exceed the tuition and fee rate cap described in subsection (5) must not receive a planning or construction authorization for a state-funded capital outlay project in fiscal year 2022-2023 or 2023-2024.
(7) Notwithstanding any other provision of this act, the legislature may at any time adjust appropriations for a community college that adopts an increase in tuition and fee rates for in-district students that exceeds the rate cap established in subsection (5).
(8) A task force must be formed by September 15, 2022 to review, evaluate, discuss, and make recommendations regarding community college operations funding, with a focus on addressing disparities and ensuring that funding levels are equitable across tuition, state support, and local tax revenue. 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 Community Colleges Association.
(iv) Three members from Michigan public community colleges, designated by the Michigan Community College Association, that represent various-sized colleges 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 community colleges.
(d) The task force shall publish a report containing its findings and recommendations by December 15, 2022.
History: Add. 2011, Act 62, Eff. Oct. 1, 2011 ;-- Am. 2012, Act 201, Eff. Oct. 1, 2012 ;-- Am. 2013, Act 60, Eff. Oct. 1, 2013 ;-- Am. 2014, Act 196, Eff. Oct. 1, 2014 ;-- Am. 2015, Act 85, Eff. Oct. 1, 2015 ;-- Am. 2016, Act 56, Eff. June 27, 2016 ;-- Am. 2016, Act 249, Eff. Oct. 1, 2016 ;-- Am. 2017, Act 108, Eff. Oct. 1, 2017 ;-- Am. 2018, Act 265, Eff. Oct. 1, 2018 ;-- Am. 2019, Act 52, Eff. Oct. 1, 2019 ;-- Am. 2020, Act 165, Eff. Oct. 1, 2020 ;-- Am. 2021, Act 86, Eff. Oct. 1, 2021 ;-- Am. 2022, Act 144, Eff. Oct. 1, 2022