FY 2024-25: HIGHER EDUCATION
Summary: As Passed by the Senate
Senate Bill 752 (S-2)
Analyst: Perry Zielak
Difference: Senate
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $0 $0 $0 $0 $ $0 --
Federal 131,026,400 3,200,000 3,200,000 3,200,000 (127,826,400) (97.6)
Local 0 0 0 0 0 --
Private 0 0 0 0 0 --
Restricted 482,268,300 545,468,300 457,668,300 451,668,300 (30,600,000) (6.3)
GF/GP 1,677,754,100 1,765,528,700 1,818,485,100 1,870,864,400 193,110,300 11.5
Gross $2,291,048,800 $2,314,197,000 $2,279,353,400 $2,325,732,700 $ $34,683,900 1.5
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Higher Education budget, contained in Article 3 of the compiled School Aid Act, provides funding for operational
support of the state's 15 public universities, the AgBioResearch and Extension programs operated by Michigan State
University; some retirement costs for employees who participate in the state public school employee retirement system;
various financial aid programs for students attending public and independent colleges and universities in the state; and
several other smaller higher education-related programs.
FY 2023-24 FY 2024-25
Enacted Senate
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. University Operations Increase Gross $1,642,043,900 $41,749,800
Executive includes a net increase of $41.3 million Gross ($52.5 million Restricted 443,168,300 0
GF/GP reduction) for university operations, a 2.5% increase. This GF/GP $1,198,875,600 $41,749,800
includes:
• $40.7 million GF/GP ongoing increase to operations grants for
universities, with all universities receiving a 2.5% increase.
• $507,800 GF/GP increase based on FY 2022-23 North American
Indian Tuition Waiver program costs reported by institutions.
• Replaces $93.8 million GF/GP with a corresponding amount of
School Aid Fund (SAF).
Attainment of the operations increase would be conditioned on
restraining resident undergraduate tuition and fee increases to the
greater of 5.0% or $781 (set at 4.5% or $676 in the current year).
Projected funding changes for universities would range from 1.9% to
2.7%. Total funding for operations would be $1.7 billion Gross ($1.1
billion GF/GP).
House includes a net increase of $54.8 million Gross ($48.8 million
GF/GP) for university operations, a 3.3% increase. This includes:
• $53.7 million Gross ($47.7 million GF/GP) ongoing increase to
operations grants for universities, with all universities receiving a
3.3% increase.
• $1.0 million GF/GP increase based on FY 2022-23 North American
Indian Tuition Waiver program costs reported by institutions and
incorporating Bay Mills Community College into the ITW program.
[continued on next page]
House Fiscal Agency 1 5/28/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. University Operations Increase (continued)
Attainment of the operations increase would be conditioned on
restraining resident undergraduate tuition and fee increases to the
greater of 4.5% or $703 (set at 4.5% or $676 in the current year).
Projected funding changes for universities would range from 2.9% to
6.0%. Total funding for operations would be $1.7 billion Gross ($1.2
billion GF/GP).
Senate includes a net increase of $41.7 million GF/GP for university
operations, a 2.5% increase. This includes:
• $40.7 million GF/GP ongoing increase to operations grants for
universities, with all universities receiving a 2.5% increase.
• $1.0 million GF/GP increase based on FY 2022-23 North American
Indian Tuition Waiver program costs reported by institutions, which
includes a one-time payment of $498,800 to Bay Mills Community
College for ITW costs.
Attainment of the operations increase would be conditioned on
restraining resident undergraduate tuition and fee increases to the
greater of 4.5% or $703 (set at 4.5% or $676 in the current year).
Projected funding changes for universities would range from 2.1% to
5.2%. Total funding for operations would be $1.7 billion Gross ($1.2
billion GF/GP).
2. Michigan State University Extension and AgBioResearch Gross $71,743,400 $1,793,600
Programs Increase GF/GP $71,743,400 $1,793,600
Executive includes a net increase of $1.8 million GF/GP for MSU's
AgBioResearch and Extension program funding. This includes:
• $963,000 GF/GP ongoing operations increase for the MSU
AgBioResearch program, a 2.5% increase.
• $830,600 GF/GP ongoing operations increase for the MSU
Extension program, a 2.5% increase.
Total funding for AgBioResearch and Extension programs would be
$73.5 million GF/GP.
House includes a net increase of $2.4 million GF/GP for MSU's
AgBioResearch and Extension program funding. This includes:
• $1.3 million GF/GP ongoing operations increase for the MSU
AgBioResearch program, a 3.3% increase.
• $1.1 million GF/GP ongoing operations increase for the MSU
Extension program, a 3.3% increase.
Total funding for AgBioResearch and Extension programs would be
$74.1 million GF/GP.
Senate concurs with Executive.
3. Michigan Public School Employee Retirement System (MPSERS) Gross $9,100,000 ($600,000)
Normal Cost Offset Restricted 9,100,000 (600,000)
Executive decreases reimbursement funding provided to universities by GF/GP $0 $0
$600,000 SAF, a 6.6% decrease, due to maintaining the assumed rate
of return for MPSERS at 6.0%. Total funding for the MPSERS Normal
Cost Offset would be $8.5 million SAF. House concurs. Senate concurs.
House Fiscal Agency 2 5/28/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
4. Michigan Achievement Scholarship/Postsecondary Scholarship Gross $300,000,000 $0
Fund Deposit GF/GP $300,000,000 $0
Executive includes a net increase of $30.0 million GF/GP for deposit into
the Postsecondary Scholarship Fund, a 10.0% increase, which is the
funding source for Michigan Achievement Scholarships. The
scholarships are awarded to eligible in-state students that graduate high
school or achieve an equivalency certificate in 2023 or after and attend
an eligible Michigan public university, community college, tribal college
or independent nonprofit college or university full-time. Includes the new
Community College Guarantee, which would expand last-dollar aid and
a $1,000 needs-based stipend for community college students. After a
total $330.0 million GF/GP deposit into the Postsecondary Scholarship
Fund, total funding for Michigan Achievement Scholarships for FY 2024-
25 would be $330.0 million restricted.
House includes an increase of $36.0 million GF/GP for deposit into the
Postsecondary Scholarship Fund, a 12.0% increase. Does not include
the Community College Guarantee. Revises last dollar awards to include
the full cost of attendance minus gift aid received. After a total $336.0
million GF/GP deposit into the Postsecondary Scholarship Fund, total
funding for Michigan Achievement Scholarships for FY 2024-25 would
be $336.0 million restricted.
Senate maintains current funding levels for the Michigan Achievement
Scholarship. Deposits GF/GP funding for Tuition Incentive Program,
Michigan Competitive Scholarships, Tuition Grants, Children of Veterans
and Officer's Survivor Tuition Grant, and Michigan Reconnect program
($200.7 million) into the Postsecondary Scholarship Fund. Revises
Michigan Achievement Scholarship last dollar awards for community
college students, increases award level for private/independent
university students from $4,000 to $5,000, and makes awards for all
public and private/independent universities first dollar.
5. Tuition Incentive Program Gross $73,800,000 $20,000,000
Executive includes a net increase of $20.0 million Gross ($93.8 million Federal 73,800,000 (73,800,000)
GF/GP) for the Tuition Incentive Program (TIP), a 27.1% Gross increase. GF/GP $0 $93,800,000
This includes adding GF/GP to replace federal Temporary Assistance
for Needy Families (TANF) funding that would instead be used to
increase supports for low-income families including cash assistance rate
increases, emergency relief, and child care rate increases in other
budget areas. TIP pays Medicaid-eligible students' tuition costs for
associate degrees under Phase I and bachelor's degrees under Phase
II. The increase addresses increased student participation and
increased tuition and fees. Total funding for TIP would be $93.8 million
GF/GP. House concurs. Senate concurs but deposits GF/GP funding
into the Postsecondary Scholarship Fund.
6. Michigan Competitive Scholarships Gross $26,861,700 ($6,930,800)
Executive includes a net decrease of $6.9 million Gross (increase of Federal 23,930,800 (23,930,800)
$19.9 million GF/GP) for Michigan Competitive Scholarships, a 25.8% GF/GP $2,930,900 $17,000,000
Gross decrease. This includes adding GF/GP to replace federal TANF
funding that would instead be used to increase supports for low-income
families including cash assistance rate increases, emergency relief, and
child care rate increases in other budget areas. The scholarships are
awarded to students with a qualifying SAT score and demonstrated
financial need. The reduction is due to the anticipated phase-out of the
scholarship program as student awards increase under the Michigan
Achievement Scholarship program. Total funding for Michigan
Competitive Scholarships would be $19.9 million GF/GP. House
concurs. Senate concurs but deposits GF/GP funding into the
Postsecondary Scholarship Fund.
House Fiscal Agency 3 5/28/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
7. Children of Veterans and Officer's Survivor Tuition Grant Gross $1,400,000 $600,000
Programs GF/GP $1,400,000 $600,000
Executive increases funding by $600,000 GF/GP for Children of
Veterans and Officer's Survivor Tuition Grant programs, a 42.9%
increase. The grants are awarded to children of deceased or
permanently disabled military veterans or to surviving spouses and
children of Michigan police officers and firefighters killed in the line of
duty. The increases are due to increased student participation in the
programs and increased tuition and fee costs. Total funding for the
Children of Veterans and Officer's Survivor Tuition Grant programs
would be $2.0 million GF/GP. House concurs. Senate concurs but
deposits GF/GP funding into the Postsecondary Scholarship Fund.
8. Tuition Grant Program Gross $42,021,500 ($7,095,600)
Executive includes a net decrease of $7.1 million Gross (increase of Federal 30,095,600 (30,095,600)
$34.9 million GF/GP) for the Tuition Grant Program, a 16.9% Gross GF/GP $11,925,900 $23,000,000
decrease. This includes adding GF/GP to replace federal TANF funding
that would instead be used to increase supports for low-income families
including cash assistance rate increases, emergency relief, and child
care rate increases in other budget areas. The program provides need-
based tuition assistance to students at Michigan independent (i.e.,
private, non-profit) colleges and universities. The reduction is due to the
anticipated phase-out of the scholarship program as student awards
increase under the Michigan Achievement Scholarship program. Total
funding for Tuition Grants would be $34.9 million GF/GP.
House replaces $30.1 million federal TANF funding with a corresponding
amount of GF/GP. Total funding for Tuition Grants would be $42.0 million
GF/GP. Senate concurs with Executive but deposits GF/GP funding into
the Postsecondary Scholarship Fund.
9. Michigan Reconnect Program Gross NA $50,000,000
Executive transfers $62.0 million GF/GP from the Michigan Department GF/GP NA $50,000,000
of Labor and Economic Opportunity (LEO) for the Michigan Reconnect
Program. The program provides last-dollar scholarships primarily to
individuals 25 or older (temporarily expanded to 21-24 year-olds through
November 2024) with a high school diploma or equivalency certificate to
complete a Pell-eligible associate degree or skills-based certificate.
Total funding for the Michigan Reconnect Program would be $62.0
million GF/GP. House does not include. Senate transfers $50.0 GF/GP
for the Michigan Reconnect Program from LEO.
10. Infrastructure, Technology, Equipment, Maintenance, and Gross $79,000,000 ($78,999,900)
Safety GF/GP $79,000,000 ($78,999,900)
Executive removes $79.0 million GF/GP Infrastructure, Technology,
Equipment, Maintenance, and Safety (ITEMS), which would allow public
universities to repair, improve, or maintain existing buildings, facilities,
equipment, technological and physical infrastructure, debt, and school
safety measures. House concurs but maintains $100 placeholder for the
program. Requires individual university allocations to be distributed
based on calculated FY 2022-23 fiscal year equated student (FYES)
enrollment. Allocations would not be distributed until January 2025.
Senate concurs with House but revises distribution date to October
2024.
House Fiscal Agency 4 5/28/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
11. Institutional Best Practices Incentive Gross $0 $42,536,800
Senate adds $42.5 million GF/GP of one-time funding for public GF/GP $0 $42,536,800
universities that implement a series of best practices that include:
requiring students to participate in an institutional orientation, providing
academic pathway support and an academic course plan, establishing
a credit policy and assessment based on prior learning and knowledge,
adopting a co-requisite model for remedial courses and providing the
courses at no cost to students, requiring students to meet with an
academic advisor once a semester or term, requiring a discount for on-
campus housing for second year residents if an institution requires more
than 1 year of on-campus residency, and awarding incoming students
with an associate degree junior standing. Requires eligible university
allocations be distributed based on the university's proportion of FY
2024-25 ongoing operations funding increase.
12. MPSERS UAAL Payment Gross $0 $4,100,000
Senate adds $4.1 million GF/GP of one-time funding for MPSERS GF/GP $0 $4,100,000
unfunded actuarial accrued liability contributions to the system for the
seven universities with MPSERS employees (Central, Eastern, Ferris,
Lake Superior State, Michigan Tech, Northern, and Western.). The
payment is anticipated to address the current estimated remaining UAAL
balance.
13. Statewide University Cybersecurity Initiative Gross $0 $2,810,000
Senate adds $2.8 million GF/GP of one-time