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The Senate and House of Representatives have concluded their work on the state budget for higher education for FY 2015.The appropriation bill provides the highest percentage increase in state support in over a dozen years. House Bill 5314 has been ordered enrolled and is on its way to Governor Snyder for his signature.

The bill contains an overall 5.9 percent increase in higher education funding ($82 million). Under the measure, $37.3 million is distributed in proportion to funding received by universities in FY 2010-11 which helped to restore a portion of the 15% reduction enacted in FY 2011-12; $24.8 million is allocated based on Carnegie Peer performance metrics; $8.3 million was distributed based on critical skills undergraduate completion; and finally $4.1 million was allocated based on a university&rsqou;s Carnegie classifications for research activity.

Performance Metrics - $37.3 million total

House Bill 5314 allocates a pool of $8.2 million based on total undergraduate degrees and certificates in STEM areas, health, and skilled trades. An additional $24.8 million is distributed by comparing universities to their Carnegie classification peers. Each university is given a score based on whether they ranked in the top 20 percent nationally, above the national median or demonstrated improvement over 3 years. The classifications that determine university performance are: 6-year graduation rates, total degree completions, institutional support as a percentage of core expenditures, and the enrollment of Pell Grant students. The four Carnegie metrics are scored/weighted by undergraduate enrollment to arrive at the dollar allocation.

Increases to individual universities vary from 3.9 percent to 9.2 percent. UM-Ann Arbor will receive a 5.7 percent increase ($15,941,400), UM-Dearborn will receive a 5.2 percent increase ($1,178,900) and UM-Flint will receive a 7.0 percent increase ($1,399,500).

Qualifying Criteria

Other criteria for funding include reverse transfer agreements with community colleges, dual enrollment policies that do not prevent using the same credits earned for high school graduation to also count toward college credit, participation in the Michigan Transfer Network, and holding FY 2014-15 resident undergraduate tuition/fee increases to 3.2% or lower. More detail on these provisions can be found in the accompanying analysis.

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