HB 4580: Appropriations: higher education; appropriations for fiscal year 2025-2026; provide for. Amend secs. 236 & 241 of 1979 PA 94 (MCL 388.1836 & 388.1841). - Michigan

Substitute (H-2) → Substitute (H-1) - 2 · 5 edits

MODERATE

The bill significantly restructured funding allocations for Michigan's state universities, shifting the primary funding source from 'operations' to 'campus investment funds' for several institutions. This change reduces the direct operational budget for universities like Michigan State, Michigan Technological, and Northern Michigan, while increasing the total appropriation for others like Michigan State and Central Michigan. Additionally, the bill updated the list of amended sections and corrected a reference to a new section 236k.

Scope change

The bill's scope regarding university funding mechanisms changed by altering how funds are categorized and allocated, moving from general operations to specific campus investment funds for multiple universities.

FISCAL

Funding allocations for Central Michigan, Eastern Michigan, Ferris State, Grand Valley State, Lake Superior State, Michigan Technological, and Northern Michigan were changed to route money through 'campus investment funds' instead of 'operations', altering how these universities manage their budgets.

Michigan State University's total appropriation increased significantly, with a new allocation for 'campus investment funds' added alongside existing operational and research funding.

The total gross appropriation amount was increased from approximately $2.26 billion to $2.40 billion, reflecting the new funding structure.

SCOPE

New sections 236b and 236k were added to the bill, and section 236j was updated to include section 236k in its summary of appropriations.

TECHNICAL

The list of amended MCL sections was updated to include section 257 and exclude section 255, and the reference to the amending act was updated from 2023 PA 103 to 2023 PA 103.

Substitute (H-1) → Substitute (H-2) · 4 edits

MODERATE

The bill was amended to update the list of affected sections in the State School Aid Act, removing references to repealed sections and adding new ones. The most significant change involves a substantial increase in state funding for higher education, particularly for major universities like Michigan State, Central Michigan, and Grand Valley State. These adjustments reflect a shift in financial priorities and ensure the appropriations align with current legislative requirements.

Scope change

The bill's scope was updated to include newly added sections (252, 255, 284) and exclude repealed sections (257, 286) from the State School Aid Act amendments.

SCOPE

Updated the list of sections being amended to remove repealed sections and include newly added ones.

FISCAL

Increased total appropriations from approximately $2.4 billion to $2.26 billion after adjustments, reflecting a change in how funds are calculated or allocated.

Significantly increased funding for Central Michigan University, Eastern Michigan University, Ferris State University, Grand Valley State University, Lake Superior State University, Michigan Technological University, and Northern Michigan University.

Substantially increased funding for Michigan State University, raising the appropriation from roughly $162 million to nearly $340 million.

As Passed by the House → Substitute (H-1) · 4 edits

MODERATE

The bill was amended to reorganize the list of affected statutes and significantly alter funding allocations for Michigan universities. The most notable change is the removal of specific appropriations for Michigan State University, Michigan Technological University, and Northern Michigan University, while simultaneously adding new funding categories for 'campus investment funds' at Central Michigan University, Eastern Michigan University, Ferris State University, Grand Valley State University, Lake Superior State University, and Michigan State University. These shifts indicate a major restructuring of how state funds are distributed among higher education institutions.

Scope change

The bill's scope was technically expanded to include new sections (236b, 236k) and amended sections (257) that were not in the previous version, reflecting the addition of new funding mechanisms.

FISCAL

Appropriations for Michigan State University, Michigan Technological University, and Northern Michigan University were removed from the text, eliminating their specific funding lines in this version.

New funding lines for 'campus investment funds' were added for six universities (Central Michigan, Eastern Michigan, Ferris State, Grand Valley State, Lake Superior State, and Michigan State), replacing previous operational and waiver funding categories.

The total gross appropriation amount was increased from approximately $2.26 billion to $2.40 billion, indicating a higher overall budget allocation despite the removal of some university line items.

TECHNICAL

The bill's introductory text was updated to list new sections (236b, 236k) and amended sections (257) that correspond to the new funding categories.

House Introduced Bill → As Passed by the House · 10 edits · Jun 12, 2025

MAJOR

This bill significantly increases state funding for Michigan public universities, adding new revenue sources and specific allocations for pension support and student programs. It introduces strict financial constraints, such as tuition caps and administrative spending limits, alongside new transparency requirements for university operations and student demographics. The legislation also establishes new scholarship programs for skills training and enforces strict compliance with federal rulings on admissions and state laws regarding gender identity in athletics.

Scope change

The bill expands the scope of state oversight over public universities, introducing new reporting requirements, funding conditions, and eligibility criteria for various scholarship programs.

FISCAL

Increased total appropriations for public universities from approximately $2.26 billion to over $2.32 billion, including new allocations for pension support payments and specific university programs.

REQUIREMENT

Mandated that public universities maintain a public transparency website displaying detailed budget data, personnel costs, debt obligations, and student performance metrics.

Required universities to report detailed Title IX compliance data, including investigation timelines and complaint statistics, to the state.

Established a new 'Michigan Achievement Scholarship Private Training Program' offering skills scholarships for occupational training programs.

Prohibited public universities from spending appropriated funds on diversity, equity, and inclusion initiatives, with penalties for violations.

Required public universities to designate intercollegiate athletic teams and sports based strictly on biological sex, prohibiting participation by individuals assigned male at birth on female-designated teams.

Tightened tuition restraint limits, capping annual tuition increases at 4.5% or $735, whichever is greater, for the 2025-2026 academic year.

Mandated that universities post a list of all remote employees, including their titles and salaries, on their websites.

ELIGIBILITY

Adjusted eligibility criteria for the Michigan Achievement Scholarship to use a Student Aid Index (SAI) number instead of expected family contribution for determining financial need.

ENFORCEMENT

Authorized the state budget director to withhold up to 5% of monthly operating funds if universities fail to comply with new reporting, tuition, or administrative spending requirements.

Appropriations: higher education; appropriations for fiscal year 2025-2026; provide for. Amend secs. 236 & 241 of 1979 PA 94 (MCL 388.1836 & 388.1841).

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