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House panel adopts H-1 substitute for HB 4,578, approves MyLeap-related appropriations and new boilerplate limits
Summary
The House Appropriations Subcommittee on Higher Education and Community Colleges adopted the H‑1 substitute for House Bill 4,578, received a fiscal overview from House Fiscal Agency and approved multiple new boilerplate restrictions including reporting, E‑Verify, and limits on DEI spending.
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The Michigan House Appropriations Subcommittee on Higher Education and Community Colleges voted to adopt the H‑1 substitute for House Bill 4,578, described in the hearing as the “MyLeap Appropriations Bill,” and later reported the substitute with a recommendation that it pass.
Noelle Benson of the House Fiscal Agency gave the subcommittee a topline overview of the H‑1 proposal, saying the package shows a $3,500,000 overall gross decrease versus year‑to‑date numbers for a total gross budget of $640,500,000 and an 18.1% reduction in authorized FTEs (from 343 to 281). Benson said the proposal includes a $46,400,000 increase in general fund support offset by a $49,900,000 federal funds decrease. She identified a $44,300,000 increase for child development and care caseload costs and described a net shortfall in federal funding that the house proposal covers with general fund dollars.
Perry Zylak of the House Fiscal Agency reviewed boilerplate changes. The House H‑1 adds multiple new conditions and reporting requirements for the department the bill funds, including (as described by Zylak) reporting on severance pay for high‑ranking officials within 14 days of an agreement, quarterly reporting on department grants, a requirement that contractors and subcontractors use the federal E‑Verify system, and restrictions on the use of funds for programs serving non‑citizens except where the individual is a qualified alien or detained in correctional facilities. Zylak also described language that would prohibit department promotion of diversity, equity, and inclusion programs and a provision that would bar use of pronouns in official email signatures, business cards and departmental letterhead with a $100 fine enforceable in the Michigan Court of Claims for each violation.
Members asked questions about child care and caseload funding and the prospect of further negotiation. Chair Markkanen said negotiations with the Senate and governor would continue: “we're still gonna negotiate with the senate and the governor, and I think that's an issue that we can look at,” the chair said during discussion.
Procedural actions recorded in the transcript: Representative Jenkins Arno moved to adopt the H‑1 substitute for HB 4,578; the motion to adopt the substitute was announced adopted by the chair (the earlier roll call recorded a mix of yes, no and one pass and the chair stated the motion was adopted). Later, a motion to report the H‑1 substitute for HB 4,578 with recommendation that it pass was made and the roll call recorded five yes votes and two no votes; the bill was reported out of the subcommittee.
No formal amendments to the substitute were recorded during the hearing. The transcript records that House Fiscal Agency analysts answered member questions but that many line‑item and boilerplate choices would be subject to future negotiation with the Senate and governor.
The chair adjourned the subcommittee after completing the three appropriation items on the agenda.
Ending: The substitute for HB 4,578 was adopted by the subcommittee and reported with recommendation that it pass; members signaled additional negotiation ahead of final action in the full House and with the Senate.

