State Legislature Debates Funding Levels for MSU & Michigan’s Higher Education Institutions

The state’s 15 universities would receive a 1.9 percent base increase – less than the 2.5 percent the Governor proposed – in its Fiscal Year (FY) 2018 state allocation under a spending plan that moved out of a House subcommittee a few weeks ago.

Overall, universities would see $26 million more from the state than FY 2017, which is $9 million less than the $35 million the state proposed and $2 million less than what was moved out of the Senate Higher Education Appropriations Subcommittee.

The plan is $17.6 million is less than what the Governor proposed, but 2.3 percent or $37 million more than what universities received in this current year.

HB 4229, which moved to the full House Appropriations Committee, stops the universities from getting the funding bump if they increase tuition over 3.8 percent. The budget moved from the House Higher Education Appropriations Subcommittee to the full House Appropriations Committee with all but one member voting yes.

Under the House plan, Grand Valley State University would get the largest percentage funding increase at 2.6 percent. Lake Superior State University and Wayne State University would get the lowest at 1.5 percent.

The University of Michigan-Ann Arbor would get a $5.65 million increase in HB 4229 while Michigan State University would get $5.1 million more than received in FY 2017.

Other important items from the budget include:

– The Tuition Grant Program for need-based assistance to private or non-profit schools went up $1.5 million or 4.3 percent, which is lower than the $3 million increase the Governor wanted.

– The $2.5 million the Governor put into Michigan State’s animal agriculture initiative was not included in the House’s plan. Neither was the $1.2 million the Governor put in for MSU’s workforce initiative that is designed to support the state’s food processing industry.

Source: ” Universities Get 1.9% More, Not Gov’s 2.5% In House Plan”, MIRS Breaking News, March 30, 2017.

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