Tuition deal makes it into state budget

Updated 10:00 AM September 13, 2004

Tuition deal makes it into state budget

By Laurel Thomas Gnagey

Final provisions of the state budget for fiscal year 2005 will allow most Michigan universities, including U-M, to raise tuition by 2.8 percent, and see a portion of the cuts experienced last September restored to their base appropriation.

Gov. Jennifer Granholm announced the $39.7 billion budget agreement Sept. 2, but specific details regarding higher education funding had not been determined at that time. A House-Senate conference committee hammered out the final higher education plan Sept. 8, and the full Legislature approved it a day later.

The University approved a 2.8 percent increase in July, contingent on the state following through on its promise of a 3 percent restoration.

Under the budget plan, most of the 15 public universities will be able to increase tuition by 2.8 percent. Only Michigan State, Grand Valley State, Saginaw Valley State and Western Michigan will be held to a 2.4 percent increase above their highest authorized tuition rate enacted in the 2003-04 year.

Northern Michigan and Lake Superior State were viewed as not having restrained their tuition due to mid-year increases. The two universities could qualify for full restoration if they rebate the increase amount back to their students, the plan says.

"Although we still have concerns about the state determining rates of tuition for universities, we are pleased to see that the governor and Legislature were able to meet the goal of restoring support to universities in response to our willingness to restrain the 2004-05 tuition increase," says Cynthia Wilbanks, vice president for government relations.

"The University of Michigan has acknowledged the seriousness of the state's budget crisis by taking serious steps to reduce expenditures in every area of the University's operation, but we also know that higher education is critical to the success of Michigan's economic future, and over the long term, a more sustainable model of state support must be considered."

Other items in the state budget include:

• A $15 million increase for the life sciences research and commercialization activities in the Technology Tri-Corridor, which Wilbanks says is good news because the funding represents an investment in job growth and research;

• A-minimum per-pupil allowance of $6,700 for K-12 schools;

• A cut of $14 million from intermediate school districts;

• $360 million in revenues generated from increased taxes on cigarettes and casinos;

• The elimination of Michigan Merit Award Scholarships for graduating seniors who attend universities out of state.

Tuition deal makes it into state budget

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