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MSU Seeks Equity in Higher Ed Funding

On February 10, the Governor recommended a 4.4% ($61M) across the board increase for Michigan’s public higher education institutions.  The goal of this increase is to restore the 15 public institutions back to their 2011 state funding levels.  The Governor also recommended a tuition cap increase of 4.8%.  Any universities increasing tuition above this level would forfeit monies allocated through the performance funding metrics.

MSU is encouraged and appreciates this forward momentum toward Snyder’s commitment to restore each public university’s state funding levels back to the 2011 appropriations.  However, MSU along with four other institutions, will not be made whole through the recommended distribution of the 4.4%, even though the Governor's recommended $61M appropriately distributed could do so. 

As a result, MSU, U of M, Wayne State, Eastern and Western will receive appropriations less than their 2011 appropriations. By way of example, MSU’s 2011 appropriations were $283.7M and the expected appropriation for 2017 is $279.1M resulting in an approximate $4.5M shortfall.

The MSU AgBio Research and Extension budget line received a 2.3% increase which is less than the overall 4.4% increase for MSU’s operational budget.  While this increase would restore Agbio Research and Extension to the 2011 funding levels, it does deviate from the state’s historical funding standards of providing the same percentage increases to both.

Review this presentation for more detailed information on the budget process.


A chart showing difference of disinvestment between 2001-02  and 2012-13

After inflation, the cost of higher education per student at Michigan public universities went up by only $217 (1.8 percent) over 12 years. At MSU, that increase was only $65. As this chart prepared by the House Fiscal Agency clearly shows, the increase in cost for higher education borne by students and families has been driven almost entirely by the dramatic disinvestment by the state.