LANSING — The state House’s Appropriations Subcommittee on Higher Education heard testimony yesterday from the presidents of the University of Michigan, Michigan State University and Wayne State University in regard to a state Senate bill that promises to slash state funding to public universities.

The bill — passed by the Republican-controlled Senate last month — could cut state aid to all public Universities and community colleges in Michigan by 3.1 percent. The proposed cut would cost the University of Michigan about $10.2 million in state funding for the 2010-2011 fiscal year, which starts October 1.

Democratic Gov. Jennifer Granholm has requested that state funding for Universities remain at their current levels again for the next fiscal year.

State Rep. Joan Bauer (D–Lansing), chair of the appropriations subcommittee, said during the hearing that the subcommittee was going to have to make a “very difficult recommendation” to the House Appropriations Committee on how to handle the state’s higher education budget.

University of Michigan President Mary Sue Coleman, MSU President Lou Anna K. Simon and Wayne State University President Jay Noren testified on behalf of the University Research Corridor — the three-year-old research collaboration between the three institutions. Jeff Mason, executive director of the URC, also spoke before the subcommittee.

Coleman told the subcommittee that all three universities are doing their best to cut costs and keep tuition prices down while maintaining their standards as educational institutions.

“We all understand how tough it is for the state of Michigan,” Coleman said. “And each of us, and I think all the universities, are trying to respond to make us as efficient as we can possibly be to find cost savings and to keep our quality world-class. Because that’s what this is what this all about — keeping us world-class.”

In an interview after the hearing, Coleman said the University was preparing for cuts in state funding by attempting to eliminate $100 million from its budget, adding that the loss in state aid could have economic repercussions.

“The more the state invests, the more we’re going to have a positive impact on the whole economy,” Coleman said. “Obviously, we’ve put this development of the URC as a very high priority, and we will continue to do everything that we can. But, if we had more resources, we could do more and do it faster.”

Noren echoed Coleman’s sentiments, saying that each institution in the URC assists entrepreneurs in an effort to boost the state’s economy.

“When we established the University Research Corridor three years ago, our objective was to accomplish the synergy of our research and development capacity and do it collaboratively,” Noren told the subcommittee. “I think most people agree that our three institutions and our 12 colleague public institutions in Michigan are critical to Michigan’s competitiveness in the global economy. Each of our URC institutions are committed to moving the fruits of our research to the marketplace.”

University alum Jason Bornhorst spoke before the subcommittee as one such entrepreneur who benefitted from the URC. Bornhorst co-founded the Ann Arbor-based software company Mobil33t — the firm that developed the iPhone application called DoGood, which encourages its users to perform good deeds.

Bornhorst told the subcommittee that the idea for the DoGood application came from a class on mobile entrepreneurhsip he took while he was enrolled in the University.

“The class ended and we spun out a Michigan LLC,” he said. “The objective was to leverage our skills to innovate and create change on the iTunes applications store.”

Coleman testified that the University was trying to provide students like Bornhorst with a sense of entrepreneurialism not only to enable them for success but also to help the state’s economy.