February 9, 2012 - 4:35pm
Snyder recommends 3.1 percent increase in higher education funding
BY ADAM RUBENFIRE
Republican Gov. Rick Snyder announced his recommendations for Michigan’s fiscal year 2013 budget today in Lansing, which include a 3.1-percent hike in funding for public universities.
Released this morning, Snyder’s proposal invests $36.2 million more in higher education than last year’s budget. The University will receive a 1.4-percent increase in funding, the same amount of Michigan State University.
The University of Michigan and Michigan State University are receiving the second-lowest increase in funding among state Universities, above Wayne State University, which will be receiving 0.9-percent more funding.
Snyder’s proposal noted that a university’s level of funding will be dependent on its ability to keep tuition affordable.
“Universities that better constrain tuition and fee increases will receive greater funding,” the proposal said. “Tuition restraint funding will be allocated to qualifying universities once all institutions have set their academic year 2012-13 tuition rates.”
The proposal also recommends that state universities receive varying levels of funding based on their outcome in a new performance formula. The formula measures include four factors: growth in undergraduate degree completion, undergraduate degree completion in "critical skill areas," the number of undergraduate Pell Grants awarded and the ability of the university to comply with tuition restraint standards issued by the state.
The state cut appropriations to Michigan's 15 public universities by 15 percent last year. The funding decreases were contingent upon a tuition cap of a 7.1 percent increase for in-state students.
Last June, the University's Board of Regents voted to increase tuition by 6.7 percent for in-state students and 4.9 percent for out-of-state students.
Cynthia Wilbanks, the University’s vice president for government relations, released a statement this afternoon demonstrating support of the proposed increase allocations to higher education, adding it will be important to thoroughly examine formula funding logistics moving forward.
“We are encouraged to see the proposed increase in funding for higher education,” Wilbanks said. “It’s important to get the additional detail on the new funding that is tied to performance metrics so we can analyze the impact.”
In the University’s fiscal year 2013 budget development letterreleased in November, University President Mary Sue Coleman expressed concern with Snyder’s formula funding model. She argued that the University shouldn’t be compared to other state Universities to receive funding.
“The objective of formula funding should be to allocate funding based on the value that each university brings to the state, so that the formula provides financial incentive for each university to maximize that value,” Coleman wrote.
In her letter, Coleman instead suggested that the state use the Carnegie Classification of Institutions of Higher Education — a framework for understanding institutional differences of universities across the country — to determine appropriate funding for state universities
Mike Bolous, executive director of the Presidents Council, State Universities of Michigan, said Snyder’s budget offered few additional funds in most areas, including higher education.
“This a pretty lean budget, and there’s very little increase in this budget,” Boulous said.
Bolous said that while the Presidents Council welcomes any additional funding to higher education, he believes the hike was minute.
“This is what I call a small step toward restoration,” Bolous said. "I wouldn’t even call it an increase, I’d call it additional funds, I think that’s an accurate statement to make. The money is one time money, it’s not there in year two of his budget.”
Bolous added that the governor’s increase is not expansive enough to replace major losses suffered by Michigan's state universities in recent years as a result of budget cuts.
“It’s $36 million for higher education — a relatively small amount when you put it in perspective to what we’ve lost in the past decade, we lost $213 million just last year,” Bolous said. “And when you put that on a per-student basis, last year’s cut was $827 on a per-student basis.
Regarding the formula method for higher education funding allocation, Boulous said the metrics should compare state universities relative to their fellow institutions.
“We’re more than willing to be held accountable for metrics that are best practices and that are kind to new money — it’s a good investment strategy, and I think the metrics that the governor has selected are fair,” Boulous said. “But it takes a look back on past performance without any measure against peers. I think it can be improved, so that you look at these metrics not just against yourself in past performance, but against your peers and progress made over time.”
—This is a developing story. Check back to michigandaily.com for updates.
