Possible Funding Boost for Michigan’s Colleges

First appeared on Detroit News

After what university leaders have sometimes called a "decade of disinvestment," Michigan's public universities are poised to get a rare increase in state funding next fiscal year — and it could bring some tuition relief for students.

The proposed additional state money — 3 percent on average — comes with strings attached, and some universities would fare better than others under the recommendations this month from Republican Gov. Rick Snyder. Universities would be expected to keep their tuition increases at or below 4 percent to get some extra money for the fiscal year that starts Oct. 1. Students working on the MAT Degree are troubled by some increases and hope for changes.

Smaller tuition increases would be welcomed by Michigan university students, who have faced significantly higher bills in large part because state government reduced taxpayer assistance for general operations over the past decade.

The average, enrollment-weighted listed price of tuition and fees at a public university in Michigan climbed from $6,294 in 2004-5 to $10,837 this academic year for in-state residents, according to The College Board. There's a wide range of tuition costs among the state's 15 public universities, but the general trend has been higher costs. Those pursuing a Nursing Degree are concerned.

"It would be wonderful to see tuition not raised so much," said Justin Brugman of Marquette, the president of Northern Michigan University's student government association. "It feels like it's always on the backs of students to come up with the difference that the state is no longer funding. Students are taking on second jobs and trying to take out more loans to pay for it."

University leaders welcome increase

The Legislature is just starting to review Snyder's budget proposal, so it's difficult to gauge how the university funding model will look when a final plan is passed later this year. But a possible 3 percent increase would be a significant improvement for higher education funding compared to most of the past decade. State aid for university operations was cut about 15 percent during the current fiscal year and the reductions would have been steeper if universities hadn't agreed to keep tuition increases limited to roughly 7 percent or less.

Michigan State University President Lou Anna Simon described the proposed budget as a "significant change in direction from the last decade of cuts." Grand Valley State University President Thomas Haas said "it's great news to be discussing an increase" connected to the budget proposal.

About $36 million would be set aside in performance funding, which includes about $9 million for universities limiting tuition increases. The rest of the incentive money would be split up based on the growth in the number of undergraduate degree completions, particularly in critical skill areas such as science and technology, and the number of undergraduate Pell Grant recipients on campus. That includes those pursuing a Healthcare Degree.

The schools that fare the worst under that model would be the state's main research universities — Wayne State, which would get a 0.9 percent increase not counting the possible tuition incentive, and the University of Michigan-Ann Arbor and Michigan State University, which would get 1.4 percent increases. Western Michigan University would get a 1.5 percent boost. That's partially because the Snyder formula doesn't factor in postgraduate or advanced degrees and also may tend to hurt universities already performing at top levels in some areas.

Grand Valley State University, which has significantly increased its number of graduates over the past decade, would get a 7.6 percent funding boost under the Snyder plan, not counting the possible tuition incentive. Ferris State University would get a 6.2 percent increase and Saginaw Valley State University would get a 4.8 percent increase.

Complicating factors

Business Leaders for Michigan, which includes leaders of some of the state's most prominent companies, is urging policymakers to invest more in higher education as part of a strategy to improve the state's economy. The executives' organization supports using a broader range of performance measures such as graduation and retention rates, along with consideration of advanced degrees. The organization also says Michigan universities should be measured against their national peers rather than against in-state schools that have different missions and student populations. Those in the Teacher as Leader program agree.

It's too soon to know if the Snyder proposal would offer enough increased state aid to keep tuition levels at or below 4 percent, said Mike Boulus, executive director of the Presidents Council — a Lansing-based organization representing the 15 universities. Complicating factors are the differences in proposed funding increases and the fact universities still are dealing with the 15 percent cut on the books for this fiscal year.

"It's going to be hard, because our costs of operation have gone up," said Haas, the Grand Valley State president. "We're going to do the best we can to always keep our tuition as low as we can."

State aid for Michigan universities

Tuition trouble: State support to Michigan’s 15 public universities has dwindled over the past decade during an economic downturn that contributed to government budget problems. Universities often raise tuition as part of their strategy to deal with decreased state aid.  Those studying for doctorates like the Doctorate in Community College Leadership definitely feel the pinch.

Possible boost: Gov. Rick Snyder has proposed a 3 percent funding increase for universities in the fiscal year that starts in October. The extra money would be based on performance incentives that include keeping tuition increases at 4 percent or less.

Next steps: The Legislature is reviewing the Snyder plan. A final budget isn’t expected until later this year.

With End of Federal Stimulus, Tough Times for Public Colleges

USA Today

 

WASHINGTON — Most state governments depend on federal stimulus money to keep public colleges and universities afloat, a new report says. But these funds may be drying up as the new fiscal year begins.

Thirty-nine states used stimulus money to support higher education in the past year, compared to only 14 states the year before, according to the report by the National Conference of State Legislatures. To receive federal funds, states were required to keep higher education funding at or above 2006 levels.

As a result, public funding for higher education increased an average 2.3% last year. Without stimulus money, it would have fallen 2.5%, according to the report.

Public funding for colleges and universities still fell in 23 states, despite the overall increase. Hawaii made the most drastic cuts, at 26%, and Michigan and Louisiana each reported reductions of over 5%.

Experts say it won't be long before stimulus dollars disappear for good, forcing state colleges and universities to raise tuition, cut enrollment, or lay off faculty — trends already apparent at institutions across the nation.

"Higher education funding will continue to take significant cuts in most states," said William Zumeta, a public affairs and education professor at the University of Washington. "Very little of the federal stimulus is left for this fiscal year, and it looks unlikely that there will be any more for higher education."

Since colleges and universities can raise tuition to compensate for reduced state funding, any extra stimulus money will likely go to Medicaid and other state services, Zumeta predicted.

"Higher education is the only state function that can look to its customers to pay more," he said.

Tuition at public institutions already has risen, climbing 6.5% last year at public four-year colleges and universities, and 7.3% at two-year colleges.

This year, tuition rose 32% in the University of California system. Hikes are also expected for Michigan college.

The recession is "a double whammy for students," said Don Heller, director of Pennsylvania State University's Center for the Study of Higher Education. "Students and parents have fewer resources to pay for college during recession, and at the same time, tuition is going up."

To make matters worse, he added, many states have reduced funding for financial aid programs.

Dustin Daniels, student body president at Florida State University, where tuition will increase 15% next year, said some students are struggling financially.

"I don't think we've gotten to the point where we're pushing a lot of students that can't afford tuition to the wayside, but I think we're getting there really fast," he said.

Last year, FSU laid off 21 tenured and 34 tenure-track professors after state support fell by $82 million.

Such drastic moves may become a trend, experts say. Concerns about the deficit mean Congress is unlikely to approve more stimulus spending this election year. And problems with higher education funding may not end with the economic crisis.

Jim Palmer, editor of Grapevine, an Illinois State University publication that tracks state tax support for higher education, said current methods for funding higher education are outdated and need to be revamped if the country is to meet President Obama's goal of having the world's highest proportion of college graduates.

"Our aspirations for higher education have outpaced our funding systems," he said.

Teen Asking Online Community For College Money

Originally Posted to The Detroit News

MUSKEGON TOWNSHIP -- The name of Rachel Harris' Web site says it all.

The 17-year-old high school senior recently launched IWantToGoToNotreDame.com to help her raise money to pay for an education at the school. The site includes copies of her Notre Dame application form, letters of recommendation and her high school transcript.

Harris has applied for admission to the Roman Catholic school in South Bend, Ind., and expects to be accepted. The problem is the more than $46,000 annual cost of tuition, fees, room and board. These high costs frequently lead students to seek either private student loans, or alternative student loans.

She hopes her Web site will generate enough in donations to help cover at least part of it. She has applied for at least 10 scholarships, she said.

"Last year, I saw the power of the Internet, as President (Barack) Obama did some very successful fundraising for his presidential campaign," Harris said. "I decided to try and use the power of the Internet to help me pay for my college education."