Students will most likely pay higher tuition this fall, despite the university receiving a 3 percent increase in funding from the state.
MSU Board of Trustees Chairman David Porteous said although he appreciates the 3 percent increase in funding from the state, a tuition increase is still needed to cover the university's expenses.
"Even with all the remarkable success that we've had with working on health care costs and many other costs around the university, the 3 percent increase still is not going to cover all the increased costs of the university," Porteous said. "So, there's no question that there will have to be a tuition increase."
Porteous said he couldn't give an exact number of how much it could be increased, but said it would be less than last year's increase of 9.3 percent for returning students and 13.5 percent for new students.
WILX-TV Channel 10 reported the increase to be about 7 percent, but did not disclose how the figure was obtained.
The board will decide the actual figure during Monday's meeting.
"It is certainly fair to assume that with a 3 percent increase from the state — when last year, we actually did not have that — that our tuition increase will not have to be as large as last year," Porteous said.
The 3 percent increase was part of the higher education budget passed Wednesday by a conference committee made up of members of the Senate and the House of Representatives' higher education appropriations subcommittees.
Under the budget, Michigan's 15 public colleges and universities will see an increase in appropriations ranging from 2.5 to 6 percent.
MSU will receive about $8.45 million more in funding next year.
The Michigan Agricultural Experiment Station will receive about $33.83 million, and the Cooperative Extension Service will receive about $29.18 million — a 2 percent increase for both.
The higher education budget is a compromise from those submitted by the House and Senate, and Gov. Jennifer Granholm.
Sen. Mike Goschka, R-Brant, chairman of the Senate Appropriations Subcommittee on Higher Education, said the budget was a product of work on all sides.
"People recognize universities are the economic hub and vitality of any given region," Goschka said. "We've worked hard to establish the fact that higher education needs to be a priority in this state."
Rep. John Stewart, R-Plymouth, chairman of the House Appropriations Subcommittee on Higher Education, said although the budget process is sometimes viewed as painful, he is pleased with the end product.
"Higher education is the essence of our recovery in Michigan," Stewart said.
Mike Boulus, executive director of the Presidents Council, State Universities of Michigan, agreed the increase is a boon to higher education.
"It's a great improvement," Boulus said. "After four straight years of negative funding, to receive a roughly 3 percent boost is very significant."
Boulus said he's glad state legislators were aware of the importance of funding colleges and universities.
"It's an acknowledgment that policy makers finally understand that we're part of the state's economic development strategy," Boulus said.
Porteous sees the increase as the state acknowledging MSU's accomplishments.
"I think that it recognizes the strong history that Michigan State has of careful stewardship with the state's tax dollars," he said.
Melanie Foster, a member of the Board of Trustees, is grateful for the increase, though she said it's not enough to cover the university's growing expenses, such as faculty salary increases and climbing energy costs.
"These are challenging economic times for the state of Michigan," she said. "Certainly 3 percent doesn't keep up with the cost of living."
