Michigan’s Senate Appropriations Committee met Tuesday to review a proposed budget that would eliminate funding to higher education and other services in an effort to close the state’s budget deficit.
The legislation proposed by Senate Majority Leader Mike Bishop, R-Rochester, would reduce Michigan’s $1.7 billion deficit by more than $1 billion through reductions and reforms.
At the university level, Bishop’s proposal asks for a total reduction of about $35.9 million from higher education. Currently, the total designated to higher education for the 2007-08 fiscal year is about $1.783 billion.
“This proposal devastates higher education. MSU would see drastic cuts,” said Greg Bird, spokesman for Michigan’s House of Representatives Speaker Andy Dillon, D-Redford.
In reaction to the higher education cuts, students held a protest outside the Capitol to voice their opinion on what they considered to be a rise in tuition costs.
“(The proposed state budget) forces the university to raise tuition so it doesn’t have budget short falls,” political theory and constitutional democracy junior Andrew Gerlach said. “When you take that away, the students will have to pay for the deficiencies in the new university budget.”
According to a press release from Bishop, the proposal leaves room for the House to resolve the remaining $662 million gap deficit.
“There’s always room for a compromise and (the House hasn’t) sent anything,” said Matt Marsden, Bishop’s spokesman. “In order to be a compromise, they need to produce something. The pressure should not be on the Senate majority leader. They have to understand we have a problem finding money.”
The new fiscal year begins Oct. 1, which means the Senate, House and Gov. Jennifer Granholm will have to come to a consensus on a budget, or the state could face a partial government shutdown.
Disagreements between both political parties has hindered the budget negotiating process.
“The Senate Republicans’ cuts put citizens at risk and ignores our future,” said Liz Boyd, Granholm’s spokeswoman. “Their cuts would end inspection of the bridges we drive on, end inspection of food and put children and families at risk. The Senate’s Republicans need to present a plan that meets the challenges we’re facing.”
An additional blow to higher education that was not proposed by Bishop would be to deny universities and colleges in the state their delayed payment reimbursement. A reimbursement of $138 million is expected to be paid to universities in October in order to cover the state’s lack of payments in July and August, said Gary Olson, director of the Senate Fiscal Agency.
“To not make that payment (to the universities) would save (the state) $138 million,” Olson said. “We have a so-called funding delay with the promise we would pay it back. If there’s no money, we don’t pay it back.”
The state owes MSU $26.6 million.
The proposed cuts would not only affect higher education but also other areas of public service funded by the state like the Michigan State Police and school aid.
“There is still time to find a bipartisan compromise in order to solve this fiscal crisis,” Bird said.
Ashley A. Smith can be reached at smithas7@msu.edu.
Support student media! Please consider donating to The State News and help fund the future of journalism.
