While other states rise, Mich. remains stagnant in higher education funding

Editor’s note: The numbers in this story were changed to reflect an increase of thousands in regard to the appropriations.

In a global fight for talent, Michael Boulus wonders why Michigan is so far behind the country and the rest of the world.

Boulus, executive director of the Presidents Council, State Universities of Michigan, said the state needs to take a larger role in financially supporting students as they pursue higher education.

Michigan ranked 50th in state tax appropriations for higher education in terms of percent increase during the past 10 years, according to the Grapevine project, an annual compilation of data on state support for higher education put together by faculty at Illinois State University.

In the 2006-07 fiscal year, Michigan distributed more than $2.04 billion in tax appropriations to higher education institutions. MSU received about $350 million of those funds.

State tax appropriations for the 2007-08 fiscal year are set at $2.043 billion, equating to a 0.1 percent increase from last year and a No. 49 ranking nationally.

Nationally, state tax support for higher education rose 7.5 percent in the 2007-08 budget year, the highest annual increase since 1985, according to the Grapevine report.

Rhode Island is the only state that saw a decrease in funds, with a decline of 1.2 percent.

James Palmer, a professor at Illinois State and editor of the study, said the Grapevine project is one of the longest continually operated and recurring studies of higher education.

The study has been conducted every year since 1960. It tracks state tax appropriations but does not include other forms of fiscal support, such as lottery money, Palmer said.

Michigan’s ranking has many groups concerned because it means the state has some catching up to do, Boulus said.

Factors like inflation and the economy must be figured in, he said. But for the state to have economic prosperity it must support higher education.

“It’s not so much about the economy as it is about decisions lawmakers are making,” Boulus said.

Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester, said higher education is a priority in Michigan.

“The state Legislature went to great lengths in a year when the budget was so fiscally broke to make sure higher education institutions received their deferred payments,” he said. “This demonstrates that state lawmakers on both sides are dedicated to funding higher education.”

Greg Bird, spokesman for House Speaker Andy Dillon, D-Redford, said House Democrats believe a strong higher education system must be a priority in order to help the state’s economy grow.

“Investments in research, development and new technologies not only benefit students learning at our institutions but will create the jobs of the future in Michigan,” Bird said.

Karen Schulz, spokeswoman for the Michigan Education Association, said education should be one of the first areas to receive state funds.

“Investing in education has huge public and private payoffs,” she said.

Steve Webster, MSU’s vice president for governmental affairs, said the issue of state tax appropriations for higher education becomes how a lack of funding translates into the classroom for students.

He cited MSU’s No. 61 ranking for academic and financial value by Kiplinger’s Personal Finance magazine as an example of what the university can do under limited budget constraints.

“It’s a good indicator for what the university has done to move up in rankings and maintain or improve quality of education in the classroom,” Webster said.

The challenge for public universities in Michigan now is to determine how long they will be able sustain themselves on the limited funding, he said.

“It really isn’t clear for anyone how long the Michigan economy will remain in this position,” he said. “We are just as hopeful as anybody that higher education not only remains a high priority, but that dollars will follow.”

Published on Tuesday, January 22, 2008