Granholm's budget plan would boost MSU funding by $9.75M

A proposed 2.7 percent increase in MSU’s state funding is a good sign for the future of higher education, MSU President Lou Anna K. Simon said.

“After years of decreasing support, the prospect of increased support is very encouraging,” she said.

Gov. Jennifer Granholm released budget recommendations for the 2009 fiscal year Thursday, which include plans to increase higher education funding by $62 million statewide.

Kyle Dysarz, ASMSU director of government affairs, said the increase might not be enough to prevent a tuition increase.

“When you start thinking about things like inflation, 3 percent probably isn’t going to cut it,” he said.

“The university might say we can’t operate on that (increase).”

Steve Webster, MSU vice president for governmental affairs, said MSU would receive $9.75 million of the $62 million, increasing its state funding to $298 million.

Webster said $7.8 million of the $9.75 million planned increase is appropriated to MSU’s general fund, which, along with tuition dollars, makes up MSU’s budget.

Granholm’s proposal includes a separate 3 percent increase to the Michigan Agricultrural Experiment Station and MSU Extension, Webster said.

The increase would equate to $1 million to the Michigan Agricultural Experiment Station, which encompasses the biological research of 300 students and five colleges at MSU, Webster said.

The final $879,000 would be allocated to MSU Extension, a program that uses campus research findings in every Michigan county, Webster said.

Leslee Fritz, spokeswoman for the Office of the State Budget, said the amount of funds allocated to universities is based on the enrollment of low-income students, the number of students completing degrees annually and the amount of federal research money a university attracts.

MSU has the ability to work with other universities, colleges and businesses to create and commercialize new products, which is important in driving the state’s economy forward, she said.

Granholm’s recommendations have to be approved by the Michigan legislature.

“It’s way too early to know what the final budget will be,” Webster said.

Fritz said investing in higher education is one of the state’s priorities, but hasn’t been an option.

“Last year, we were trying to close a $2 billion budget gap,” she said. “The 2009 budget starts with no funding gap whatsoever.”

Simon said she was “cautiously optimistic” that Granholm’s plans signal a renewed commitment to higher education.

Published on Thursday, February 7, 2008