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Addressing the state of tuition

Gov. Jennifer Granholm and MSU President Lou Anna K. Simon take to the podium for their annual addresses

February 2, 2009
Photo by Illlustrations by Chelsea McGorisk | The State News

Two speeches today could outline the future cost of an MSU degree in the face of rising tuition costs and uncertain economic times. MSU President Lou Anna K. Simon will issue her State of the University address at 3 p.m. at Wharton Center’s Pasant Theatre, followed by Gov. Jennifer Granholm’s State of the State speech at 7 p.m. at the state Capitol in Lansing. Both are expected to speak about solutions to higher education funding in the state that ranks last in the nation in tuition funding for the past five years.

Granholm is expected to unveil her plan for enticing the state’s public colleges and universities to freeze tuition, a proposal that MSU officials and state legislators have met with hesitation until more specifics are outlined.

If MSU takes part in the proposal, it could halt the 2.5 to 10 percent annual tuition increases the university has imposed in recent years. Granholm will offer state funding incentives to schools that comply with the tuition freeze, Granholm’s spokeswoman Liz Boyd said.

Simon has yet to comment publicly on Granholm’s plan, but she’s expected to discuss current economic hardships facing the university during her speech.

“The president will talk about the mandate, the expectation and the necessity of MSU’s leadership role, adding value during perilous times and beyond,” university spokesman Terry Denbow said.

MSU Trustee Melanie Foster said she expects Simon to address the governor’s plan and state appropriations for higher education.

“(Simon) is very concerned about the governor’s mandate toward tuition restraint,” she said. “Part of what she may touch on is the dilemma with state funding and how we lag at 50th — dead last — for increases in higher education state funding over the last decade.”

The extra state funding for colleges and universities would likely come from the $819 billion federal economic stimulus package under consideration by Congress. While $6 billion of the proposed stimulus package is designated for higher education, it is unclear how much Michigan would receive and what strings would be attached to those funds. If the federal stimulus package is approved, some state legislators said they would support funding a tuition freeze.

The U.S. Senate is considering the stimulus bill and a revised version would have to be approved by the U.S. House of Representatives.

Until then, legislators remain uncertain about whether Granholm’s tuition freeze would work for higher education institutions and whether the state could afford to subsidize such a program.

“There’s a lot of controversy about the package and what remains in it,” said state Rep. Bill Caul, R-Mount Pleasant, a four-year member and former minority vice chairman of the House Appropriations Subcommittee on Higher Education.

“It’s important we make access to education affordable and available, but I have a lot of questions about how many dollars are coming in, where we can use those dollars, what are the strings attached and what are we doing outside of the stimulus.”

Foster also expressed concern about the plan.

“First of all, we have no idea what our state funding is going to be,” she said. “To me, it’s a complete disregard for economic reality on the part of the governor.”

Granholm will submit a state budget proposal on Feb. 12 that includes her plans for a tuition freeze. The budget will need the approval of the state legislature.

State Rep. Joan Bauer, D-Lansing, said she expects to have a better idea of her level of support for the tuition freeze plan when Granholm submits her budget.

“Hopefully by that time we’ll have a sense of the federal stimulus money and what it will look like,” said Bauer, who is expected to be named chairwoman of the House Appropriations Subcommittee on Higher Education today.

“If we could use that federal stimulus money to freeze tuition rate for a year at least, I would be very supportive of that.”

State Rep. Mark Meadows, D-East Lansing, said Granholm’s proposal is similar to a tuition freeze incentive offered several years ago that he found successful.

“It was a good thing and it was kind of a hook for families,” Meadows said.

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The program ended when the economy worsened in recent years, he said.

“It’s very hard for people to stay in school when they have no clue how much it’s going to cost them in the coming years.”

Beyond the tuition freeze proposal, legislators said Granholm may comment on how the state will recover from the nation’s highest unemployment rate — 10.6 percent — and its dire economic situation.

“I think the governor is going to concentrate on the economy, creating job opportunities within the state of Michigan, and I think everything else will kind of revolve around that,” Meadows said.

“Education is an important part of actually accomplishing that. Most of the economic projects in the state right now center around our college campuses, so I’m hoping she talks about and accentuates that.”

During her address, Simon is expected to address MSU’s research to develop alternative energy and efforts to address global environmental challenges.

For many students, however, the issue of tuition is top priority.

History junior Josh Townsend said he’s looking forward to what Simon has to say about the federal stimulus package and how the federal government plans to help higher education.

“Unless (the state) sweet talks the federal government into this big budget plan they have and they can give some of that to college and universities, I don’t think (tuition) is really going to change,” he said.

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