In her annual budget proposal, Granholm suggested last month that the Legislature maintain university operations funding at last year’s rates, but the Senate Appropriations Committee proposed the decrease to reduce the state’s projected $1.7 billion deficit, said Appropriations Committee Chairman state Sen. Ron Jelinek, R-Three Oaks.

“We have to reduce spending,” he said. “We just have to reduce all of our budgets.”

Granholm proposed reducing higher education spending by about $39 million with the elimination of the Tuition Grant Program for private colleges and reforms to the Tuition Incentive Program offered to some students who graduate high school.

Granholm spokeswoman Tiffany Brown said the importance of the Senate proposal is unknown this early in the budget process.

“The governor’s executive budget recommendation maintains higher education spending at current levels,” she said. “It is important that we invest in the full spectrum of education.”

The Senate Appropriations Committee proposed funding the Tuition Grant Program at the same rate as last year and increasing funding for the Tuition Incentive Program to $37.4 million from $31.2 million.

“My hope is that between the programs that have been proposed for loans and through the Tuition Grant Program and the Tuition Incentive Program, there still will be a way for (students) to find funding for college,” said Appropriations Committee member state Sen. Roger Kahn, R-Saginaw. “It is very hard making these reductions.”

Democratic members of the Senate Appropriations Committee did not return calls Wednesday.

Because Michigan accepted American Recovery and Reinvestment Act funds, the state had to maintain certain funding levels for university operations, said Ellen Jeffries, deputy director of the nonpartisan Senate Fiscal Agency.

The 3.1 percent decrease to university operations was the most that could be cut under stimulus regulations, Jeffries said.

The proposed budget bill must gain support of the full Senate and House and get final approval from the governor before the new fiscal year begins in October.

If these cuts pass the Legislature, there likely will be more reductions at the university, said MSU Trustee Faylene Owen.

“It is less than it could have been,” she said. “But the sad thing is it puts more pressure on tuition, and it puts forth more program reductions.”

Jelinek said if reductions are necessary, he hopes the state universities consider cost saving efforts, rather that increase tuition

“It’s up to the university to either try to cut costs or raise tuition prices,” Jelinek said. “I hope (the universities) will work on cutting costs and try not to raise tuition prices.”