COLLEGES EXCITED, WARY ABOUT FUNDING RESTORATION
Thursday's revenue estimating conference brought good news to colleges and universities that were already ready to find more ways to cut their budgets.
Although higher education institutions were bracing for a $30 million cut, legislators said Thursday $16.5 million of that will be restored, with the other $13.5 million coming if the state has a positive balance at the end of the fiscal year.
Michigan State University will receive nearly $2.8 million of a $5 million cut, while Lansing Community College will get back about $275,000 of a $500,000 cut and Central Michigan University will see part of their $1.4 million cut reinstated.
Rich Morrison, associate vice president of public relations and marketing at CMU, said the school will take however much of that money they get back and put it away in a "rainy-day fund."
"We've been cut $30 million in the last few years," he said. "I applaud the state for recognizing the importance of higher education."
A report released early this year by Lt. Governor John Cherry's Blue Ribbon Commission recommended doubling the number of college graduates in the state. However, Mr. Morrison said Michigan has a very low rate of college graduates among states with many higher education institutions.
Some accused Governor Jennifer Granholm of breaking a promise by cutting higher education earlier this year in a budget-balancing executive order after saying she would not if schools kept tuition hikes below the rate of inflation. But the governor set aside $200 million in capital outlay funds to be shared among universities and colleges for building projects, which aides say meant the governor did not break a promise.
Matt Kurz, associate vice president in the Office of University Relations at Western Michigan, said the money coming back, however slight, is good news.
"I'm sure that money will be applied to the reduction we had to take," he said. "We still have to face what base funding will be next year, though."
Brian Jackson, media relations coordinator with LCC, said the college will return the money to their fund balance to help keep interest rates low on bonds.
|
