11 SCHOOLS WIN, 4 LOSE IN HOUSE G.O.P. U. BUDGET FORMULA
Universities that historically have lagged others in state aid on a per student basis would receive increases while other schools would see cuts to pay for those increases under a formula for public university funding proposed Tuesday by House Republicans.
Of the state's 15 public universities, 11 would see more funding in the 2005-06 fiscal year under the formula than they are receiving in the current year, and four universities would receive less.
But the major beneficiaries of the proposal - which emphasizes enrollment and the types of degrees granted - would be six universities that would receive about a 4 percent increase in spending for 2005-06. Those schools are the University of Michigan-Dearborn and Central Michigan, Ferris State, Grand Valley State, Oakland and Saginaw Valley State universities.
The principal losers under the plan would be Northern Michigan and Wayne State universities, which would receive about a 5.9 percent cut from current year levels.
Others receiving increases: Eastern Michigan University (0.04 percent), Lake Superior State University (0.7 percent), University of Michigan-Flint (0.2 percent) and Western Michigan University (1.8 percent). Others receiving cuts: Michigan Technological University (-0.4 percent) and U-M Ann Arbor (-0.6 percent).
House Republicans discussed the broad outlines of their funding formula earlier this month, but Tuesday they unveiled key details of how the formula would work and the funding levels universities would receive under it.
The plan has three components - enrollment, type of degrees awarded and amount of federal research funds received for science and engineering.
The enrollment piece is 37.5 percent of the formula and is geared toward recognizing major enrollment growth at universities such as the ones getting the biggest increase. Universities would receive $2,190 for each full-time student and the equivalent of each full-time student that is a Michigan resident. Schools would be given $1,642 for each full-time student and the equivalent of each full-time student that is a nonresident.
The degree component also is 37.5 percent of the formula and is designed to encourage universities to provide courses in certain fields. A base level of $7,021 for a bachelor's degree in a "general" field would be set. That amount would be adjusted for other degree levels and types of degrees.
Under this system, universities offering bachelor's degrees in engineering, technology or health-related areas would receive $28,083 for each of those degrees awarded - or four times the base level of a bachelor's degree in a general field.
In contrast, universities would receive $1,755 for each associate's, master's or doctoral degree awarded in a general area - or one-quarter the base level.
There are other levels of funding for different types of degrees based on a complicated weighting formula.
The research component is 25 percent of the overall formula. Universities would receive 83.7 cents in state aid for every $1 in federal money they are given for research.
But no university could receive more than 40 percent of the $353.6 million in total funds contained in the research component. This cap affects only U-M, which would have received $371 million if given the 83.7-cent match without a cap.
The formula would produce huge changes in funding - ranging from a 31.3 percent reduction from Ms. Granholm's 2005-06 recommendation for Northern Michigan to a 29.4 percent increase for U-M Dearborn. But Republicans limited the size of the change to no more than plus or minus 5 percent from Ms. Granholm's 2005-06 recommendation.
The year-to-year change, where Northern Michigan and Wayne State would see 5.9 percent cuts, has no limit.
"This is a sensible plan that is based on outcomes that are important for Michigan's future," said Rep. Jerry Kooiman (R-Grand Rapids), a member of the House Appropriations Subcommittee on Higher Education. "This plan really bodes well for higher education."
Universities seeing increases lauded the plan. For years, they have voiced frustration at the existing funding levels, which they have said were based on legislators in powerful positions taking care of their hometown university.
"Any attempt at a formula that includes enrollment would benefit those campuses like Grand Valley that have had enrollment increases in recent years," said Matt McLogan of Grand Valley State. "Our students deserve this."
Ann Beaujean of Michigan State University, which would receive a roughly 0.7 percent increase in funding, said MSU appreciates that the formula, which she praised as "outcome-based," would raise their state appropriation in tight budget times.
"Given the current budget environment, that's a very positive number," she said of the increase.
But the proposal sparked opposition from universities that would receive a reduction, legislative Democrats - especially from the Upper Peninsula - and the Granholm administration.
Harvey Hollins of Wayne State University called the formula "political" because Republicans devised the formula without Democratic participation. Mr. Hollins said the Legislature should create a nonpartisan commission to craft a funding formula to remove it from the inherent politics of the Capitol.
"The formula is riddled with politics," he said. "If we were winners, my response would be the same."
With the 5.9 percent cut from current year funding, Mr. Hollins said Wayne State would be forced to raise tuition to unaffordable levels.
Cynthia Wilbanks of U-M said the research component falls short. Ms. Wilbanks said the weights assigned to the types of degrees granted also have problems.
Ms. Wilbanks said U-M plans to take up the invitation from Rep. John Stewart (R-Plymouth), the subcommittee chair, to offer suggestions for changes to the formula.
"The idea of a cap seems antithetical to the opportunities that research volume suggests," she said of the 40 percent cap.
Rep. Rich Brown of Bessemer, the top Democrat on the Higher Education subcommittee, proclaimed himself "appalled" with the proposed cut to Northern Michigan.
"Whether you live in Houghton, Marquette or Sault Ste. Marie, you deserve the same support and respect as students in other parts of the state," he said in a statement.
Greg Bird, spokesperson for the State Budget Office, said Republicans with their plan obviously are seeking to take funding from universities represented by Democrats and shift money to universities represented by Republicans.
All four schools that would receive cuts - Wayne State, NMU, U-M and Michigan Tech - are located in cities represented by Democrats. CMU, Ferris State, Grand Valley State and Oakland are universities located in cities represented by Republicans.
However, several of the schools that would receive increases are located in cities represented by Democrats in the House: EMU, Lake Superior State, Michigan State, Saginaw Valley State, U-M Dearborn, U-M Flint and WMU.
Still, Mr. Bird said by far the biggest cut would be to Wayne State, reflecting classic GOP budget strategy. "This is really another example of the Republican Legislature balancing the budget on the backs of the people of Detroit," he said.
To supporters of the formula who assert it brings logic to university funding, Mr. Bird suggested that they speak with NMU and Wayne State officials and ask them whether they think the formula is logical.
Sen. Mike Goschka (R-Brant), chair of the Senate Appropriations Subcommittee on Higher Education, said he plans to have his subcommittee create a formula of its own. Mr. Goschka said he has not yet studied the details of the House proposal, but likes the broad concepts.
Of the cuts to NMU and Wayne State, Mr. Goschka said: "I'm open to whatever might occur. ... At this point, I'd like to see where a formula would take me and let that drive the issue
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