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HOUSE HIGHER EDUCATION PANEL MOVES BUDGET BILLS Michigan State University, the University of Michigan and Wayne State University would receive appropriations via a separate budget bill under legislation approved by the House Appropriations Subcommittee on Higher Education on Tuesday. HB 4350 and HB 4351, totaling $1.86 billion ($1.73 billion general funds) are now the first appropriation bills to be sent to the full House Appropriations Committee. But getting them there wasn't the easiest of tasks. From the get-go, Rep. Fran Amos (R-Waterford) questioned how the subcommittee would pay for the $50.8 million total that is above what Governor Jennifer Granholm recommended in her executive budget. The subcommittee's version concurred with the governor in providing a 2.5 percent across-the-board increase in operational funding for the schools. But the bills also continue the Tuition Grant Program funded at $58 million, which the governor had recommended for deletion, and adds $3.6 million in appropriations for Indian Tuition Waivers. Rep. Pam Byrnes (D-Chelsea), chair of the subcommittee, said much of the 4.3 percent increase being offered in the bills compared to current year appropriations has to do with the delayed payment to universities totaling $69.3 million. The state is making its August payment to those universities on October 16 under Executive Order 2007-3. However, when Ms. Amos reiterated that the appropriation is above the governor's ($1.81 billion total spending of which $1.68 billion is in general funds), Ms. Byrnes said the bills were somewhat higher, but she added, "We all realize higher education is key to economic development and we're putting our money where our mouth is." Rep. David Agema (R-Grandville) also took issue with the fact that the disparity between university funding was increasing by giving across-the-board raises, when, for instance, Grand Valley State University is starting out at appropriations below some of the other institutions. Like the executive recommendation, the House subcommittee concurred on deleting the university-funding model House Republicans had installed for the fiscal year 2006-2007. There was also some discontent on the panel in separating out the three research universities from the other 12 public institutions. Boilerplate language was added to require that UM, MSU and Wayne State consolidate their programs and services and report to the state on those efforts. "There are 15 great public universities in the state of Michigan and while I recognize the University of Michigan, Michigan State and Wayne State have a role to play in certain areas that doesn't diminish the roles and opportunities of the other universities," said Rep. Bill Caul (R-Mt. Pleasant), who then listed off a series of research projects being headed up by the other 12 schools. Ms. Byrnes, who also ran off a list of how the other 12 schools were succeeding in their own right, said having two budget bills was in no way trying to diminish any of the schools, but that "we need to realize that by distinguishing our three universities we're making a bold statement to the nation and to the world that we value research. We need to be embracing our universities and moving forward" But Rep. Alma Wheeler Smith (D-Ypsilanti) said the distinction being created by the two bills was an artificial division that would likely end up in the courts. She also argued that the three universities got into research because of what it offered their institutions and in no way would jobs be created solely for the fact that the Legislature chose to fund the schools in two bills and not one. An amendment was offered on HB 4350 to roll the appropriations into one bill, but that did not come until the subcommittee had already voted out HB 4351, which deals with the funding for UM, MSU and WSU. The amendment failed on a 5-4 vote, with all the Republican members and Ms. Smith supporting while the other Democratic members dissented. On HB 4351, Ms. Smith also offered an amendment to roll the funding for the Agriculture Experiment Station and Cooperative Extension into the MSU operations line, saying that would protect the programs from being targeted for cuts (and if they were cut, MSU could use its appropriations to supplement that hit). But the amendment failed after Steve Webster, MSU vice president, said the industry and communities involved in the programs would like to see them separated to allow for more transparency. The subcommittee version of the bill does include a 2.5 percent increase, or $845,700, in funding for the Agriculture Experiment Station and the panel retained current-year funding of $29 million for Cooperative Extension. The governor had recommended that the Agriculture Experiment Station be funded at the current-year level of $33.8 million and reduced Cooperative Extension funding by 10 percent. HB 4350 was reported out on a 6-0-3 vote (Republicans abstained), while HB 4351 was reported out on a 5-3-0 vote, with Ms. Smith joining Republicans in dissention. After the vote, The Education Alliance for Michigan, which comprises nine of the schools, argued the subcommittee had made an unprecedented and unnecessary budget maneuver that 80 percent of residents are opposed to according to a recent survey. "Many students and parents favor smaller campuses with more hands-on attention from faculty and staff. Universities like Oakland offer things the three largest universities can't possibly provide," said Rochelle Black, director of government relations for Oakland University. "This proposal is pulling us apart when we need to work together. The ones hurt most by this are Michigan's students - this is shortchanging our future with shortsighted thinking."