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Legislature increases university budget

August 16, 2006

In the battle that often is the state budget process, MSU received a 3 percent increase in state appropriations in the version that passed in July.

The budget, which was passed through the state Legislature July 26, had to be passed before the fiscal year begins on Oct. 1.

The 2007 fiscal year budget for colleges and universities got anywhere from 2.5 to 6 percent increases. MSU's 3 percent increase amounts to about $8.45 million more.

The Michigan Agricultural Experiment Station will receive about $33.83 million, and the Cooperative Extension Service will receive about $29.18 million — a 2 percent increase for both.

The budget is a compromise between three financial plans originally submitted by Gov. Jennifer Granholm and the Republican-controlled Senate and House of Representatives.

"There haven't been a lot of issues standing in the way of getting the budget done this time," said Ari Adler, spokesman for Senate Majority Leader Ken Sikkema, R-Wyoming.

The budget wasn't passed until the end of September last year.

Greg Bird, spokesman for the state budget office, said there "was a willingness to cooperate" and a desire to get the budget done earlier.

Mike Boulus, executive director of the Presidents Council, State Universities of Michigan, said this is the first time in five years higher education has received an increase.

"We've finally succeeded in getting full recognition that higher education is a key component to a state's economic development," Boulus said.

The 3 percent increase was important to MSU because it played a part in how much the increase in tuition would be, said MSU Board of Trustees Chairman David Porteous.

State appropriations make up at least half of MSU's budget, he said, and tuition increases this year were lower because of the 3 percent increase. The university raised tuition 5.9 percent for in-state undergraduates and 6.9 percent for out-of-state undergraduates for next year. That is a decrease from last year's increases of 9.3 percent for returning students and 13.5 percent for new students.

"The increase is a recognition of a couple of things, one of which is the very significant role that research universities like Michigan State play in the economic development of the state," Porteous said.

Porteous said MSU officials and people in different areas of the university constantly work with state legislators to make sure they understand the importance of funding higher education.

"Everybody across the university redoubled their efforts to make sure people were aware of the MSU story," he said.

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