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Lawmakers view MSU funding outlook cautiously

February 6, 2015

In a 20-minute presentation, Michigan House of Representatives senior fiscal analyst Marilyn Peterson said that public university enrollment is expected to keep the declining rate is has had since 2012.

“The last few years we’ve seen a decline in enrollment,” Peterson said. “To my knowledge, that’s not expected to change.”

At MSU, though, almost 8,900 student entered the university this past fall, about 1,000 more than the almost 7,900 that entered in the fall of 2013.

Peterson also said high school enrollment is declining too.

“The demographics are such, that we are looking at fewer high school graduates and declining enrollments are expected for both, the university and community colleges, at least for the new year term,” Peterson said.

According to statistics from the Michigan House Fiscal Agency, higher education makes up 12 percent of the total state budget — $1.2 billion.

The state government allocates more money for community health and corrections while community colleges make up just 1.7 percent of the state budget.

On Feb. 11, Gov. Rick Snyder will present the executive budget recommendation. However, the budget will have some constraints.

Snyder’s administration prepares to work with an estimated $324.6 million less revenue in the 2016 fiscal budget due to $224 million worth of tax credits cashed by an unidentified business in December 2014.

In his first term budget recommendation, 15 percent in cuts were made to higher education appropriations and in turn MSU’s funding. The funding has increased throughout the years but it is not close to what it was.

State Rep. Sam Singh, D-East Lansing, said he expects to see an increase in higher education funds on this new budget recommendation.

“We have some constraints because we have a budget deficit,” Singh said. “My hope is that we’ll see an increase to the higher education budget because again, in 2011 the governor made some very irresponsible cuts to higher education.”

Singh said he hopes Snyder restores the higher education funds that were cut.

“We’ve created a larger burden to students and taken a way what I think really is the state’s responsibility to be helping students get their education,” Singh, the minority vice chair of the subcommittee, said.

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