Gov. Rick Snyder was sworn in as Michigan’s 48th governor on Jan. 1. While his administration has been working in the weeks since his inauguration, a ceremony attendee and MSU students talk about their anticipations for the governor’s time in office.
Make no mistake: One of Michigan’s next big buzzwords — politically speaking — is “cuts.”
“Reductions” can be included on that list — perhaps even “axe.”
Picture those words in the context of Michigan’s budget. They’ll become key in the coming months as the state’s projected $1.85 billion deficit for fiscal year 2011-12 looms over Lansing.
And if history repeats itself, higher education is an area of the state’s budget that will fall victim to the buzzwords.
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration.
But until Snyder releases concrete numbers as part of his budget recommendations, the extent of his commitment to higher education is speculation.
“Snyder so far is talking great generality about issues like higher education,” said Bill Ballenger, editor and publisher of newsletter Inside Michigan Politics. “But we haven’t seen specifically what he is purporting to do.”
Snyder spokeswoman Geralyn Lasher said the governor has indicated he views higher education to be an asset to the state.
Lasher could not delve into specifics and said more of Snyder’s plan will become known during his State of the State address Jan. 19. He is expected to present his budget recommendations to the Legislature in February.
“As far as higher education in Michigan, obviously the governor has talked about how we’re so fortunate to have world class institutions in the state,” Lasher said. “We have to be looking at all areas to see. But the priority is creating an environment where jobs will grow.”
Now, in light of weeks of waiting, how Snyder will deal with higher education is all but left to debate.
All talk
Last fall, legislators and former Gov. Jennifer Granholm agreed on a 2.8 percent decrease in funding for higher education. That decrease amounted to a $8.2 million loss for MSU.
Although the loss was less than anticipated, some university officials said appropriation losses for 2011-12 might be drastic.
When the MSU Board of Trustees passed the university’s 2010-11 budget last July, it approved a preliminary budget for 2011-12. That budget assumed deep slashes from the state — as much as $36 million or more.
MSU Trustee Melanie Foster said although she is optimistic Snyder views higher education as important, there is reason to be wary.
“It’s a formidable challenge because we’ve got a $1.8 billion gap in our budget,” Foster said. “I feel that there’s going to be painful cuts in most all state departments, including higher education.”
Higher education should be a priority for Snyder, especially because the state already has students leaving in droves because of the job market, first-year law student Kate McClymont said.
“I think if he does (cut), people are just going to leave,” McClymont said.
Already, lawmakers have offered differing takes on how to best deal with the state’s projected deficit.
House Speaker Jase Bolger, R-Marshall, said on WKAR’s “Off the Record” political news program last week that he is aiming to balance the budget only with cuts.
Bolger’s spokesman Ari Adler said legislators have not yet addressed the future of higher education support. All is contingent on Snyder’s recommendations and the legislative process, he said.
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“It’s time for something to happen, and we know it’s not always going to be easy,” Adler said, referencing what he said were infirmities with how past budgets were handled. “But that does not mean we can avoid making those decisions.”
Still, higher education should remain a priority for Snyder, right along with other entities that require state support, said state Sen. Gretchen Whitmer, D-East Lansing.
Whitmer said Snyder’s plan to abolish the controversial Michigan Business Tax would lead to a further decrease in revenue if not covered by other avenues, amounting to a larger deficit and more cuts.
“An all-cuts budget would be a 50 percent cut of the state’s general fund, which would be cuts to public safety, cuts to education, cuts to higher education,” Whitmer said. “That’s just not acceptable. That’s no way to turn Michigan around.”
Universities’ state
The success of Snyder’s goals for the state is tied to the viability of the state’s universities, said Michael Boulus, executive director of the Presidents Council, State Universities of Michigan.
But one of the reasons higher education might be viewed as more attractive for cuts is because universities can be viewed as entities capable of raising money outside the realm of state appropriations, Boulus said. Because of this perception, universities have increased tuition, which is burdensome for Michigan families, he said.
In an attempt to combat this, many universities, including MSU, have funneled millions of dollars into financial aid programs for students, but this creates more financial strain.
“It can’t sustain itself,” Boulus said of the system for funding higher education. “Neither can declining state support nor tuition increases, if we’re going to provide affordable education for the masses of our students in our state.”
Despite budget woes, MSU officials have taken steps to promote the university to Snyder.
MSU President Lou Anna K. Simon met with Snyder in the weeks prior to his inauguration, said Steve Webster, MSU’s vice president for governmental affairs.
During their meeting, Simon offered the university as a resource to the governor and his plan for Michigan, Webster said.
The two did not discuss continued appropriations for the university, but Simon stressed the importance of state financial aid for students, Webster said.
Support in the latter category has all but dwindled to near zero in recent years, he said.
“We don’t know how fast the governor intends to eliminate that structural deficit,” Webster said.
“We’re also not oblivious here that the state of Michigan’s finances are at risk at the moment.”
