State legislators can finally set their sights on something other than next year's $39.7 billion budget, now that Gov. Jennifer Granholm inked the final spending plan on Thursday.
The governor signed a series of bills after the state Legislature passed the Transportation Department's budget just in time for the Sept. 30 deadline. The new fiscal year begins today.
Lawmakers negotiated for months over issues including the 75-cent cigarette tax increase and the overall $1.65 billion higher education budget.
The Legislature approved a higher education spending plan on Sept. 9 that gives MSU $349 million for the 2004-05 fiscal year and allows for $17.6 million in tuition restraint incentive money.
The budget for Michigan's 15 public universities passed with a 33-1 Senate vote and 105-0 House vote after a House-Senate committee unanimously agreed to the deal on Sept. 8.
The plan was part of the series of bills Granholm signed Thursday.
Under the agreement, 12 universities will be able to raise their tuition and fees by 2.8 percent, or the current rate of inflation. MSU, Saginaw Valley State University and Grand Valley State University will be limited to a 2.4 percent hike.
MSU is set to receive a total of $349 million this year. That amount includes about $270 million in operations expenses, a $17.6 million tuition restraint incentive, $33 million for the Agricultural Experiment Station and $29 million for the Cooperative Extension Service, which provides the funding for MSU Extension.
"For universities to have the opportunity to have some of their cuts restored is something they welcome, considering the economic situation the state faces," said Greg Bird, spokesman for the state budget office. "The big winners in this are the students and families because tuition will be kept to a minimum, making higher education much more accessible and affordable."
Stretching budget negotiations to the final hours is unusual, but to be expected in a year of tough budget decisions, said state Sen. Tom George, R-Kalamazoo.
"But in the end, the universities found a way to comply," he said. "I'm relieved their cuts weren't worse."
