Michigan House Republicans laid out a proposed formula for funding higher education on Wednesday that would reward universities for their contributions to the state's economy.
The plan aims to invest in the state's future workforce by providing financial incentives for universities based on enrollment, the number and types of degrees and the amount of research at each institution.
But local lawmakers worry MSU won't benefit as much as other schools because of the way the funds are divided.
Under the new proposal for university operations, the schools combined could receive $1.65 billion - nearly $12 million more than under Gov. Jennifer Granholm's 2006 budget for higher education.
Granholm's proposal would divide $1.64 billion among the state's 15 public universities. This year's overall higher education budget is $1.7 billion.
Lobbyist Gary Naeyaert, who also is a member of a bipartisan political action committee for MSU, said he supports the outcome-based formula, which could have positive results for MSU.
Universities would receive at least $2,190 for each in-state student and $1,642 for out-of-state students.
"It's a good step in recognizing how higher education is funded in the state," he said.
Mike Boulus of the Presidents Council, which represents the 15 state universities, said some institutions will fare better than others.
State Rep. John Stewart, R-Plymouth, chaired the committee that introduced the new plan. Stewart's spokeswoman, Rachel Birch said MSU won't benefit the most or the least and ranks in the middle in regard to the possible slight increase in funding. Two universities would receive less funding from the new proposal.
State Rep. Gretchen Whitmer, D-East Lansing, said she is concerned that the new formula for assessing funding for education wouldn't be beneficial for MSU because it's too broad and doesn't reflect the different costs attributed to different degrees.
For example, she said, the category of health at MSU encompasses many different degrees, and to lump them together and treat them all as one would overlook how expensive it is to educate each one.
Greg Bird, spokesman for the state budget office, said it appears that the plan takes funding from universities that are represented by Democrats and gives it to those represented by Republicans.
Over time, Bird said, the proposal for 2007 would take $35 million from Wayne State University and $14 million from Northern University and give it to Grand Valley State, Central Michigan and Oakland Universities.
"The governor believes in accountability and results," Bird said. "She doesn't believe that we should be playing politics with our universities or the state's economic future."
