Michigan senators approved the higher-education portion of the state budget on Thursday that provides funding for public universities and colleges.
Senate Bill 273, which now goes to the House of Representatives for consideration, might provide a total 1-percent increase to universities and a total higher-education increase of 3.1 percent, according to the Senate Fiscal Agency.
MSU would receive an increase in funding by 0.6 percent, according to that analysis.
Northern Michigan University and Wayne State University received significant cuts under the proposed budget.
Senators also held a hearing on Thursday to look at another bill that might increase state funding by up to 5 percent.
The bill, which was introduced in February, would increase state funding to K-16 by no more than 5 percent, or by an inflationary rate based on the cost of living, said Sen. Jim Barcia, D-Bay City, who sponsored the bill.
K-16 refers to all public schools K-12, as well as higher education through public universities and community colleges.
The bill, if passed, might do three things that would directly affect MSU.
"Additional influx of state funds would have the effect of covering cost increases due to inflation, cost increases in increasing enrollment levels and moderating any tuition increases," said Steve Webster, vice president for Governmental Affairs at MSU.
Some senators who back up the bill believe it will help make Michigan schools more competitive.
"If we shortchange our investment in education, looking at cutbacks, we will jeopardize our future as an economic powerhouse as a nation," Barcia said.
The hearing was held to question where funding for the bill would come from, said Ari Adler, spokesman for Senate Majority Leader Ken Sikkema.
On the stand for the bill was its primary sponsor, Sen. Robert Emerson, D-Flint, who said he felt education needs support.
"We've made all kinds of choices with money, and I think education has not been the priority of the Legislature - tax cuts have been," Emerson said.
However, he also said this bill would not solve all the problems.
"School districts need inflationary increases," Emerson said. "I don't believe this is the perfect proposal."
Those who questioned the bill said that funding to adequately support this proposal would have to come from other resources.
"In order to do the 5 percent, every three years you'd have to raise the sales tax by 2 cents," Sen. Alan Cropsey, R-Dewitt, said. "In nine years, you'd have a sales tax of 9 cents."
Cropsey said MSU would benefit from the bill at the expense of others.
"Obviously, it would help MSU and other universities because they'd get a certain guarantee of funding that would be at the expense of other segments of the budget," he said.
Gary Olson, director of the Michigan Senate Fiscal Agency, provided his analysis of the Senate bill, which included the impact it would have on the governor's 2005-06 fiscal year budget recommendation.
Operational higher-education funding would increase by $370.4 million, according to the analysis.
