Saturday, May 18, 2024

Budget shortfall affects promised payments for MSU

September 18, 2007

Due to a $1.7 billion shortfall, MSU may not receive the $26.6 million funding promised by the state in October.

Michigan’s colleges and universities were promised higher education payments for July and August, however, those payments were held until October because of the state’s budget deficit. At a Sept. 11 meeting, the Senate Fiscal Agency recommended to the Senate Appropriations Committee that legislators consider cutting about $138 million in reimbursement payments to higher education funding.

“Last year’s budget was fixed up by some promised payments to universities and colleges,” said Charles Ballard, an MSU economics professor. “And on paper it fixed up last year’s budget, but made the problem worse for the next year’s budget.”

State legislators have until Sept. 27 to prepare a budget for the start of the new fiscal year which begins Oct. 1.

“We are monitoring the state situation carefully on a day-to-day — moment-to-moment — basis, and we’re hopeful a state budget is favorable to MSU,” said David Byelich, director of the MSU Office of Planning and Budgets.

MSU expected a 1.8 percent reduction in state funding, and fall tuition was adjusted to reflect that.

“The larger picture is what is the role of higher education in Michigan? Is it that important in the Legislature that they will find the revenues?” said Scott Hirko, an MSU graduate student and co-founder of Students United to Promote Enhanced Revenues Supporting Education and Economic Development, or SUPERSEED.

“The $26 million is peanuts. It’s very small when you consider a $1.8 billion budget deficit, but it’s important in comparison to the long-term rationale of where higher education sits on the priority list,” he said.

Hirko and members of SUPERSEED gave testimony to the Michigan Senate Appropriations Committee urging the state to invest in universities and keep tuition prices at bay.

“The state Legislature doesn’t get that people need to tighten their bootstraps and pay a little more so they can benefit from the future,” he said.

Support student media! Please consider donating to The State News and help fund the future of journalism.

Discussion

Share and discuss “Budget shortfall affects promised payments for MSU” on social media.