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ASMSU bill calls for new higher-ed fund

October 30, 2013

ASMSU’s policy committee recently passed a bill calling for the state legislature to pass a resolution that would use state sales tax money to create a post-secondary education fund.

ASMSU’s bill will go into effect if the general assembly elects to pass it at its next general assembly meeting.

ASMSU then would advocate the legislature pass its resolution.

The state’s resolution, introduced by state Rep. Vicki Barnett, D-Farmington Hills, on July 18, suggests amending the state constitution to increase Michigan Sales Tax by 1 percent — from 6 percent to 7 percent — to establish a post-secondary education fund — money that potentially could go to MSU students. The tax increase is expected to generate earnings of $1.4-1.6 billion per year for the education fund, Barnett said.

Barnett said she currently is working on scheduling a hearing for the resolution by the state’s tax policy committee soon. She said the best way to ensure a sooner hearing is if students around Michigan write to the chairman of the House Tax Policy Committee, Rep. Jeff Farrington, advocating for a hearing.

The dedicated post-secondary education fund would hopefully ease the burden of attending college for young students, Barnett said.

“If we keep having students amass enormous amounts of debt, then we’re not fulfilling our job,” she said.

She also said parents experiencing debt from paying for college is another issue the resolution is looking to address.

The fund itself could have important impacts for MSU students and others, said Jessica Leacher, ASMSU vice president for governmental affairs. Leacher introduced the ASMSU bill.

“The money generated by the fund will be given out in forms of grants,” Leacher said.

Barnett said students still will have to submit a Free Application for Federal Student Assistance, or FAFSA, and maintain a 2.0-minimum GPA to be eligible. Students also must be Michigan residents of at least four years.

The amount of the grant will be decided according to the average of the highest incoming freshman tuition rate across Michigan’s 15 public universities, Barnett said.

Leacher, who also is a former member of The State News board of directors, said if the bill is passed during the next ASMSU general assembly meeting, the goal will be trying to get other ?students governments and organizations aware of the resolution.

Some students had mixed feelings on the potential payout of the education fund, however.

“Being a student, I think it’s a great idea, but being a Michigan resident, I wouldn’t be for (the tax increase),” said packaging senior Brittany Eilers.

Eilers said taxpayers suffer financially, just like ?students, noting it would place an unfair burden on members of the taxpaying public.

While Eilers isn’t for the change in the state tax, ?Barnett said she has heard an overwhelmingly positive response concerning the resolution.

She said because lower-income families’ main budget is spent on food and medicine, which are not taxed, the increase should not have a drastic effect, given that it would go toward more affordable education.

“Michigan is serious about the talent and ?education of its citizens,” Barnett said, noting the dedicated fund could create opportunities for further economic development in the state while increasing global competition.

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