For the second consecutive year, the state of Michigan looks to end the fiscal year with unspent cash, according to an estimate from Michigan’s Senate Fiscal Agency. The agency estimates the state will land about $328 million more revenue than projected from the 2013-14 fiscal year.
Along with a projected estimate of about $514 million dollars from the 2014-15 fiscal year, that will leave the state with accumulated extra revenue of about $1.3 billion.
At the same time, state government funding towards Michigan’s public universities has been cut dramatically, most notably with a 15 percent cut in 2011, and funding growth has been stunted ever since.
MSU budget development documents from 2011 noted that reduced funding forced the laying off of 350 MSU employees over two years, and that appropriations were $174 million behind the rate of inflation since 2000.
“The overall state of funding for higher education has declined precipitously over the past couple of decades,” university spokesman Jason Cody said. “It is the university’s position that there needs to be a reinvestment in higher education.”
But with the 2014 election season looming and fiscal conservatives maintaining a firm grip over Michigan’s legislature, it appears unlikely MSU will receive the funding increase it’s looking for.
Ari Adler, spokesman for House speaker Jase Bolger, R-Marshall, said if a surplus is found, Representative Bolger is interested in using the extra funds to stimulate the economy through tax cuts.
“In addition to making sure that it’s used to provide individual tax relief, is to make sure that it is ongoing tax relief and not just a one time time help,” Adler said.
The Presidents Council, State Universities of Michigan prefers the legislature not cut taxes, executive director Michael Boulus said. He pointed out the left-over funds did not come from a increase in revenue, but just had not been used.
“To simply roll back the income tax, and that’s gaining a lot of popular support, not only would you lose that (revenue), you’d lose the potential for new revenue down the road,” Boulus said. “If the legislature wants to steady tuition prices and create a strong workforce for the future, they ought to look at putting more money into higher education.”
When Governor Rick Snyder delivers the State of the State Address on Jan. 16 and then releases his administration’s executive budget recommendation in early February, there might be a more clear picture of what will be done with the unused funds. Until then, Snyder spokesman David Murray said discussion about a budget surplus would be premature.
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