NEWS
LANSING - Gov. John Engler recommended to remove a tuition tax incentive for Michigans 15 public universities Thursday in his $38.2 billion Fiscal Year 2002 Executive Budget, after the schools could not keep rising costs of tuition below the rate of inflation.
In the budget recommendation, which was given to a joint session of the state House and Senate Appropriations committees Thursday, Engler also proposed a flat increase funding of 1.5 percent for each school, which does not help close the gap that currently exists between MSU and peer schools University of Michigan and Wayne State University.
And if the tax credit, which goes to students that attend public universities where the tuition increases are less than the inflation rate, is repealed, schools would receive an additional 1.5 percent funding boost under Englers proposal.
According to the universitys Financial Aid Office, MSU students were not eligible for the tax credit in 2000, but they were in previous years.
And Val Meyers, assistant director of Financial Aid, said the tax credit did not seem to be a big issue when universities consider tuition.
Universities have to look at the bottom line and see how much they need to operate, Meyers said.
Meyers said MSU has made efforts to allow students to maintain the tax credit, but lower-than-projected inflation rates made the credits more difficult for university students to receive.
Under a plan initiated by MSU President M.