$1.9 Billion for Michigan's Universities. Governor Continues Solid Support for Higher EducationContact:
John Truscott (517) 335-6397
Governor John Engler today signed the fiscal year 2001
Higher Education budget (SB 967)
continuing his strong support for
Michigan's 15 public universities and student financial aid. The budget
bill, at $1.9 billion ($1.6 billion general fund), provides a generous
6.1% increase in overall operational support for universities. Building on
the commitment to ensure that Michigan's higher education system is
accessible and affordable, the bill increases financial assistance,
provides for post-secondary scholarships and continues incentives for
restraining tuition costs.
"This budget clearly demonstrates Michigan's commitment to
higher education - at funding levels nearly twice the rate of inflation.
It shows progress in achieving fairness and equity in funding for our
universities," said Engler. "These increases will allow
universities to hold down tuition and help ensure that all Michigan
residents have access to higher education."
"I am also particularly proud that this budget bill includes $110
million to fund 44,000 Michigan Merit Awards to assist next year's high
school graduates with post-secondary education costs. There's no doubt
that Michigan's system of higher education continues to be one of the
finest and most respected in the nation."
Demonstrating the Governor's and the Legislature's commitment to
Michigan's higher education system, over the last five years the higher
education budget has increased by 32.5 percent, compared to an inflation
rate of 17.5 percent. Recognizing that universities must invest in new
building and critical infrastructure to better serve students, the state
has devoted more than $2 billion for construction or renovation efforts on
college campuses since 1990; providing for at least one project at every
public institution of higher education in Michigan.
The FY 2001 higher education budget builds on this tremendous
investment by providing $1.6 billion in operational funding. The bill
supports a 5 percent increase in operational support for every university
and provides ten universities with more generous increases. In addition,
$45 million in one-time fiscal year 2000 supplemental funding was provided
in Public Act 291 to meet special maintenance, equipment and technology
Highlights of the bill include:
- Recognition of the five university tiers and related funding floors
established last year and the necessary funding for seven additional
universities to reach their funding floors. These universities are:
Central, Eastern, Oakland, Saginaw, University of Michigan-Flint, and
University of Michigan-Dearborn and Western Michigan University.
- Continuing to encourage tuition restraint, modifications were made
to the tuition restraint policy. Universities restraining their
tuition growth to 4% will be not be penalized in their ability to
qualify for future increases.
- Funding of $110 million from the Michigan Merit Award Trust Fund is
provided to support 44,000 awards in the upcoming year.
- Funding increases of 5 percent for the Agricultural Experiment Sta
tion and Cooperative Extension received. In addition, a total of $6.1
million was transferred from the Department of Agriculture budget for
- The Japan Center for Michigan Universities, King-Chavez-Parks
programs, and Michigan Molecular Institute each received a 5%
- Providing a greater number of Michigan students with access to
higher education, an increase of 4.75% for student financial aid
programs and degree reimbursement grants to independent colleges and
"This budget supports a system of higher education that will
ensure that our residents are provided every opportunity to achieve their
goals," said Engler.