David Jesse

Detroit Free Press

Gov. Rick Snyder wants lawmakers to pump an additional $61.2 million into Michigan's public universities, an increase designed to restore funding levels to 2011, the year before he took office.

Snyder's plan calls for an overall 4.3% increase. Half of it is earmarked for across the board increases to all the state's universities and the other half added to performance based funding for the universities.

In addition, the budget recommendation, obtained by the Free Press, will set the tuition increase cap for next year at 4.8%. That's up from last year's cap of 3.2%. If universities violate the cap — Eastern Michigan University and Oakland University did last year — they forfeit performance funding.

Snyder to higher ed: Look beyond boosted state funding

"Michigan’s universities play a vital role in Michigan’s future, and Gov. Snyder is continuing to increase the state’s investment in the schools and in their students," Snyder spokesman Dave Murray told the Free Press. "We also believe in meeting performance goals that help our students succeed, and making sure they can obtain in-demand skills that will lead to good-paying jobs.

"We want people to graduate and stay in our state with their families. Growing a skilled workforce helps us create more and better jobs help make that happen."

Universities want more stable funding from state

Snyder will formally unveil the budget Wednesday.

The news of a hike was greeted warmly by Michigan's higher education community.

Daniel Hurley, the CEO of the Michigan Association of State Universities, said the governor's budget recommendation "sends a strong signal that college affordability is a priority of his administration."

"The increase will collectively restore the significant state funding reductions that took place in 2012 and reflects five consecutive years of state reinvestment in Michigan’s public universities," Hurley said. "This recommended state funding increase is exactly the prescription needed for Michigan to ensure that its public universities remain affordable and continue serving as the catalyst for creating the workforce that will power the state’s knowledge economy."

In Snyder's first budget as governor, he cut state funding to universities by 15%. Over the next several years, he has slowly added money back. This addition — if approved by lawmakers — would put the overall funding back to the level Snyder inherited when he took over as governor.

As in previous years, not every university will get a straight 4.3% increase. Instead, universities will be measured against performance standards in the following areas: weighted undergraduate completions in critical skills areas, research expenditures, six-year graduation rates, total completions, administrative costs as a percentage of core expenditures and the percentage of students receiving Pell Grants.

Taking into account the performance funding, Grand Valley State University would get the biggest percentage increase over last year's funding, at 6.8%. Oakland University would be the next highest at 6.1%.

Grand Valley was pleased with the recommendation.

"I do appreciate the governor fulfilling his promises to us," said Grand Valley President Thomas Haas. "This is one step in a long process" towards a budget, but "it is starting off in a good place."

Wayne State University would get the smallest percentage increase — 3.5%.

WSU President M. Roy Wilson has said the current funding set-up penalizes Wayne State for doing heavy research while having a more open enrollment policy.

“We are delighted that the governor is investing in higher education," Wilson said in a statement issued to the Free Press. "This is very welcome news, especially for students.

"However, this is the fifth consecutive year that Wayne State would receive the lowest percentage funding increase of Michigan's 15 public universities.

"The current metrics funding model penalizes Wayne State by inappropriately comparing us to other research intensive universities nationally that do not share Wayne State's urban mission to serve at-risk students. The continued use of this ill-conceived metrics funding model is systematically disadvantaging the state's only public, urban research university."

Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter @reporterdavidj.