Issue Update

  • 100th Legislature - 2020
    Fiscal Year 2021 Budget Headed to Governor
    The State House and Senate passed Michigan’s $62.8 billion dollar fiscal year 2021 budget. Now that the budget bills have passed both chambers of the Legislature, they will be presented to the Governor for her to sign, veto, or sign with specific line-item vetoes. Due to the COVID-19 pandemic the budget development, passage, and expediency of the budget process has been unlike any other year.

    The final Education Omnibus Appropriation bill (SB927) maintained level funding for higher education in Michigan. MSU's funding for general operations, MSU Extension, and AgBio Research will remain the same as it was this fiscal year. Considering the economic challenges the state and the country has faced in the past six months, MSU is pleased to maintain its funding level for the upcoming year. 
    In addition to this funding news, there were additional positive budget items including:
    • Michigan Agriculture Alliance will receive $3 million in funding
    • $3.5 million in combined state and federal (CARES Act) funds to create a new PBS Michigan Learning Channel. This new channel will be run by Michigan PBS channels including WKAR

     August 24 - Revenue Shortfall Update 

    The current fiscal year will come to a close on September 30th and the Governor and the State Legislature continue to work toward a budget agreement for the 2021 fiscal year. On August 24 the state held its second Revenue Estimating Conference and projected a $900 million shortfall for the upcoming fiscal year.

    This is positive news considering the May Revenue Estimating Conference had projected a $3.2 billion shortfall. The improved outlook will help minimize necessary budget reductions, but does not guarantee protection from unequal funding cuts to public education. As a reminder funding for Michigan State University Extension and AgBio Research are included in the Higher Education Appropriations Subcommittee. 

    Michigan, like many states, awaits the outcome of another COVID-19 federal response package to see what, if any, relief will be provided to the states. Any additional assistance to state and local governments would further reduce the budget shortfall, and help minimize necessary funding reductions statewide. Direct assistance to higher education institutions can also help to offset potential budget reductions the state may directly make to our fifteen publicly funded institutions.


    August 1 - Updated Revenue Estimating Conference 

    A second Revenue Estimating Conference will take place on August 24th to reassess where there the state revenue and anticipated losses currently stands. Michigan, among many states, continue to request additional federal assistance to help shore up state budget holes moving into the 2021 fiscal year. 

    As a reminder the state fiscal year comes to a close on September 30th, and the new fiscal year begins on October 1st. 

    The MSU Board of Trustees approved a university budget that included an estimated reduction in state appropriations of 15% while maintaining no increases in tuition for students. 


    May - Revenue Estimating Conference Identifies Budget Gaps

    Michigan's Revenue Estimating Conference took place on May 15 and reported state revenue losses of $6.3 billion between the current and upcoming fiscal years.

    The Governor is requesting additional federal aid for Michigan that will help offset these losses, and reduce the potential state budget reductions anticipated ahead. She is also seeking flexibility in spending allowances for Michigan with COVID-19 relief funds already received from the federal government.  

    Last year the Governor and legislature came to agreement that the state budget needs to be completed by July 1 each year. Due to circumstances created by COVID-19 we expect that the budget process may play out through the summer and possibly to the end of the fiscal year on September 30.


    February - Governor Whitmer Releases Budget Proposal

    The Governor’s proposed budget recommends an increase of $36.5 million, or 2.5 percent, for university operations to be distributed equally across-the-board with each of the 15 public universities receiving a 2.5 percent increase over the previous fiscal year. 

    To receive the funding increase, universities must satisfy the following requirements:

    1. Universities must limit tuition and fee increases to 4.25 percent, or $586 per student, whichever is greater, in order to receive any increased funding provided in this recommendation. The limit is 2.5 times the level of projected inflation for fiscal year 2021.
    Michigan State University AgBioResearch and Extension also each receive a 2.5 percent increase, or $1.6 million. This brings total funding for these programs to $66.7 million.
  • 100th Legislature - 2019

    December 2019 - Governor Whitmer and Legislature Agree on Supplemental Budget

    Signed by Governor Whitmer: 

    • $500k for one-time funding to Farm Stress Program 
    • $3.75 million for DHHS MIDOCS program (MSU is a partner) 

    October 2019 - Governor Whitmer Signs Budget Including Line Item Vetos 

    Signed by Governor Whitmer:

    Vetoed by Governor Whitmer impacting MSU:


    September 2019 - Higher Education Conference Committee

    The Higher Education Conference Committee pass House Bill 4236 by a 4-2 vote and includes a .9%  increase in funding for MSU General Operations (when including the Indian Tuition Waiver), 1% increases for MSU Extension and AgBio Research. This bill also restored a $2.1 million reduction of funding to the Michigan Competitive Scholarship originally proposed by the House subcommittee.\


    July 2019 - Higher Education Funding Heading to Conference Committee

    Earlier this summer the House of Representatives passed House Bill 4236 which includes a .06% ($1.76 million) increase in funding for MSU General Operations, a 1% ($644k) increases for MSU Extension and AgBio Research. This bill also included a $2.1 million reduction of funding to the Michigan Competitive Scholarship which over 5,000 MSU benefited from during the 2017-2018 academic year. 

    As a reminder the Governor recommended a 3% ($8.5 million) increase for MSU General Operations, MSU Extension and AgBio Research ($1.9 million). 

    The Senate passes Senate Bill 140 that proposed a 1.5% ($3.9 million) increase for General Operations, MSUE and AgBio Research ($950k) which is much closer to the current rate of inflation. 
     
    Currently the House and Senate have referred their Higher Education budget bills to a Conference Committee consisting of six members identified below: 

    Senator Jim Stamas (R) - Appropriations Chair 


    Senator Kim Lasata (R) - Higher Education and Community Colleges Subcommittee Chair 


    Senator Jeff Irwin (D) - Higher Education and Community Colleges Subcommittee Minority Vice-Chair 

    Representative Rob VanSingel (R) - Higher Education and Community Colleges Subcommittee Chair 


    Representative Ann Bollin (R) - Higher Education and Community Colleges Subcommittee Vice-Chair


    Representative Sarah Anthony (D) - Higher Education and Community Colleges Subcommittee Minority Vice-Chair   

    If either the House or Senate versions are reflected in the final conference committee bills MSU will receive its lowest increase in funding since MSU’s 14% cut in 2011.


    June 2019 - House Proposes .7% Increase for Higher Education and 1% Increase for MSUE & AgBio Research

    House subcommittee on Higher Education and Community Colleges provided a .7% increase through a modified performance funding formula for university general operations. 
    Additionally, the House subcommittee provided MSU Extension and AgBio Research with a 1% increase over current fiscal year funding levels. 
    Both the House and Senate proposals fail to meet the current national inflation rate of 1.9%. 

    April 2019 - Senate Proposes 1.5% Increase for Higher Education

    Senate subcommittee on Higher Education provided a 1.5% increase through the performance funding formula used in recent years for university general operations. 
    Additionally, the Senate subcommittee provided MSU Extension and AgBio Research with a 1.5% increase over current fiscal year funding levels. 
    To date the House of Representatives subcommittee has not made their recommendation for four-year university funding for operations, MSU Extension or AgBio research. 

    March 2019 - Governor Gretchen Whitmer Releases Budget Proposal

    Governor Whitmer has proposed $45.6 million in additional university operations funding (general fund), representing a 3 percent increase compared to fiscal year 2019, the largest increase since fiscal year 2015.

    This increase will be distributed across the board to provide planning stability for universities. Receipt of the funding increase is contingent on universities holding tuition increases below 3.2% or $427, equal to projected inflation plus one percentage point, in order to limit tuition cost increases for students and families.

    This investment also includes a 3% increase for MSU AgBioResearch and MSU Extension.


    January 2019 - House and Senate Committees Named

    The Senate and House released their policy and appropriation committees for the 100th Legislature to to see key committees and their membership visit our Committees page.

     

  • 99th Legislature - 2018

    June Issue Update - Budget headed to Governor Snyder

    The General and Education Omnibus bills have passed the House and Senate and are expected to be signed by Governor Snyder. The final version of the Education Omnibus includes an overall 2% increase for higher education funding in fiscal year 2019. Once run through Michigan's funding formula, this results in a proposed increase in MSU operations of 1.8%; returning MSU to 2011 funding levels without accounting for inflation during that timeframe.

    The budget also includes Title IX sexual assault complaint reporting requirement including a penalty provision for failure to meet requirements. Universities that fail to meet these requirements will face a 10% penalty to university operating funds. 

    Other key MSU highlights include: 


    May Issue Update - Consensus Revenue Estimating Conference

    Positive news reported out from the May 2018 Consensus Revenue Estimating Conference:

    • Net FY 2018 General Fund-General Purpose (GF-GP) revenue is projected at $10.46 billion, up $155.9 million from estimates agreed to in January.
    • Net FY 2018 School Aid Fund (SAF) revenue is now estimated at $13.24 billion, up $159.5 million from January.
    • Combined, GF-GP and SAF estimates are up approximately $315 million for FY 2018.

    April Issue Update - FY19 House and Senate Higher Ed Funding Bills

    Senate Bill 857 increased overall funding for Higher Education to 3% (an increase of 1% over the Governor recommendation), with the inclusion of increased reporting requirements for Title IX sexual assault, and adding $14.3 million dedicated to campus safety, sexual assault prevention, and mental health services.  

    House Bill 5579 reduced the funding increase proposed by the Governor from 2% to 1%, which would be a .9% increase for MSU operations.

    House Bill 5579 adds language that conditions loss of 10% of operations funding for universities that fail to comply with Title IX reporting requirements found in sections 274c and 274d and a number of other requirements, including:

    • Prohibiting the use of in-house medical experts in Title IX investigations.
    • Prohibiting the issuance of divergent Title IX investigation report.
    • Allowing the complainant to have the university notify a law enforcement agency in an investigation of a university employee.
    • Instituting an in-person sexual assault prevention course or presentation for all freshmen and sophomores and an electronic course or presentation for all other students.
    • Prohibiting compensation for medical procedures and related charges from medical professionals convicted of a felony.
    • Having a third-party investigator examine the Title IX office and policies before the 2018-19 academic year.
    • Requiring that Title IX reports against employees are shared with the university’s governing body.
    • Requiring a third-party Title IX investigation against an employee with more than one “no misconduct” finding.
    • Certifying that the president or chancellor and one governing body board member has reviewed all Title IX reports involving university employees.

    These bills have been referred to the Senate and House Appropriation committees for review and action in each chamber.


    February Issue Update - FY19 Governor Proposal for Higher Ed Funding

    In February, Governor Snyder recommended an overall 2% increase for higher education for fiscal year (FY) 2019. Once run through Michigan’s funding formula, this sets up a 1.8% increase for MSU operations. This level of increase means MSU will closely return to its 2011 funding level (in raw dollars without inflation). The House and Senate Appropriations historically has moved in a direction to reduce higher education operational funding compared to the governor’s recommendation.

    On another positive note, the Governor has recommended a 2% increase in AgBio and Michigan State University Extension funding compared to the FY18 budget. MSU continues to work closely with legislators related to our 2019 capital outlay request. For the second consecutive budget cycle, MSU has submitted our STEM Teaching and Learning facility for consideration for state funds. MSU has experienced a 40% increase in STEM-related curriculum in the last decade. This increase has put a strain on existing STEM related teaching space. It is expected that final approval by the Legislature on the FY19 state budget will be coming in mid-June.

    MSU received approval from the Joint Capital Outlay Committee (JCOC) last year for the STEM Teaching and Learning facility. This is a $30 million contribution to the $72 million project. We are now moving to the planning phase and anticipate approval in April by JCOC.

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