Issue Update

 

 

  • 101st Legislature - 2022

    May 2022: Next steps - Conference Committees

    Over the past few weeks, the Michigan State Senate and State House Higher Education Appropriations sub-committees passed their versions of the FY2023 budget proposal, and each has since passed their respective full appropriation committees. 

    A quick reminder that Governor Whitmer had proposed a 5% base increase and another 5% one-time increase in university general operations, MSU Extension, and AgBioResearch in the Executive Budget proposal.

    The State Senate Appropriations committee amended the original recommendation from the higher education committee while retaining a new higher education formula driven by enrollment headcount, degree completions, and categories of institution type. The new recommendation is 5.5% in base funding and a 5.5% one-time investment for higher education. After the new funding formula, MSU would receive a 10.6% increase in general operations for the upcoming fiscal year. 

    The State House has proposed to reallocate the overall funding distribution across public higher education institutions. The proposal increases overall higher education funding by 3.2%, and through this new allocation model, MSU would receive a 0% overall increase for general operations. MSU Extension and AgBioResearch would undergo a budget reduction after removing funding existing in the current fiscal year. 

    Current Budget Proposals

     

    Executive

    Senate

    House

    University Operations

    5% base funding + 5% one-time increase 

    5.5% base funding + 5.5% one-time increase + new Michigan Achievement Scholarship

    0% increase

    MSU Extension/ AgBioResearch

    5% base funding + 5% one-time increase 

    5.5% base funding increase + 5.5% one-time increase 

    $650,800 reduction

    Tuition Cap

    Cap set at 5.0%

    Cap set at 5.0%

    Cap set at 4.4%


     April 2022: State Senate and House Update Proposals


    The State Senate Appropriations committee amended the original budget recommendation from the higher education committee sub-committee while retaining a new higher education formula driven by enrollment headcount, degree completions, and categories of institution type). The new recommendation includes 5% in ongoing funding and a 5% one-time investment. MSU Extension and AgBioResearch are recommended to receive the same level increase.

    The State House has reallocated funding distributions across all Michigan public higher education institutions. They propose increasing overall funding by 3.2%, and through this new allocation model, MSU would receive a 0% overall increase for general operations. MSU Extension and AgBioResearch would undergo a budget reduction after removing funding existing in the current fiscal year.

    Negotiations in each chamber and cross-chamber will take place and culminate in a conference committee to finalize a negotiated budget before heading to the Governor.

     

    Executive

    Senate

    House

    University Operations

    5% ongoing funding + 5% one-time increase 

    5% ongoing funding +5% one-time increase  + new Michigan Achievement Scholarship

    0% increase

    MSU Extension/ AgBioResearch

    5% ongoing funding + 5% one-time increase 

    5% ongoing increase + 5% one-time increase 

    $650,800 reduction

    Tuition Cap

    Cap set at 5.0%

    Cap set at 5.0%

    Cap set at 4.4%


     January Update: Governor Proposes 2023 Budget

    The Governor has presented her fourth State of the State message on January 27th, 2022, and released her budget recommendations for the fiscal year 2022 – 2023.

    Specifically, some elements of the Governor’s higher education budget recommendation for the fiscal year 2022 – 2023 include:

    • A 5% base increase across the board for each university in Michigan
    • An additional one-time 5% increase for each university in Michigan
    • A 5% limit on tuition increases
    • Launch of a new $200m program called ITEM (Infrastructure, Technology, Equipment, and Maintenance), which would be distributed to universities to meet deferred maintenance needs on their campuses related to any of the above areas. MSU would receive $27.4m of the $200m

    It is expected that committee hearings on the budget will begin by early March. The hope is that the Legislature will conclude their work and vote on the next budget by early summer.

  • 101st Legislature - 2021

    September Update: Budget Headed to Governor

    The state legislature passed Michigan’s $68.7 billion-dollar fiscal year 2022 budget, and the final bills are headed to the Governor for her review. It is important to note this is a larger budget due to federal COVID-19 relief funding, and since 1995, Michigan's budget has averaged $57.18 billion. The budget is presented to the Governor for her to sign, veto, or sign with specific line-item vetoes. We do not expect many, if any, vetoes as this budget was negotiated with the Governor's budget office.

    The final Higher Education Appropriation bill (HB4400) includes a 3.9% increase in general operations funding for the current fiscal year ending on September 30, and a 1.1% increase in general operations funding for FY22. The 3.9% increase for the current fiscal year is federal COVID-19 relief funds required to be spent by the State of Michigan. 

    MSU Extension and AgBioResearch each received an increase of 1% over their 2021 fiscal year budgets. The Michigan Alliance for Animal Agriculture will continue to receive $3 million in funding, and an additional $775,000 invested in farm stress efforts for Michigan. 


     July/August - State Senate and House Update Proposals

     

    Executive

    Senate

    House 

    University Operations

    2% one-time increase 

    2% one-time increase 

    Flat funding before new formula redistribution.

    MSU Extension

    2% one-time increase

    2% one-time increase 

    Flat funding and adds conditional funding clause related to 4-H.

    AgBioResearch

    2% one-time increase

    2% one-time increase 

    Flat funding

    Tuition Cap

    Cap set at 4.2% (2x projected rate of inflation). 

    Cap set at 4.2% (2x projected rate of inflation).

    N/A

    Tuition Cap Penalties

    No new one-time operations funding increases.

    No new operations or capital outlay funding in future fiscal years.

    None


    April/May - Senate and House Appropriations Pass Budget Bills

    Last week the Michigan State Senate and State House Higher Education Appropriations sub-committees each passed their version on the FY2022 budget proposal. These budget bills have since passed the full Appropriations committees in each chamber. Both chambers have made dramatic changes to the Governor's proposal leaving all three varying in funding amounts, tuition cap language, and funding formulas for distribution. 

    A quick reminder that Governor Whitmer had proposed a one-time 2% increase for University General Operations, MSU Extension and AgBioResearch in her Executive Budget proposal.

    The State Senate Appropiations Higher Education Sub-committee has removed her 2% one-time funding increase in Senate Bill 93. SB93 proposes that higher education remain flat funded for FY2022 while agreeing with the Governor's tuition cap set at 4.2% or two times the projected rate of inflation. 

    The most concerning of these proposals comes from the State House in House Bill 4400. The House is proposing a "radical" new formula for funding public universities in the State of Michigan. 

    These bills have passed both the Senate and House Appropriations committees and are currently headed to the floor in each chamber. 


    February - Governor Whitmer Releases State Budget Proposal

    Governor Gretchen Whitmer budget proposal includes a proposes one-time two percent increase for publicly funded institutions of higher education. A two percent increase was also proposed for MSU Extension and AgBioResearch which are included in the Higher Education budget annually. 

    • General Operations funding increase is contingent on universities holding tuition increases below 4.2% or two times the current rate of inflation. MSU has not raised tuition for three consecutive academic years. 
    • The 2% increase is standard across all fifteen publicly funded institutions instead of the formula system used during prior fiscal years.  
    • An additional $57 million, in a one-time supplemental funding proposal, has been set aside for publicly funded institutions in response to COVID-19 related expenses. “Receipt of funding is contingent on universities adopting policies related to COVID-19 testing and quarantining, contact tracing, and other mitigation strategies for students living on and off-campus to limit the spread of COVID-19.” 

    The Senate and House released their policy and appropriation committees for the 101st Legislature to to see key committees and their membership visit our Committees page.

     

  • 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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