October 2023 - Fall Update
We want to express our gratitude for your unwavering support. Together, we achieved a significant milestone for Michigan State University (MSU) - securing $30 million in funding for the Engineering and Digital Innovation Center (EDIC) and increases for General Operations, MSU Extension, and AgBioResearch. Your advocacy played a crucial role in making this happen. We thank you for your dedication and support.
As we move forward, we would like to inform you that the Michigan Legislature is back in session for the fall. The legislative year is expected to conclude in the first few weeks of November. During this time, we will continue to advocate for additional funding for the EDIC to ensure that it has the resources needed to thrive and make a lasting impact.
We encourage you to stay engaged and watch for advocacy opportunities in the weeks ahead. Your voice is a powerful tool, and your support remains vital as we work together to advance MSU's mission and initiatives.
We have seen the incredible impact we can make when we come together for MSU and its initiatives. We invite you to take your advocacy to the next level by reaching out to other Spartans and encouraging them to become a Spartan Advocate. By expanding our advocate community, we ensure that the issues we care about—whether it is funding for vital projects, advancing higher education, or championing MSU's mission—receive the attention they deserve. Each new advocate brings unique perspectives and experiences, enriching our advocacy efforts.
June 2023 - FY 24 Budget Finalized
On June 29, the Michigan legislature passed their budget, including funding for Michigan State University. The fiscal year 2024 state budget includes funding increases for general operations, MSU Extension, and AgBioResearch, among several initiatives listed below. MSU is the only higher education institution to receive a large project commitment, having received $30 million towards the Engineering and Digital Innovation Center. Thank you to our Spartan Advocates who supported this effort with emails to the legislators, signing on to our petition, and taking other opportunities to communicate this need.
We hope Spartan Advocates will help us thank the state legislature for all of these critical investments in higher education in Michigan. An email draft has been prepared for you and would only take a few moments to send a thank you for these investments.
Key investments supporting MSU students, faculty, staff, and Michigan residents include:
May - Budget Comparisons + Revenue Estimating Conference
Action: Communicate support for Higher Education Funding Increases above 4% and funding for the Engineering and Digital Innovation Center (EDIC)
The Michigan State Senate and State House Higher Education Appropriations Committees have approved their versions of the FY2024 budget. Next steps in the process include a Revenue Estimating Conference on May 19, and then conference committees across chambers to negotiate a final budget to present to the Governor.
A quick reminder, Governor Whitmer has proposed a 4% base increase in university general operations, MSU Extension, and AgBioResearch in the Executive Budget proposal.
The State House has proposed a 5% increase overall in General Operations, an increase of 4% in base funding and a one-time increase of 1% in funding. The same increases are applied to MSU Extension and AgBioResearch. The House has included funding for a new program called SEEDSS to be administered by MSU Extension and AgBioResearch.
The State Senate has proposed a 6% increase across the board for Higher Education, including 6% for MSU General Operations, MSU Extension and AgBioResearch.
In addition to the annual higher education line items, each budget proposal has included increased funding for the Michigan Achievement Scholarship and other key student support funding line items.
At this time, feedback from advocates supporting increased General Operations, MSU Extension and AgBioResearch funding is appreciated. Additionally, we are requesting state investment in the Engineering and Digital Innovation Center (EDIC).
Current Budget Proposals
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March - Events of February 13 + Budget Process
Action: Sign-on Support for MSU's Engineering and Digital Innovation Center (EDIC)
The Legislature honored the victims and first responders from across the region who responded to the tragedy on February 13 at MSU. MSU students have had a strong presence at the State Capitol in the weeks following, holding demonstrations in support of gun safety legislation, and meeting with policy makers.
The days following the event led to the cancellation of committee hearings, and statewide weather in recent weeks has additionally slowed committee hearings on the Governor's budget proposal and other legislation.
As a reminder, the Governor’s higher education budget recommendation for fiscal year 2023 – 2024 included:
In addition to the annual higher education line items, the Governor has proposed supplemental funding for student-driven needs:
It is important to recall that these are only recommendations. The Legislature will develop their own recommendations which will become more public by mid-April.
The Governor did not make a recommendation to fund MSU's request to support the Engineering and Digital Innovation Center (EDIC). EDIC is a collaboration of six MSU colleges engaged in a wide variety of digital innovations. This new center will help ensure accessibility to the growing economic and business sectors while helping retain MSU graduates in Michigan to become part of Michigan’s economy and workforce pipeline.
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February - Governor Whitmer Releases State Budget Proposal
The Governor’s proposed budget includes significant investments in our state’s public universities, including $2.1 billion of ongoing funding and $50 million in one-time funding.
Specifically, some elements of the Governor’s higher education budget recommendation for the fiscal year 2023 – 2024 include:
In addition to the annual higher education line items, the Governor has proposed supplemental funding for student-driven needs:
October 2022: State Invests in Michigan Achievement Scholarship
The Michigan legislature passed a state budget supplemental that includes a new $250 million scholarship program. The Michigan Achievement Scholarship was established with the passage of SB842 and signed into effect by Governor Whitmer yesterday, October 11, 2022.
This significant investment in Michigan residents and public higher education will improve access to affordable, higher education opportunities statewide. These financial aid dollars will start in the 2023-24 academic year for students in the high school graduating class of 2023, with expected family contributions of $25,000 or less. Under the bill guidelines and estimating the 2023 graduating class, we anticipate Michigan State University students will receive approximately $28 million in financial aid as 2023-24 freshmen.
Action Item: Please join us in thanking the Legislature and Governor Whitmer for this investment in the 2023-2024 incoming freshmen class of Michigan high school graduates.
MSU Government Relations Resources:
MSU Press Release: President, provost applaud Gov. Whitmer, Legislature for investment in public higher education
MSU Today Podcast: Facilitators in Government Relations advocate for MSU and higher education
July 2022: Legislature Passes Budget; Headed to the Governor
Michigan lawmakers supported investments in MSU’s dairy barn upgrade and campus greenhouse projects. Other key investments that support MSU students, faculty, staff, and Michigan residents include:
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
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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:
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.
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.
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.
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.
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:
Signed by Governor Whitmer:
Signed by Governor Whitmer:
Vetoed by Governor Whitmer impacting MSU:
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.
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.
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.
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:
Positive news reported out from the May 2018 Consensus Revenue Estimating Conference:
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:
These bills have been referred to the Senate and House Appropriation committees for review and action in each chamber.
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.