Universities stay below 7 percent cap, but barely

By Kathy Barks Hoffman Associated Press LANSING (AP) -- None of Michigan's state universities have so far tested Gov. Rick Snyder on his threat to impose budget cuts bigger than the 15 percent he already proposed if they raised tuition by more than 7 percent -- but most have come close. Only one of 11 schools' announced increases so far has been below 6.6 percent. College students this fall will pay more than twice as much in tuition at the state's 15 public universities as students paid 10 years ago, taking about $5,000 more out of their pockets. Weary parents coping with the financial challenges of falling home prices, stagnant wages and layoffs are wondering when the skyrocketing increases will stop. "The money we put aside is not enough," said Dimondale resident Kate Jones. With a senior studying math and physics at Grand Valley State University, a junior studying engineering at the University of Michigan-Flint and a junior studying chemistry at private Olivet College, finding enough money to cover tuition is an ongoing struggle for the registered nurse, her minister husband and their kids. "They're getting student loans, they have some scholarship (money) and they have part-time jobs," Jones said, but the tuition hikes are making paying the bills increasingly tough. Of the 11 universities that have announced fall tuition increases, Eastern Michigan -- at 3.65 percent -- is the only one to keep the increase below 6.6 percent. Oakland University has raised tuition 7 percent, and the rest are between 6.6 percent and 6.95 percent. Average undergraduate tuition at the University of Michigan in Ann Arbor will cost around $12,630, while tuition at Saginaw Valley State will be around $7,800. Central Michigan, Ferris State, Grand Valley State and Northern Michigan universities are expected to announce tuition rates in mid-July. Mike Boulus of the Presidents Council, which represents the 15 state universities, said the schools are being asked to take almost as big a cut this fall as they took over the combined eight years Democrat Jennifer Granholm was governor. Granholm cut university spending 18 percent during her tenure, or 37 percent when accounting for inflation. Now, with the 15 percent cut put in place by the Republican Snyder, state support has fallen even further. The state supplied 59 percent of university funding in 1992-93, according to the Presidents Council. It now supplies just 26 percent, putting three-fourths of the costs on the backs of students. Snyder, who holds undergraduate, graduate and law degrees from the University of Michigan, talks often about the importance of higher education. But he's not apologizing for the substantial cut or the fact that tuition is going up this fall. His administration had threatened to decrease funding even further for any school that raised tuition more than 7 percent, and he was pleased none did. "It's good they're staying underneath the threshold, because ... they can be successful that way," Snyder said recently. "It's great they're managing their costs." At one point in his campaign, Snyder said current university students who entered college thinking they would earn up to $4,000 from the Michigan Promise Grant should still get the money even though the scholarship was eliminated as a cost-saving move two years ago. But the governor didn't include that in his 2011-12 budget. Boulus said the universities are trying to increase student financial aid to keep up with rising tuition, but little of that aid is in grants. Most is loans that must be repaid, forcing students to graduate tens of thousands of dollars in debt. The universities say they're doing their best to trim costs. Employees cover an average 13 percent of their health care premiums, programs with small enrollments have been purged and universities are sharing services to save money. Although the $213.1 million cut in spending that takes effect Oct. 1 translates into a decrease of more than $900 for each of the state's 234,000 students, Boulus notes none of the universities are increasing tuition by more than $800, and some are asking for smaller increases. Still, many worry too many students are being priced out of college, making it harder for the state to compete economically. Only Rhode Island and New Mexico cut university funding more than Michigan between the 2005 and 2010 fiscal years, and Michigan now is in the bottom five as far as university funding, Boulus said. Lou Glazer, president of the Ann Arbor-based think tank Michigan Future, says the solution isn't to cap tuition, which he fears will erode university quality. Instead, he wants the state to give vouchers worth $5,000 to $7,000 per year to each college student -- from Michigan or anywhere in the world -- who can meet university entrance requirements. Some of the money would be in the form of loans that would become grants if college graduates stay and work in Michigan for three to five years, helping to stem the "brain drain" that has made Michigan one of the top exporters of college-educated young adults. There also would be a pool of state money to match federal research dollars. Glazer said a tax increase might be needed to get higher education funding back to 2000 levels, but it would result in a stronger economy. "Michigan is 36th in college attainment and 36th in income, and we're now in the bottom 10 in support for higher ed. How do you grow the economy with that kind of a policy?" Glazer asked recently. For the Jones family, education is both a starting point and mid-career experience. Kate Jones went back to college to get a nursing degree after a career as a child-care provider, and her husband earned an advanced degree as his career moved from counseling to ministry. As their children earn degrees, Kate Jones sees more state investment in education by political leaders as imperative to the state's future. "If they want Michigan to thrive, we have to have an educated populace," she said. Published: Tue, Jun 28, 2011