Representative Sharon MacDonell

4 days ago

We will be voting on this, this afternoon. Reach out to your Republican State House Reps! From MIRS: "Big Cuts In House's University, College Budget Plan
The University of Michigan's state funding would be cut 65.4 percent ($239 million) and Michigan State University 18.9 percent ($61 million) under a Fiscal Year (FY) 2026 spending plan that moved out of the House Appropriations Committee this morning, but stalled on the House floor when allegedly a few Republican members expressed concern.

Eliminating eligibility requirements for the $5,500 Michigan Achievement Scholarship (MAS) means this budget will have MSU and U-M relying more on tuition funding from the scholarship rather than direct funding from the state.

Without MAS, the allocation for MSU drops 72.6 percent ($237 million) and U-M drops 91.6 percent ($335 million). They are the only two institutions that will see a decrease in funding when MAS is worked in, but all of the universities receive less funding than last year without MAS considered.

HB 4580 gives the other 13 public universities between 28 to 31 percent more from the state, but at the expense of the heavy cut to the state's two big research universities, which Chair Greg MARKKANEN (R-Hancock) said should be able to more than make up for the loss by using their beefy foundations.

“Michigan’s largest universities have been getting way more than their fair share for far too long," Markkanen said. "Our plan sets things right by trimming the fat off MSU and U of M and distributing that funding amongst our 13 other remarkable universities.”

In October 2024, the University of Michigan's endowment was valued at $19.2 billion, making it one of the largest university endowments in the United States, according to the University of Michigan.

“They're getting $400 million in interest off that," Markkanen said. “We don't know where that money goes.”

University officials said after today's committee meeting that conversations need to be had with House members about the university's endowments, who gives to them and the expectations as to where that money is to be spent.

Also, $1.3 billion more is coming from the School Aid Fund to pay for the $2.4 billion Higher Education budget under the House proposal. The proposal means that, for the first time, 80% of the state money going to the 15 public universities would come from the School Aid Fund and 20% from the General Fund. Currently, 80% of the state money going to the 15 public universities comes from the General Fund and 20% from the School Aid Fund.

To this, House Appropriations Committee Chair Ann BOLLIN (R-Brighton) said, “Education is education" and the state has long supported the teaching of kids from pre-school to college, even though Rep. Regina WEISS (D-Oak Park), last term's K-12 budget chair, expressed concern over the funding shift.

Another big change is the elimination of the $41 million Tuition Grant Program and the $19 million Michigan Competitive Scholarship program in order to expand the Michigan Achievement Scholarship to give Michigan students a $5,500 scholarship if they're going to a four-year public or private university.

The bill also requires 5% of monthly campus investment funds be withheld if the public university allows “biologically defined males from participating in biologically defined female sport teams.”

It requires universities to post a list of all employees, including titles and salaries, who work remotely.

House Gives Community Colleges 1.2% Trim; Deletes Governor's Sixty By '30 Goal

Michigan's 28 community colleges would see their state funding cut between .8 and 1.3 percent in Fiscal Year (FY) 2026 under a House Republican budget that moved out of committee this afternoon with $5.5 million less than what was set aside last year.

As House Republicans look to cut spending amid concerns about a bloated budget, their proposed income tax cut and their road funding budget increase proposal, community colleges would receive $456.6 million, less than the $506.5 million the Senate passed for Fiscal Year 2026.

Rep. Natalie PRICE (D-Berkley) challenged HB 4579 on the grounds that budgets are a reflection of a body's values and cutting education funding is not a good representation of the chamber's priorities. To that, Rep. Greg MARKKANEN (R-Hancock), the chair of the House subcommittee, thanked Price for her opinion.

The budget also puts a tuition and fee restraint cap of 3 percent or $149. The Governor proposed capping tuition and fee increases to 4.5 percent or $227. The Senate budget also caps tuition and fee increases to 4.5 percent in FY ‘26 but then limits tuition increases to 3.5% a year, or $174, in FY ’27.

Other highlights of the spending plan include:

- Deletes any mention of the Governor's goal to have 60% of the state's residents achieve a degree, certification or any other post-secondary credential by the year 2030.

- Prevents colleges from spending more than 10% of their payroll costs on staff who don't teach, maintain facilities or enforce the law.

- Cuts community colleges' state funding by 5% for having any common area spaces that are restricted by sex or race, and restricts these schools from holding public ceremonies or gatherings restricted by sex or race. The wording of this provision raised questions by Rep. Jasper MARTUS (D-Flushing) about whether separate restrooms for men and women would fall under this restriction." ... See MoreSee Less