The Michigan Senate Democratic Caucus unveiled a plan this week that would provide free tuition for Michigan students at public universities and community colleges. The “Michigan 2020 Plan: A Passport to Prosperity” is modeled after the Kalamazoo Promise.
Under the proposal, students could receive annual grants for two or four-year degrees equal to the average of tuition at Michigan’s 15 public universities (currently $9,575). The grant amount would vary on the amount of time the student had spent in Michigan’s K-12 system. If the student chose an institution costing more than the grant amount, the student would be responsible for the difference. If the reverse were true, the student could utilize the remaining amount for approved educational expenses.
The plan also calls for mechanisms to fund the estimated $1.8 billion proposal. First, the state’s sales tax would be extended to online retailers. Earlier studies have reported an estimated $142 million left on the table in 2012 by not collecting from online sales.
The second funding course is through the 6-percent decrease in costs of the state’s $28 billion in contracts. A contract reform group would be developed to present recommendations to the Governor and the Legislature.
Finally, the proposal calls for the development of a five-member Sunset Commission charged with review of all of the state’s tax credits and making recommendations for elimination of 10 percent, or roughly $3.5 billion. The Commission would be comprised of economists from Michigan State University, Michigan Technological University, the University of Michigan, the Upjohn Institute and Wayne State University.
Legislation is reportedly being drafted to encompass the proposal, which is also being reviewed by the House Democratic Caucus.