Governor Rick Snyder
was met with criticism and controversy as he presented his budget proposal on
Wednesday. As expected, Flint remained dominant in concern with $195 million
allocated to address the water crisis (see related story). Another $165 million
was proposed for a new infrastructure fund. Overall, the budget is at $54.89
billion with $10.03 billion stemming from the General Fund.
Higher education will
see a 4.3 percent boost overall and community colleges a 2.9 percent boost
amounting to about $7.5 million. The increase for community colleges was seen
as “reasonable” where legislators were overall pleased with higher education
increases. In addition to the 4.3 boost, Governor Snyder also placed a 4.8
percent tuition restraint on universities, which some feel is too high. In
total, the state’s universities would receive $1.599 billion under the
Governor’s recommendation. The MSU AgBioResearch and Extension program will see
a 2.3 percent increase, bringing total funding to $61.9 million. The Michigan
Public School Employees Retirement System will see an additional $730,000,
bringing total funding to $5.9 million. Student financial aid is set at $107.5
million with an additional $2 million going toward reimbursement costs for the
Tuition Incentive Program. Finally, the budget includes $145 million from the
General Fund to support debt for recently constructed university buildings.
For each university,
this increase breaks down to: 5.2 percent for Central Michigan University; 4.6
percent for Eastern Michigan University; 5.6 percent for Ferris State
University; 6.8 percent for Grand Valley State University; 4.1 percent for Lake
Superior State University; 3.9 percent for Michigan State University; 4.3
percent for Michigan Technological University; 3.9 percent for Northern
Michigan University; 6.1 percent for Oakland University; 5 percent for Saginaw
Valley State University; 4.2 percent for the University of Michigan-Ann Arbor;
4.8 percent for U-M Dearborn; 5.1 percent for U-M Flint; 3.5 percent for Wayne
State University; and 4.2 percent for Western Michigan University.
The cities, villages
and townships will see a 3.9 percent boost in constitutional revenue sharing,
but a 2.3 percent reduction to statutory revenue sharing.
Detroit Public
Schools will see a total of $720 million over ten years to cover outstanding
debt and startup funds for dividing the district while Flint receives $8.05
million for expanded child care assistance. The budget also provides $1.7
million to implement the Lieutenant Governor Brian Calley’s Special Education
Reform Task Force. Overall, there is a $300 million increase in the School Aid
Fund, including allowance increases of $120 per student for the lowest spending
districts and $60 for the higher spending districts. The minimum foundation
allowance increases to $7,511 with basic allowance increasing to $8,229. The
overall budget represents a 2 percent increase from the current year.
Local tax revenue is
being reallocated to pay off DPS debt and to combat lost revenue; Governor
Snyder called for shifting tobacco settlement funds to the district. Governor
Snyder also proposed a supplemental appropriation to cover $50 million of the
district’s operating funds for the current fiscal year.
Early literacy
improvement has also seen $243.9 million for preschool programs and $23.9
million for direct literacy programs. $1.4 million is designated for a pilot of
the Integrated Behavior and Learning Support Initiative. The budget also
provides a $5 million increase to $15 million for career and technical
education programs. $2.5 million would be given to science, technology,
engineering, and mathematics programs, including the First Robotics program.