Releases FY05 Budget Proposal
FY05 budget proposal released by Gov. Jennifer Granholm Thursday
recommends $1.6 billion in total support for universities and financial
aid programs, of which $1.54 billion would come from the general
fund. It also includes a promise of no additional reductions for
universities that exercise tuition restraint and a decrease in state
support for those that don’t.
that keep tuition increases for 2004-05 at or below the rate of
inflation – about 2.4 percent – would see no further state appropriation
reductions. Universities that raise 2004-05 tuition above inflation
would have their base funding reduced by 3 percent. Northern's current
state appropriation is $44.5 million.
board has been meeting at its annual retreat yesterday and today
in Ann Arbor. The executive budget is a discussion item on today’s
agenda, but because no official university business is conducted
at retreats, it is likely the board will convene a special meeting
at a later date to gather public input and formally act on the proposal.
elements of the proposed budget impacting universities are as follows:
support for the tuition grant program for students attending private
colleges and universities would be eliminated, saving $65 million.
state will subsidize pension contribution rates charged to the seven
universities, including NMU, with employees covered under the Michigan
Public School Employees Retirement System (MPSERS). The action would
result in a total savings of $6.4 million that otherwise would be
charged to the institutions.
Merit Award funding is recommended at $67 million.
for the Martin Luther King Jr. – Cesar Chavez – Rosa Parks grants
would be continued at the FY04 level.