Gov.
Releases FY05 Budget Proposal
The
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.
Universities
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.
Northern’s
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.
Other
elements of the proposed budget impacting universities are as follows:
•State
support for the tuition grant program for students attending private
colleges and universities would be eliminated, saving $65 million.
•The
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.
•Michigan
Merit Award funding is recommended at $67 million.
•Funding
for the Martin Luther King Jr. – Cesar Chavez – Rosa Parks grants
would be continued at the FY04 level.
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