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July 28, 2016 Comments (0) Study abroad

Michigan Funding Plan for Higher Ed Punishes Top Schools

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Michigan Governor Rick Snyder\’s performance funding proposal for higher education is under fire from college presidents over the state. A key problem raised is the fact that by giving out money based on how well universities in the state have been increasing the number of graduates, the top universities with already high graduation rates don\’t have equal accessibility money.

The University of Michigan, for instance, already graduates a lot more than 90% of its students — but that means it\’s nearly impossible for them to get any new money and they\’re in the bottom three for funding under the current proposal.

University of Michigan President Mary Sue Coleman said:

\”You could erroneously arrived at the conclusion the university is really a failing institution.\”

While giving schools who have demonstrated a willingness to operate on reduced rates a boost to assist them to keep improving is certainly a laudable idea in writing, one can comprehend the frustration of some Presidents who feel they\’re being punished for success.

Coleman was speaking prior to the state House\’s Appropriation Higher Education Subcommittee. She also highlighted that the proposals were particularly unfair once they had demonstrated a willing to cut costs and were conducting a major role in supporting the state\’s economy.

900 students in every entering freshmen class had started a business by the time they were given to campus, businesses U-M helps to grow.\”

College Presidents speaking before the subcommittee also criticized the fact that under Snyder\’s plan universities would all be competing for the same pot of money. The plan does reward universities that keep increases in tuition under 4%, but Grand Valley State University President Thomas Haas notes the only way to achieve that is get enough state aid, creating a bizarre chicken-egg situation.

\”It is really a fact that the only greatest effect on tuition and debts are the presence or lack of state appropriation,\” Haas said. \”If their state had been able to avoid cuts in the past decade, our tuition might be $6,000 a year instead of $9,000. When the state had been able to maintain the 75/25 ratio of long ago, our tuition might be just $3,000 annually, a number within reach of virtually every qualified student.\”

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