Governor Rick Synder’s new budget aims at helping colleges and universities keep tuition costs low and  helping schools graduate students.

Education funding makes up 31 percent of the total state budget in the governor’s proposed budget for the 2013 fiscal year.

The new budget will include an increase in funding for education by $1.4 billion in base spending, which is a three percent increase over the current $1.1 billion allocated for funding.

Oakland University’s Director of Budget and Financial Planning, Thomas LeMarbe, explained that it is important to look at the context of the three percent increase in allocated funds for education in the 2013 fiscal year budget.

According to LeMarbe, the Governor’s FY2013 proposed budget should be examined in the context of the FY2012 budget in order to gain perspective on the base appropriation dilemma which would be created under the proposed budget.

“In FY2012, all 15 public universities received an across the board base appropriation reduction of 15 percent each,” he said. “The FY2013 proposed budget aims to hold each university’s base appropriation at the same level realized after the FY2012 15 percent reduction.”

To try and keep tuition costs low, Synder created a one time $36.2 million appropriation pool that schools can receive money from if they meet four performance-based qualifications.

One of the four qualifications indicates that in order for a school to receive this one time fund, their tuition increases must not be greater than four percent.

According to LeMarbe, they are still in process of assessing  the governor’s formula will impact the overall budget.

“Given any increase that Oakland might receive, would be a 0one-time and not a base increase,” LeMarbe said.

The amount of money that schools receive will be allocated to qualifying universities once all institutions have set their 2012-13 academic year tuition rates.

In an interview with The Oakland Post, OU President Gary Russi said: “All of the boards around the state have to be working with administration on what percentage increases will be. It’s an attempt to mitigate tuition increases at the state level.”

“It’s too early in the budget development process to declare what change in tuition rates might occur as a result of the governor’s proposed budget. The legislative process generally involves the governor’s proposed budget marking the starting point for discussions, as the budget is examined by the Michigan Legislature,” LeMarbe said.

Synder has said his goal is to have at least 60 percent of Michigan residents attain a high quality degree by 2025.

“We believe the university, the Metro Detroit area and the State all benefit when more Michigan residents become college educated. How the governor’s 60 percent goal relates to future appropriation adjustments for universities is not know at this time,” LeMarbe said.

Visit www.michigan.gov/budget for more info on Snyder’s proposed budget.

 

Contact Senior Reporter Christopher Lauritsen via email at [email protected] or follow him on Twitter @ChrisLaurtsen