August 15, 2006
Governor signs budgets that increase funding for K-12, universities and community colleges
LANSING – Governor Jennifer M. Granholm today signed budgets that extend her commitment to investing in our public schools and making education beyond high school accessible and affordable to every student in Michigan. Granholm called the budgets a strong investment in education and the economy.
“These budgets are clear evidence that we are committed to investing in our schools,” said Granholm. “To compete in a global economy, we must give every student the tools they need to succeed while making education beyond high school affordable and accessible. These budgets help us achieve both of those goals.”
Details of the fiscal year 2007 appropriations bills for community colleges, higher education and K-12 school aid are below.
School Aid
The 2007 budget for Michigan’s K-12 schools provides $13.1 billion to help educate our children and prepare them for the 21st century economy. The budget represents an overall increase of $336.6 million over the current fiscal year.
The budget Governor Granholm signed increases the per pupil foundation allowance by $210 per pupil, which surpasses the rate of inflation. This brings the minimum to $7,085 per student. Also included is the governor’s proposal to increase funding for school districts that face financial struggles due to declining enrollment. These grants, which total $20 million, will benefit 40 percent of school districts throughout the state.
Since taking office, Governor Granholm has pushed for increased funding for early childhood and preschool initiatives. Overall funding for these programs is increased by $10.6 million for a total of nearly $100 million. These initiatives include: Michigan School Readiness Program ($78.8 million); Great Parents, Great Start ISD 0-5 Program ($5 million); Early Childhood Investment Corporation ($1 million); and 0-3 Secondary Prevention Services ($1.75 million).
In addition, $20 million is included in the budget to continue to close the funding gap for lower-funded districts. The equity payment of up to $23 per pupil will be provided to districts whose 2007 foundation allowance is below $7,360. Also, in recognition of the new curriculum standards, $20 million is included in the budget for a middle school math and science initiative that will provide students with the skills they need to succeed. This funding will be distributed on a per pupil basis for students in grades 6-8 in the amount of $54 per student.
Also included in the School Aid budget are $150,000 to expand opportunities for high school students to participate in FIRST Robotics Competitions and $2 million for a new health science middle college program that will allow high school students to earn a diploma and a college certificate or degree in health sciences.
Higher Education
The fiscal year 2007 budget for Michigan’s colleges and universities totals $1.8 billion, $1.6 million of which is general fund. Senate Bill 1088 includes state university operations funding of nearly $1.5 billion – an increase of 3 percent over the current year. Each university will receive at least a 2.5 percent increase next fiscal year, exceeding the projected inflation rate.
Over $258 million is provided for student scholarships and grants. The Michigan Merit Award Program will be funded at $127.7 million. As recommended by Governor Granholm, the Tuition Incentive Program is increased to $14 million and the Nursing Scholarship Program will see a 6.3 percent increase to $4.25 million.
The bill also includes $33.8 million for the Agricultural Experiment Station and $29.2 million for Cooperative Extension Service located at Michigan State University. Both represent a two-percent increase.
Community Colleges
Senate Bill 1082 provides fiscal year 2007 appropriations for community colleges and assists Michigan’s 28 community colleges to provide over 400,000 residents with affordable access to postsecondary education. The overall budget is $289.9 million for the coming fiscal year.
Community college operations are funded at $283.4 million, representing an overall increase of 2.9 percent. Increases for specific institutions range from 2.4 percent to 7.2 percent. In addition, the bill includes $3.3 million for the at-risk student success program to assist students who are academically at-risk and help ensure their college success. The bill also includes $3.2 million to reimburse colleges that lose property tax revenue as a result of Renaissance Zones.
“The increase in funding for Michigan’s institutions of higher learning will provide the quality of education that prepares students for the jobs of today and tomorrow and to conduct the research that leads to scientific breakthroughs and future economic development,” said Granholm.
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