MSU budget reflects commitment to quality, affordability

Contact: Kent Cassella, Asst. VP of Communications, Cell: (517) 599-8537, Direct: (517) 353-1772,

Jun 22, 2012

EAST LANSING, Mich. — The Michigan State University Board of Trustees today adopted 2012-13 budget development guidelines calling for a $14 per credit hour tuition increase for in-state undergraduate students, a necessary action if MSU is to remain one of the state’s and nation’s most critical economic drivers.

Under the tuition increase, students taking a full load of classes will pay about $210 per semester more for those classes beginning in the fall 2012. Overall, a student taking a full load of classes—15 credit hours—will pay about $6,311 per semester.

In addition, the budget calls for a $44 per credit hour tuition increase for nonresident undergraduate students.

For graduate students, Michigan residents will see an increase of $28.25 per credit hour; nonresidents an increase of $55.75 per credit hour.

MSU President Lou Anna K. Simon said that while no one wants to raise tuition, this budget represents a continued commitment to world-class programs, access supported through aggressive financial aid and fiscal prudence.

“Whether through its job-creating innovations and lifesaving research or its world-class education and talent development,” Simon said, “MSU’s value goes far beyond our annual economic impact of more than $4 billion.”

This year’s budget guidelines were based on a slight increase in state funding—a 1.4 percent hike, an increase of $3.4 million compared to last year. Total state appropriations for 2012–13 are estimated at about $244.5 million.

Last year, MSU’s state appropriations were slashed by 15 percent. Since 2000–01, state appropriations have been reduced by 25 percent, an accumulative loss of more than $300 million.

As the university has done in the past, general fund contributions to financial aid will be increased. This year’s increase will be 6.5 percent, a total of nearly $7 million. During the past five years, the university’s contributions to students’ financial aid have increased by 67 percent, now totaling more than $103 million.

“As our society and economy become increasingly global in character,” Simon said, “access to a globally competitive education plays an ever more important role, both in each individual’s potential for success and in collectively contributing to the state’s economic vitality.”

MSU has proven to be a good steward of the public’s trust, creating within the past three years, more than $100 million in reductions and cost savings. In fact, MSU leads the Big Ten in a number of efficiency areas, including employee-to-student ratio, energy cost and consumption, and landscape and facility maintenance area per full-time-equivalent staff.

But despite these cost-cutting measures, MSU continues to be ranked near the top of the Big Ten for expenses dedicated to the mission-critical areas of instruction, research and public service.

MSU enrolls about 17 percent of all Michigan public university students, with approximately 80 percent of undergraduates coming from Michigan.

For the third year in a row, the MSU board approved a two-year budget framework including both 2012–13 budget development guidelines and 2013–14 preliminary general fund budget guidelines.

The proposed 2012-13 budgets for the University General Fund, MSU AgBioResearch, MSU Extension and Intercollegiate Athletics total $1.27 billion. The general fund base budget was increased by about 3 percent, or $31.9 million, from last year.