Board endorses Gov. Granholm's budget proposal

Contact: Terry Denbow, University Relations, 517-355-2262, denbow@msu.edu

Jan 30, 2004

EAST LANSING, Mich. - The MSU Board of Trustees on Tuesday unanimously endorsed Gov. Jennifer Granholm's proposal related to tuition increases and state appropriations for public universities outlined in the December 2003 Executive Order. The proposal reduced the reductions of the Executive Order from 5 percent to 2 percent for 2003-2004 and commits to no further state reductions in the base budget of 2004-2005 for a Michigan public university that keeps undergraduate resident tuition consistent with inflation.

Through the board's vote, MSU will limit the fall 2004 undergraduate resident tuition increase to no lower than 2.4 percent, the approximate rate of inflation.

"I am pleased to announce that late this afternoon Michigan State University's Board of Trustees met with President Peter McPherson and they are the first to commit not to raise tuition beyond the rate of inflation," Granholm said Tuesday during her second State of the State address.

"We've made this pledge and hope the state can keep its commitment to funding the university at a level where college is within the reach of students and their families," McPherson said.

Late last year, Granholm proposed that funding for public universities be cut by 5 percent, but that those that hold their fall 2004 tuition increases to the rate of inflation or lower be cut by only 2 percent.

"As the numbers were run on the Governor's proposal and compared with probable outcomes otherwise, this made the best financial sense," McPherson said. "With this decision goes the commitment to maintaining quality and access."

The resolution approved Tuesday states: "The rate of inflation and therefore the undergraduate resident tuition increase will be no lower than 2.4 percent. This decision is conditioned on the university's receipt of appropriations for and during fiscal 2003-04 and fiscal 2004-05 that is consistent with the governor's proposal."

It further states: "This proposal will advantage MSU students by containing tuition costs because of the limits placed on state appropriations reductions."

Board members had pledged in December not to increase tuition for spring 2004 if additional mid-year state appropriations cuts are held to 3 percent or less.