An alert EMUTalk.org reader sent me a link this morning to an article that could be an intriguing twist to the budgetary soap operas in higher ed in Michigan: from The Detroit News, Michigan schools spared from cuts: Federal stimulus rules prevent state from slashing funds for colleges, public schools. The opening paragraphs:
Michigan can’t slash aid to public schools and universities, as proposed in Gov. Jennifer Granholm’s budget plan for next year, because federal stimulus package rules won’t allow it, lawmakers were told Wednesday.
Gary Olson, director of the Senate Fiscal Agency, said the legislation adopted by Congress and signed this week by President Barack Obama stipulates that funding for schools and colleges must be kept whole to be eligible for federal recovery money.
That means the 3.2 percent reduction in state spending for the 15 public universities and the $59-per-pupil reduction in public school aid proposed by Granholm for the budget year that begins Oct. 1 can’t happen, Olson said.
Now, before we start popping the champagne corks, it seems that the governor’s office has a potentially different interpretation of the law.
Liz Boyd, spokeswoman for Granholm, said “it is not our interpretation” that federal recovery rules won’t allow the higher ed and per-pupil cuts. But her comments indicate only shades of semantic difference.
“The federal economic recovery money is separate from the budget,” she said. “We can make the budget decisions we need to make to balance our budget going forward, but certainly we will use the stimulus dollars to make them whole. We’re talking about making them whole, not restoring cuts.”
Plus there might be some kind of deal where EMU’s budget (and the other state supported universities) isn’t cut from the state on the condition that EMU doesn’t raise tuition, which could in itself represent a bit of a budget cut because of lost revenue. Or it could actually represent a bit of a budget increase because more students will be able to afford to enroll. Who the heck knows.
In short, this ain’t over by a long-shot.
