Putting Michigan Back to Work
The First Steps
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Section 8: Higher Education
Using Michigan's Great Universities and Community Colleges to Educate our People and Grow Our Economy
Michigan is spending $1.76 billion on our public universities in Fiscal Year 2009, about $85 million less than 2002. The Governor's budget proposal for next year reduces this funding by 3%, another $44 million. One recent report revealed that Michigan ranked 48th in the country in higher education support over the past 10 years. We were the only state in the Nation to spend less on higher education in 2008 than what was spent in 2003. This defunding of higher education is the exact opposite of policies pursued by successful states which focus on increasing access and affordability of higher education as a strategy to diversify their economies and to increase the ability of their workers to function in the 21st Century economy. Our priorities need to focus on access and affordability. Despite Governor Granholm's claims of being an "Education Governor" and the Lieutenant Governor's attempt to make the same claim - the truth is that Michigan's universities are worse off under the Granholm/Cherry administration.
In this section…
(click each heading below for more information)
39. Establish a University Funding Model Based Upon Outcomes, not Political Favorites.
For too long, university funding was based on arbitrary factors. University funding should be based on outcomes, not which legislators are on the higher education appropriations committee. Mike Cox proposes establishing a university funding model based on outcomes. Universities should be funded based upon their enrollment, number and type of degrees granted and the amount of research contributing to economic activity that is being conducted. Reward schools for educating and graduating students, especially in Michigan's high-need fields.
We should recognize that different universities have different missions. Let's compare apples to apples, oranges to oranges, and focus on who does the best job of educating their students. Michigan State University President Lou Anna Simon called for this type of funding in the 2009-2010 budget appropriations process and Mike Cox agrees with her. Let's keep the formula simple and allow funding to steer outcomes into specific, high-demand fields.
40. Provide Cabinet Level Status for Higher Education
While Michigan's Constitution grants public universities with some independence in their governance, Michigan must work more closely with the university community to use these great assets to not only educate our young, but grow our economy. Currently, there is insufficient connection between the higher education community and state government, leading to a lack of coordination or understanding of needs of institutions and students. As an example, state programming for higher education exists in the Department of Education; Department of Community Health; Department of Energy, Labor, and Economic Growth; Department of Treasury; and, not to be outdone, the Department of Management and Budget! There is no apparent coordination of financial aid programs, career services, or professional training.
To diversify the Michigan economy, prepare our students for the new economy, and to compete with other states, Mike Cox supports the creation of a cabinet level appointment on higher education to leverage these great assets as part of the transformation of Michigan.
41. Expand Dual Enrollment Opportunities
As governor, Mike Cox will expand dual enrollment opportunities for high school students. An increase of dual enrollment programs will create more opportunities for high school seniors and juniors to get a jump on earning their college degree by expanding access to college courses while still earning credit towards their high school diploma. This policy will save families money, increase the preparedness of incoming college freshmen, and accelerate workforce skills.
42. Tie Any Increased State Aid To Tuition Reforms
An increased state commitment of education funding requires an equal commitment from the schools. There needs to be progress on cutting costs and implementing budget efficiencies - extra money from the state needs to be tied to tuition reforms such as benchmarking and transparency that increase accessibility to higher education by all Michigan citizens.
43. Increase Appropriations for Higher Education - If We Want to Win
We must reduce the size of state government. At the same time, we must prioritize to protect those programs that provide the most benefit to our State -- all government programs are NOT equal in value. Successful states uniformly value higher education for its ability to enlighten citizens, increase the social welfare, and, of course, grow the economy.
Mike Cox believes that Michigan must increase our investment in higher education if we want to diversify our State's economy and keep our young people in Michigan. Despite claims of being the "Education Governor", Governor Granholm has undermined our state universities over the past 7 years. One recent report revealed that Michigan ranked 48th in the country in higher education support over the past 10 years. The state actually provides less support for universities in 2009 than we did in 2002! As a first step, Cox will begin to restore the $185 million in reductions of the past few years and return support to 2002 levels.
44. Direct Deposit Michigan Income Tax Refunds into a MI Education Savings Plan/529
One of the most important investments any parent makes is an investment in their child's education. Mike Cox wants to make that investment as easy as possible. To incentivize saving for college education, Mike Cox will allow taxpayers to directly deposit their income tax returns into Michigan Education Savings Plan (MESP/529) accounts for themselves or their children. By making investment procedures easier, it will encourage more savings for education.
45. No Income Tax on Graduates of Michigan Universities and Colleges for the First Three Years after Graduation
Mike Cox proposes that the state not tax any graduate of a Michigan university or college for the first three years after graduation. Between public universities and community colleges, the taxpayers of Michigan spend $2 billion annually. Yet according to a survey conducted by Michigan Future, we are losing half of our graduates each year.
As Governor, Mike Cox will work tirelessly to bring more jobs to Michigan. More needs to be done to encourage our children to stay in-state. Mike Cox will create a plan to abate taxes for any graduate of a Michigan university or college for the first three years after graduation. This proposal is an inexpensive way to stop the brain drain, allow young graduates of our universities to stay in Michigan, save for that first house or new start-up business and keep our best and brightest in-state.
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