Governor outlines state budget plan

February 12, 2007 —

In this year's State of the State address, Governor Jennifer Granholm repeated a message that must sound like a broken record to many of Michigan's citizens.

"We will increase our efforts to diversify the economy, reform government to cut costs, strengthen our schools, retrain displaced workers, expand access to health care, and revitalize our cities. And we will finally put our fiscal house in order," she stated.

But the governor looks to have few intentions of making the massive restructuring process a laborious one.

"And we will act with urgency, urgency, urgency," she added.

As has proven typical in most State of the State addresses, the governor outlined her plan for Michigan's economic future, starting with the diversification of the economy and ending with the continued investment in schools, including institutions of higher education. Michigan's three largest universities - the University of Michigan, Michigan State University, and Wayne State University - received some special attention, as they will be required, as of this year, to issue annual reports on their efforts to attract investment.

Yet all universities and colleges will be ultimately be impacted by Granholm's proposed budget, which she teased in her address. According to a document issued by the governor to accompany Tuesday's address, Granholm wants to emulate the success of the Kalamazoo Promise, a privately funded initiative that grants some graduates of Kalamazoo's public schools free tuition at state universities and colleges.

The program would call for "Promise Zones" in cities with low rates of educational attainment and high rates of poverty and employment. These zones would collect some state property tax at an ever-increasing rate to develop permanent funds meant to pay for high school students' tuition.

Granholm also proposed an overall funding increase of $33.6 million for Michigan's institutions of higher education.

SVSU President Eric Gilbertson was pleased with Granholm's comments, though he expressed some concern over the state budget deficit.

"I am very supportive of the Governor's proposal and think it represents a strong commitment for higher education at a very difficult time for the state's budget," he said. "Obviously, there will be a lot of debate and discussion in the Legislature during the weeks ahead, and it is very difficult to predict how all this will turn out. But we do appreciate the Governor's support at this point."

Gilbertson also spoke of the importance of the budget talks.

"The Legislature will have some tough decision to make about taxes if the State budget is ever to be balanced. We hope they will have the courage to make those tough choices and do what is necessary to invest in Michigan's future - including, of course, the universities that are vital to that future."