Battle lines: State's precarious finances shape choice between prisons, universities

If Michigan is at a crossroads and facing a critical choice about its future direction, perhaps nothing defines the choice as clearly and fundamentally as the coming budget struggle between prisons and universities.

Yes, there are many funding priorities and many worthy programs and services facing stress because of the state's projected deficit for the 2008 fiscal year, which could run as high as $1.8 billion according to the Senate Fiscal Office.

But shaping choices between corrections (the backbone of public safety) and universities (the gateway to the knowledge economy) is symbolic of the struggle that faces Michiganians.

It is not just a struggle for today or even for 2008, because the actions taken now will set the tone for what type of state Michigan wants to be and what future those who live here can expect.

No simple answers

This is not as simple as saying reform sentencing guidelines to reduce prison costs and shift the money to higher education.

Yet, the reality is that Michigan must look at corrections. How could it not look at a department that takes 20.5 percent - or $1.87 billion - of the state's general fund/general purpose budget for the current fiscal year?

Gov. Jennifer Granholm has done the right thing by beginning the dialogue. Now the Legislature and the law enforcement community must follow through to review guidelines and have open and constructive discussion about what can be reformed or changed and what cannot.

That is especially difficult for politicians who must constantly worry that opposition will use such discussion to label them "soft on crime" in future elections. But the review must be done sincerely and thoroughly, with an eye toward the notion that something must change before we become a state that funds corrections and little else.

As for universities, it is too simple to say they must "learn to live lean." Funding for universities and community colleges is about 15 percent of the general fund/general purpose budget, or $1.3 billion so far this fiscal year, a number is reduced by delayed payments used to balance the current year's deficit.

But the Presidents Council of the State Universities of Michigan makes a compelling case about the reduction of some $300 million from the schools' funding over the last several years, cuts that came even as neighboring states sustained or increased their funding.

The result? Tuition increases next year that average 10.6 percent at the state's 15 universities. (Michigan State University set its '07-08 tuition increase at 9.6 percent, but cautioned that could go up if state aid is not forthcoming.)

A GOP argument advanced last week that universities should be penalized in state funding support if they increase tuition more than 5 percent is short-sighted and flawed.

State needs a new mind-set

Yes, Michiganians should want access to higher education for our young people. But citizens and taxpayers also must understand that education is a global commodity.

Universities that want to maintain a reputation for achievement cannot and must not sacrifice quality in the face of the state's budget crisis. They must be responsible with taxpayer dollars, but creating an environment of second-tier education is not what Michigan needs to thrive going forward.

For now, that does indeed mean tuition increases.

Michigan State University President Lou Anna Simon and her colleagues at University of Michigan and Wayne State University continue to make a compelling and vibrant case that research universities are an essential component of the knowledge economy Michigan needs to establish.

And to create the residual business investment that follows academic and research excellence, the schools deserve better state support than they've been getting.

Many who have lived and thrived for generations as part of Michigan's manufacturing economy will find that a very difficult concept to embrace. Nonetheless, it is vital for Michigan's future.

Post a Comment    View All Comments Prisons vs Universities for state funding Sun Aug 05, 2007 12:11 pm This is indeed a tough situation and I don't have any answers. With the bad economic climate I would expect more serious crimes (bank robbery etc.) will keep a steady stream of people heading to the prison system. If you start releasing people early for "lesser" crimes that does not make the public any safer since they are being let go into a dismal economic climate and because of that will probably be heading back to prison in the future anyway. How much longer can the public take 10% kind of tuition increases for universities on an annual basis and still afford to go, at some point people are just not going to be able to afford it anymore. If you keep cutting funding to universities they will fall into a second tier status (not research oriented) and that hurts the state as well. Looming over all of this is the $1.8 billion budget problem with no solution yet in sight, I think we will continue to see budget deficts in the future as well. Michigan used to be a good place to live but the future is very cloudy at this point.