Michigan State University's student health insurance mandate may restrict its ability to raise tuition next year under a budget deal for universities passed Friday by the state House.
The $1.39 billion higher education budget for the next fiscal year includes $9 million universities can apply for a part of if they keep tuition and fees under 4 percent. A provision added to the final budget makes MSU's health insurance plan for students a fee and subject to the 4 percent cap.
Tuition and fees for in-state students at MSU this year is $12,822. When the minimum $1,505 annual cost of MSU's health insurance premium is tacked onto tuition, the total cost to attend the East Lansing school would increase 11.7 percent, a Detroit News analysis shows.
The state House held a rare Friday session to finish operating budgets for public schools, community colleges and universities. The plan splits up $36 million in new money for the universities into four pots based on graduation rates; research and development; degree completion in math, science and engineering; and tuition restraint.