MSU, WSU Could Lose Funding Over Tuition Hikes

Thursday, July 14, 2011
More than $30 million in state funding could be in jeopardy for Michigan State and Wayne State universities following a government report that shows the schools have exceeded a 7.1 percent tuition cap set this year by state lawmakers.

Though MSU and WSU recently voted to raise tuition 6.9 percent in September, a report by the nonpartisan House Fiscal Agency shows that tuition will increase at MSU by 9.4 percent and at WSU by 8.8 percent, when comparing fall semester rates to 2010. Both universities insist they are in compliance.

If state budget director John Nixon rules against the universities, MSU could be forced to forfeit $18.3 million in incentive funding, and WSU could lose up to $12.8 million.

Nixon — who had an internal meeting Tuesday regarding the issue — was not ready to speak publicly on the matter until he had conversations with the universities on how they made their calculations, said Kurt Weiss, spokesman for the Michigan Department of Technology, Management & Budget.

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