Michigan Budget Boosts Funding for Economic Development, Higher Ed

With a greater focus on jobs training and arts and cultural programs, Michigan's budget for economic development would increase by more than 10 percent in FY13 under Gov. Rick Snyder's proposal. Universities and community colleges would receive a 3 percent boost under a new performance formula based on degree completion — particularly in critical skills areas such as science, technology, engineering, mathematics, and health care. The Michigan Economic Development Corp (MEDC) is slated to receive $195 million in FY13, up from $175 approved for the current year. This includes $100 million for business attraction and economic gardening. Another $25 million would support innovation and entrepreneurship programs established last year (see the June 1, 2011 issue of the Digest). To address economic development in distressed cities, the governor recommends an additional $15 million in general fund support for the Talent Fund for Job Training and Skills Development. The budget also increases funding by $3.6 million for arts and cultural grants programs ($5 million total). Funding would increase by 3 percent for universities and community colleges under new performance guidelines proposed by the governor. State universities would receive an additional $36.2 million from the general fund based on four metrics: the growth in the number of undergraduate degree completions, the number of undergraduate completions in critical skills areas, the number of undergraduate Pell Grant recipients, and compliance with tuition restraint. Community colleges would receive an additional $8.5 million, which would be distributed based on the total number of certificate and associate degree completions in critical skill areas, averaged over the past three fiscal years. Beginning in FY14, the community colleges funding formula also would recognize successful student transfers to four-year colleges or universities. The FY13 executive budget is available at: http://www.michigan.gov/documents/budget/EB1_376247_7.pdf.