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An Overview of Postsecondary Funding in Michigan's FY24 Budget

The Michigan capitol building

On June 28, 2023, the state legislature passed Michigan’s FY24 budget, a bipartisan set of bills that was negotiated between both chambers of the legislature and Gov. Gretchen Whitmer. MCAN is encouraged to see bold investments in postsecondary education and increased financial support for the K-12 system, and applauds the work of House Appropriations Chair Rep. Angela Witwer, Senate Appropriations Chair Sen. Sarah Anthony, and Gov. Whitmer for their ongoing leadership and transformative vision for Michigan’s future. The FY24 budget totals $81.7 billion. It includes a general fund total of $15.2 billion and a School Aid Fund total of $19.4 billion.

Budget highlights that are critical to MCAN’s work include:

  • Higher education institutional support: a 6.4% increase in operational funding for public universities and 4.9% increase in operational funding for community colleges
  • Michigan Achievement Scholarship: an additional investment of $50 million in support of the scholarship’s ongoing costs (inclusive of $10 million for scholarship outreach), bringing the FY24 total to $300 million
  • FAFSA completion incentives: the addition of $10 million to incentivize FAFSA completion
  • Student success programs: a total of $37.8 million for the College Success Fund and wraparound services to improve retention and completion rates
  • Tuition Incentive Program: an increased investment of $2.5 million
  • Michigan Reconnect: a total investment of approximately $65 million
  • Michigan Reconnect Entry Point Program: $5 million to engage applicants who have been approved for Reconnect funding, but have not enrolled in an eligible program
  • Michigan Competitive Scholarship: a reduction of $3 million to account for less uptake due to the Michigan Achievement Scholarship and intentional plan to end scholarship at the conclusion of FY2023
  • Michigan Tuition Grant: no change to funding level, but removal of March 1 deadline
  • Michigan Office of Postsecondary Educational Attainment: creation of a new office within LEO that will recommend improvements to all state financial aid programs within the Executive branch, serve as the coordinating office for agencies responsible for state financial aid programs, provide data analysis to assist prospective students on postsecondary options, and more.
  • Career and Education Navigators for Adult Learners: $5 million in support of community colleges partnering with county governments to apply for grants through the Office of Sixty by 30
  • Postsecondary education for foster care youth: an investment of $500,000
  • K-12 student support:
    - $611 million to increase per-pupil funding by 5% (an additional $458 per student) for a total of $9,608 per pupil
    - $204.5 million increase, for a total of $952 million, in funding for academically at-risk, economically disadvantaged students
  • MCAN’s appropriation: an increase from $3 million to $5 million in support of the workforce engagement, student success, and adult learner initiatives laid out in MCAN’s 2022-2024 Strategic Plan


MCAN’s Statement

In response to the budget agreement, MCAN Executive Director Ryan Fewins-Bliss released a statement highlighting key investments:

“This budget is an incredible win for Michigan’s students and families, and it’s a crucial investment in Michigan’s future. In recent months, we’ve heard that Michigan’s population is both lagging in growth and aging at rates that threaten our economic prosperity. We need to make significant investments in educating, attracting, and retaining our talent, and this budget is a huge step in the right direction."

Read the full statement →

 

In the Media

(some articles are behind paywalls)

Michigan passes $21.5B school budget with boost for at-risk students (Bridge Michigan)

Michigan schools will see big funding gains for neediest students under budget deal (Chalkbeat Detroit)

 

Legislature passes $82B budget, including record $21B for schools (Michigan Advance)

 

Per-Pupil Rise, Bump For Higher Ed Mark $24.3B Education Budget (Gongwer)

Short Description

On June 28, 2023, the state legislature passed Michigan’s FY24 budget, a bipartisan set of bills that was negotiated between both chambers of the legislature and Gov. Gretchen Whitmer. MCAN is encouraged to see bold investments in postsecondary education.

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