The state has until the end of the month to pass a budget and a key figure, Mich. Speaker of the House Andy Dillon just stated that an agreement is "very close". While a number of the Mackinac Center's reform ideas are being discussed for this budget, the speaker is looking at more.
“• Promise grants. The Senate has voted to eliminate the $140 million for students eligible to receive up to $4,000 from the state against college costs. Dillon said House Democrats oppose wiping out the grants but they don't oppose a reduction. He said he favors means testing as a way to reduce spending on the scholarships. Others favor a pro-rata reduction.”
While restricting the grants via means-testing shows at least some fundamental understanding of price elasticity, the state should simply get rid of the Promise scholarship altogether. Michigan has a number of problems with the rising costs of higher education and outbound migration of a highly mobile population. And, fundamentally, throwing tax money at Michigan’s public universities simply does not help the state grow.
Get insightful commentary and the most reliable research on Michigan issues sent straight to your inbox.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
Please consider contributing to our work to advance a freer and more prosperous state.
