February 10, 2006

Granholm gambles on budget -- $43B proposal relies on closing tax loopholes, hiking fees to increase aid to schools, colleges

Public schools, research universities, home health care workers, mass transit riders and the working poor who have no health insurance are the winners in state spending plans for next year laid out by Gov. Jennifer Granholm Thursday. State universities would get a 2 percent increase to $1.4 billion. The three research universities -- Michigan , Michigan State and Wayne State -- would get the full raise. The other dozen state universities would get a 1 percent hike and the other 1 percent would be linked to performance, outreach to low-income students and keeping tuition affordable. Republican lawmakers lauded the overall higher education increase but slammed the plan to cut in half and eventually eliminate private college financial aid to 40,000 students. \"I don\'t believe it\'s appropriate to decimate tuition grant money,\" said Sen. Mike Goschka, R-Brant.

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