Wisconsin Covenant, Michigan Style

Remember in 2006 Diamond Jim Doyle promised the Wisconsin Covenant.

"A Path to Higher Education for Wisconsin Students"
Wisconsin Covenant

From the Escanaba Daily Press about drastic cuts in college scholarships, need-based grants and work-study programs in Michigan. Today, Michigan's children are going to be hurt and tomorrow the children of Wisconsin will never see such a program happen. Why do states have to pay for higher education anyway? Where's the parents or can't students work for it. My God, what a radical idea, WORK for education!

"Scholarships in jeopardy? Bay College officials say loss would not be pretty

By Audrey LaFave - alafave@dailypress.net
POSTED: July 1, 2009

ESCANABA - The state of Michigan is considering drastic cuts in funding for college scholarships, need-based grants and work-study programs, and officials at Bay College say the impact would not be pretty.

The state Senate passed a bill last Tuesday that would eliminate funding for a state-sponsored college scholarship program. The higher education bill passed recently in a 19-17 Senate 0vote would eliminate money for the Michigan Promise scholarship as well as slash the budget for need-based grant programs for the fiscal year that starts Oct. 1. But it keeps a placeholder for the Promise program in place in case lawmakers figure out a way to at least partially fund the scholarships.

Dr. Laura Coleman, president of Bay College, said the magnitude of financial aid cuts that need to be made at the state level will impact students locally, who in total receive more than $1 million of state-aid-based funding per year.

"It will impact the college overall, but mostly the students," said Coleman. "The merit scholarships account for about 30 percent of that (million dollar) number, and so this is going to have a dramatic impact on our students."

Coleman said while the proposals in the legislature change on a daily if not hourly basis, a few of the scholarships at this point have been kept intact at a reduced rate, but the Tuition Incentive Program (TIP), which is slated for reduction or complete elimination from the budget, accounts for 35 percent overall at Bay College.

Coleman also said state work-study cuts will affect the college heavily and likely result in a catch-22 of financial woes.

"We rely on our work-study students to a high degree," she said. "We are going to have to restrict the amount of work-study (funds and positions) we award, and that will impact the college in that our regular staff will have to pick up the work, or we will have to hire people, which we cannot afford to do."

The college student work-study programs will likely be a victim of state budget cuts, while the federal programs remains intact. Coleman said work-study students are among those most likely to contribute to college retention rates.

"What we find across the country, is that work-study students are the most likely to complete a semester, complete a year and complete a degree," Coleman said. "These programs reduce the drop-out rate."

More than 96,000 students who have graduated throughout the state since 2007 are expecting Michigan Promise scholarships ranging from $1,000 to $4,000 this fall. Students earn the grants by passing a standardized test (MEAP) or successfully completing two years of college.

Coleman said while these cuts are unfortunate for both students and higher education institutions, they are becoming necessary as the state's financial situation worsens.

"It is very sad, but that being said, the state is in a very, very bad place. The taxable income coming into the state has been drastically reduced, and the net result is services are going to be cut," she said.

Coleman said not only has higher education been hit, but K-12 schools as well.

"The state either has to cut programs or raise taxes," she said. "It's really a no-win situation."

If the House, the full Senate and the governor sign off on the plan, its impact would be immediate, forcing colleges to redo financial aid packages and families to scrape up the cash, apply for loans or put off attending college. The higher education bill now returns to the Democrat-led House.

The cuts are necessary because the state is facing a $1.7 billion deficit for the fiscal year that begins Oct. 1. Cuts in higher education will land disproportionately on financial aid because of stimulus money rules. Accepting federal stimulus dollars precludes the state from reducing university funding, so that leaves financial aid the only area left to cut.

In addition to the elimination of the popular $140 million Michigan Promise Scholarship program, the Senate higher education subcommittee bill would reduce need-based grant programs from about $139 million last year to about $85 million this year.

Other need-based grant programs would also be dramatically cut. The Tuition Grant program would be trimmed from $56.7 million to $31.7 million. Funding for the Competitive Scholarship would by slashed from $35.5 million to $16.3 million under the proposal." Scholarships in jeopardy? - DailyPress.net | News, Sports, Jobs, Escanaba Information | The Daily Press