May 2017
Peter Ruark, Senior Policy Analyst
Michigan’s economy and job market continue to demand skilled workers with a postsecondary credential. Yet today’s university students face increasingly high tuition as huge cuts in state funding require universities to meet operational costs by charging students more, in turn producing an unprecedented level of student loan debt. At the same time, Michigan’s state-funded financial aid hasn’t kept up with tuition costs, and older students currently cannot get any state financial aid at all.
Michigan’s budget over the past several years has made significant investments in financial aid for “traditional” college students (age 18-24 and not raising families), but has neglected financial aid for the growing number of students who are “nontraditional” and make up the majority at community colleges. Michigan has also taken important steps to keep already high university tuition from rising further too quickly, but has not made investments in restoring funding to universities that would enable them to actually reduce tuition. Finally, Michigan continues to fund postsecondary institutions and financial aid from restricted sources that are primarily intended for other purposes and populations in order to free up state General Fund dollars.
FINANCIAL AID
Part-Time Independent Student Grant: Currently, there is no state financial aid for students who have been out of high school more than 10 years. The Part-Time Independent Student Grant helps this population, but has not been funded since the 2009-10 school year. The governor’s budget provides $2 million for the Part-Time Independent Student Grant, with added language that it can only be used at community colleges.
- The Senate agrees with the governor’s appropriation of $2 million to reinstate the grant. It adds the restriction that only students who have completed at least 15 credit hours at a community college are eligible, eliminates the grant limit of $600 and raises the two-year limit on receiving grants to three years.
- The House does not include funding for the grant.
The League supports reinstating the Part-Time Independent Student Grant and eliminating the $600 limit. Because tuition costs even at lower-priced community colleges can sometimes be prohibitive for students with very low incomes, the League is concerned that making students with fewer than 15 credit hours ineligible will not encourage students to go to college for the first time or facilitate their success. However, making the grant available even with this added restriction is far better than the current absence of a grant for this population. Given that the two grants previously available for this population were funded at a total of more than $4.7 million during the most recent years prior to their elimination, we encourage an appropriation of $4.7 million to meet the true need for financial assistance of older students and workers.
Tuition Incentive Program: The Tuition Incentive Program (TIP) serves students from households that are eligible for Medicaid, and is Michigan’s only needs-based student aid grant in which eligibility is based on household income rather than estimated family contribution. The governor recommends $5.3 million in new federal Temporary Assistance for Needy Families (TANF) funding for the grant, bringing the total funding for the program to $58.3 million (a 10% increase). This is expected to support 18,500 students in the upcoming school year. In addition, the governor replaces $4.7 million in General Fund funding with TANF funding, making TIP 100% funded by TANF.
- The Senate and House both concur with the governor’s spending level and the decision to make TIP fully funded by TANF.
The League believes that having a financial aid grant that specifically targets students from families with very low incomes is important, and supports the increase for this grant to keep up with increased need.
Michigan Competitive Scholarship and Michigan Tuition Grant: The Michigan Competitive Scholarship is currently 100% TANF-funded and the Michigan Tuition Grant 90% TANF-funded, but all new funding recommended by the governor comes from the General Fund. For the Competitive Scholarship, a merit- and need-based grant based on ACT/SAT score and estimated family contribution, the governor recommends an increase of $8 million from the General Fund. The governor also recommends an increase of $3 million from the General Fund for the Tuition Grant, which helps students attend private not-for-profit institutions and is based on estimated family contribution.
- The Senate concurs with the governor’s recommended General Fund increases for both grants.
- The House increases each of the two grants by only half the amount recommended by the governor, $4 million for the Competitive Scholarship and $1.5 million for the Tuition Grant, both using General Fund dollars.
Because tuition costs can be prohibitive for students from middle-income families as well as those who are financially struggling, the League supports keeping these two grant programs strong and accessible. The League questions the use of federal TANF funds to pay for these grants, however, because while technically acceptable to give middle- and upper middle-class students the grants under the purpose of “preventing out-of-wedlock pregnancies,” the League believes TANF funds should be targeted primarily to families near or below the poverty level and that the state should use General Fund dollars or other sources to pay for these grants.
TUITION RESTRAINT
The huge tuition increases during the past two decades, along with decreased regulation of student loans, have made postsecondary education less affordable and resulted in greater student debt. Tuition restraint is a cap on the amount a university may increase its tuition “sticker price” in order to receive full funding from the state, which in turn helps keep net tuition (the cost after financial aid, scholarships and family assistance are applied) from increasing significantly. Because community colleges remain affordable, their funding is not subject to tuition restraint requirements. The governor recommends lowering the tuition restraint cap from 4.2% to 3.8% or $475 per student, whichever is greater. While the lower cap is welcome, it remains higher than the cap of 3.2% in the 2015 and 2016 budget years. Adding a numerical cap as well as a percentage cap helps provide fairness to universities that have kept tuition lower than their peer universities over the years and who should not be “punished for having done the right thing” when they need to raise tuition.
- The Senate and House agree with the governor’s tuition restraint cap of 3.8% or $475, whichever is greater.
Because tuition has risen at such a fast pace over the past 15 years, many students have either been discouraged from attending college, have to work more hours while in college (hence jeopardizing their academic performance), or have to take out loans which often carry high interest and result in a high amount of debt. The League supports tuition restraint as one way to address this problem; however, the League would like to see Michigan go further and restore the funding to universities that has been cut over the years, coupling some of the new funding with tuition reduction requirements rather than just tuition restraint.
USE OF SCHOOL AID FUND FOR POSTSECONDARY EDUCATION
The primary purpose of the School Aid Fund (SAF) is to fund K-12 public schools in Michigan. The governor’s 2018 budget continues the practice started in the 2000s, and which became regular practice in the 2012 budget year, of using a portion of SAF dollars to fund Michigan’s universities and community colleges. What is significant in the current proposed budget is that it appropriates nearly all total state funding for community colleges from the School Aid Fund. The governor’s budget uses $235.6 million in SAF dollars for universities and $395.1 million in SAF dollars for community colleges, thus taking a record amount of $630.8 million out of the funding meant for K-12 schools and using it for postsecondary education.
- The Senate and House concur with the governor’s postsecondary appropriations out of the School Aid Fund.
The League believes that K-12 public schools, community colleges and universities should all receive adequate funding, but objects to the annual practice of using School Aid Fund money to fund postsecondary education. Every dollar going to postsecondary institutions is a dollar not going to K-12 schools, setting up a zero-sum game among equally worthy public educational institutions. When the dollars in the SAF exceed expected levels, the “surplus” should go toward increasing per-pupil funding or other funding that directly benefits K-12 students and the schools that serve them.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
