There is a growing belief in America that a college degree is not worth the cost or that it is not vital to landing a successful job.

Michigan is taking steps to change the negative perceptions by making college affordable with the Michigan Achievement Scholarship that commenced in the 2023 – 2024 academic year. Qualifying high school graduates attending a Michigan college or university can receive up to $2,750 per year for up to three years at community colleges, up to $4,000 per year for up to five years at private colleges and universities, and up to $5,500 per year for up to five years at public colleges and universities.

Recently, Governor Whitmer announced her budget recommendation for fiscal year 2025. Not everyone is excited with the proposed budget. Included in the budget is a plan to create free universal community college in Michigan. With 28 community colleges in close proximity to their campuses, the Michigan regional public institutions are concerned that the plan would result in declining enrollment at their institutions translating in significant losses in tuition, housing, and other revenue. Also of concern is the decrease in the operating support from the state of Michigan, from 5.0% last year to 2.5% this year. Michigan’s private institutions are not as concerned with the free community college plan, since they have a variety of different partnerships with the community colleges. However, they are concerned with the phase-out of the Michigan Tuition Grant, which provides up to $3,000 for qualifying students attending private colleges and universities, that will now be consolidated into the Michigan Achievement Scholarship.

The new budget recommendation will affect both regional public as well as smaller, private higher education institutions. Declines in revenue, state funding, and endowments will continue to put cash strapped colleges and universities in financial jeopardy. Although there may be some growth in enrollment, the associated revenue may not be sufficient to cover the ongoing costs. A strategic plan needs to be put in place to ensure continued financial stability. Without a strategic plan, schools will struggle with more colleges closing. These are challenging times as we have witnessed the closings of long established institutions nationwide.

To learn more about our experience with higher education service offerings or if you are a higher education institution that needs help with navigating your financial challenges, check out our website at www.okeefellc.com or contact us at (248) 593-4810.