Port Huron, MI - In an executive order budget cut announced Thursday afternoon, the State of Michigan house and senate appropriations committees approved a 2.5 percent cut in state funding to public universities and community colleges. The order also reduces funding for the Michigan Merit Award scholarship program by $50 million.
The executive order was recommended by Michigan Governor John Engler to address a $460 million state budget shortfall in the current 2002-03 fiscal year.

For St. Clair County Community College (SC4), the reduction in funding means a loss of about $182,000 out of this budget year.

Funding from the state accounts for 31 percent of SC4's annual general fund revenue.
According to SC4 president Dr. Rose Bellanca, the cuts are especially difficult because they come on top of a zero percent increase in state aid this year, and less than two percent the previous year.

"Right now I don't have all the answers about how we're going to reduce the budget, but one thing I know is that we will ensure the educational experience we provide stays first-rate," Bellanca said.

In anticipation of the cutbacks for the current year and for next year, the college is evaluating its revenue and expense budgets to identify and recommend actions to address the expected statewide cuts.

Across Michigan, several community colleges and universities have already announced mid-year tuition hikes to help make up for the loss in state funding.

State university presidents had agreed earlier this year to keep tuition increases at or below 8.5 percent or $425, whichever is greater, if lawmakers kept their funding in the 2002-03 budget the same as last year. Sen. John Schwarz, chairman of the Senate Appropriations Subcommittee on Higher Education, says, "There's no question universities are going to have to consider tuition and fee increases."

Bellanca says that is not an option for SC4. "We remain committed to providing an affordable, high-quality education for area residents. Raising tuition in the middle of the year would cause panic for our students, many of whom are already struggling financially."