Panel seeks funding cut over stem cell research, health insurance

Left, Michigan State University's Beaumont Tower; Right, the Michigan Union on the campus of the University of Michigan. / Courtesy MSU & JARRAD HENDERSON/Detroit Free Press

(Detroit Free Press)- Republican members of the Michigan House higher education committee flexed their muscles Friday, passing a budget recommendation that would strip state aid from Michigan's two most prominent universities over disagreements on stem cell research and mandatory student health insurance.

The Republicans have been feuding with both the University of Michigan and Michigan State University in the past year over the two social issues and has threatened to pull state aid over it.

But neither MSU or U-M blinked at the move.

"We believe there are elements in this proposal that are intended to be punitive in nature and that it would force us to raise tuition more than anticipated," said Heather Swain, MSU's vice president for university relations.

This budget recommendation, which would still have to be passed by the full committee, the full House, the Senate and eventually signed by the governor, would make good on the previous threats.

At risk is U-M's and MSU's share of nearly $40 million in performance funding, which, under the House plan, would be doled out to those universities meeting a number of criteria.

"We are, of course, disappointed that the House higher-education budget proposal restricts funding for U-M over the way the university reported its stem cell research," said U-M spokesman Rick Fitzgerald in a written statement. "The university provided a detailed report on the breadth and depth of this critical research being done on our campus. But in the weeks and months ahead we'll be focused on getting the best possible outcome for the University of Michigan."

The GOP legislators are mad at MSU because of a provision passed this year that mandates all incoming students have health insurance. If students don't certify with the university they have health insurance, they are automatically enrolled in a university-picked plan and the cost added to a student's bill.

The same legislators are upset with U-M over reporting on stem cells. In this year's state aid budget, legislators mandated that universities report on several aspects of universities embroyonic stem cell research. The only university that would have had to report that this school year would have been U-M.

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Panel seeks funding cut over stem cell research, health insurance