Republicans Must End the Michigan Promise Subsidy

By Tyler Gaastra | 09/25/09 | 04:50 PM EDT | 0 Comments

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It has been well documented that the Michigan Senate has approved $1.2 billion worth of budget cuts. Amongst the cuts, is $140 million for the Michigan Promise Scholarship, which gives $4,000 total to Michigan residents who attend qualifying colleges and universities. Paying for college is painful, I know. Taking out loans is painful. But, at this moment in our state's history, providing subsidies to college students should be a low priority. The College Democrats have staged protests and are up in arms about Michigan's "broken promise." I think most Republicans are in agreement that college subsidies are nice when times are good, but they are simply not a necessary government function. Therefore, the Michigan Promise subsidy is expendable.

The motivation behind the grant was to encourage Michigan residents to attend our wonderful universities and settle here after graduation. Mike Cox is actually proposing a policy solution that will better meet this government interest. As part of his "Putting Michigan Back to Work" booklet, Mike Cox proposes that the State not tax graduates from a Michigan college or University for three years. This proposal will actually encourage graduates to stay and settle in the state, as opposed to the Michigan Promise Scholarship, which only promotes attendance at an in-state university. Over the long run, those graduates who decide to settle in Michigan because of the tax break will produce a lifetime of future earnings from which the state will benefit.

Our current budget situation is tenuous, and tax increases must be off the table. Republicans need to make the tough political decision to end the Michigan Promise subsidy, while proposing other ideas to keep graduates in Michigan.

 

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