News Story

For Legislature, University ‘Tuition Restraint’ Means Twice The Inflation Rate

Michigan universities would get an additional $28.6 million from the state next year if they cap student tuition and fee increases below a certain rate. This year’s cap is 3.8 percent, and Gov. Rick Snyder has recommended the same for next year.

State budget officials recently projected a 2018 inflation rate of 1.7 percent, and 2.0 percent for 2019. So the rate set by lawmakers to reward universities for tuition restraint still lets these institutions raise prices on students by around twice the rate of inflation.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.