Michigan Democrats developing college grant plan
Published: Thursday, January 12, 2012, 12:04 AM Updated: Thursday, January 12, 2012, 12:09 AM
LANSING, Mich. (AP) — Democrats in the Michigan Senate said Wednesday they’re developing a proposal that would allow Michigan high school graduates to get grants of up to roughly $9,500 a year for attending college by ending some business tax credits and other revenue changes.
The grants could be used to pay tuition or associated costs at public universities and community colleges in the state. The money would be raised by closing what Democrats call tax loopholes and ending some business tax credits, collecting sales tax from out-of-state Internet retailers and saving money on state contracts.
Sen. Gretchen Whitmer, the Senate’s Democratic leader, said investment in education is needed to revitalize Michigan and boost its economy. State aid for public education has dwindled in recent years, with universities facing a 15 percent reduction in state aid for operations in the current fiscal year. Universities say reduced state aid is a major factor contributing to tuition increases.