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Financial climate

The fiscal realities Michigan State is experiencing—and projecting for the future—demand immediate action and long-term adaptations. 

  • The State of Michigan has reduced funding for higher education in all but one of the past five years, and current economic conditions have caused a significant reduction in state revenues. A decline in state support will likely be severe and permanent.
  • MSU’s health care costs have risen at levels significantly above inflation, and energy costs in recent years also have often exceeded inflation.
  • The university’s planning worked with a 4 percent reduction in General Fund operating budgets for all university units last fiscal year and assumes a 6 percent reduction this year. The following years may bring comparable or even more severe reductions. General Fund dollars come primarily from state funding and tuition and fees.


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