DETROIT—Wayne State University’s decision to raise tuition at a rate above a cap for performance funding set by the state Legislature has benefited the finances of Michigan’s other public universities, officials said.
State Budget Director John Nixon formally notified the Detroit school earlier this month that it was forfeiting $534,700 in performance funding because of the 8.9 percent increase. The money has been divided among the state’s other 14 public universities, the Detroit Free Press reported.
Michigan set aside $21.9 million in this year’s budget for performance funding based on a number of categories, including graduation rates. One requirement was to keep tuition increases under 3.75 percent. This was the second year universities were eligible for such funding.
Wayne State officials have blamed the size of the increase on an erosion of state support to public universities in Michigan. The increase is expected to generate around $7 million in additional revenue this year, school spokesman Matt Lockwood said.
Despite losing performance funding, Wayne State still is to receive a total of $183.4 million in state aid this year. Every other university in the state kept tuition increases at or below the state limit, according to the state House Fiscal Agency’s analysis.
