Traverse City Record-Eagle

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THE ISSUE

-- Dems propose free tuition program

Our view

-- It could give state a huge advantage

January 22, 2012

Editorial: Tuition plan bold step forward

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The Michigan Legislature thinks nothing of pouring money into private businesses in the form of tax breaks, grants or incentives. In fact, Michigan gives away more than $34 billion annually in business tax breaks alone -- a staggering amount. By comparison, the state's general fund, described as "the major share of the state's fiscal transactions," was just $8.3 billion for 2011.

The long-term economic impact of all those billions, however, would be dwarfed if the Legislature has the courage and wisdom to make a life-changing investment in the state's most powerful untapped resource -- the thousands of young people who graduate from Michigan high schools every year. Some go to college and some don't; and too often the decision hinges on money.

State Democrats have proposed a plan to throw open the doors of higher education for those thousands of young brains at virtually no cost to the students and no cost to the state.

The Michigan 2020 Plan would provide free tuition at any of the state's community colleges and universities to state residents who attended Michigan public schools from kindergarten through 12th grade. It would provide students with annual grants roughly equivalent to the median annual tuition rate at all of the state's 15 schools combined, based on the number of years they attended public schools; right now, that would be approximately $9,500 a year for someone who went to public schools K-12.

To pay for it, the state would eliminate about $3.5 billion in business tax credits and loopholes every year, about 10 percent of what it grants now. Democrats say the cost of the tuition proposal is estimated at $1.8 billion annually. The $3.5 billion would obviously cover the program and more.

And don't forget, Michigan has cut business taxes a few billion dollars in recent years, including eliminating the small-business tax.

Not every young person who graduates from high school is bound for college, but giving every graduate a shot at a college degree would greatly enhance the state's reputation as a work-force powerhouse and lure businesses that rely on highly educated employees.

Back when Michigan put the world on wheels, the state boasted one of the most talented and well-trained work forces in the world. There were engineers, designers, draftsmen, tool and die makers, accountants, business majors, financial and marketing wizards galore, and they built the Michigan auto industry into the biggest and most profitable manufacturing juggernaut the world had ever seen.

That may never happen again, but making Michigan a beacon for education and creating a talented and willing work force will do more for the state than billions in tax breaks.

A key element of the plan is that those young people would leave college virtually debt-free, relieving them of a burden that forces many grads to put off the things we expect of them -- buy a home, buy a nice car, get married and have children. Those things build communities and economies, and Michigan needs both.

Right now, the average college debt is about $20,000, a sea anchor many young people struggle with for 10 or 15 years or more. A bold investment that would cost the state little or nothing could relieve future generations of debt and allow them to stay here and build a future.

The proposal could stand some tweaking. Why shut out students who graduate from private schools or didn't attend public schools from K-12? That makes no sense. And why ask for $3.5 billion when $2 billion would do?

The state could also consider a tuition forgiveness plan for recent grads to lessen their college debt load; the hook would be that they'd have to stay here to qualify.

This is a potentially bold stroke that would attract attention across the nation and make Michigan a player at the highest level.

Michigan needs bold and it needs its young people to get a degree, stay here and help lead the state's turnaround.

Before Michigan invests one more dime in some business or another, it absolutely must give the 2020 proposal a fair hearing.

If Gov. Rick Snyder wants to make a big and lasting impact, this is a chance.

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