Another consequence of MET is the loss of political independence that state universities could suffer. MET's assumption that tuition costs will increase only 7.3 percent annually means political pressure may be placed on the state's public universities to restrict future price hikes to that amount. The state, however, will have to purchase university agreement with greater budget allocations which means reduced spending in other areas or increased taxes for residents.
MET raises the prospect that the state's allocation for higher education could become even more politicized. Will the major university constituencies (U of M, Michigan State and Wayne State University) put up with tuition constraints unless they are offset by increased budget allocations from the state? What happens to the state's other universities, such as Central, Eastern and Western Michigan? Schools may face pressure to cut back their programs unless they develop a well-organized constituency that makes it politically costly for the state to ignore their budgetary needs. Schools could be expected to increase their lobbying of Lansing for special consideration. In economic terms this is viewed as increasing the "rent-seeking" costs within the economy. Research in economics has demonstrated the negative effect of this "directly unproductive activity" on economic efficiency and the satisfaction of consumer demand. [38] Ultimately, the state would have to choose between limiting tuition increases and fewer programs, or maintaining the same level of programs and spending for education. This is not a desired outcome of public policy initiated to increase and guarantee access to higher education for Michigan's children.
