The state has until the end of the month to pass a budget and a key figure, Mich. Speaker of the House Andy Dillon just stated that an agreement is "very close". While a number of the Mackinac Center's reform ideas are being discussed for this budget, the speaker is looking at more.

 “• Promise grants. The Senate has voted to eliminate the $140 million for students eligible to receive up to $4,000 from the state against college costs. Dillon said House Democrats oppose wiping out the grants but they don't oppose a reduction. He said he favors means testing as a way to reduce spending on the scholarships. Others favor a pro-rata reduction.”

While restricting the grants via means-testing shows at least some fundamental understanding of price elasticity, the state should simply get rid of the Promise scholarship altogether. Michigan has a number of problems with the rising costs of higher education and outbound migration of a highly mobile population. And, fundamentally, throwing tax money at Michigan’s public universities simply does not help the state grow.

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