Updated: Promise Scholarship program cut; 6,096 University of Michigan students impacted

Sounds like "Broken Promise" scholarship to me.

I am a student at CMU. Yesterday, I overheard someone talking about how their parents can no longer provide money and they can't afford to take out any more loans and they are relying on this scholarship for help. Now they wont be getting the help they deserve. And neither will I. Thankfully I should be able to find the money elsewhere, but this is not the case for many other students.. I wonder how many more students that were relying on this are going to have to pack up and go home. Thanks for breaking the promise.

This is so sad. Again, those that have will get access to our "public" university, while those who believed/planned for this promise to pay are getting taught a real lesson. And what is that? I hope some philanthropist will step forward and help these people...or give them loans to finish their education.

Miserable.

Thank the Michigan republican senators.....they got what they wanted but didn't have the guts to do it so they thru the it to Granholm ..."No more taxes" is their mantra and guess what "No more students getting funding they were promised"

I don't understand how or why it became the tax-payer's responsibility to provide money to college students. Sorry, but these are unprecendented times and the Promise Scholarship is definitely a "nice to have". Others have paid their way through college without any financial aid, and still others will figure out a way to afford it into the future. That being said, I'm appalled by Governor Granholm's "leadership" and can't wait until she's no longer in office.

This is a terrible thing for Michigan students and families. Shame on our short-sighted Senate. It is impossible to forgive the breaking of this promise. Our kids have worked hard and done well in school thinking that after 4 years of high test scores, they would earn a small portion of their college tuition. The Republican Senate seems bound determined to make Michigan as undesirable as possible so that our young people won't want to live and learn in Michigan. Shame on you! You have done serious damage to our state and we won't forget it in the voting booth.

Think of this as an education. All these "little darlings" held rally, make calls, got out the vote for Obama and his Michigan GF Granholm. Politicians made "promises" but once they got into office it's the same old crap.

@Whatchathinkin...um this is 2009. In order to attend an accredited 4-year university, you either need filthy rich (or dirt poor since they are paying for your tuition) parents, or absurd student loans. College is the least 'affordable' thing I can think of, and I'd be happy to see a MUCH more significant chunk of OUR tax dollars invested in motivated, young adults who possess the drive to attend a university, and, who will ultimately populate our country with their skills and education.

Impressive! The top one percent are making money again, yet, scholarships dry up at the University of Michigan? Seems to me if you added a tax to football and other sports related tickets, you could keep your promises?!

I think that these cuts make sense...

After all, our state government has instituted a terrible business tax plan that encourages businesses to leave the state of Michigan. Since our state government has already successfully helped to drive down business within the state and drive up unemployment, there won't be jobs for these students anyway.

Lansing is wonderful. They should all be fired. Or, as Al Pacino's character in Scent of a Woman said: "If I were half the man I used to be, I'd take a flamethrower to this place." PATHETIC!!!

With very few jobs available within the state for today's college grads, all those tax-payer subsidized college grads are leaving the state anyway. Where's the long term payoff in that strategy - providing employees for Chicago and New York?

Don't get me wrong - I will personally lose thousands putting my own kids through college, but where is the money supposed to come from? More taxes for my neighbors to help put my kids through college? The program doesn’t make sense given the current circumstances. This is not the first promise the government can not keep and it definately will not be the last.

This is the "Promise" of Reaganomics! Another oxymoron!
Like "Compassionate Conservative". The largest upward flow of wealth in history has occured the last 30 years and all they want to do is continue to cut the taxes for billionaires and "starve the beast"! In this case, the "beast" is our very own children!
Hooray for us! We are civilized and Christian!

@d...um, if it's that expensive, will UP TO $4000 really make that much of a difference and enable someone who can't afford it otherwise to go to college? My guess is that a $4000 student loan wouldn't end up being that absurd. I'd be even more impressed with a driven and capable young person who works, gets a loan, earns other scholarships, etc. Creating a general sense of entitlement in our young adults would be detrimental to our country's future.

It is not tax-payer's responsibility to provide money to college students.

When Granholm made this promise, it was supposed to be funded by money from the tobacco settlements. If she failed to set this money aside, and spent it on another one of her fixes, well then who broke the promise? Hmmmmm...

Jenny has promised too many entitlements to her voters. Something had to give.

She is unwilling to cap lifetime welfare benefits, which means we have a huge influx of people not paying taxes who we have to support.

This means we can't consider a college education an entitlement. It's all about priorities for Jenny. Maybe if college kids voted 99% for the Democrats, this would change.

Increasing taxes on higher earners does not necessarily raise revenue, by the way. If taxes are high enough, it can actually decrease revenue.

The State is broke. Unemployment is 15%. Money doesn't grow on trees. Life isn't fair. So face the music.

@David Briegal;
Seriously, you are blaming a dead man, who was first elected 30 years ago? Really? By my accounting, We have had a few Dems since then. Didn't the buck stop on thier desk? OK, then I blame.......Ike. I never liked Ike.

"She urged Michigan residents to "fire" their senators for breaking the promise."
Who broke the promise? she signed the bill!

Thanks republicans, for nothing. My children and I will be there at the voting booth to thank you in person.

In fact I may run as a Republican in the future to reclaim the party and put some sense back into it.

This article doesn't mention that the whole situation came down to two choices: cut the program or raise taxes.

Here's a timeline of the Michigan Promise history:

Since 2000, Michigan has received approximately $300 million per year as part of the tobacco Master Settlement Agreement (MSA). Through legislation, Michigan committed tobacco settlement revenue to two trust funds: the Michigan Merit Award Trust Fund and the Tobacco Settlement Trust Fund (TSTF abolished in 2005.

From 2001-2007 the Michigan Merit Award Trust Fund received 75% of the State’s revenue from the settlement with the tobacco industry. In 2007, however, a portion of the MSA payments were securitized and the lump sum payment was used to address a state budget deficit. In addition, legislation allocated $75 million of tobacco settlement revenues (that had not already been securitized), annually 2008 through 2015, to the 21st Century Jobs Trust Fund. The Michigan Merit Award Trust Fund supports a variety of health and education programs, including the Michigan Promise scholarship.

-----------------
The money exists, it is just being used to shore up other parts of the state budget. This means that to restore the funds there are two options:

1) Raise taxes
2) Cut other programs

Anyone who wants to keep the program should probably mention which they would choose.

EyeHeartA2, Surely you must know that the philosophy of cutting taxes for billionaires was the driving force behind Reagan's entry
into politics. It was referred to as "Reagonomics". Voodoo econonmics! (It's Halloween!)
The reasoning was that if we would let the billionaires
have more money it would "trickle down" resulting in an economic
boom. So America was hoodwinked into letting the affable fool, Ronnie have his way. Billionaires got the tax cuts and you and I are standing in the results of that warped, failed philosophy!
We learned that all that trickles down is bodily excrement!
Blame on a dead man. What are you smoking? Do you really wish to plead ignorance of these simple facts?

Ike was only half right when he aptly named the "military industrial complex". The Dept of Perpetual War Profiteering is more accurate!

Luis Vazquez is right on target with his comments!

The name is Briegel!

Janelle;
Great background information and a good post. However, I find it more convenient and much less work to blame Regan. Is it OK if I do that?

This is truly disappointing if it does prevent some people from going to college. That being said, this cut is absolutely necessary for the time being. The top priority of state government right now should be to improve the tax/business climate. Without a robust job market in Michigan, the Promise Scholarship acts as a subsidy to other states.
People need to prepare themselves for more cuts in the future. Without the addition of over $1B in "stimulus" funds that were applied to the deficit this year, it is very safe to say cuts to the budget in 2010 will be much deeper and more painful. People such as Mr. Briegel like to frame this as a "haves vs. have-nots" issue, but unless business is attracted to this state, we will all soon be in the "have-nots" catergory.

Thanks EyeheartA2 :)

I just posted a bit more about this on my blog www.some-other-viewpoint.blogspot.com

Feel free to check it out.

This is the same short-sighted thinking that has gotten Michigan into the mess it is in. People and businesses have been exiting for 30 years and NO ONE has figured out why. Finally the legislature has figured out that we can't provide money for everything. Lower taxes and business will come back to a competitive environment. Until then, the exodus and death of a state will sadly continue.

@TXteacher:
Here is one reason:
http://www.freep.com/article/20091030/BUSINESS01/910300372/1322/Workers-air-gripes-with-Ford-pact

Well then Mr. Briegal, let's go back to 1962 and really blame this on John Kennedy. He proposed and got passed an across the board cut in marginal income tax rates in 1962 and said "a rising tide lifts all boats". People respond to incentives. Reward work, savings and investment by letting all people keep more of their own money. There is a name for it. Free Enterprise.

I understand the state is broke and must cut expenses. My daughter will lose her Promise money, but we'll find the money elsewhere. Unfortunately, other families won't be so lucky.
This wouldn't have been necessary if the politicians in Lansing (both Democrats and Republicans) hadn't run our state economy into the ground for the last 20 years. By failing to work together to create a business environment that attracts new industries and diversifies Michigan's historically auto-centered economy, everyone must now pay the price.
I agree with everyone who plans to show their displeasure with the state government at the polls. Let them know that partisan-based finger pointing isn't acceptable any more by voting them out of office.
My feeling is that if they're going to cut the $140 million Promise money, only do it if they then put the money into attracting and nurturing new business growth in the State.

There is nothing wrong with college students working their way through college. The boomer generation did it, and so can today's kids. Michigan needs a more "can do" attitude. I see their commercials down here in Texas pitched at business returning to Michigan. It's encouraging to see this, now get to the business of cutting taxes and providing incentives for business to return. It's BUSINESS that provides incomes, not government. And it is true that Unions must see the writing on the wall if this state is to return to its former stature as a national leader.

Hey,
only 2 more years until were blown away by the Guv's campaign promise made during her reelection, hey everybody how's that HOPE and CHANGE working for you?

It's pretty hard to work your way through college when college grads are the ones working at fast food restaurants, Meijer, WalMart, etc.

Granholm’s been spinning the state economy down the drain for six years. Now that term limits are forcing her out of office she takes the opportunity to blame the Republicans for the mess the state budget is in. It doesn’t matter which programs get cut she is going to blame it on the Republicans. And the Demarcates in the state predictably lap it up. Politicians empower themselves by spending our money, Republicans and Demarcates. They always need more because they always spend what we give them and how can they do more for us without us giving them more?

Voting for tax increases is like saying “yes Politician you can do a better job spending my money than I can, please take it!” Vote No on any tax increase, keep you money in your pocket and send you own kids to college!

I have four kids in college this year and a senior in high school who’s hoping to go to college next year, yes I was hoping for the MEP not to turn into MELie but I’m not surprised, we’ll figure something out.

Hey Top Coot, How was it the Chairman of the Billionaire Boys Club leaves Goldman Sachs to become Treas Secy? To preside over the looting of our Treas! Why did the let Lehman Bros fail? Then bail out AIG? Bacause Goldman got 16 of the 160 billion!
And he is still free! Bernie Madoff was chump change compared to what your "free enterprise" boys did to us!

Obamanomics works and Reaganomics is a complete fraud and failure!
Proof is all around us!

Remember when the lottery would save education?
Remember when the tobacco money would save education?
The Liars in BOTH parties squandered both windfalls and continue
to stick it to the middle class while letting the fat cats off easy!

Anyone who thinks college students don't work is wrong! Unless your name is Bush or McCain! Affirmative action for the semi-literate offspring of rich white guys! Republican Approved1

I did well on the MEAPs before there was any "Promise" - no dime came my way. Agree with the above comment that times are tough right now and this is a nicety not a necessity. I think the money would be better for K-12 education, or police, or Medicaid. How about issuing these kids a tax credit of $4000 on future state taxes? Maybe that would be a better Michigan Promise in general and a way to keep smart people here after they graduate.

Welcome to the Mississippi of the North.

A brazen attmept to catch Louisiana and Mississippi in two competitions: 1) the education isn't important to our state, and 2) how many smart young people can we send out of state for jobs.

Seems to me, the State and student entered into a contract. There was consideration for specific performance. The student held up their part of the contract and the state is breaching that contract by not providing the funds.

Main Entry: 1prom·ise
Pronunciation: \ˈprä-məs\
Function: noun
Etymology: Middle English promis, from Latin promissum, from neuter of promissus, past participle of promittere to send forth, promise, from pro- forth + mittere to send
Date: 15th century
1 a : a declaration that one will do or refrain from doing something specified b : a legally binding declaration that gives the person to whom it is made a right to expect or to claim the performance or forbearance of a specified act
2 : reason to expect something ; especially : ground for expectation of success, improvement, or excellence
3 : something that is promised

Perhaps they should have called it something different? Ah, but politicians and keeping promises? Talk about an oxymoron...

Responding to some posts here about Reagan:

I love Ronald Reagan. Before he (and Margaret Thatcher) cut taxes (cutting the maximum tax rate from a staggering 78% down to about 35%), the global distribution of wealth had remained virtually unchanged for over 300 years, with about 27% of the population below the poverty level. Since 1980, after his tax cuts, which were pretty much incorporated by a majority of countries around the world (including India & China), hundreds of millions of people have been lifted out of poverty. Things are booming in cities like Mumbai, India, where people are now starting to buy cars, TV's and pretty much everything else. This is clearly because of a change in India's policies from being socialist to becoming free-market oriented with low taxes and less government intervention and bureaucracy. ANYONE who disputes this should really think again and reexamine the facts. As a result, for the first time, global poverty rates have dropped from 27% to 5%. Thank you, Ronald Reagan.

Comments have been removed because they were off-topic. This is a story about a Michigan state scholarship program and we welcome comments that address that topic.

Jennifer Granholm continues to run this state into the ground. Now she has a friend in washington we can go under even quicker. Keep voting for the Dems Ann Arbor and soon the entire country will be like Michigan. We lead the pack. Time to look back at what Reagan accomplished and look for some smart conservatives and quit listening to the liberal press.

The reason that this would make or break a student is that they waited so long to decide on it (and then even longer with the interim budget). I'm a student, so when we got our financial aid packages, this scholarship was included in it, and therefore in our plans for the school year. As a self-supporting 21-year-old, my parents don't help me with school, and never have. Can I get loans? No. I don't have anyone in my family to co-sign, and have been denied twice for student loans, simply because I'm too young, have no collateral, and a short credit history. Oh, not to mention an insane debt-to-credit ratio because of all my federal loans ($70,000). I can't keep applying for different loans because that hurts your credit too. If they couldn't fund the program they shouldn't have had it in the first place. It sucks they couldn't have kept funding part of it and re-distributed smaller amounts rather than getting rid of it altogether. Oh, and Michigan is a public school. Just like all other public schools, it's funded by the public (e.g. taxes). If you don't like public schooling, you could go live in another country that doesn't provide any educational opportunities. Look at what an uneducated work force gets us: exactly where the state is now.

E G: No question that this stinks for you. Where do you think the money to pay for the scholarship should come from? Cut Medicaid even more? Reduce police or K-12 funding more? Raise taxes on everyone (including the 15% unemployed and "uneducated" as you ascribe)? I'm not sure how big your scholarship was but say it is a thousand dollars. Over 20 weeks, you'd have to save (or earn) $50/week to make up the difference. Maybe one lesson here for everyone is to not count on government handouts...

1 bit -- The money could come from many sources. Cuts in employee pension contributions? Cuts in wages (a 2 percent cut is not earth shattering). Cuts in administrative staff? I work in corporate Michigan, and we have had a reduction of 90 PERCENT in our workforce since 2001. We have had to take a pay cut of 2.5 percent this year. Plus we might lose our pension and retiree benefits. And you really think increasing our taxes further is the answer to support an increasingly costly government system? No wonder this country is going down the tubes. I wonder why the rest of the world is talking about an alternative to the US dollar?

@1bit yes, I would have to earn $50 EXTRA per week at my job, not just $50 a week, period, because of course I already earn money at my job to make up for what financial aid doesn't cover. $50 extra per week for a UM student is about 6-7 hours extra per week (that's 1 or 2 shifts for a part-timer) spent at work, not on homework. If I get out of class at 5, go to work for an extra shift, get out of work at 10 maybe, drive home to Ypsi because I can't afford to live in A2, eat, then begin my homework at 11, if I were to do all of my work I would be up until 4am. And so, because I need money, and sleep to function at work and school, the homework is what gets cut. It's just not sustainable for some students without this financial aid. Don't get me wrong, I have always had a job during school, and I accept that it's a necessity, but I don't know if people realize the insane burdens put on students whose parents don't help them with their education expenses. Now if something mandated that parents with a stable income help pay for education instead of taxpayers, that might be interesting.

Larry: You really pegged me wrong on this one - read my comments again please. In this world we don't always get what we earn and, for better and worse, we rarely get what we deserve.

E G: I'm not trying to be a jerk about this - I know it is not fair but life isn't. Notice that the $50/wk was spread over 20 weeks (not 52). Maybe there are ways for you to save $50/wk that you haven't considered. Maybe you need to reduce your courseload so you can work more to pay for school (yes, that will delay your degree but in this economy that might not be a bad thing). We all sacrifice to get what we want and, from the determination you seem to have shown so far, I sincerely doubt that you would let this get in your way or your future. You are making the choice that many of us made - work hard, go into debt for a good education and hope you can pay it off over 5-10 years (and then hope your State and Federal governments don't tax you to death!)

Unfortunately, the State of MI just doesn't have the money now - the deficit was plugged by stimulus money and even that wasn't enough. As I said above, maybe some form of I.O.U. or tax credit down the road is something the State could do but I just don't see another solution. Life has handed all of us a bunch of lemons lately...

Ok, 1bit, I was wrong in pegging you about raising taxes.

But, as I've pointed out in my earlier post, there are plenty of ways for the school system to produce the promised scholarship money for hardworking young folks like EG if they really desire to keep their promise.