2026 Priorities: Grow Michigan’s Prosperity by investing in its State Universities

As a new year, legislative session, and state budget cycle get underway, the Michigan Association of State Universities is underway with advocating for its top policy priorities for 2026. The priorities speak to the need for the state to invest in operations support for its public universities, invest in the nearly 260,000 students they collectively serve, and in the campuses that are among our most important and cherished state assets. 

Our state leaders and Michigan taxpayers rightly should demand evidence of the return on investment the state makes in its public universities. This year’s policy priorities are reinforced by a just-released study that underscores the profound economic impact these institutions have on Michigan. As I stated in my most recent post, Michigan’s public universities are among the state’s strongest and most reliable economic engines, generating nearly $45 billion in annual net economic activity, supporting more than 129,000 jobs, and delivering a 28:1 return on public investment. Together, they fuel talent, innovation, personal incomes, tax revenue, and long-term economic competitiveness in every region of the state. 

The message the study sends is that increasing state-funded taxpayer support for our universities is not just good education policy – it’s smart economic policy. In the months ahead, MASU and the state universities will work collaboratively, collectively, and with our many vested stakeholders (students, families, employers, and lawmakers among them) in an effort to advance the following three policy priorities.

• Increase state operating support for public universities to strengthen Michigan’s talent competitiveness and improve college affordability 

State funding is essential to developing a competitive workforce that powers the Michigan talent pipeline and economy, boosting our capacity to retain and attract high-skill, high-wage industries and employers. Enhancing university operations support improves college affordability, especially for low- and middle-income students, ensuring equitable access to education that drives national competitiveness. Consistent, predictable funding is critical for universities to strategically plan to support Michigan’s long-term economic and workforce needs.

For the state’s FY 2027 budget, which begins October 1, the universities’ priority is to build the much-needed 3% increase in one-time FY 2026 funding into the recurring base and provide an additional inflationary increase in base budget operating support. In order for this to happen, it will be essential to continue to diversify revenues and provide flexibility to policymakers by increasing the proportion of School Aid Fund dollars allocated to university operations appropriations.

• Invest in campus infrastructure funding to power Michigan’s knowledge economy and preserve vital public state assets

Maintaining world-class learning and research environments requires sustained state investment in campus infrastructure, such as facility upgrades, maintenance, technology, equipment, and safety, that underpins Michigan’s economic competitiveness. State support of campus deferred maintenance extends the lifespan of state-owned campus assets that fuel talent development and innovation. Other Midwestern states continue to aggressively invest hundreds of millions of dollars in campus infrastructure improvement, out-competing Michigan’s ability to provide state-of-the-art facilities. Michigan has only provided such infrastructure improvement monies once in the past two decades, putting the state at a competitive disadvantage in attracting students, research, and employers.

For the FY 2027 budget, the universities seek a reinstatement of dedicated state payments for campus infrastructure needs to support innovation, facility upgrades, maintenance, technology, equipment, and safety. Such payments should be separate from institutional receipt of capital outlay project authorizations to accelerate modernization and competitiveness.

• Invest in and modernize the state capital outlay process to advance research, innovation and student success

To compete nationally for students, faculty, and research opportunities, it is vital that Michigan’s public universities offer technologically advanced, high-quality facilities. Building sustainable, future-ready, technologically sophisticated and environmentally sound campus facilities requires a renewed state-university partnership to finance innovation and growth. Outdated processes and delays in approving capital adjustments impede efficiency and diminish Michigan’s competitiveness nationally.   

An ultimate goal is to establish predictable, annual capital outlay funding for modern, high-quality campus academic, research, and student support facilities. Removal of outdated hard caps on state contributions for capital projects is also a shared priority. Further, institutional receipt of a capital outlay project authorization should be separate from receipt of campus infrastructure improvement monies.

State Policy Priorities that Boost Prosperity and Serve the Public Interest

Increasing state funding support for our public universities strengthens Michigan’s workforce, accelerates innovation, and positions Michigan to compete nationally and globally for talent, employer attraction and retention, research dollars, and economic growth in all its forms. The state’s public universities are vital assets that provide a profound return on investment to Michigan taxpayers while serving the public interest in countless ways. 

Click here to learn more about MASU’s 2026 legislative priorities.

Daniel Hurley is the CEO of the Michigan Association of State Universities