Wayne State University would be punished with a loss of $27.5 million in state aid and the University of Michigan with a cut of $41 million because of proposed long-term contracts they may sign with their unions, under a bill reported Tuesday by the House Appropriations Subcommittee on Higher Education.
The bill was reported along party lines.
Patrick Lindsey, vice president of government and community affairs for Wayne State, said the university could not handle a cut of that size and might be forced to increase tuition.
The bill states that any university would lose 15 percent of its funding if it extends, renews or enters into a contract after Dec. 10, 2012, and before March 28 if that contract does not achieve savings of 10 percent or greater. The dates relate to the time between when Gov. Rick Snyder signed right-to-work legislation into law and when the law takes effect.
"This has to do with circumventing state law," said the subcommittee chairman, Rep. Al Pscholka, R-Stevensville, who then acknowledged that right-to-work is not state law until next week.
"We're trying to stand up for taxpayers," Pscholka said. "An eight-year contract does not stand up for taxpayers, and I think it's pretty apparent and pretty blatant what's going on here."
Several attempts by Democrats to remove the provision from the bill failed along party lines.
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