The Michigan Daily - Monday; May 8, 2000 - 3
New bill aims to finance higher education
By Yael Kohen
Daily StaffReporter
Both Republicans and Democrats value the
need for families to invest in their children's
education and are working together to make
saving money for a college education easier
State legislators are considering the
* higan Education Savings Program that
would allow everyone in the state to open
accounts to put aside money for enhancing
education including higher education and
vocational schools.
If passed. the new law would allow families to
save for education by opening an account with S25
free from state tax and deferred from federal tax.
"Grandparents can do it for their grandkids, par-
ents can do it for their kids, kids can do it for them-
selves " said state Sen. Mike Rogers (R-Brighton).
The bill was sponsored by Rogers, whose aim
was to encourage families to save for their chil-
dren's education.
The Michigan Education Savings Program
would allow students to cover all costs of edu-
cation-based needs, including tuition, class fees,
books and housing. Current laws only allow
higher education savings funds to be spent on
tuition.
Rogers said that the program would also cover
vocational schools which are not yet included in
the law.
"I've tried to make it as broad as I can," Rogers
said, referring to attempts to gear the program
toward every citizen.
Two bills must pass in order for the program to
be established. The first was passed unanimously
by the state Senate last week and is expected to be
taken up by the Michigan House of
Representatives soon.
The second part of the bill is being held up on
the Senate floor.
But Sen. Gary Peters (D-Bloomfield Twp.) said
he is concerned about middle income families who
may find it more difficult to gather the money
needed to fund an education.
Peters offered an amendment to the second
bill that he said would make it easier for mid-
dle-income families to save by offering them
more tax incentives.
"I think it needs to be enhanced for middle
income families," Peters said.
Peters' amendment stipulates that families with
a S60,000 yearly income can get a $5000 tax
deduction on the first $500 saved.
The maximum amount that can be saved for any
child is $125,000.
Peters said middle-income families often find
it more difficult to fund an education in com-
parison to the wealthy and low income groups.
He added that wealthy people already have
enough to afford an education while low income
families have more financial aid benefits than
othietr groups.
Gov. John Engler's spokeswoman Susan
Schaffer said the governor will sign the bill with
or without the amendment. Legislators said they
hope to establish the program by the end of this
year,
to fd new M Card provider by summer
wG
Business junior Jon Wang uses the National City ATM outside of the bank'i
East University Street location.
By Rachael Smith
For the Daity
Beginnitn June I, Michigan students who bank at National City
will not be ible to use their M Cards at ATM's.
iThe contict lOr an M Card provider was put up for bid and
National City Bank did not bid" said University spokeswoiin
Julie Peterson.
"The Universs is iin the process of choosing a new M Card
provider" Piterson said.
Univrsity Assistitnt Director of Financial Operations Bob
Russell sasd in svritten statement, "National City chose not to
respond to the University's request for proposal for the M Card
banking service"
Russell said the University is "currently negotiating the (new)
contract."
"We should be reads to make an announcement about a new
banking partner by June I" Russell said.
Incoming first-year students will be introduced to the new
banking services at sumnmer orientation.
iWe will be providing identical student services, but at much
better rates" Russell said.
Cash chip and phone card services will not be affected by a
chatnge in M Card provider.
Returning students interested in using the new M Card
provider bank "will be able to open accounts through the M
Card Webpage or with an 800 number' Russell said. They
would then transfer their money to the new account.
Peterson said "National City is not the 'official bank' of the
University, it is simply the M Card provider" The new bank will
act in the sane capacity, she said.
Students using National City will see no change in their bank-
intg services in relation to their status as University students.
Students who currently bank with National City and who use
thiir M Cards as their ATM card should receive a new card from
Natonal Cits Bank by today.
Bill Eiler, marketing administrator for National Cits Bank, said
"the agreement with the University not to renew (the contract)
was a busitess decision."
He added, "It was a mutual decision. National City has a lot of
respect for the University"
Eiler said "Ann Arbor is a very important communit, to
National City" but that "National City and the University
were going in different directions" with the M Card program.
LSA junior Sunil Desai, who banks with National City,
said he has used his M Card as his ATM card since he was a
freshman.
"I don't like National City. I use it because of the charges (for
using otherATMs), and I'll stick with National City because of the
location of the ATMs," Desai said.
State senate to review policy
of election process for Regents
WWW*MICHIGANDAILY.COM
By Hanna LoPatin
Daily Nws Editor
In hearings beginning May 18,
Michigan state senators will be review-
ing the process of electing regents at the
University and their equivalent at
Michigan State University and Wane
State Univcrsitv.
eState Sen. John Schwarz (R-Battle
Creek) said he is unhappy with the cur-
rent method that allows each party to
choose its own candidate at a convention.
Presently, regent candidates are cho-
sen at their partisan conventions atnd
then placed in a state-wide vote.
Schwarz said he thinks they should go
through the petition drives and pri-
maries to which all other political can-
I tes are subject to,
chwarz has brought to the table an
alternative that would allow the gover-
nor to appoint regents to the three
research universities in Michigan, as is
precedent for the other state-funded
schools - an act that ssoUld require an
amendment to the state constitution.
Schwarz emphasized that at this point
his proposed aiendiment is only an idea.
"The hearings are only to get peo-
ple's input as to swhiether or not" change
is needed, he said.
Schwarz's plan prohibits the appoint-
nsent of more than fin e of the eight
regents from the gosernor's own party.
Under Republican Gov. John Engler,
five of the Univcrsity's regents are
Denmocrats.
Regent David Brandon (R-Ann
Arbor) - who has had experience with
both systems, having served as a gover-
nor-appointed regent at Central
Michigan University prior to his current
post - said he sees advantages and dis-
advantages in each.
"The State of Michigan has had a
number of state universities that are of
very high quality that have been gov-
erned by a board appointed by a gover-
nor. And the three research institutions
hase accomplished great things under
state elected boards;' he said. "Both of
these models can work and have
worked.
But Brandon said lie does not believe
that an amendment is needed.
"The reality is that the constitution 'as
written the w ay it was written" he said.
Cynthia Wilbanks, University Vice
President for Government Relations,
said that the Unisersity prefers the elec-
toral system currently in place.
"We've beets served very will by a
system that has been endorsed by state
constitutions over and over again," she
said. "Wc've got respect for that."
Schwarz said his plan was one of
many options to solve the problems he
sees in the system. He also discussed a
mixed board of both elected and
appointed regents and ridding the con-
ventions from the process.
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