Committee urges state action to count MSU students in revenue-sharing formula, cites multimillion-dollar gap

The committee voted to recommend that the city press the legislature to adjust the states population definition used for revenue sharing to account for university students.

Daves presentation summarized a 2015 estimate of MSUs uncompensated cost to the city at $2.75 million; adjusting that figure for inflation and current enrollment, he said the impact could be more than $5 million in 2026. He told the committee that counting MSUs 51,838 students as residents, even at a partial weight (he suggested 0.75 full-time equivalent per student to reflect nine-month residency), could increase East Lansings annual state revenue-sharing allocation to roughly $5.45 million to $7.26 million depending on the method used. "Counting students as 0.75 FTEs would close most of the uncompensated cost," he said during the presentation.

The committee discussed logistics and political feasibility. Members noted that a change requires amending MCL 141.9031 (the statute that defines population for revenue-sharing purposes) and that success would be likelier if East Lansing coordinates with other university municipalities. One member said, "If we go in there alone... other communities will fight it," and the group agreed to pursue coordinated lobbying.

The committee voted to recommend that the city work through its elected representatives and lobbyists to seek a legislative amendment to MCL 141.9031 and to engage peer university communities in a joint effort.

Next steps: the recommendation asks the city to authorize staff and lobbyists to pursue the statutory change and to brief council on a coordinated multi-city approach.