The $12 billion American Graduation Initiative proposed by President Barack Obama is one step toward an improved economy in Michigan, officials at various community colleges are saying.

Obama unveiled his plan in front of thousands at the Macomb Community College South Campus in Warren last week – a plan that would be comprised largely of competitive grants for community colleges across the nation.

With recent bankruptcy filings and an overall decline in the automotive industry, the Detroit area is beginning to experience vast economic changes, said Jim Jacobs, MCC president.

“This type of support is pivotal to helping greater numbers of our residents successfully transition to the jobs and economy of the 21st century,” he said. “The mere fact that the president of the United States is talking about plans to allow more people to complete a community college education is a very significant development.”

Legislation for the initiative is still in its early development and Congress is determining appropriate regulations for the bill, said Michael Hansen, president of the Michigan Community College Association.

Community colleges are at record enrollment, but using the money to improve graduation rates should not be their primary goal, he said.

“There are more and more people showing up at our doorstep looking to develop the skills for future jobs,” Hansen said. “Some people go with the full intent of transferring, so it’s not always fair to put (the graduation rate) as the measure of success.”

One example is Mid Michigan Community College, where Hansen said a substantial amount of students end up transferring to Central Michigan University.

MMCC welcomes the additional funds and believes it will help program development, but believes it could be offset.

Although MMCC welcomes the additional funds and program development, MMCC Executive Director of College Advancement Matt Miller is aware that the development could be offset if the state government cuts funds to community colleges and said that time will tell if the $12 billion is well spent.

“Like most organizations who rely on state funding, we have significant funding issues to work through,” he said. “It’s hard to predict any specific impact until we know how the funds would move to the college and what restrictions were attached.”

In order to receive the grants, colleges must first reorganize their curriculums so they correspond with current employment needs.

Oakland Community College – the largest in the state – is hoping to obtain funding for its health program, which is one of few fields that is currently experiencing growth in the United States.

“These health programs are extremely expensive to teach and we are hoping to receive funding because of that,” said George Cartsonis, director of communications at OCC.

Even though the economic outlook is murky, Cartsonis is certain about one thing when it comes to the future of community colleges.

“Clearly the emphasis is going to be on increasing the range of options for students,” he said.

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E-mail the author: Jake Bolitho