Coleman, Courant: Additional state cuts will threaten academics

Updated 11:00 AM December 19, 2003

Coleman, Courant: Additional state cuts will threaten academics

By Laurel Thomas Gnagey

U-M leaders say a 5 percent mid-year cut in general fund appropriations for Michigan colleges and universities will cost the Ann Arbor campus $16.4 million, bringing the total cuts this year to more than $65 million and posing a threat to academic programs.

The reduction was recommended in a Dec. 10 executive order from Gov. Jennifer Granholm, which was approved by the House and Senate appropriations committees. In the order, U-M-Dearborn was cut $1.3 million and U-M-Flint by $1.1 million.

President Mary Sue Coleman said higher education has taken more than its share of the state's general fund budget cuts.

"Everyone in Michigan should be concerned about the trend represented in today's recommendation and the damage being done to the quality of our public universities," Coleman said following the executive order announcement. "I am especially worried as we look ahead to the FY 2005 budget."

Coleman, U-M-Dearborn Chancellor Dan Little, U-M-Flint Chancellor Juan Mestas and the leaders of the 12 other state universities repeatedly have expressed concern about the state's economic future and the ability of colleges and universities to prepare a well-educated workforce without adequate resources. Cuts in appropriations threaten access to education as institutions are forced to scale back, the presidents have said. The reductions in state support come at a time when demand for educational services is greater than ever, Coleman said.

The executive order cut comes on top of a $12.7 million mid-year cut in fiscal year 2003 and a $36.4 million cut in base funding for the current fiscal year.

"Combined, the effect in the current academic year is a reduction in funding of almost $1,400 per student," Provost Paul N. Courant said of the governor's plan to deal with a general fund shortfall of $484 million.

“Everyone in Michigan should be concerned about the trend ...” —President Mary Sue Coleman

"Within the next several days, I will be talking with all of our unit heads to provide further details about the cuts they will have to make in their current year spending plans in order to adjust to this reduction in the state appropriation," Courant said. "Unfortunately, it is inevitable that these further cuts will affect our academic programs in ways that students will notice." The provost said the University is not planning a mid-year tuition increase.

Other Executive Order actions affecting education include:

• Community college budgets will be cut 4.4 percent

• K-12 school funding will be cut $90 per pupil, instead of a proposed $196

• Merit Awards scholarships will be delayed from September to October, moving those payments into the next fiscal year and saving $63 million in the current year

Legislators in the House must act on a proposal to postpone an income tax cut scheduled for next year, an aspect of the governor's plan that requires passage by the full Legislature. Granholm proposed delaying the 0.1 percentage point cut by six months, or until January 2005. If the House does not approve the delay, the state will need to find another $77 million to trim from the budget.

The final reduction in state income tax from 4.0 to 3.9 percent was part of a phased reduction plan put in place during the John Engler administration. The plan called for a five-year reduction of the income tax from 4.4 percent to 3.9 percent.

Coleman, Courant: Additional state cuts will threaten academics

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