Higher education targeted for more cuts

Updated 10:00 AM February 18, 2005

Higher education targeted for more cuts

By Laurel Thomas Gnagey

University leaders say Gov. Jennifer Granholm's announcement of a mid-year funding cut for the state's 15 public universities, and a continuation of the nearly 2 percent reduction in the base budget for Fiscal Year 2006, will make it hard to retain quality and increase access to higher education.

If approved by the Legislature, the Ann Arbor campus would have to cut an additional $5.7 million from its current budget before the state fiscal year ends in October, and would face the same reduced level of funding next year. U-M- Flint faces a cut of $373,000 and U-M-Dearborn a reduction of $433,600 for the current year.

The cuts for Ann Arbor alone would bring to nearly $50 million the total reduction in U-M's General Fund appropriation from the state in the past two years—cutbacks President Mary Sue Coleman says clearly threaten the academic core.

"This has become much more than simply a short-term challenge; it now has the potential to affect our core academic quality for many years to come," Coleman said in reaction to the governor's plan, which seeks to address a $375 million shortfall in the current year's budget.

Coleman reiterated the University's commitment to financial aid for students from the state, even in the face of the potential cuts.

For the second year, the governor's plan announced Feb. 10 also calls for universities to limit tuition increases—this time to 5 percent or $307, whichever is higher, with the penalty of lost state appropriations for those that do not comply.

While it reduces $28 million from higher education base funding, Granholm's plan calls for $100 million in bonds for university construction projects to improve instructional facilities. Coleman said although the opportunity to receive capital outlay money is welcome, it does not substitute for funds that are needed for the academic program of the University.

"It does not address the fundamental and serious issue of the recurring funding necessary to plan for and build the University's operating budget," Coleman said. Such costs include, faculty instruction, student services, educational technologies, laboratories and other classroom support, she said.

In her State of the State addresses Feb. 8, Granholm outlined plans for adding jobs in Michigan, including funding more research to spur economic recovery. Coleman said she was pleased to see that the proposal acknowledged the important role universities have in returning the state and nation to prosperity.

"In particular, I am excited by the proposal to issue $2 billion in state bonds over the next 10 years in order to invest in cutting-edge research in universities, businesses and nonprofit organizations," Coleman said. "The governor's bold vision will fuel our ability to remain competitive within America and beyond its borders.

"Governor Granholm's plan for research investment gives us a tremendous opportunity to strengthen the partnership between state government, industry and research universities so we can out-innovate the competition. The citizens of our state now have the chance to make a powerful investment in Michigan's economic destiny."

Coleman said she also was pleased to see that the governor's plan begins to address the issue of how to encourage more young people to pursue higher education degrees and advanced training beyond high school, which also is key to improving the state's fiscal climate.

"Only by producing research innovations that lead to the growth of new industries, and by graduating the bright young students who will work in and lead those industries, can we build an economy that will sustain us in the 21st century," Coleman said.

The president said the University will be fully engaged in the process that will unfold over the next couple of weeks as the legislative appropriations committees work through the budget proposal.

Higher education targeted for more cuts

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