Office of the Vice President for Global Communications

Friday, October 15, 2010

State appropriations to Ann Arbor, Dearborn and Flint campuses less than last year

U-M’s Ann Arbor campus will receive a $316 million appropriation from the state of Michigan in the budget bill that Gov. Jennifer Granholm signed into law Tuesday. The appropriation is less than the campus received last year, but very close to what the university anticipated.

The Ann Arbor campus will receive 2.8 percent less funding from the state than it did last year. The Dearborn and Flint campuses also will receive less than last year. U-M Dearborn’s state appropriation is $24.7 million. Flint’s appropriation is $20.9 million.

“While this budget represents another reduction in state support for universities, the final appropriation bill is the product of much compromise on the part of House and Senate higher education committee members who worked hard to reach an agreement,” said Cynthia Wilbanks, vice president for government relations.

The U-M 2011 budget recommendation for the Ann Arbor campus incorporates a multi-year view of cost and revenue projections, and is mindful of the possibility of significant changes in the level of state support to the U-M given that the state is experiencing sharply deteriorating revenues as a result of the global economic downturn.

Because the university has instituted prudent fiscal policies and aggressive cost cutting for the past several years, and continues to take such action, it has not had to make emergency cuts or issue debt to support operations despite a steady decline in state support. Cost containment has focused on improving the efficiency of delivery of administrative and operational support, while protecting the core academic activities of the university.