University of Michigan asks state for 2.6% increase in aid
The University of Michigan will ask the state for more money to help with U-M’s budget.
The Board of Regents approved a request today that would seek a 2.6 increase in the amount of state aid coming to the university’s general fund.
“We recognize that the state continues to face difficult and uncertain financial circumstances that require hard decision and thoughtful prioritization of resources,” a letter sent to the state by President Mary Sue Coleman said. “However, the time has come to reverse the decline in state support for the university; strategic investment in higher education is essential to the future vitality of the state and its economic development.”
The university said the money would be used to “partially cover inflationary cost increases and to replace scholarship funding for students with need.”
Not everyone thought the request was big enough.
"I think the request is low," said Regent Andrea Fischer Newman. "My concern is that you don't put enough on the table."
Cynthia Wilbanks, U-M's vice-president for governmental relations, said that in the past, she's heard lawmakers say they want these request be "realistic" and take into account the state's financial picture.
Provost Phil Hanlon said that's exactly what the university did in its request.
U-M President Mary Sue Coleman
In making the request, the university outlined several cost reduction measures it has taken over the past several years.
"For many years, we have incorporated an assumed level of reduction and reallocation (typically 1.5-2 percent of the budget) in each year's general fund budget proposal," Coleman wrote in the letter.
In the letter, Coleman said the university is looking for cuts of:
- $40 million to $50 million in reduction to units.
- $20 million to $30 million in increased revenue opportunities.
- $15 million to $20 million in IT rationalization.
- $5 million to $10 million in strategic sourcing.
- $6 million to $9 million in administrative transformation.
- $2 million to $3 million in retiree benefits.
U-M is looking to make those cuts in fiscal year 2013 through fiscal year 2017, Coleman's letter said.
U-M isn’t the only local university to ask for more help from the state. In October, Eastern Michigan University asked for a 5 percent increase in its state aid.
However, the state Legislature last month approved funding for colleges this fiscal year that cuts aid to universities by 2.8 percent.
David Jesse covers higher education for AnnArbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.
Comments
Awakened
Fri, Nov 19, 2010 : 2:39 p.m.
The State is broke. Plan for a decrease in aid Mary Sue.
JimB
Fri, Nov 19, 2010 : 10:56 a.m.
The State should only give UofM more money with a condition that it accepts more in -state students. The school takes in more out-of-state kids, one reason is for the increased tuition. The school does a great job in raising funds for more buildings, land aquisitions, sports facilities etc; let them raise money for academics.
Cash
Fri, Nov 19, 2010 : 7 a.m.
As any expenditure by Mary Sue is off-limits at AnnArbor.com, let me post this safely without it once again being removed. This increase will be used in part to fund Mary Sue's salary hike. I am opposed to an increase in my taxes...to support the excessive "let them eat cake" attitude exemplified by the upper echelon at U of M. This is a slap in the face to every taxpayer. These folks need to climb off of their ivory tower and take a look at the suffering that is occurring every day in Michigan. Talk about out-of-touch with reality....
Angela
Thu, Nov 18, 2010 : 10:03 p.m.
Why do they need more money? Oh, that's right, they just spent 200 some million on renovating the stadium. Ridiculous.
stunhsif
Thu, Nov 18, 2010 : 8:44 p.m.
2.6%? That is all so reasonable Mary Sue. That percentage is less than the raise you got this year and the past several years, NOT! We taxpayers appreciate your kindness and reasonable demand, gun held at our heads of course. Until we get the politicians to stop handing out our hard earned income's like Halloween/Christmas candy, we will have to shop at Aldi or Wal-Mart and hope for the best! Think I'll go buy a lotto ticket, the odd's are better.
Jay Thomas
Thu, Nov 18, 2010 : 7:43 p.m.
I voted for regent Newman but I think the regents in general have been sleepwalking through their job for a long time now (i.e. they have "gone native" and see things from the perspective of the employees). Everyone goes along to get along. Would you like another $100,000 "retention bonus" Mrs. Coleman?
townie
Thu, Nov 18, 2010 : 7:16 p.m.
"$40 million to $50 million in reduction to units. $15 million to $20 million in IT rationalization. $5 million to $10 million in strategic sourcing. $6 million to $9 million in administrative transformation." What language is this? I don't understand a word of it. How about a 5% reduction in the size of the undergraduate student body?
bruno_uno
Thu, Nov 18, 2010 : 7:12 p.m.
cmon regents... be more aggressive...we need to ask for at least 12% to make up for the years in decline...this is completely unfair. please taxpayers, open your wallets for us. we are begging you. wink wink
csst380
Thu, Nov 18, 2010 : 7:04 p.m.
To pay for Mary Colemans salary hike. No thanks lady, seems like all that tax free money you spend for new stuff all over town needs to stop before you take more of my tax money.