BY TOMISLAV LADIKA
Daily Staff Reporter
Published December 5, 2002
Budget cuts will hit state universities harder than originally anticipated as Gov. John Engler is expected to present an executive order to the Michigan Legislature today calling for a 2.5 percent cut in higher education funding, The Michigan Daily has learned.
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The Detroit News reported Nov. 16 that Engler was considering proposing cuts to relieve the state's $470 million budget deficit, and state legislators last week said they expected a higher education cut of around 1 percent, possibly ranging up to 2 percent.
But yesterday Sen. John Schwarz (R-Battle Creek), chair of the Senate subcommittee overseeing higher education funding, said the proposed cut exceeds the highest level anticipated by legislators.
"Two and a half percent, that's what's going to be proposed," Schwarz said. "I think the governor is trying to find a number where the appropriations committees in both houses will approve the executive order."
Schwarz added "there will be a lot of discussion" today before the executive order is finalized.
Yet House members do not favor minimizing cuts to higher education funding, said Gary Henderson, chief of staff for Sen. George McManus (R-Traverse City). State appropriations have never been cut during Engler's 12-year tenure, but Henderson said representatives want smaller cuts to revenue sharing for local governments this year.
"You see an attitude among legislators to spread the pain as much as possible," he said.
While the 2.5 percent cut to higher education falls in line with cuts to most other departments, the executive order stipulates a 3.5 percent cut in revenue sharing to local governments, Schwarz said.
University Provost Paul Courant said a cut as low as one percent would be significant enough for the University to "postpone various kinds of maintenance activities, postpone filling up various open positions."
In addition to leaving some faculty positions unfilled and delaying the replacement of equipment used by various departments, Courant said the University is prepared to chip away at portions of each department's budget.
"We've told most of our deans and directors, 'Be ready to come up with a cut in this range," he said.
Courant declined to speculate on possible tuition rates for next year, but said he expects another increase.
"How big it is will certainly be related to what the state appropriation increase is," he said.
Last year, when state higher education appropriations remained constant, the University increased tuition 7.9 percent. During other years, when state appropriations were increased 4 to 5 percent, tuition rates rose 2 to 3 percent.
Glenn Stevens, executive director of the Presidents Council-State Universities of Michigan, said any cut in state appropriations places added pressure on universities to increase their tuition rates, but he said "as you go from campus to campus the impact would be a differential impact."
Although Engler's proposed cuts are necessary because the state constitution requires the state to balance its budget, Sen. Alma Wheeler Smith (D-Salem Twp.) said legislators are largely to blame for the budget hole they find themselves in.
"We need to be using our resources more wisely than we are now," she said.
Legislators knew that annual reductions in the state income tax rate during the past few years were increasing budget "hemorrhaging," Smith said.























