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Legislature may cut construction funds

BY JUSTIN MILLER

Published March 20, 2006

State lawmakers are threatening to freeze $193 million of University construction funds as part of a larger effort to make public universities and colleges comply with state funding guidelines.

The University of Michigan is one of 15 public universities and 28 community colleges that have been asked by the Michigan Legislature's Joint Capital Outlay Committee to pass resolutions stating they will comply with laws that require the outlay committee's approval for all construction and renovation projects worth more than $1 million.

If the schools do not pass these resolutions, the committee may vote on Thursday to freeze $270 million worth of projects at various institutions across the state - including the $145-million construction of the University's Stephen M. Ross School of Business and a $48- million renovation of the Electrical Engineering and Computer Science Building Solid State Electronics Lab.

The outlay committee controls all funding of state-owned and funded projects, including projects at universities and community colleges.

Cynthia Wilbanks, the University's vice president for government relations, said the committee has not cited the University for noncompliance, but it has asked the Board of Regents to pass a resolution stating that the University will comply with the committee's guidelines and the law.

Wilbanks said she would not characterize the building projects as being "in danger." Wilbanks said the only two projects currently under review are the electronics lab and the business school, but that "nothing is exempt."

Last November, State Sen. Shirley Johnson (R-Royal Oak), outlay committee chair, submitted letters to all public universities and community colleges asking them to pass resolutions declaring their commitment to follow guidelines and meet deadlines for filing reviews for projects.

According to Wilbanks, University President Mary Sue Coleman said she has discussed the committee's request with the Board of Regents. The University has followed the proper filing procedures with the committee, Wilbanks said.

Universities have not passed resolutions because they are afraid it could lead to more requests from the state.

"The issue of constitutional autonomy is what's really an issue here, and it's extremely important," former University President James Duderstadt said.

The committee's request comes after the recent state audit of several public universities and community colleges showed that the committee did not properly approve more than 70 construction projects completed between 1999 and 2004, the Detroit News reported. The University was not included in this audit.

Wilbanks said the University's relationship with Johnson, the outlay committee chair, has been "respectful and productive" during ongoing discussions. She added that the University will continue discussions with Johnson.

As for the University's plans for the committee's Thursday meeting, Wilbanks would only say "We'll cross the Thursday bridge when we get to it."

- Anne VanderMey and The Associated Press contributed to this report.

Money matters

- Amount over which universities must submit plans for approval: $1 million
- Number of schools affected: 15 public universities and 28 community colleges
- If they refuse, state could withhold funding
- Projects that could have funds cut: B-school renovations, renovations of electronic labs


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