Page Two

THE MICHIGAN DAILY

Wednesday, August 27, 1969

Page Two THE MICHIGAN DAiLY Wednesday, August 27, 1969


Aiistory of tuition
A! the good old days, when a nickel really did get you a
ride on the subway, or a big hot dog at the baseball game.
When a single penny bought you all the candy you could possibly
imagine eating, or, perhaps a toy airplane or a small ice cream
cone.
Things certainly have changed, no less University tuition
which is soon due, as this supplement goes to press, for still
another good shot in the arm. Show this table to your father, or
whoever is financing these four years in academia. He'll get a
kick out of it.
ANNUAL UNDERGRADUATE TUITION
In-state Out-of-state
1919-20 S 80 $ 105
1929-30 93 118
1939-40 110 150
1940-41 120 200
1944-45 130 220
1946-47 140 300
1948-49 140 350
1949-50 150 400
1952-53 180 430
1956-57 200 470
1957-58 250 600
1960-61 280 750
1962-63 280 900
1965-66 348 . 1,000
1966-67 348 1,000
1967-68 420 1,300
1968-69 480 1,540

AUTONOMY CONTROVERSY

Building shortage:

By MARTIN HIRSCHMAN
Chemistry laboratories a r e
filled to capacity. Art students
take classes in an old automobile
agency. Huge waiting lines at-
tend music school practice
rooms. Dental school research is
conducted in a student apart-
ment building. Literary college
faculty members share cubby-
hole offices.
The University is experiencing
significant space shortages due
to steadily increasing enroll-
ment, a legal controversy with
the Legislature and the gen-
erally low level of state appro-
priations for new construction.
For three years, from 1965 to
1968, the University refused to
accept any state capital outlay
funds for new buildings because
of a controversy over the right
of the Legislature to impose re-
strictions on the Regents.
The controversy began with
the passage of Public Act 124 of
1965, that year's state capital
outlay act. The act included new
restrictions under which the

architect and all construction
plans for new building projects
must be approved by the Joint
Senate-House Committee on
Capital Outlay, before funds
would be released.
The Regents charged these re-
strictions violated their guaran-

124 would do significant dam-
age to the court suit.
So for three years, despite a
growing need for new facilities,
the Regents staunchly refused to
accept any capital outlay funds
for new projects.
The physical plant of the Uni-

The physical plant of the University, al-
ready taxed to the limit, became more and(
more strained as enrollment crept upward.
Many University divisions were forced to
take over temporary quarters in a wide vari-
ety of non-University buildings in the cam-
pus area.

Non-support' leads to ai

Continued from Page I)
The library system wants to buy
more books. The Computer Cen-
ter wants to expand services.
The architecture and design
school is having problems with
accreditation. The literary col-
lege wants more everything.
The man in the middle is Vice
President for Academic Affairs
Allan F. Smith. An almost con-
stant stream of deans and direc-
tors flows daily through his
office-and almost always they
have but one request: more
money.
But with spiraling inflation
and faculty salaries, Smith has
even less money to dole out than
the minimal increases in state
appropriations imply. "You real-
ly talk about a scrounging op-
eration," -says Smith.
"Right now I've no place to
look," he adds. "In the past it
has been a question of whether
we'd iaise tuition to do it." But

with the recent substantial in-
creases in tuition, Smith and
other administrators have pro-
mised that any new increase will
be used only to cover the barest
needs of the University.
Administrators like S m i t li
have even begun to abandon
hope that the state will ever
again be able to provide ade-
quate funds for the University.
Instead, they have set their
sights on a possible influx of
federal funds.
But such support is likely to
be slow in coming. "At present,"
says Smith, "we have none of
the kind of federal funding I'd
like to have - unrestricted in-
stitutional support."
Although the University pres-
ently receives some direct fed-
eral funding for medicine, dent-
istry and public health, the
brunt of support from Washing-
ton comes in two forms-fi-
nancial aids and research grants.
Smith says he would like to
see Congress pass and fund a
higher education appropriations
bill introduced by Rep. George
P. Miller (D-Calif). The bill

would provide aid directly to the
University, with the amount to
be based on t;e quantity of gov-
ernment research done here and
the number of doctoral degrees
granted annually. Under this
formula, says Smith, the Uni-
versity would receive a signifi-
cant portion of the higher edu-
cation funds allotted by Con-
gress.
But passage of the Miller bill
is unlikely. And, with the Viet-
nam War and inflation-curbing
budget cuts severely limiting the
availability of federal funds,
even passage of the bill would
not mean the government was
committed to sizeable expendi-
tures in the near future.
In fact, the International
Education Act, passed in 1967,
has yet to be funded. The act
was expected to be especially
important to the University's
five area centers (for example,
the Center for Chinese Studies).
At present, these centers are
funded solely by a $5 million
Ford Foundation grant which
expires in 1971. And Ford had

tees of constitutional autonomy
embedded in the state constitu-
tion, and they took the Legis-
lature to court over the issue. It
remains unresolved.
Meanwhile, the University's
legal counsel advised the Re-
gents that acceptance of any
fund under the conditions of PA
uisterity
stipulated that the grant would
not be renewed.
If the centers were forced to
close, the loss would extend to
the literary college as well.
Dozens of faculty members who
are now being paid half-time by
the centers would be returned
full-time to their own depart-
ments which would be forced to
pay more in salary money.
Smith notes that the Ford
Foundation is reviewing the ter-
minal nature of the grant be-
cause this stipulation was based,
in part, on the expectation that
the federal government would
soon provide new funds.
But foundations like Ford
have been moving to decrease
spending on higher education in
favor of increased funding for
urban programs. There is, there-
fore, considerable doubt that the
area center grant will be re-
newed.
With the prospects for new
federal aid exceedingly dim, the
University administration has
no where to look but within.
Thus the cycle continues-fac-
ulty salaries rise too slowly,
there few new programs are
initiated, the paper shortage
worsens. And there is no rain-
bow, let alone a bucket of gold,
in sight.

versity, already taxed to the
limit, became more and more
strained as enrollment crept up-
wards. Many University divisions
took over temporary quarters in
a wide variety of non-University
buildings in the campus area.
For example, the administra-
tion of the education school
in o v e d into the Ann Arbor
Bank Bldg. And the' squeeze on
space was so tight that half of
West Quad, a residence hail,
was converted into faculty of-
fices.
In one University division at
least, the building shortage has
led to a loss of faculty members.
Five professors specializing in
physiological psychology and
neuroscience have left the Uni-
versity because of inadequate
laboratory facilities. The Uni-
versity is hastening to construct
the necessary laboratories.
In late 1967, however, the
University (along with Wayne
State and Michigan State Uni-
versities who co-authored the
legal challenge) changed at-
torneys, and the new counsel
said that accepting funds un-

F/ic legt
der the provisions of PA 124
would in fact not hurt the court
challenge at all.
So, in the spring of 1968, the
University again began accept-
ing capital outlay funds. The
first new appropriation went to
planning for a new Modern
Languages Bldg., a six-story
classroom structure which will
be built behind Burton Tower.
This year, the University will
receive about $7 million fcir cap-
ital outlay including funds for
an architecture building on
North Campus, and a mathe-
matics building, as well as con-
tinuing appropriations for such
construction as the dental school
and modern languages.
But the $7 million figure is
only about half the Uiversity's
original capital outlay request.
There are two reasons for this.
First, the State Legislature is
experiencing a general shortage
of funds because of a tax sys-
tem which is inadequate to sup-
port the cost of necessary ex-
penditures. Cutbacks are being
made in most appropriations
items before the Legislature.
But, in addition, the guidelines
provided by PA 124 have proven
a serious impediment to obtain-
ing new capital outlay funds.
Before receiving any funds, the
University must now follow an
incredibly complicated series of
steps - so complicated that the
administration has an elaborate
schematic diagram of the pro-
cess.
Under these procedures, the
Joint Senate-House Committee
on Capital Outlay checks the
University's construction plans
at almost every phase of the
operation. Administrators com-
plain that this procedures only
wastes more time. But with the
need for more building money,
they have little choice but to
comply.
Thus, despite the University's
agreement to accept capital out-

icy of PA

124

DESPITE FINANCIAL SHORTAGES, building projects continue
at the University-especially those paid for by prsperus donors
like Regent Emeritus Eugene Power. Power rides in a tractor
with President Robben Fleming and other's at the recent ground-
breaking for the Power Theatre which is being financed solely
through Power's contribution.

lay funds under the provisions
of PA 124, new money is only
trickling in.
Meanwhile, the price of a new
building is mammoth and con-
struction itself tends to take
several years. The Modern Lan-
guages Bldg., for example, will
cost over $6 million and is
scheduled to take three years to
complete.

And construction

schedules

are almost always optimistic
estimates of the time necessary
for completion of the project.
Thus, the University's grow-
ing shortage of space is unlikely
to be alleviated for at least five
years. And with the enrollment
creeping upward, the situation
is likely to get worse before it
gets better.

A more sophisticated U' budget

r

Ul Man
In the
. r
1 113 South University
Ann Arbor, Michigan


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By MARTIN HIRSCHMAN
While University administra-
tors look for new funding to off-
set recent budgetary shortages,
they are working to develop new
means of making maximum use
of scarce resources.
To do this, the administra-
tion is undergoing a massive re-
orientation of budgeting proce-
dures w i t h enormous implica-
tions for the direction education
at the University will take.
In essence, the new system -
if and when it is completed -
would allow the administration
to base planning and budgeting
on the cost of individual pro-
grams.
At present, University budget-
ing uses divisions like the cost
of telephone services, the li-
brary, supplies or faculty salar-
les. But under the proposed sys-
tem - known as programmed
budgeting --- the administration
would be able to compute the
cost of a degree in pharmacy,
for example, and would be in
possession of a computer pro-
grammed model of the Univer-
sity which could simulate the
effect of any change in costs or
programs on the entire system.
Such programmed budgeting
and model simulation techniques
were first introduced in the De-
partment of Defense in the early
1960's by then-Secretary of De-
fense Robert McNamara.
The change meant that the
DOD moved from accounting
procedures which allowed f o r
computation of the cost of, say,
the army, to a more efficient
system which keyed on figures
representing programs like this
country's defense of Western
Europe.

After the DOD instituted this
system, it was picked up by oth-
er governmental departments
a n d by several large corpora-
tions.
B u t college officials around
the country have only begun to
develop this k i n d of analysis,
and administrators at the Uni-
versity who have begun work in
programmed budgeting are find-
ing out why,
"It's more difficult to define
programs and analyze output at
a university," explains Donald

the system will be worth the ef-
fort. The completed system,
they say, would help the Univer-
sity in three key budgetary ar-
eas:
-By giving the University bet-
ter statistical justification in
asking for new funds from the
State Legislature;
-By helping the University
spend wisely in times of tight
financing;
-By facilitating long-range
University planning.
For example, says LeLong, the

If and when the programmed budgeting
system is completed, it will be theoretically
possible to run a computer program which
would produce the single, optimal answer to
the problem of how the University should
speni (( certain amount of (vailable ioney .

been improved, and changes
made in the University's infor-
mation system. These should fa-
cilitate work on the project, he
says.
In addition, those working on
the project have been successful
in computing the cost per credit
hour of various courses. Now,
say LeLong and Cohen, the prob-
lem is putting these figures to-
gether to allow computation of
the cost of an entire degree pro-
gram.
When the system is completed,
it will be theoretically possible
to run a computer prog'ram
which would produce the opti-
mal answer to the problem of
how to spend a certain amount
of available money.
In this process, however, the
result would depend heavily on
the predetermined value assign-
ed to each program. "Many peo-
ple in higher education are ap-
prehensive about this kind of
application of programmed bud-
geting." LeLong notes.
In any case, the ability to run
such a computer program is a
long way off. "Optimizing mo-
dels is a highly sophisticated
process," says LeLong. "We
haven't even scratched the sur-
face."
And the administration may
be only scratching for some time
to come. For the budget squeeze
which has affected the st 4
the University is also 1ltniting
the efforts of those working on
the programmed budgeting sys-
tem.
"'It's expensive," says LeLong.
"We're beginning modestly and
it will take a long time - per-
haps three to five years--before
the entire system is in opera-
tion."


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LeLong, director of the Office
of Institutional Research which
does statistical a n d budgetary
studies for the administration.
"Problems of quality are so
difficult to resolve," says Mal-
colm Cohen, assistant to t h e
vice president for state relations
and planning. "It's difficult to
say whether one program is of a
higher quality than another."
Nonetheless, this is precisely
the kind of decision which must
be made if an effective program-
med budgeting system is to be
implemented.
Despite the difficulties in their
work, LeLong and Cohen believe

University would be able to cal-
culate what impact an enroll-
ment change in the dental
school would have on programs
in other schools. This would be
accomplished by statistical stu-
dies of the courses dental stu-
dents take in other schools and
the facilities they use. Another
example would be determining
the effect of a change in cur-
riculum on theresources needed
by the library system.
Despite difficulties in creating
the programmed budgeting sys-
tem, Cohen believes there al-
ready has been considerable pro-
gress. Information reporting has

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