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Page 6-A-Thursday, September 4, 1980-The Michigan Daily
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Student
University funding shifts
from public to private
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wned
a nd
Student
ont rolled
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....that's why
were cheaper!
By MITCH STUART
and SARA ANSPACH
A Daily News Analysis
This year, the University will spend
about $654.5 million to support all of its
programs, To a greater extent than
ever before, the money will be coming
from students and private donations,
rather than state and federal coffers.
The state's portion of support for the
University's Ann Arbor campus
general fund budget has been gradually
declining as the student and private
portion escalates. Student tuition, for
example, is up 13 per cent this year
(one of the highest increases in the
University's history) while state fun-
ding is expected to increase by three
per cent at most.
THE ANN ARBOR campus general
fund has increased by $20.5 million sin-
ce last year, but only $6 million of the
increase came from the state-nearly
$13 million comes from the increase in
tuition.
University President Harold Shapiro
noted at the July Regents meeting,
"someone has to support quality," but
later added, "we can't rely on the
students alone."
The president said the University is
committed to an increased drive for
donations from alumni, endowments,
corporations, and other sources.
Near the end of June, when the state's
bleak financial outlook became ap-
parent, some higher education obser-
vers went as far as speculating that
many current state institutions will
soon become fully private, but Shapiro
said he doubted that would ever be the
case at the University.
THE SHIFT from state to private
support does not seem to be a reflection
of indifference on the part of
lawmakers toward higher education.
Several high-powered state officials,
including Michigan Gov. William
Milliken, are well known for their con-
tinued support of the state's colleges,
despite shrinking state income.
University officials, at any rate, do
"The president said the University
is committed to an increased drive for
donations from alumni, endowments,
corporations, and other sources."
not accuse the state of short-changing
higher education.
"As bleak as it appears now, the
legislature has been supportive of
higher education," said Vice-President
for State Relations Richard Kennedy.
"The real villain is hard times, not
the state," said Alfred Sussman, for-
mer acting vice-president for academic
affairs.
BUT EVEN AS University officials
' claimed to understand the hardships
being endured by the state, they saw
5 4
make program cuts if it is to remain a
quality university.
"QUALITY is not judged by the nurp-
ber of things we do, but the number of _
things we do well," he told the faculty
last June.
For students, Shapiro's plan will '.
mean limited course offerings and ..
perhaps fewer fields of study.
Shapiro and other University ad-
ministrataors have rejected the
"shared poverty option"-a plan which.
would maintain the size of the Univer-
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Featuring a standard
0 0
15%off list price on
all your campus needs
ART & PHOTOGRAPHIC MATERIALS
CALCUL ATORS
CLASSROOM SUPPLIES
CLEANING SUPPLIES
GREETING CARDS.& STATIONERY
HOUSEHOLD IMPLEMENTS
NEW NON-TEXT HARDCOVER BOOKS
NON-PRESCRIPTION DRUGS & TOILETRIES
SPORTING EQUIPMENT & ACCESSORIES
5% OFF LIST ON CASUAL READING
MATERIALS
5% OFF LIST ON ALL NEW TEXTS &
REFERENCES..................AND
the University's state funds dwindle
before their eyes.
Milliken or1iginally planned to in-
crease the University's appropriation
by 9.5 per cent over last year's, and
then revised his recommendation to a
6.2 per cent increase, and then on June
12, the state Senate passed a 4.2 per
cent increase.
Now, the University expects an in-
crease no higher than three per cent,
and has made contingency plans for a
no increase situation, or even a
decrease in the state's support.
IN ANY CASE, the state's ap-
propriation to the University will fall
far short of the amount required to
compensate for inflation.
University administrators are now
faced with a necessary but unpopular
decision-where should the cuts be
made?
Shapiro advocates maintaining a
smaller, better paid staff and faculty.
He says that the University will have to
sity but allocate less to each depar-
tment. That option was attempted
during the 1974-75 school year and was a
"mistake anal proven failure," said
Shapiro.
University administrators hope to-4
decrease the size of the faculty and
staff by attrition, instead of layoffs,
although Shapiro has warned that there
will come a time when layoffs are
necessary.
When few young faculty Are hired,
additional problems arise. Departmen-
ts can suffer from a lack of "new blood"
and the University is hindered in its ef-
forts to recruit women and minority
faculty.
Enrollment, like the size of the staff,
will also have to declinein the coming
years. Because the number of students
will be decreasing, class size would
not be expected to increase even though
the University's present budget
problems are sure to continue in the
next decade.
o save$
Shapiro urges staff i
(Continued from Page 1)
creased administrataive services, he
said. "We get more requests for ad-
ministrative support. . . which faculty
and others believe appropriate." But he
added "there are some margins to be,
captured here."
Another option which the University
is pursuing is increasing investments
and endowment funds, Shapiro said,
which the University is doing.
A THIRD OPTION is more com-
petitive compensation, which Shapiro
said he opposes. He cited a similar in-
stancein 1974-75 when the University,
had only a 1.2 per cent increase in state
allocations and this method was em-
ployed. It led to cuts in equipment ac-
r
Opporu y rc 'z
SORORITY RUSHL _
MASS MEETING
counts and problems with bookT
acquisitions, he said. "It (this strategy)
has been a mistake and a proven
failure," Shapiro said. Some of the em-
ptied funds still haven't been rebuilt.
The University must therefore make
program cuts, Shapiro said. "We have
to do it and do it now," he said. The
other options will not maintain a highly'.
paid and highly supported faculty and.
high quality student body.
Shapiro added this program
redistribution or redirection will have,
to be pursued "in tandem with the other
options." Program reduction could in-.
clude fewer offerings, covering fewer .
fields. This reduction already exists,
Shapiro said. In the last five years-for..
both reasons planned and unplan-
ned-enrollment has declined.
"QUALITY IS NOT judged by the
number of things we do, but the number,
of things we do well," he said. The~
Univesity's number of offerings far ex=
ceed those of its peer institutions, the
president pointed out.
Another option facing the University,'
Shapiro said, is "the shared poverty
option," in which each department
receives less, but its size remains con=
stant, but he said he did not favor it:
"I'm not pursuaded we can build 'a
quality faculty-we will not attract and
keep faculty of distinction."
Shapiro said because the University
is decentralized, the best place to make
decisions for cuts is in the individual'
units, but warned he will make the
decisions himself, if necessary.
"I have the will-it isn't going to be '
easy-I only hope you have th~e will~
also," he said.
"We can meet this challenge, but we
can't grant it without going to the heart-
land of the programs." 4
Sunday, September 14
Michigan League Ballroom
12:00-2:00 (last names beginning A-L)
2:00-4:00 (last names beginning M-Z)
RUSH DATES: September 15-October 2
U of M Fraternities and Sororities invite all new stu-
dents to their annual "Freshman First Nighter,"
Sat., Sept. 13.
L
" Pig Roast on State St. following the Northwestern game.
* Mud Bowl Mash Party that highti (corner of Washtenaw and S.U.)
a lecture & film travel series
fall 1980-winter 198
1
Presented by The University of Michigan International Center,
in cooperation with the University Extension Service
October 24
NORTHERN ITALY & ROME,
with Philip Walker
November 21
THE KINGDOM OF THE
NETHERLANDS,
whifh icP. 'c
February 13
SWITZERLAND TODAY,
with Willis Butler
March 20
DENMARK, THE FAIRYTALE LAND,
with Ric Dougherty
I
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