A Page 6-A-Thursday, September 4, 1980-The Michigan Daily K1 \ Student University funding shifts from public to private I wned a nd Student ont rolled 4 ,*' ....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- ::. ::: -.:::::. ::. :::::::::::.:::::::.v:.ti::; v:.:::;.:} : ":.?:L: i:"?:"i?>'v:"i::Si :ti4n"" "" .... .t..:?:": ?}:" iii>:":.......... .; ".}" :: : ; ...,........; ...... o:".ti+"??'"?: ? vv:?::. ::::x.:v:::::f":xw::::. :r"; ...".... .ti. r":: ti"? :": is-0v. "...., v::,+:wn+++%%ti..4" :.. "n.:..."......v.\?"t??:.".v....nx: n'"... n.....:t... ...... ..".......; .; "a"... ..v...."......{"??:.:".:.":: kti"<: {.S'. :':;:$:ii.:{".+." ." 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 * . tL~ '.U T ~ O~ 'J~1 'j~, ~ ~ ff~dFJftI... m 1V-4. I J uI -I41 %j 1 - I