The Michigan Daily-Thursday, September 9, 1982-Page 11 'U' bends investment policy on apar hdi (Contined from Page 9) tee that annually reviews Herbert's however, two board member evaluation, mistakenly believed Herbert questioned why the University kept iis headed a committee to keep tabs on the investments if the companies did,. r$t University's progress. There is no such meet up to standards. committee. Herbert and his assistant "We're falling down on our alone monitor the companies. tives," said Regent Nellie Varner (D- BUSINESS School Prof. Thomas Detroit), "We have a policy that Giles, another member of the faculty workable, and it's good enough that we group, said that his committee's in- can follow it." terest was strictly financial. Summing up the way in which the "There may be people in the world University completes its analysis, who can indulge themselves in these Regent James Water (D-Muskegon) questions," he said, "but I'm not sure said last spring, "It seems like (they we'll be able to afford to." administration) relies completely on At the March Regents meeting, what the company says." Doily Photo by JEFF SCHRIER . Happy to be here Amid all the confusion and hassles involved with moving in at the beginning of a new school year, at least one University newcomer finds something to smile about. 5-year plan shifts resources to fight budget crunch POSTERS POSTERS POSTERS POSTERS POSTERS POSTERS Like You've Never Seen! (Continued from Page 1) decided to take tle University's fate in- -to its own hands-in part through the .five-year plan. ABOUT HALF of the $20 million in cuts will be achieved through across- the-board reductions in the budgets of many University divisions, Frye said, and the other half will come through heavy cuts in selected schools, colleges, and non-academic units. The latter method is in keeping with 'University President Harold Shapiro's *vision of a "smaller but better" in- stitution, which calls for the paring down of certain parts of the University 'in order to maintain or improve the quality of others. The $20 million, which will be collec- ted over a five-year period, will be redistributed to those areas the ad- ministration has designated as "high priority." CONTROVERSY surrounds both ends of the plan. The possibility of deep budget cuts in-or even elimination of- certain schools and colleges strikes fear in both students and faculty mem- bers. The professors and students in the .schools under review have not massed in protest yet, but disenchantment among several elements of the Univer- sity community is growing. The reallocation process also has come under criticism. Many student leaders are questioning some of the priority areas designated by the ad- ministration. And some faculty members argued . over the summer that the ad- ministration improperly has taken the faculty's consent to the general "smaller but better" theory as a man- date for all its specific reduction and reallocation plans. Although Frye has said the priority areas will be decided by "widespread deliberation within the University," he already is making plans for reallocating money into six areas he outlined in February. THOSE AREAS are: Faculty and staff salary improvements, better in- centives for research and an improved research environment, better incen- tives for undergraduate teaching, the financial ability to respond to new in- tellectuial developments, better support for instructional and research equip- ment, and a higher level of merit-based support for graduate students. But Frye acknowledges that not all of the priority areas he suggested will receive support in the five-year plan. "I tried to make it clear that with the $20 million we can not deal with all the priority areas," the University's chief budget officer said. "If we try to spread our money too thin, we won't help any of them." FRYE SAID he plans to reallocate most of the $5 million in cuts made un- der the plan last spring toward this year's faculty salary program. "There can be no more urgent priority for using the five-year plan money," Frye said. There has been great concern in the University community over the last few years that top faculty members would begin to accept more lucrative job of- fers at other educational institutions or in private industry. Professors may wonder if the state's economy will ever recover adequately to cover acceptable pay raises. Frye said a great exodus has not begun yet, but it could if faculty salaries continue to lose ground to in- flation. NOW, SIX months into the plan, with reviews in the process or completed for three schools and three non-academic units, student leaders are concerned about the lack of public debate on the priority areas outlined by Frye. Over the summer, Jamie Moeller, a 1982 University graduate and former member of the top faculty and student budget committee, warned that the University community must become more vocal about what it considers to be priority areas or "it will become in- creasingly likely that the areas to receive additional funding will be those determined solely by Frye." The Michigan Student Assembly has proposed that a public forum be set up for discussion of the priority areas. Frye said it was always his intention to put his priority list up for public con- sideration. He said a public forum will be planned for the fall. But before that meeting takes place, $5 million will already have been reallocated toward faculty salaries, Frye said. EVEN ON that issue, there has been some skepticism both in Ann Arbor and nationwide over whether universities' top priorities need to be salaries. There is little market for professors in many disciplines, so the odds of a mass depar- ture from the English Department, for example, is unlikely. Some question whether it is worth the trauma of cutting other programs in order to save the more "marketable" faculty, such as those in economics, pharmacy, engineering, business, and computer science. A second area that Frye said he con- siders to be extremely important is the level of merit-based graduate aid at the University. "OUR ABILITY to attract outstand- ing graduate students is almost as im- portant as attracting outstanding faculty," Frye said. It is unlikely many students will argue with that point. But students have long feared the possible implications of increased research budgets, another five-year plan priority. They are afraid that as professors put-more time into research, there will be less time left for teaching. The administration counters that bet- ter research leads to better teaching, as professors are better equipped to discuss their subjects. In addition, research contributes highly to graduate student support. ALTHOUGH the faculty approved the idea of a "smaller but better" in- stitution in 1981, the realities of budget cutting have given many second thoughts on the question. As they see departments and possibly even entire schools eliminated, some members of the faculty are urging the University to consider if the financial problems could be better handled by everyone tightening their belts a little more rather than by deep selective cuts. Another concern is what will happen to tenured faculty in schools that are reduced or eliminated. b Top administrators still hope to be able to relocate all tenured faculty within the University, but there is still a possibility some will be laid off. "The damage (layoffs) would do to our sense of collegiality and our con- fidence in the future of the University," Frye stated when he introduced the plan in February, "would more than of- fset any benefits we expect from this plan." . «. . :Q . a. ,. + z. , * p i t o, * " M-S 9:30-6 Th, F 9:30-9 b U tr 1205 South University 761-7177 If you see news happen Dial 76 DAII.Y U x I COLLEGE WORK-STUDY JOB FAIR All students with 1982-83 Work-Study awards are eligible to attend. Come and talk with Work-Study employers about job opportunities. ALL WORK-STUDY EMPLOYERS HAVE BEEN INVITED BRING YOUR AWARD NOTICE I WHATEVER YOUR PHOTO NEEDS We Can Serve You! 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