Firm to The Michigan Daily - Thursday, September 8, 1983 - Page 17-A market. 'U research for . .......... Daily Photo Bridge bicycling A lone bicycler catches some sun, fresh air, and exercise with a jaunt through the park. 'U' hopes alumni wallets wil ecast By CHERYL BAACKE When individuals get into financial trouble they often turn to family for -help; facing-several years of shrinking budgets, the University has done the same thing. The only difference is that "family" for the University means 260,000 alum- ni, and "help" comes to the tune of $160 million. The high-powered "Campaign for Michigan," the largest fund raising -campaign ever at a public institution, will officially kick off this fall to raise money to support University projects from engineering to Art History, renovations, faculty positions, student scholarships, and University Tellowships. TIMES HAVE been rougher than usual for the University in recent years. State financial support has been slip- ping over the last decade, especially since 1979, while the University has continued to expand. The combination has left University administrators scrambling to balance each year's budgets. But they have begun to attack the problem from two directions. To help cut down costs, they have launched a five-year plan to cut $20 million from the University's budget and channel that money into under-fun- ded programs. AND TO INCREASE revenues, they Are attempting to tap the pocketbooks of one of the largest living alumni bodies in the world . That's where the University's new vice president for development and University relations comes in. Jon Cosovich's presence on campus demon- strates the importance administrators have put behind the "Campaign for Michigan." An expert in public fund raising, Cosovich is the highest paid vice president and makes more than the University president. Although Cosovich said the fund raising drive is a response to declinirig support from the state, he said it is not ?a /*budget an attempt to instantly replace lost revenue. "(The campaign) is not a desperation move at all," he said. "It isn't a major crisis, but part of a major plan to become more systematic and com- prehensive in pursuit of gift support for the University." ROY MUIR, DIRECTOR of the cam- paign, said the drive "is part of a general University commitment, not a frantic reaction to budget cutting." "We feel strongly that the rationale is not based on the problems on the University, but its greatness and strengths." The strengths which the University has decided to emphasize are split bet- ween construction projects and en- dowed funds for professors and studen- ts. THE GOALS for new buildings and renovations are: " $20 million to help build an addition to the Chemistry Building and update facilities in the old building; " $20 million to help build a $300 million University hospital on the medical campus; ", $15 million for additions to the Business Administration Building, in- cluding a new library and computer system; " $12 million to construct a College of Engineering building on North Cam- pus; * $9.5 million for a new eye care cen- ter at the hospital; . $1.7 million to build a vocal arts cen- ter and organ recital chamber in the School of Music; " $1.4 million to build a slide library onto Tappan Hall for the Art History Department. The other half of the $160 million will be used to set up funds for special faculty positions and student scholar- ships and fellowships. Money will also be used to support some research and the University libraries. The money raised through the cam- paign will be used to supplement tuition revenues, Cosovich said. crunch By JIM SPARKS University research on such products as insulin and the polio vaccine cer- tainly benefits the public. But with shrewd marketing it can also turn out to be a bonanza for the university and the inventor. The University of Wisconsin, for example has pulled in more than $14 million from just one patent - the syn- thesis of Vitamin D. YET DESPITE the University's strong reputation for research, profits from that research have been few and far between. Only $200,000 a year comes back to the University in royalty money, and although activity has increased since the University decided to give inventors a bigger share of the take last April, some professors felt something else was needed. That something else is called the Michigan Research Corporation (MRC), a firm which would pick out promising research ideas at the University, invest in them, put them on the market, and split any profits bet- ween the corporation, the University, and the inventor. SUPPORTERS OF the corporation hope that in addition to adding to the coffers of the University, the firm will help keep professors from straying to industry or higher paying jobs at other schools, by giving them a chance to profit from their discoveries. The University's executive officers are currently discussing the proposal, and if it is approved by the Regents, the University will kick in $200,000 to start the company. As more stockholders buy into the company, the University would assume the role of a minority stockholder. This relationship has bothered faculty members who see research for profit as a perversion of the Univer- sity's mission, and who Fre troubled by the possibility that the C niversity, as a minority stockholder mitht not be able to control some of the research that goes on. IN RESPONSE to such criticism, Dr. Bodo Diehn, interim director of the corporation, said that while the Univer- sity will not be able to control what kin- ds of research stockholders are in- terested in, "it can say, not in our labs you won't." Another problem the corporation must deal with, one that has plagued other universities who have research agreements with industry, is where the researcher's committment lies - to the University or to the company. Thomas Dunn, a chemistry professor who has worked on an advisory com- mittee for the MRC, said if MRC research cuts into a faculty member's tasks at the University, professors might have to go part-time or take leaves of absences. Althoug Diehn said "We would be doing the University a disservice" if more professors had to be hired to take up the slack, Dunn said he didn't think the number of professors involved with the MRC would ever be enough to cause a significant problem. DUNN PROJECTED returns of $1 million a year once the corporation gets underway. "It's not worth it for several hundred thousand dollars," he added. By 1984, if the University's Regents approve the corporation, two or three HLOW TO GET BETTER MILEAGE FROM YOUR CAR... projects should be funded, with two more added on in 1985 Dunn said all agreements between researchers and the corporation will be publically disclosed, and he did not think ethical problems will plague this marriage of University research and outside money: "There's a lot of people that think the University could get in- volved in all kinds of dirty deals...it just needs ethical people operating in an honest way," he said. WILFRED KAPLAN, PRESIDENT of the local American Association or Psychology 201 PROJECT OUTREACH Experimental learning through personal involvement in community agencies/groups FOR COURSE INFORMATION STOP BY OR CALL: Intro. Psych., 554 Thompson Street, 764-9279 profit University Professors chapter, is generally optimistic that the cor- poration can bring in more research money and help retain professors. "On the other hand," Kaplan said, "it could become very big and dominate what's happening and do a lot of damage." The idea of an MRC has received strong support from the deans of the University's schools and colleges, and in June 1982, the faculty's governing body endorsed the concept. See CORPORATION, Page 6 Obey the 55 mph speedliit.j 10 D~~ Keep your engine tuned. 7> - Drive at a stead. pac P: -- 5 5 I- Avoid hot rod starts. ) - _1 For a free booklet with more easy energy-saving tips, write "Energy," Box C2,Oak Ridge TN 37830. ENERGY. We can't afford to waste it. Cosarich ... raising money for U' projects "We want to raise the level of awareness for the importance of fun- draising over and above tuition," he said. "Tuition doesn't cover the major percentage of education." Cosovich expects almost all of the donations to come from alumni, although the University will also con- tact large corporations and foun- dations. Administrators hope to reach the $160 million goal sometime in 1987. "It is clearly within the capability of the institution to meet the campaign goal," said Cosovich. "It isn't guaran- teed, but I think we're smart enough to find (the money)." "~ lj t )A ( 7 ROLEX OFTEN COPIED, NEVER DUPLICATED POSTERS POSTERS POSTERS POSTERS POSTERS POSTERS THE ROLEX DAY-DATE The superb calendar chronometer. The bold and beautiful design in 18kt. gold or platinum only. The impregnable Oyster case. The unique President bracelet. Counterfeits flatter, but cannot deceive, wearers of this Al' Ar I v PlAr I I (If472 r- Don't forget our second floor. That's where we hide the frames, trade books, art prints and posters.