November 12, 2003
.2003 The Michigan Daily
Ann Arbor, Michigan
Vol. CXIII, No. 50
One-hundred-thirteen years of editorialfreedom
cloudy in the
with thun- 1H1 62
derstorms LOWC 29
late after- Tomorrow:
By Tomlslav Ladika
Daily Staff Reporter
As the highest-paid leader of any
public school in the country, University
President Mary Sue Coleman and her
salary reflects the increasing pressure
colleges and universities face in trying
to compete with the best private
Coleman will earn a $475,000 salary
next year. If she stays at the University
for at least five years, a retention bonus
and incentives will
push her yearly
income up to
$677,500. That fig-
ure makes her the
according to a
report in this week's
Chronicle of Higher
Coleman "We felt it was
important to benchmark our salary to
other institutions," University Regent
Larry Deitch (D-Bingham Farms) said.
"We know that for talent we will be
competing with private schools who
have no restraints on what they can pay."
Coleman's income probably would
have been even higher if she had not
declined a salary increase last summer
in response to state budget cuts. Cole-
man will receive the same salary this
year as when she first arrived at the
University in the summer of 2002.
Yet Coleman's total income is still
about 25 percent lower than that of
Shirley Ann Jackson, president of Rens-
selaer Polytechnic Institute in Troy,
N.Y., whose $891,400 in salary and
benefits make her the highest paid pri-
vate school president.
John Toller, former president of the
College and University Professional
Association for Human Resources, said
public schools that are trying to com-
pete with top private institutions are
often forced to increase salary and ben-
efit offers to recruit and retain quality
When determining how much to offer
presidential candidates and top faculty,
public school administrators "have to
look at the relative advantages of the
See COLEMAN, Page 7
Ptal ay Da
Ii a s A nlakson- Rensselaer
at rising costs
By Jeremy Berkowitz
Daily Staff Reporter
Students graded by graduate student instruc-
tors may receive a blank report card at the end
of this semester.
Less than two years after negotiating a new
contract, the Graduate Employees Organization
is again threatening work
stoppage against the Univer- "They're b
sity due to potential rising T y
health care costs. our contra.
Almost three weeks ago,
University Provost Paul imposing I
Courant announced recom- premiums
mendations for an overhaul pu
of the University health care life of our1
system, which currently pays
more than 90 percent of all
premiums for faculty and
The new policy, if approved by the Board
of Regents, would pay an average of 85 per-
cent of premiums and would become effective
. GEO President David Dobbie said he
understands the country's current health care
crisis, but he added that the University should
take a more active approach toward solving it.
"The main thing is that they're breaking our
contract by imposing health care premiums dur-
ing the life of our contract," Dobbie said.
He added that a walkout or "grade strike"
- refusing to assign grades to students -
are possible, but plans won't be finalized
until GEO meets Nov. 20 to discuss the pend-
Kendra Eshleman, a Latin 231 GSI, said
her annual salary of less than $16,000 barely
covers all her living expenses.
She said she knows that the state is in a
budget crisis, but she feels the University
should put more of the bur-
den on faculty members.
.eakng"I think that an off-con-
t by tract year is not the time to
bring this on," Eshlenan
ealth care said. "GSIs - unlike
luring the tenured faculty - are
"Ontnact." Courant could not be
- David Dobbie reached for comment yes-
GEO president terday.
But Charles Koopmann,
a member of the group that
made the new recommendations, said health
care costs are rising across the board.
"There are other state universities where
the costs are a lot more for employees and
maybe there's no payment for dependent cov-
erage," said Koopmann, chair of the Senate
Advisory Committee on University Affairs.
He added that the committee recommenda-
tions offer a wide variety of options.
But Koopmann did not give any speculation
or advice about what actions GEO should
See GEO, Page 7
Faced with a state budget deficit of $920 million, Gov. Jennifer Granholm addressd the concerns and
hopes of Michigan residents from a Detroit television studio last night.
Higher education on the table
for more cuts as officials weigh
options for closing deficit
By Andrew Kaplan
Daily Staff Reporter
DETROIT - Before state lawmakers can dig
Michigan out of a $920-million budget deficit,
Gov. Jennifer Granholm wants to have a word
with the voters.
In the fourth of six broadcasted budget "con-
versations," Granholm addressed a studio audi-
ence at WDIV-TV to explain and reflect on the
state's current financial dilemma.
While Granholm presented diagrams and figures
to shed light on the scope of the deficit, members
of the audience posed questions as to how to allevi-
ate it. Their concerns ranged from preserving high-
er education programs to injecting money into the
state economy by repealing income-tax cuts.
"We're in a situation now where cuts have
already been made," Granholm said. "We're real-
ly trying to decide if we're going to pay for our
mother's prescription drugs or pay for our daugh-
ter's university education."
Higher education could receive one of the
largest funding cuts of any program in the state,
at $114 million.
Because of decreased state revenues during a
national and statewide economic recession, the
pending cuts will be the largest in Michigan's his-
tory, Granholm said.
"The revenues to the state have dropped by 20
percent since the year 2000," she said. "We pre-
sented a budget in July that was balanced when it
was adopted by the Legislature - but the econo-
my still continued to plummet."
Granholm added that during the last fiscal
year, state economists wagered the feasibility of
the budget on a turnaround in the economy. When
that about-face failed to occur, the state found
itself more than $570 million short in its general
fund and $350 million in its school aid fund.
School aid funds K-12 education. The general
fund contains all other expenditures, such as
higher education and healthcare.
Although fee increases for certain state licens-
es have helped to mitigate the deficit, Granholm
said funding cuts to state programs are
inevitable. Many programs that saw reductions
in last year's round of budget decreases - such
as higher education - will likely experience
more cuts, she said.
"Today there's no rainy-day fund - we are left
with reducing spending to meet the revenues that
See GRANHOLM, Page 3
Ann Arbor residents Marjorie Lesko and sons Lane, 6, and Bram, 3, watch as
Solid Waste Educational Services Coordinator Nancy Stone explains a mural at
the Ann Arbor Solid Waste Department's Materials Recovery Facility yesterday.
says deficit must drop
By Ad" ~Dutt
Daily Staff Reporter
The United States must address two main issues
to get out of its current economic funk - the federal
deficit and the trade imbalance.
That was the central message Robert Rubin deliv-
ered to a room overflowing with students and cam-
pus members last night in the Law School's
Rubin, former Treasury secretary in President Bill
Clinton's administration, discussed reasons for and
solutions to the current economic state in a lecture
titled "Globalization, Trade and Our Fiscal Morass:
The Challenges Ahead."
After a few laughs, Rubin began his lecture by
stating what he learned as a student in philoso-
"There is no provable certainty" he said, alluding
to his upcoming book titled "Dealing with an Uncer-
This view, he added, leads to the conclusion that
reality is complex and people must accept trade-offs.
Having this mindset is a top priority and the "only
way to thoughtfully come to grips with the econom-
ic environment;" he added.
"If we're going to succeed,
we must have genuine and
mutual respect (for other
Former Treasury secretary
He continued the lecture with that theme, empha-
sizing the economic importance of social matters.
As Treasury secretary, fixing the economic situa-
tions in rural areas and inner cities was central to his
and the Clinton administration's agenda, he said.
The 1990s were the longest period of expansion
in American history, he said. Incomes increased
across the board and fiscal discipline was restored.
But around the turn of the century, imbalances
arose. Rubin suggested tax stimuli for states, locali-
ties and lower income people would probably have
helped prevent these problems from escalating.
Though he doesn't fully agree with the Bush
By Michael Kan
Daily Staff Reporter
Students are always looking for
ways to spruce up their resumes to
impress potential employers and grad-
uate schools. But some University stu-
dents are gaining an edge over other
applicants by creating fake student
organizations for the sole purpose of
filling out their applications.
According to one LSA sophomore,
many Business School applicants have
been creating University clubs meant
to improve the content on their
resumes. "I think that this is so unfair
for those people who (apply) fair and
square," said the student, who asked to
One such club at the University was
founded by her friend, she said. "But
this club doesn't do anything, it is just
a waste of another club," she added.
vice president, which they would
eventually write on their Business
School applications in order to
"I asked seniors who are in the
Business School and they said that this
has been going on since God knows
when," she said.
Michigan Student Assembly adminis-
trative assistant Amy McGovern said
students possibly could register a club
under MSA that holds no club activities
and is instead used to boost the mem-
bers' resumes. "A club doesn't have to
have a function according to the (MSA)
guidebook," McGovern added.
"Groups must contain five (Univer-
sity) students, and we check everyone
through their University of Michigan
identification. It's the only way of veri-
fication we have. We don't monitor the