v. MORE RESEARCH THAN ANY OTHER U.S. UNIVERSITY, AND ITS ACADEMIC PROGRAMS COMPETE WITH THOSE OF THE MOST ELITE PRIVATE INSTITUTIONS. NOw, FUNDING IS EVAPORATING AND EXPENSES ARE ON THE RISE. WHAT IS AT STAKE IS NOT MERELY THE UNIVERSITY'S ABILITY TO PROVIDE ITS STUDENTS WITH A HIGH-QUALITY EDUCATION, BUT THE REPUTATION AND VIABILITY OF THE TI COUNTRY'S SYSTEM OF PUBLIC EDUCATION. EDUCA VIEWPOINT Higher education should be a funding priority BY Liz BRATER The higher education appropriation can only be understood in the context of the ongoing state budget crisis. Although the state budget in Michigan is one that rises and falls with the fortunes of the auto industry, the deficits that we are now experiencing will not go away, even if the economy improves dramatically in the near future. During the 1990s, the previous administration and Legislature cut taxes continuously, culminating in the 0.5 percent cut in the income tax, which goes into effect fully by the end of this year. This cut alone will cost $800 million a year, which is a large proportion of the total deficit that we have experienced annually. Thus revenues have been cut below the level needed to supply existing services. I voted against this tax cut in 1999 because I was concerned about the effect it would have on education, health care, the social- service safety net, environmental protection and other vital pro- grams. The tax cut is not even that beneficial to most Michigan families. A family with an income of $50,000 will save about $250 per year with this tax cut but will pay much more in increased tuition costs to send a child to a public college or university. I am also concerned about the way in which we are appropriat- ing our increasingly scarce resources. In recent years, one out of five of our general fund dollars has gone to corrections, which is about the same amount we are spending on higher education. But the corrections budget has far outpaced the higher education budget in growth. The Justice Policy Institute shows that between 1985 and 2000, the spending for higher education increased by 27 percent, while the corrections budget grew by 227 percent. In the 2003-04 fiscal year, higher education funding decreased by 11.2 percent, while corrections spending increased. It makes much more sense to invest in our young people through early childhood, K-12 and higher education, than to warehouse nonvio- lent people who have ended up in prison because of substance abuse or mental illness. The Michigan Senate recently took a step in the right direction in this regard, adopting drug court legislation that would allow drug users to be diverted to treatment programs. Investing in higher education makes good economic sense. A study commissioned by the Michigan Economic Development Council and the Presidents Council found that every dollar the state invests in higher education yields $26 in economic benefits in the community. Michigan has the dubious distinction of being a state that one young person is leaving every 40 minutes, and Gov. Jennifer Granholm has set a goal of fostering "cool cities" to help stem this exodus. Meanwhile, 79 percent of those graduating in high-tech fields will stay in Michigan, so why not put our money into these programs? The University of Michigan is our flagship public university. Students from all over the state, the nation and the world come to study in Ann Arbor, and many of them will stay in Michigan, adding to its economy, diversity and overall quality of life. All of our public universities are a vital part of the health of this state, and I will continue to seek better funding for higher education. If you come from a Michigan community and would like to help, contact your legislators and let them know what state funding for higher education means to you. SOURCES OF THE UNIVERSITY'S GENERAL FUND REVENUE, FISCAL YEAR 2002-03 1% IOTHER REVENUE APPROPRIATIONS 54% TUITION AND FEES 12% ---- - INDIRECT COST RECOVERY (PARTIAL REIMBURSEMENT OF GENERAL FUND COSTS ASSOCIATED WTTH EXTERNALLY FUNDED RESEARCH) Data source: Uriversity of Michigan, Office of Budget and Planning VIEWPOINT America needs to re-commit itself to investing in the future USES OF THE1 19% STUDENT SUPPORT SERVICES, BUSINESS OPERATIONS AND GENERAL ADMINISTRATIVE SUPPORT 1% RESEARCH UNITS 9% LIBRARIES AND MUSEUMS UNIVERSITY'S GENERAL FUND REVENUE, FISCAL YEAR 2002-03 4% OTHER (INCLUDES UTILITIES AND DEBT SERVICE) 67% SCHOOLS AND COLLEGES BY JAMES DUDERSTADT Foremost on the minds of most university leaders these days are the devastating cuts in appropriations as the states struggle to cope with crushing budget deficits and the erosion of private support from gifts and endowment income asso- ciated with a weak economy. Of course, the optimist might suggest that this is just part of the ebb and flow of economic cycles. In bad times, state governments and donors cut support, hoping to restore it once again in good times. But this time it may be different. There is an increasing sense of pes- simism about the restoration of ade- quate state support, particularly for flagship public research universities such as the University of Michigan. Yet there is a certain irony here, because society's dependence upon higher education in general and the research university in particular has never been stronger. Today we are evolving rapidly into a post-indus- trial, knowledge-based society, a shift in culture and technology as profound as the shift that took place a century ago when our agrarian society evolved into an industrial nation. A radically new system for creat- ing wealth has evolved that depends upon the creation and application of new knowledge. In a very real sense, we are entering a new age, an age of knowledge, in which the key strategic resource necessary for prosperity has become knowledge itself - educated people and their ideas. Unlike natural resources, such as iron and oil, that have driv- en earlier economic transforma- tions, knowledge is inexhaustible. The more it is used, the more it multiplies and expands. But knowledge can be created, absorbed and applied only by the educated. Hence schools, in gener- al, and universities in particular, will play increasingly important roles as our societies enter this new age. Yet today the United States, which once viewed education as critical to national security, seems more concerned with sustaining the social benefits (and tax policies) demanded by an aging baby boomer population (and to hell with the kids). The priorities of those of us in this impacted wisdom group are clearly heath care, prisons, home- land security and reduced tax bur- dens for the near term rather than the education of the next generation and the future. This situation is unlikely to change until a new gen- eration establishes a more appropri- ate balance between consuming for our present desires and investing for our children's future. This is particularly important for the leaders of America's public uni- versities. Today, in the face of limit- ed resources and more pressing social priorities, the century-long expansion of public support of higher education has slowed. We now have at least two decades of experience that would suggest that the states are simply not able - or willing - to provide the resources to sustain the capacity and .quality of their public universities. Most pessimistically, one might even conclude that America's great experiment of building world-class public universities supported prima- rily by tax dollars has come to an end. It simply may not be possible to justify the level of tax support necessary to sustain the quality of these institutions in the face of other public priorities, such as health care, K-12 education and public infrastructure needs - par- ticularly during a time of slowly ris- ing or stagnant economic activity and an aging generation that appar- ently cares little about the future it leaves for its children. Flagship public universities, such as the Uni- versity of Michigan, must come to grips with this reality and take those actions, both courageous and no doubt controversial, necessary to preserve their quality and capacity to serve future generations in the face of declining state support. Duderstadt served as the University's president from 1988 to 1996 and is currently a University professor of Science and Engineering. e Q k r w i SAM BUTLER - DAILY Brater (D-Ann Arbor) is a Michan state senator representing the 18th district. UNDERGRADUATE FIRST-YEAR FRESHMAN TUITION RATES AT BIG TEN UNIVERSITIES 0 3% 6% 9% 12% 15% FOUR~ AVE~AR E ANR4AL PF.R~CtNTAINCREA' VIEWPOINT MSA will be an advocate for students and the University BY JASON MIRONOV As you walk to class, you are disgusted at the sheer amount of garbage that is strewn across the Diag. Hav- ing it cleaned only once a month is simply not enough. When you arrive at your psychology discussion, your comments are often ignored because of the 40 other peo- ple who are forced to take this section because so few have been offered. And when your student group goes to book a room in the Union, you realize you cannot, as the $140 necessary to acquire meeting space is absent from your account. Think budget cuts aren't going to affect you? Think again. Unfortunately, budget cuts are ripping through the University with no clear end in sight. If the money is drained any faster, you're going to hear a whooshing sound when you walk past the administrative offices in Fleming. To add to the economic strife, the newly imple- mented tuition cap, while a good idea in theory, will mean further incursions in our academic and extra-curricular outlets. Perhaps the hardest part of any financial crisis is the need to prioritize which facets of campus will lose the precious dollars that ensure their existence. In essence, the provost will choose who lives and who dies. Like an Atkins diet fanatic, the University will be attempting to trim fat right and left. But the inherent flaw until now is the absence of students in the budget alloca- tion process. While independent units will lobby the provost about their respective departments, the amount of student input has arguably been negligible. Student Voices in Action, a group of activists hoping to install a student voice, should be applauded for shoving their foot in a door that would be closed without their dedication. The Michigan Student Assembly is going to attempt to increase student group funding, not only for the summer but also for next year. This aligns with our responsibility to the student body to expand education outside of the class- room. We will do our part to provide student services at lit- tle or no cost to students. At the same time, we expect the administration to uphold its part of the bargain and imple- ment student input in every decision-making process. The procedure will begin with conversations, letters and educational forums advocating for rights of students to receive an educational experience that should reach far outside the bounds of Angell Hall. The government, the University and the administration have a duty to us to pro- vide an environment where we not only feel comfortable but empowered. In an effort to offset the damage that is about to be incurred, MSA will better define itself, not only as a source of student group funding but as a lobbying arm of the student body. In the next few weeks, MSA executives are going to develop a strategic plan to help cushion the blow of absentee state appropriations. MSA will plan to coordinate student groups in an effort to truly represent the diversity of our campus. This "steering committee" will help articulate a plan of action to save higher educa- tion and student life at the University. Eventually, the Uni- versity will team up with counterparts all over the Big Ten and across the United States. Every public university in the country is fighting this battle - but together we can win the war. In the fall, MSA will pressure Lansing and Washing- ton to address higher education funding issues. As respon- sible members of the community, it is our duty to register and vote in elections and keep a careful eye on local politicians. Engage your elected representatives. Find out how they feel about higher education funding and the University community. Invite leaders to campus so they can appreciate the uniqueness of student life here. If there is one thing that you should get out of this viewpoint, it is a plea for your assistance. In order to attain success, we need to defend ourselves. Our strength can be derived from the number of people who choose to partici- pate. I would encourage every student to pick up the phone, send e-mail, go to a meeting and send a very clear message to those who make decisions that affect our lives. The students of the University will not tolerate contin- ued attacks on student life. We listen, we vote and we demand recognition of the immense value of our institu- tion and expect increased appropriations so we may con- tinue to foster and educate responsible and well-rounded members of society. Mironov is the president of the Michigan StudentAssembly andaBusiness School junior I ANNUAL STATE APPROPRIATIONS TO THE UNIVERSITY SINCE 1960 0 ~s A CLOSER LOOK: 50 STATE APPROPRIATIONS TO THE UNIVERSITY SINCE 1990 X40 3 m