0 public universities and students in the hope that there will be a net benefit," he argued, "when most of those students will leave the state anyway." By reallocating money away from the University - and into pro-busi- ness initiatives, such as tax relief - Michigan's Legis- lature could establish a growth-friendly environment that could help more than just those with University degrees. Furthermore, privatization could help reverse a slide in University rankings. In 1987, the Center reports, the University was ranked eighth overall by U.S. News and World Report. Yet, by 2003, the University had slipped to 25th. The Center argues that this decline in quality - sped, no doubt, by a concerted effort by private uni- versities to "poach" top professors - could be reversed through privatization. While he didn't include the argument in the Center's policy position, LaFaive also believes that this change could increase donor contributions to the University. He suggested that many potential donors choose not to donate private funds to the University because they feel they have "donated on April 15." If privatized, the Uni- versity would not face this problem when fundraising. An often overlooked benefit of privatization would be absolute autonomy for the University. Currently, the University enjoys an enviable amount of autonomy - the University Board of Regents, and not the state Legislature, has final say over administrative decisions at the University. Unfortunately, this autonomy has limits; while the University can circumvent state laws, it cannot circumvent the state constitution or indirect forms of legislative blackmail. Just two years ago, in response to a controversial class, "English 319: Male Homosexuality & Initia- tion," state Rep. Jack Hoogendyk (R-Kalamazoo) pro- posed a state constitutional amendment that would functionally strip final authority over curriculum from the regents and offer it to the state government. While the proposal failed, it was only the most recent in a series of attempts to influence the University's curricu- lum. Indeed, the state House of Representatives barely defeated proposals, in 2000 and 2003, that would have cut all state funding for the University if it continued teaching the course. This politically driven interfer- ence - the state's branch of the American Family Association issued a press release "calling on state lawmakers to pressure university officials to drop the course altogether" - would no longer be a problem if the University privatized. More importantly, the University would not be bound by 2004's Proposal 2, which decreed "The union of one man and one woman in marriage shall be the only agreement recognized as a marriage or simi- lar union for any purpose." This constitutional change could, depending on how courts interpret it, ban all public institutions from offering same-sex partnership benefits. The University has, many times, defended its right to offer same-sex partnership benefits on the grounds of constitutional autonomy. Yet, for all practi- cal purposes, the future of same-sex benefits - valuable recruitment and retention tools - is in the hands of the state judiciary. But perhaps most relevant, considering this school's history, is next year's Michigan Civil Rights Initiative. When the University successfully defended its right to employ affirmative action in front of the U.S. Supreme Court, anti-affirmative action forces mobilized to pass MCRI, a constitutional amendment that would ban public institutions from employing, among other things, racial preferences. Once again, a private Uni- versity would not be constrained by this amendment, and would be free - even if MCRI passed (early polls indicate it will) - to continue using affirmative action. Is privatization possible? f course, unless the University could actually survive privatiza- tion, discussion over privatization would be academic. Fortunately, the broad consensus is that, if the University separated from the state, it could survive. According to Courant, the University could replace its state appropriation of roughly $320 million in one of two ways: a massive increase in the endowment, or a tripling of in-state undergraduate tuition. The current University endowment, worth roughly $4.9 billion, is projected to provide $114 mil- lion in revenue for the fiscal year 2006 - far short of $320 million. This income is used throughout the University to supplement state funding and provide what University spokeswoman Julie Peterson called the University's "margin of excellence." However, if the University were to increase its endowment by $6.4 billion, the endowment would generate an additional $320 million per year - enough to replace the current level of state appropriations. Alternatively, the University could pass the burden of privatization on to students through higher tuition. Currently, there are approximately 16,000 in-state undergraduates who each pay about $9,100 in tuition. If that rate was roughly tripled to match out-of-state undergraduate tuition - around $29,000 - the Uni- versity would earn an additional $320 million a year. For those who could not afford the increased tuition rate, increased financial aid could be made available because the many students who can afford to pay far more than $9,100 would no longer be receiving an automatic state subsidy of almost $20,000. Indeed, the Mackinac Center has argued that "Tuition hikes could actually help those students who truly need help - by enabling the school to offer great- er outright gift aid and tuition reductions to students Tuition hikes could actually help those students who truly need help. - Michael LaFaive Mackinac Center for Public Policy from low-income families, as is often the practice at private universities." While he hasn't endorsed any spe- cific plans, even Duderstadt acknowledges the value of shifting the burden of finance to richer students: "By asking folks in Bloomfield Hills, who make $200,000 a year to pay a little bit more of their fair share to edu- cate their kids ... kids who come from Flint, whose families make $20,000 can afford to go here." Nonetheless, replacing state appropriations through the self-sustaining endowment, and not tuition, is obvi- ously an enticing idea. But increasing the endowment by $6.4 billion is, according to Courant, "Very unlikely over any reasonably short period of time. It would be a remarkable success if it were accomplished over a decade." While the University has had tremendous success in building the endowment to its current level from $1.3 billion in 1995, generating an additional $6.4 billion would require generous donations along with high-yield investments. Already, the current Michi- gan Difference campaign aims to raise $2.5 billion, of which $800 million will be put into the endowment. And the University's endowment averaged a return of 6.5 percent over the five-year period since 2000 - two percentage points over the median return on all uni- versity's investments. But even if the endowment grew annually by the unusually high $700 million (invest- ment returns plus donations) it did last year, it would take at least a decade to generate $6.4 billion. Thus, privatization of University finances would require some combination of tuition and endowment increases. A $3.2-billion increase in the endowment could generate $160 million in annual revenues, mean- ing that tuition on in-state undergraduates would only need to be raised by $10,000 to generate a total of $320 million per year. And while this $3.2 billion increase in the endowment is "huge," according to Courant, "we've been doing very well." Furthermore, by limiting the tuition increase on in- state students, the University could circumvent a seri- ous drawback to privatization. A big fear of traditional privatization, which would equalize in-state and out- PONT/Qo The best gridiron geez With Batman and Superrr I\T Batman While our faithful eyes may be fixed on the majestic city of San Antonio - the Riverwalk, the Alamo, the black hole of charisma and style surrounding Tim Duncan - one far more com- pelling clash of football titans will happen right in the center of the sleaziest peninsula on earth. It's the Orange Bowl - and it's going to be the biggest clash of old field generals since the Iliad. In this scrum, the real vote must go to the man who has proven himself a Renaissance man and true scholar of the field: Joe Paterno. Brooklyn-raised, hard as nails, Ivy-league edu- cated, Latin scholar and outspoken on education and lifetime learning more than he is about BCS madness or flavor-of-the-month teams, Paterno is the last sentinel of collegiate athletics. Coach K, Lloyd Carr and Bobby "Look the Other Way" Bowden aren't fit to carry around Joe Pa's copy of the Aeneid. He's got championships, functional, literate young men and a frickin' library named after him. He wins, he learns and he might just be the most respected figure in American sports. Root for Michigan by all means. Joe Paterno, the solitary and proud figure of the NCAA, doesn't even need your cheers. He's a man in full. By Superman Funny Batman says that Joe Pa is such a smart man when just this season he made the asinine comment that "the black athlete has made a big difference. They have changed the whole tempo of the game." Yes, Bruce, Paterno does sound extremely educated. Here's the other thing, I don't really like Bowden too much, but he's a better coach (although do either one of them coach? I don't think I've seen a headset on either one of those guys' heads in about 10 years). Paterno finally stopped being an idiot and let other coaches open up his offense. Bowden, before his senil- 1 1 t i 2 t T 1 The Weekend ist U PrIy v\ 144uc Barnum's Nightingale The School of Music presents this play about Jenny Lind's jour- ney through America with songs by Bellini, Mendelssohn and Schumann. The play will take place at 8 p.m. at the Clements Library. Tickets are $5 for students, $20 for all others and are available at the door. A Flea in Her Ear The Department of Theater and Drama presents "A Flea In Her Ear," a comedy about misguided relation- ships. The performance will take place at 8 p.m. at the Power Center. Tickets are $9 with a student ID and $22 for others and are available through the Michigan League Ticket Office. Groove Fall Performance The Stomp!-esque group of musi- cians mix comedy and visual arts. The performance will take place at 8 p.m. at the Michigan Theater. Tickets are $6 and available at the door. The Da Vinci Code Explored Pastor Bob Lynn examines the pre- sumptions and claims made in "The Da Vinci Code." His lecture will take place at 7 p.m. in the Rackham Graduate School East Conference room. Admission is free. Dianne Reeves Dianne Reeves returns to perform her acclaimed "Christmas Time Is Here." The performance will take place at 8 p.m. at Hill Auditorium. Tickets prices range from $10 to 48 and are available at the door. Sunfday %W.~c Student Pool Tournament Students will have another chance to show off their 8-ball and 9-ball skills in the monthly contest. The tournament begins at 1:45 p.m. in the Michigan Union Billiards Room. The cost is $5 for preregistered students and $10 at the door. Jazz Mass The Canterbury House presents jazz mass, a chance for religious expression, featuring the music of Steve Rush and Quartex. The performance will begin at 6 p.m. at the Canterbury House. Chris Knight The Americana musician Chris Knight performs at the Ark. The perfor- mance begins at 7:30 p.m. at the Ark. Doors open at 7 p.m. Tickets are $12.50 and are available online at www.theark. org or at the door. Satrday 141C)4 Women's Glee Club The School of Music presents the Women's Glee Club conducted by Gabriela Hristova. The concert will begin at 6 p.m. at the University of Michigan Museum of Art. Tickets are $5 and can be purchased at the door. PHOTOS BY PETER SCHOTTENFELS/Daily TOP: Former Provost Paul Courant. ABOVE: Former University President James Duderstadt. 10B - The Michigan Daily - Thursday, December 8, 2005 The Michigan Dai