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July 24, 1987 - Image 3

Resource type:
Michigan Daily Summer Weekly Summer Weekly, 1987-07-24

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The Michigan Daily, FridayJuly 24,1987- Page 3

'U' blames state for tuition increase

By MARTHA SEVETSON prices," said Vice President for
The University will rely on a Academic Affairs and Provost James
tuition hike of over eight percent Duderstadt.
next year to fill the funding gap left - But Regent Deane Baker (R-Ann
by a low state appropriation, Arbor) - who voted against the
according to University officials. increase - said the growing pricetag
Administrators expected a 6.0 on the University may be
percent increase in state funding last prohibitive to students from lower
month, but received only a 5.6 income families.
percent increase - the lowest "The state of Michigan should do
O percentage among the state's 15 more in regard to its responsibility
public schools. to keep education affordable," Baker
"If we're going to maintain the said.
excellence of the University of
Michigan, we have to meet our 7 COM
budgetary needs," said Regent
Thomas Roach (D-Saline). "We only *0
have two main sources of revenue:
the state budget and student tuition. 20
Between the two we have to have
enough to pay the bills."
In-state students will face an a c 1
increase of 8.3 percent, and out-of-
state students will face a 9.7 percent 0070
hike. - 600
Some University officials do not 5000
think the high tuition rate will hurt Tu"tion
the number of applications or ***0
enrollment in the coming year. 1000
"I think we all realize that 0
education at this type of university B
' does not come at bargain basement

Even the steep tuition increases the coming year. In 1960, the state
will not be enough to finance all of funded 75 percent of the University's
the University's programs and general fund budget.
initiatives. According to Regent "There is a great public interest in
Paul Brown (D-Petoskey), "The education, and the public ought to be
University is underfunded by $30 paying more of that share," Roach
million a year. We don't intend to said.
make that up in tuition." According to Roach, the
The University's Board of University provides sufficient
Regents blamed the need for higher financial aid to break the cost barrier
tuition on the state higher education for in-state students, but only a
bill, which will fund less than half "narrow strata" of out-of-staters can
of the University's expenditures in come to the University.
1. 1 ".J. MW ,
credis Ueeau a 55credlGraduale
Daily Graphics by SUE CRISP

Each student in this "narrow.
strata," whose education is not
subsidized by state taxes, pays over
$5,000 more per year than their
resident counterparts. The
University's reliance upon out-of-
state funds to balance its budget
angered state legislators earlier this
year and prompted the low state
Two University regents will join
state legislators in a committee
investigation of the in-state/out-of-
state enrollment mix next fall.
Many state legislators have said
that in-state students must be given
admissions preference over qualified
out-of-staters, but University
officials argue that these legislators
have overlooked the possible
unfavorable side effects of such an
"If we change the ratio for in-
state/out-of-state enrollment and we
need to make up lost tuition
revenue, that could cause a dramatic
rise in in-state (tuition) rates," said
Vice President for Governmental
Relations Richard Kennedy. "Or the
state itself could make up the lost
revenue, but that's a little bit

Land dispute pits 'U' against city
City council to debate 'U'
over land purchase

The University's interest in
purchasing some commercial
property in Ann Arbor has created
tension between University planners
and the Ann Arbor City Council.
Officials on both sides say they will
meet to discuss the issue before the
summer is over.
The University is currently
negotiating for a piece of property
on Stadium Boulevard owned by the
Associated Spring Company. The
land currently brings in $197,200
per year in taxes - $53,600 in city
taxes and $143,600 in taxes for the
county and Ann Arbor schools,
according to Council member Larry
Hunter (D-First Ward).
City council members are
concerned that the city would lose
these tax dollars if the University
purchased the property because land
owned by the University i s
considered state property.
The University plans to use the
Associated Spring property for a
variety of things, including
expansion of plant operations and
spacefor its telecommunications
The city can take no legal action
to block sale of the land to the
University, according to City
Attorney John VanLoon.
Last Friday University Vice

President for Government Relations added, the city and the University
Richard Kennedy sent a letter to could avoid a severe housing crunch.
Mayor Gerald Jernigan and the city Jernigan said his goal in the
council in an attempt to come to an meeting would be to get an
understanding on the issue. understanding of the areas of land the
"We have told the mayor and the University intends to acquire so that
city council that we would in effect the city could "prepare for it."
sit down and talk about that issue "I'm told that the University is
where it affects the city. They have a the senior form of government in the
legitimate interest in what happens city because it's an instrument of the
to the property," Kennedy said. state," he said.
Jernigan and Hunter said they are Jernigan added that he is more
interested in meeting as early as next concerned about keeping current
week, but a date has not been set. manufacturing firms in the city,
At Monday's city council possibly by granting them tax
meeting Hunter urged other council breaks, than thwarting the
members to express concern over the University's acquisition of land.
University's intent to buy the "We have to sit down and figure
Associated Spring Company, but he out why these companies are leaving
described the city's struggle withthe and how we can keep them. That's
University on tax issues as "like much more important than getting
David trying to slay Goliath." in a fight with the University,"
Hunter said Wednesday the city Jemigan said.
provides the University with certain
services which could be used as Kennedy said he hopes the city
leverage in the matter. Hunter would officials see the benefits the
not specify which services these University has brought. "What's less
were, but he said they were not known is the fact that we have sold
police and fire services. property which has added
"What we want is an ongoing ormously to the tax base of the
effort at cooperation, rather than city.
crisis management from the city He cited the property adjacent to
side." He said the University needs North Campus along Plymouth
to think about how its expansion Road which was sold to several large
plans might affect housing prices in research firms which bring in large
the city. Through cooperation, he property taxes for the city.

Campaign trail
Michigan Telefund students solicit alumni for contributions as part of
Phase II of the Campaign for Michigan. As of June 30, the Telefund
secured $8.5 million of the Phase II $20 million goal. This phase of the
campaign targets graduates for 'unrestricted support of individual
academic units,' said Jerry May, associate director of the campaign.

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