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. NPARATIVE TUITION RATES 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 allocation. 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 ultimatum. "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 optimistic." Land dispute pits 'U' against city City council to debate 'U' over land purchase By MARY CHRIS JAKLEVIC 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 operation. 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.