2 - The Michigan Daily - Monday. Julv 23. 2001


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BUDGET
Continued from Page 1
week.
Courant noted an inverse relationship
between the state's higher education
appropriation and tuition increases.
Tuition raises were low in the years when
the state was able to appropriate more
funds to the University, and higher tuition
raises corresponded with low state appro-
priations. This year is no different, he
said.
But high tuition hikes to make up for
low state appropriations puts additional
strain on students and their families, said
Andrea Fischer Newman, the lone regent
to oppose the budget. Parents may lose


their jobs or take pay cuts, and increasing
tuition stretches their budget even thinner.
"The University needs to understand
better the cyclical impact of the econo-
my,"she said.
Newman (R-Ann Arbor) said although
she is not opposed to tuition increases,
there are alternatives the University could
explore. Increasing tuition more when
the economy is strong and setting some
money aside for harder times is one alter-
native, she said.
Courant said there are necessary
expenses that the University cannot
avoid.
"The bills don't go down. We still have
to pay them," he said. "With a low state
appropriation, tuition is how we do it."


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Courant cited soaring energy costs as ATH LET'
one main reason the 2001-2002 fiscal UL (
year budget is so tight. Conservation Continued from Page 1
efforts are underway, he added. Falling short of expected spend-
Various schools and departments are ing while exceeding revenues pro-
also trying to find ways to cut corners jected at the beginning of the last
and save money. "A penny saved is a fiscal year contributed to a deficit
penny they can re-deploy to their highest slightly under $2 million.
priorities," Courant said. The final revenues for the year
Courant also said the upkeep of the were announced at $43.7 million,
University's programs and initiatives, and $2.4-million more than the previ-
an increase in staff benefits pushed the ous projections.
jump in tuition. The department announced in
Courant highlighted four areas the May that increased income from
University has singled out as priorities - licensing royalties and donations
the Life Sciences Initiative, the under- would lead to higher revenue than
graduate experience, the scholarly quality previously expected.
of the institution and information tech- The largest share of athletic rev-
nology. enue came from ticket sales, which
Staying competitive and attracting and totaled $19.1 million and made up 44
retaining a top notch faculty requires the percent of total revenue. Compared
University to offer competitive salaries, to average Big Ten schools, Michigan
Courant said. Tenure and tenure track made $5 million more in ticket sales.
faculty are projected to receive a 5.3 per-
cent pay raise. T ET
Courant labeled information technolo- D EROI
gy as an "absolutely essential" compo- Continued from Page i
nent of the University and another area Wonder gave a free concert live
where money must be spent to keep up for those crowding into the main
with the market. stage area of Hart Plaza and the
Staff benefits, including health insur- overflow crowd on the big screen in
ance, will increase by $7 million accord- Comerica Park.
ing to the proposed budget. Performing hits like "Master
The University is not alone in its sig- Jam" and "Higher Ground," Wonder
nificant tuition increase, and the pro- pumped up the standing-room-only
posed 6.5 percent hike is the lowest crowd. More than doubling his
tuition increase among Big Ten schools scheduled one-hour performance,
and public universities in Michigan Wonder featured his signature high-
announced thus far. energy songs like "Superstition"
"We are less dependant on state appro- and "Dancing in the Streets."
priations and more dependant on tuition," "It is an exciting time. I wish we
Courant said. "A bad year from the state could do this every year for
hurts us, but we can make up for it." Detroit," Wonder said. "We've got
Some state legislators have vowed to to do something to encourage peo-
find additional sources of funding for ple" to embrace the city.
higher education. One possible source is Wonder finished his set with
a repeal of the state's tuition tax credit, "Happy Birthday," a song written
which would garner most universities twenty years ago and heard in the
another1.5percentincrease in funding. city during the campaign for the
If the University were to receive addi- organization of a Martin Luther
tional state funding, Courant said it was King Jr. holiday.
possible that the University would revise The official celebration began
its tuition increase. Thursday with the opening and ded-
ication of the new 3,000 foot long
i Y Riverfront Promenade.
RECORDS & 04t
USED CDS

Seventeen percent. of the depart-
ment's revenue came from spon-
sorships, seven percent more of its
total budget than the average Big
Ten school.
Martin attributed this difference
to the tradition surrounding
Michigan athletics.
Martin said the athletic tradition
at Michigan is the main reason for
its many sponsorships.
Michigan depends less on dona-
tions than most other Big Ten
schools. Nor does the department
depend on a set amount of Univer-
sity financial support, which, for
the average school makes up 5
percent of revenue, though Michi-
gan has received $3 million in
"discretionary transfer" from the
University president's unrestric-
tive gift account over the past two
years.

4

0

The walkway, which extends from
the Renascence Center past Joe
Louis Arena, allows visitors to walk
along the river and get a view of the
Windsor skyline.
Zeleka McKissic was among
many revelers who showed up in the
early hours of the morning to get a
prime spot to watch the concerts.
McKissic and 17 family and friends
camped out on Hart Plaza begin-
ning at 3 a.m.
"It's a beautiful thing, I'm very
proud of our city. We're progressing 1
slowly but we're progressing,"
McKissic said.
Tomorrow, the anniversary of
Antoine de la Mothe Cadillac's
landing on the shore of Detroit in
1701, a new statue in his image will
be officially unveiled at Hart Plaza.
The celebration was an important
gamble in displaying the city's revi-
talization. Organizers sought to
attract many who had not been
downtown in years. The gamble 4
seemed to pay off as more than a
half-million packed the birthday
venues.
- The Associated Press contributed
to this report.


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