Higher education budget passed OPINION The problem with public funding Robert Soave explains how the public tunding program exclu- sively benefits majority parties, vwhiie hanging the underdogs out to dry. See Page 4 ARTS 'WALL--E' blasts into theaters The new family film shows Pixar at the top of its game with an exciting, unique and intelligent scifi adventure. See Page 9 SPORTS Beijing-bound Club Wolverine swimmer Michael Phelps secured a spot in the 2008 Summer Olympics and set a world record in the 400-meter individual medley at the U.S. Olympic swimming trials in Omaha yesterday. See Page 11 INDEX Vol. CXViii, No. 143 ©2008 The Michigan Daily . michigandaily.com SU D O K U ........................................2 O PIN IO N ........................................4 CLASSIFIEDS.................................6 CROSSW ORD ................................6 A R TS ...............................................9 SPORTS... .............................. 11 By JULIE ROWE ManagingNews Editor Nearly three months before the deadline, the Michigan Legisla- ture determined a large portion of the state budget for the next fiscal year Friday. Lawmakers discussed and voted on legislation until 2:00 a.m. Satur- day, but the bill providing a 1-per- cent across-the-board increase for the state's public universities passed both houses relatively quickly in the middle of the day. Michigan's public institutions will see an overall budget increase of $14 million. The 1-percent increase will allocate an addition- al $3.2 million to the University, bringing the total state appropria- tions for the Ann Arbor campus to $326 million. Gov. Jennifer Granholm's pro- posed budget included a 3-percent increase for state universities, as did the state Senate bill passed in, earlyFebruary.Another bill passed by the House of Representatives earlier this month allocated an average increase of 2.8 percent. But when state revenue fell $400 million short of what Gran- holm and lawmakers anticipated, budgets were cut or given smaller increases. The governor and state legislators negotiated Wednesday to resolve the revenue deficit and settled on the 1-percent increase for higher education, the same increase universities saw last year. "I was hoping for more obvi- ously, but given the current finan- cial situation with a $400 million deficit in our spending, we all had to take certain cutbacks," said Rep. Pam Byrnes (D-Chelsea), chair of the higher education appropria- tions subcommittee. "We're disappointed," said Mike Boulos, executive director of the President's Council of the State Universities of Michigan, which See BUDGET, Page 2 UP IN THE AIR percent Hike will cost in- state LSA students an additional $590 By LINDY STEVENS DailyNewsEditor The University's undergraduate tuition rate will see a 5.6-percent increase duringthe2008-2009 aca- demic year. The measure approved by a unanimous vote of the Univer- sity's Board of Regents on June 19 means that in-state freshmen in the College of Literature, Science and the Arts will pay $11,637 to attend the University. That figure represents a $590 increase from last year's rate for in-state students. See TUITION, Page 8 TUITION INCREASE Annual increases in tuition over the past 10 years from previous year YEAR %INCREASE* TUITION 1999-2000 2.8% $6,333.38 2000-2001 2.8% $6,513.38 2001-2002 6.5% $6,935.38 2002-2003 7.9% $7,485.38 2003-2004 6.5% $7,975.38 2004-2005 2.8% $8,201.38 2005-2006 12.3% $9,213.38 2006-2007 5.5% $9,723.38 2007-2008 7.4% $10,447.38 2O8-2-009 5.6% $11,037.38 'Oata reflectsfall semester tuition increase for in-state LSA undergraduate students soURCE: THE UNivERSITY OF MICHIGAN A memberof the aerial performance group "The Dream Engine" floats gracefully in mid-air beneath a large helium balloon at Ann Arbor Summer Festival's Top of the Park. For more, go to www.michigandaily.com.