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University receives $8M gift from state

The University was the lucky recipient of an $8 million cash bonus from the state of Michigan on April 25. Due to a surplus of state taxes, the state decided to allocate $22.6 million of the $95 million surplus to state universities and community colleges, to spend at their own discretion.

"We're very pleased with this news," said Lisa Baker, associate vice president for University relations. "Among other things, we will be using the money to fund community service outreach projects that will benefit the state of Michigan."

The office of Provost J. Bernard Machen is accepting proposals for how to allocate the money from faculty and other campus units.

"(We're accepting proposals) involving new or existing community service learning programs that would either continue or expand the University's involvement with the state," Machen said.

Machen said proposals must have an "academic component," to be considered for funding.

State tax revenue exceeded government expenditures by $95 million for fiscal year 1995. Two-thirds of the money, $67.4 million, will be placed in the state's Budget Stabilization Fund, also known as the Rainy Day Fund. This fund buffers the state from economic crisis in case of a recession or economic downfall.

"This significant deposit for higher education and the Rainy Day Fund is a strong tribute to the strong and innovative fiscal management carried out by Governor Engler, Michigan's department directors and their fiscal managers," said Mark Murray, director of the state's department of management and budget.

Although this is the third consecutive year that the state has underspent its projected budget, this is the first and possibly only time the state will allocate some of the extra money to higher education.

"The higher education bill is not an official law because we can't guarantee that we'll be doing this good in the future," said Maureen McNulty, a spokesperson for the state's department of management and budget.

The University received the largest share of the money, followed by Wayne State University, which received $3 million. Michigan State University received $900,000.