LANSING - In sharp contrast to Gov. John Engler's 2.5-percent proposed funding increase, the state House Higher Education Appropriations Subcommittee recommended an average 5.5-percent hike in allocations to state universities.
The University's Ann Arbor campus, along with Eastern Michigan University, received the second-lowest percentage increases of 4.8 percent. The University's Dearborn campus received the lowest rate of increase, at 4.7 percent, while Grand Valley State University's 7.9-percent increase was the largest hike.
But the subcommittee's appropriations recommendation was accompanied by blistering criticism of the University from its chair, Rep. Morris Hood (D-Detroit), who called Vice President for University Relations Walter Harrison "arrogant" and blasted the University's out-of-state enrollment figures.
And some members of the subcommittee said they are skeptical about the large spending increases passing in the state Senate.
"Santa Claus and a sleigh have been running around the (Upper Peninsula) and the rest of Michigan," said subcommittee minority vice-chair state Rep. Donald Gilmer (R-Augusta), referring to the proposed appropriations increases. "I hope no one goes buying champagne and caviar too soon."
Hood cautioned that the budget process is only one-quarter finished. The funding recommendation still needs to be moved to the general House Appropriations Committee, the House floor, the Senate Higher Education Appropriations Subcommittee, the Senate Appropriations Committee and the Senate floor.
"I am quite certain that when this bill reaches the Senate, there will be changes made," Hood said.
Although the University's percentage increase was comparatively low, University officials said they were satisfied with the proposed allocation.
"It's an encouraging sign by the committee that they support higher education," Harrison said. "All of the increases are pretty large. Across the board, it's pretty generous."
Harrison said he is not comparing the University's proposed increase with other state universities. He also said it is too early to tell what the eventual increase will be.
Another new element in the budget proposal is an increase in the minimum funding per student, from $4,150 to $4,275. But some subcommittee members, including Rep. Jim McBryde (R-Mt. Pleasant) said this $125-increase is not enough.
McBryde, whose district contains Central Michigan University, proposed an amendment to the budget that would raise the minimum funding per-student to $4,500, but it failed in a vote.
"There should be a poverty line," McBryde said. "This is one way of struggling with the fact that there are different admission rolls."
In the proposed budget, the University's funding per-student is $8,963, the highest in the state.
Members who opposed the amendment said there must be a limit on allocations.
"The process has to start somewhere," Gilmer said. "There has to be some restraint shown."
An amendment to the budget, saying the enrollment of out-of-state students may not exceed 30 percent, was a result of problems Hood said he had with the University's enrollment patterns.
"The U of M is a public institution - I repeat, a public institution," Hood said. "It is not a private institution, as many would make you believe."
Hood said he was "insulted" by the University breaking an earlier agreement that they would limit out-of-state students to 30 percent. Thirty-four percent of the University's current enrollment is comprised of out-of-state students.
"I've not received more complaints about any other issue than the residency at the U of M," Hood said. "They reap financial benefits."
Hood said he also was angered by an article in the Detroit Free Press last month that quoted Harrison on the topic of the residency agreement as saying "we reserved the right to change that if circumstances change."
"The U of M is one of the finest institutions in this nation," Hood said to Harrison at yesterday's meeting.
"I take this as a personal affront. I can't recall anything I've been more hurt or upset over. I'm not suggesting racism played a part in your attitude, but I have an inkling that your arrogance was predicated by me being a black Democrat from Detroit," Hood said.
Harrison said the comment in the Free Press was not intended as an insult to Hood.
"I apologize to the chairman," Harrison said. "I had no intention to embarrass him or insult him personally."
Other subcommittee members also urged the University to keep its out-of-state enrollment at or below 30 percent.
"We continue to go through this every year," said Rep. Paul Tesanovich (D-L'Anse). "Words are one thing, but the actions of the University show a disregard for this committee."