Gov. John Engler allocated $309,454,933 to the University in his proposed budget for the next fiscal year - $7.5 million more than the University received last year.
All of Michigan's public universities received a 2.5-percent increase over last year's appropriations.
"I think one should be pleased with the effort of the state to increase the allocation to help with inflation," University President Lee Bollinger said last night.
The 2.5-percent hike is based on the government's inflation projection for the next fiscal year. Engler did not grant an additional $3 million the University requested last fall to fund an undergraduate research initiative.
"It is still possible that we can lobby for the money," said Provost J. Bernard Machen.
As in past years, the University received the largest proposed allocation of any public college in the state.
"It has been that way historically," said Mark Murray, Engler's budget director. "It will continue to be the best-funded university."
Some University officials said the increase fulfilled their expectations.
"We have been receiving indications it would be around this amount," said Cynthia Wilbanks, associate vice president for University relations.
University Regent Olivia Maynard (D-Flint) said the increase is a positive one.
"We got our fair share," Maynard said. "I'm always pleased when it goes up."
Engler's proposal would give the University's Dearborn and Flint campuses $22 million and $19 million respectively.
Despite its larger student body, Michigan State University received a proposed allocation of $274 million - about $35 million less than the University of Michigan.
"There has been an imbalance there, and some of it may not have been proper," said state Rep. Harold Vorhees (R-Wyoming). "It should be looked at."
Some House Democrats also called the difference unfair.
"There ought to be equity," said Rep. Lingg Brewer (D-Holt).
Vorhees, however, cited one of the University's reasons for receiving a larger allocation than Michigan State.
"It's a premier research and development university," Vorhees said.
In Engler's budget proposal for fiscal year 1997, MSU received a disproportionately higher increase of 4.5 percent, while the University received an increase of 4.4 percent.
Brewer said that although a larger increase would greatly benefit the state university system, the economy causes it to be smaller.
"Given the realities, that increase may be about right," Brewer said.
Wilbanks said the amount is not set in stone - a final budget must be approved by the state Legislature. The budget proposal will first be reviewed by the House Appropriations Committee.
"I am certain the House will be looking at it," Wilbanks said. "We may have the opportunity to enhance it."
In addition to the 2.5-percent increase for universities, Engler slotted a $541.3-million increase for K-12 education - bringing the total amount spent per student in Michigan public schools to more than $5,000.
"Spending on K-12 education will exceed spending for everything else in the general fund budget combined," Engler said in a written statement.
Despite the increases in K-12 and higher education, Rep. Liz Brater (D-Ann Arbor) said the budget still allocates too much money to areas such as corrections and too little to education.
"It's somewhat disappointing," Brater said. "We need to start putting our money where our mouths are. There's a lot of work that needs to be done on that budget."
Brewer agreed that Engler should focus more on K-12 education.
"There are a lot of people in the K-12 system that won't make it to the university system," Brewer said.
Other highlights of the proposed budget include:
