Engler to appropriate funds to 'U'

With the economy in good shape, members of the University community are hoping the University will receive healthy appropriations when Gov. John Engler proposes the state's budget in Lansing today.

Although the governor has already cut taxes 24 times during his tenure, Engler will be able to continue tax-cuts due to the booming economy, said Maureen McNulty, spokesperson for the Department of Management and Budget, the state department that develops Engler's proposed budget plan.

Engler

"The economy has been going along really well," McNulty said. "Overall growth is just at inflation, yet we're still cutting taxes."

Last year's budget proposal included more than $300 million for the University, a 2.5-percent increase from the previous year. That amount increased by the time the budget was passed by the legislature.

But Secretary and Vice President for University Relations Walter Harrison said the University does not expect to receive an increase as high as last year's.

"In this business, you learn not to believe everything you're told, but we're hearing there will be about a 1.5-percent increase (proposed)," Harrison said.

Associate Vice President for Government Relations Cynthia Wilbanks said she also has heard that the appropriation will be smaller.

"We've been hearing for a couple of months that the increase will be less than in the past few years," Wilbanks said.

Harrison said the University could be in a tough position if funding does not match inflation.

"If the appropriation is small, we would be facing some difficult decisions in the future," Harrison said.

McNulty would not reveal specific details about higher education appropriations.

"The higher education appropriation will build on the high increases they have received the past two years," McNulty said.

Harrison said "the governor has been very thoughtful in his higher education allocations."

The budget will include many of the programs the governor outlined in his State of the State address last month, McNulty said. This will include increases in day care funding, adoption subsidies, critical care for people in need and agricultural spending increases.

But Harrison warned that all that anyone could do at this point was speculate as to how much funding Engler will propose for these programs. Today's announcement is only the beginning of the lengthy appropriations process, he said.

"This is only the first step in the funding process, and we'll be following it very closely," Harrison said.

After the budget is released, it will be sent to the Senate Appropriations committee for consideration. The committee will hold its first hearing on the budget Feb. 20 at 10 a.m. in the Michigan League.

02-12-98