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University President Lee Bollinger discussed the reasons and possible ramifications of Gov. John Engler's "inadequate" budget proposal before the faculty's advising committee yesterday.
Engler proposed the 1.5-percent increase in an address to state legislators and University officials Feb. 12. Bollinger said the recommendation would not nearly cover the University's rising expenses.
"They are eroding a great University by passing small increases year after year," Bollinger said to the Senate Advisory Committee on University Affairs.
One of the factors Engler used to propose the budget is the Consumer Price Index, which measures the inflation rate throughout the past year.
Bollinger explained that the CPI has never before been tied to the amount of money the University needs.
Engler's reasons for recommending a decrease in higher education funding are because state funds are being allocate elsewhere, Bollinger said.
"We have major needs," Bollinger said. "The proposal creates a dilemma, with the economy booming and more attention being paid on intellectual work. Why isn't there a greater investment?"
Tax cuts and the building of five new prisons across the state have prompted Engler to spread the higher education budget thinly, Bollinger said.
The effects on the University may not be apparent right away, but over a long period of time, a change will be noticeable, Bollinger said.
If passed, the proposal would cause the University to tighten its fiscal belt or raise tuition.
"To make up for the inadequate proposal, we would hypothetically have to increase tuition by 5.6 percent," Bollinger said.
The possibility of raising tuition by 5.6 percent elicited negative reaction from faculty members.
That kind of increase would be incredibly difficult for students to handle, said Physiology Prof. and SACUA chair Louis D'Alecy.
To combat that magnitude of a tuition increase, the only alternative would be to cut department funding.
"There is no way to predict how the money would be allocated," said Barbara MacAdam, head of educational and informational services. "But there would be a poor impact overall."
02-24-98
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