'U' funding may increase by 3 percent

The state Senate approved a proposal yesterday by a vote of 36-1 that would increase state funding to the University by 3 percent.

The proposal, passed last week by the Senate Appropriations Committee, includes $30 million more for higher education than the budget Gov. John Engler proposed last month.

The bill now will be considered by the House Appropriations Subcommittee for Higher Education, which has tentatively set its first hearing on funding for April 29. Cynthia Wilbanks, associate vice president for government affairs, said she is satisfied with the proposal the Senate passed and looks forward to seeing how the House will change the bill.

"We're very pleased with the Senate's action on this bill," Wilbanks said. The House's "input will be important, but this is a good start."

Although the bill passed with no substantive changes from the committee's recommendation, Sen. David Jaye (R-Macomb) proposed two amendments concerning minority preferences.

The first would have withheld 10 percent of the appropriation and put it toward an equal rights incentive grant to schools that did not use minority preferences in admissions or hiring. This proposal, which could have withheld $30 million from the University, did not reach a vote.

Jaye's second amendment proposal would have banned minority preferences to "rich kids" - students who are above 200 percent of the poverty level - and would have withheld funds to institutions that used them. This was defeated in a 22-15 vote in the first recorded roll call vote on minority preferences in the state's history.

"Some people thought the 10 percent would not have been enough to persuade a committed racist institution like the University of Michigan," Jaye said.

When Engler's budget was proposed to the Senate and House Appropriations committees, his recommendation to increase funding to colleges and universities by 1.5 percent immediately received criticism from committee members and state university administrators.

"My reaction was it doesn't even approach the general inflation rate for 1998," said Sen. John Schwarz (R-Battle Creek), chair of the Senate Subcommittee on Colleges and Universities. "'This won't work,' I thought."

The approved proposal includes money that the government does not currently have in its general fund, but Schwarz said the committee has identified possible sources to fund the increase. The revenue conference between Engler's budget officials and the Legislature held in May could identify extra funds for the increase.

"A little more light will be shed on the sources of funds for the increase in May," Wilbanks said.

Engler spokesperson John Truscott said the excess funding is not there, so the governor will have a tough time signing this proposal.

"We will not sign a budget that is not balanced. We have not seen the funding," Truscott said. "We need to see program names and dollar amounts that will be cut."

State Sen. Alma Wheeler Smith (D-Salem Twp.) said that finding the funds is a challenge, but one she is optimistic about.

"Our only challenge is to find the dollars in the general fund," Smith said. "We remain hopeful, but the governor has to stop cutting taxes."

Schwarz said he knows "it will take some convincing to get the governor to sign it."

The Senate, beginning with the Appropriations Subcommittee for Colleges and Universities, has been discussing and debating the funding increase for the past six weeks. After hearing from college and university officials about the possible ramifications of a 1.5-percent increase, the committee decided to raise the increase to 3 percent.

"There would be no way at a 1.5-percent increase that students could even qualify for the tuition tax credit," Schwarz said.

The House Appropriations Committee will have a chance to change the proposal when it takes up debate next month, but Wilbanks said she hopes it also will see the need for more than a 1.5-percent increase.

"Many of the House members reacted similarly to the Senate members when the budget was proposed," Wilbanks said. "They were similarly concerned with 1.5 percent.

"We're cautiously optimistic," she said.

In addition to the 3-percent across-the-board increase, the senate recommended that six universities receive additional funding to allow their minimum spending per student to reach $4,300. Smith said this increase will help schools provide competitive academic programs.

"A minimum threshold for some of the institutions is very helpful," Smith said.

03-26-98