State budget shorts schools Engler's recommendation to be unveiled at Capitol today By Jeremy W. Peters Daily Staff Reporter With Gov. John Engler's Fiscal Year 2001 budget proposal scheduled to be announced this morning, some are anticipating a less-than-desirable increase in funding for the state's public colleges and universities. "It is different from what I'd propose," said Sen. John Schwarz (R-Battle Creek) in reference to the proposed 2.5 percent increase Michigan schools could receive in their base appropriations. In addition, most lawmakers anticipate that certain institutions will receive a 0.5 percent increase in their base funding to bring them closer to the per-student floor foundation the state attempts to meet. Last year the state initiated a system for higher education funding that groups Michigan's 15 public universities into tiers with varying minimum funding amounts. Engler's budget may also include a 2 percent across the board increase for the improvement of infrastructure and technology. Schwarz, who chairs the Senate Appropriations Higher Education Subcommittee, said he would like to see something closer to a 5 percent increase in the base funding universities receive. "It's a good start, but we've got some work to do," Schwarz said. During the current fiscal year, the University received a 4.8 percent state appropriations increase, which led to the lowest tuition increase in more than a decade. Engler's Fiscal Year 2000 budget recommendation originally guaranteed only a 1.5 percent increase for the University, but the formula for distributing state funds was altered by House and Senate subcommittees before Engler signed the final proposal in July. Engler's Deputy Press Secretary Susan Schafer said she could not reveal specific details of the governor's budget proposal, but it includes allocation of funds for specific programs such as Medicare and tax cuts, she said. "Obviously education will be a big part of it, but we'll see health care and some environmental projects move forward," Schafer said. Kelly Chesney, spokesperson for the Department of Management and Budget, was more specific as to what Engler's proposal will include when it is unveiled at the Capitol by State Budget Director Mary Lannoye. Chesney said tax relief, funds for local government, health care and other new initiatives will all be provided for. Despite Schwarz's assertion that the budget "needs work," Chesney said she is hopeful the proposal will move through the Legislature without significant opposition. "I hope that the budget will be received well and it will be expedited through the legislative process so that the citizens of the state will see the positive impact of the budget," Chesney said. Originally on page 1A in the 1-27-2000 issue of the Daily.