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Posted on Fri, Jan 14, 2011 : 6 a.m.

Gov. Rick Snyder warns university presidents of short-term sacrifice

By David Jesse

Michigan Gov. Rick Snyder didn’t tell the presidents of the state's 15 public universities what level of cuts are coming to their state aid in the next budget. But he did say that eventually, the state needs to invest more in higher education.

“The governor was clear about the difficult nature of the budget issues we all face, although he provided no details — and we did not expect any,” said Michigan Technological University President Glen Mroz, who is chairman of the Presidents Council, State Universities of Michigan, the group that put together the Wednesday meeting.

“He called on Michigan’s public universities to partner with him on returning Michigan to prosperity, and all of my colleagues pledged to leverage the assets of their schools to assist him.”

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Gov. Rick Snyder

Both Eastern Michigan University President Susan Martin and University of Michigan President Mary Sue Coleman attended the meeting, which was followed by a lunch with Snyder budget director John Nixon.

“It’s very clear that he values education at all levels,” Martin said. “It’s also clear there’s a structural deficit in the budget. (Nixon) told us that they need to get the structural deficit balanced in the short-term and then work with us on what the vision of higher education in Michigan should be.”

Coleman could not be reached for comment Thursday.

In addition to talking about money, Snyder also talked about the role the universities play in the state.

“The governor had a productive conversation with the university presidents and was very pleased to have the chance to sit down and discuss the reinvention of Michigan with them,” Snyder spokeswoman Geralyn Lasher said. “He discussed how we will look to the universities to help in our efforts to create an environment where jobs can be created so when the students graduate, there are job opportunities here in Michigan for them.”

He also touted the role of universities in turning around the state’s economy.

“If you look at great economic development, a university is usually behind it somewhere,” Snyder told the presidents during the meeting, held at the Governor’s Conference Room at the Capitol.

David Jesse covers higher education for AnnArbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.

Comments

John B.

Sat, Jan 15, 2011 : 3:42 p.m.

Killroy wrote (in part): "... I think Ricki is misguided in attempting to force Michigan's Universities and Colleges to TAKE THE BRUNT of the State's budget woes...." To which Speechless replied: "Wrong. The troglodyte majority in Michigan's new legislature will reserve that special privilege for state residents on the financial lower end who need some form of state assistance to get by. These legislators will designate the state's universities as second-tier sufferers. That said, it's also clear that Mary Sue & crew at the very top of the public university pyramid will hardly notice any further budget cuts at their schools. They'll safely float above it all." (Speechless) Man, are you ever right on that!

Seasoned Cit

Fri, Jan 14, 2011 : 9:42 p.m.

Has anyone else noticed that on your 3@3 page you either have the University or the President's name wrong for the quote listed. Susan Martin in President at Eastern and Mary Sue Colman is Pres @ UM. Anybody checking your "news" before they get posted? Also for those wanting the U to pay for the Stadium Bridges: I suppose the Broadway Bridge was falling apart because of all the ambulances that went over it to the hospital.. Concrete especially that which is given a salt bath yearly does not last forever!

Jatra

Fri, Jan 14, 2011 : 6:40 p.m.

@jgtrueblue Are you my father? Cause you sound just like him! I don't know when or where you went to college but in my experience there is far less "arrogant and elite" political indoctrination than you must suppose. I have had liberal professors and conservative professors and have had disagreements with both sides. The key is that in all situations I have been in professors have stated what was their opinion and why they felt the way they did. Instead of indoctrinating students I have found that it tends to spark critical thought and healthy debate. I found myself developing a much better understanding and respect for people with political and ideological views the differed from mine. If critical thought and debate is indoctrination then I hope we have more of it in school, work, and all other aspects of life.

Jatra

Fri, Jan 14, 2011 : 6:25 p.m.

@ Killroy Please pardon my density... I workout;)! I have carefully reread my post and I believe that you misconstrued my Problem: Solution: section. I evidently did not spell it out clearly enough but I was writing a commentary on the current "Problem" in the state and the proposed "Solutions" given by the incoming government. What was intended by the post was to list the current state of affairs and proposed solutions in comparison to how I believe education should be viewed. I actually do not believe that any of the "Solutions" written in the first part of my post are good ideas nor do I believe they will remedy the issues in the state. I am calling for a shift in the paradigm held by some conservatives and libertarians that universities and other public institutions dedicated to education are the problem. In short, please reread my post, if you have the time or inclination, with an ear for sarcasm and an look for my eventual critique of the current proposals. I will take the blame for not making my post clear enough for everyone here... And I'll save you a spot on the bench press because it looks like your density may be increasing just like mine;)! -Night

deb

Fri, Jan 14, 2011 : 4:43 p.m.

Hey Ryan, since you seem to have a direct line to the mayor, can you see why the mayor wont tell u of m that if one there buildings catches fire the aafd will not respond unless they pay there present share, and past contributions. If the u of m says its up to the state to make those payments then he should let them know that it is not good enough for the people of ann arbor, and the people dont care where the money comes from, and the services will not be rendered, if needed, until the money comes. please ask him why he wont take a more aggressive stance and allows the state/U to free ride off of the local taxpayers. IF THE U WERE TO PAY THE SAME PERCENTAGE OF THE AMOUNT OF LAND IT OWNS IN THE DISTRICT TO THE OPERATING COSTS OF THE AAFD, THEN ANN ARBOR WOULD NOT HAVE A BUDGET DEFICIT.

Ralph

Fri, Jan 14, 2011 : 4:08 p.m.

$16,000 to teach one class! Nice work if you can get it. Cut in half is still alot of money - $3,500 maybe? How about cutting the athletic budget or charging them lot rent?- Dave Brandon's quote : "Money is no object."

Ryan J. Stanton

Fri, Jan 14, 2011 : 3:43 p.m.

@Alan Goldsmith Just talked to the mayor. He still is only teaching the one class in the fall and making a little over $16,000 a year for it. The $33,000 figure is some kind of accounting thing U-M uses. It's not what shows up on Hieftje's W-2.

deb

Fri, Jan 14, 2011 : 3:22 p.m.

kilroy, the university in this town has very, very deep pockets. I understand that they do not want to dip into their endowment monies, but at the same time they may be in the best position to take cuts. I would like to know what you suggest. More taxes on small buisnesses? Upping the unemployment rate paid by small buisnesses (actually they just did that, by about double). Instead of calling people dumb, maybe you should spend that energy looking for an alternative. The university in this city has ove $7,000,000,000 in its coffers. I have not done any research, but i think there would be few, if any, private companies that have this kind of cash stashed away. Maybe we should target u of m, and if they do go private tax them.

Killroy

Fri, Jan 14, 2011 : 3:04 p.m.

Typical... blame the ELITE university!!! You hillbillies. Without education, there would be no engineering, which means no TV, Microwaves, Trucks, or Wii!!! @Jatra, you contradicted yourself. Please reread your original post! You rallied against education, but then in ur last paragraph discussed the merits of education. That is a contradiction. You people are really dense!!!

deb

Fri, Jan 14, 2011 : 2:50 p.m.

a2lifer, u of m did threaten to go private a few years back. There are upsides and downsides to this. The gigantic upside to the people of ann arbor would be that a new private u of m would be forced to pay property taxes... can you say ann arbor budget deficit gone?

Dog Guy

Fri, Jan 14, 2011 : 2:41 p.m.

The U. of M. hired MAYOR Hieftje. Hiring the mayor, qua mayor, is entirely different from a university employee being elected to public office. When Robert Harris was elected mayor, it was public service for him. Purchasing the services and good will of a public official is known by other terms. I do not consider the mayor's or President Coleman's dual paid loyalties as "conflict of interest."

a2lifer

Fri, Jan 14, 2011 : 2:13 p.m.

Things are going to get very grim the next few years in this state as we head into the dark ages. The people who are going to suffer the most are the poor and disabled, the most vulnerable among us. Those are the folks we need to take care of. The U-M will be fine. It is a powerhouse. Although the U won't admit it, if the state appropriations are cut too drastically, it has the option of going private, and it would end up like Northwestern. That would be a PR disaster short term and a blow to the talented high school students in-state. But it could happen. On the bright side, the U-M would still contribute to the economic recovery of the state.

Speechless

Fri, Jan 14, 2011 : 12:43 p.m.

"... I think Ricki is misguided in attempting to force Michigan's Universities and Colleges to take the brunt of the State's budget woes...." Wrong. The troglodyte majority in Michigan's new legislature will reserve that special privilege for state residents on the financial lower end who need some form of state assistance to get by. These legislators will designate the state's universities as second-tier sufferers. That said, it's also clear that Mary Sue & crew at the very top of the public university pyramid will hardly notice any further budget cuts at their schools. They'll safely float above it all.

RayA2

Fri, Jan 14, 2011 : 12:19 p.m.

Per Mr. Stanton's post, it is pretty obvious why the UofM gets by destroying a critical city bridge critical with their overweight construction vehicles, vehicles used to add $250million+ worth of skyboxes to their football stadium, and the cash strapped city gets to pay to replace it. I think the mayor's justification would permit the head of the EPA to take consulting fees from British Petroleum. This is an outrage.

jgtrueblue

Fri, Jan 14, 2011 : 11:47 a.m.

I agree with several of the previous comments only in regards to the "elite & arrogant" faculty of the universities. It is extremely evident that (without claiming a specific percentage) those who barely enter the classroom during 8 months, given shameful salaries with benefits and pensions, politicize rather than teach. THEY are the waste as they are WASTING our precious commodities - the young minds we want to keep in this state.

deb

Fri, Jan 14, 2011 : 11:43 a.m.

af3201sps: I dont have all day to research, but here is an excert from an article in the michigan daily, if i was an elected official in the city i would. Michigan daily: In 2004, the University also purchased a $300,000 fire truck for Local 693, according to University spokesman Rick Fitzgerald. In addition, the fire department also receives money from the state government, though the funding is decreasing and the payments havent been made in full (deb: as far as i know full means none over those years) for several years, according to Schroeder. Because the department is under financial pressures, Schroeder said the union would like to partner with the University in a "cooperative agreement" to improve safety. from: http://www.michigandaily.com/content/u-says-it-will-not-create-firefighter-unit DEB: And yes af, i would not care if u of m created a fire departement and ann arbor was able to cut firefighters, because those laid off firefighter would most likelyu be the most qualified candidates for the U of M positions. Either way u of m would be paying their share of costs, and if they started their own fire department it would offset the firefighters jobs cut by aa. af your posts states the facts i described above, but fails to make the connection that salaries paid would migrate from aa's responsibility to u of m.

Jatra

Fri, Jan 14, 2011 : 11:13 a.m.

@killroy When did I state: >? If I did state : > then I must have contradicted myself with:

Ryan J. Stanton

Fri, Jan 14, 2011 : 10:55 a.m.

@Alan Goldsmith Your figures are incorrect. Mayor Hieftje has been an intermittent lecturer in public policy at the Gerald R. Ford School of Public Policy. He has taught one class every fall and has been paid a little over $16,000 a year for it. The latest University of Michigan salary report dated Dec. 20, 2010, shows his pay now listed at $33,456 (one-third of the full-time rate of $101,382). So, he's definitely not making anywhere near $100,000. But I'm seeking clarification to find out why he might be making double what he made before. Perhaps he's teaching an extra class now. I've asked Hieftje about it being a potential conflict of interest in the past and he has pointed out that several past mayors of Ann Arbor have worked either full-time or part-time for the University of Michigan, including some full-time professors. With U-M being such a large employer in town, Hieftje argues it would have a chilling effect on the number of qualified people running for office to say people with any ties to U-M can't serve. For instance, Council Member Marcia Higgins, D-4th Ward, makes $43,530 a year as an administrative assistant at U-M, and Council Member Stephen Kunselman, D-3rd Ward, makes $53,931 a year as an administrative specialist in the university's Energy Management Office. http://hr.umich.edu/hrris/reports/Salary_Record_2010_A1a.pdf

Jatra

Fri, Jan 14, 2011 : 10:51 a.m.

@killroy When did I state: >? If I did state : > then I must have contradicted myself with:

jns131

Fri, Jan 14, 2011 : 10:41 a.m.

What I see and hope is this. Michigan going to a level that other countries are doing now. Integrating college with hi school. Or being ready to jump to a college within 2 years after starting hi school. There is the ECA program that already does this. IB is getting on board with this as well. England at age 16 expect the children to be ready to hit college ground running. This will give everyone a break that they need and to keep schools from having to cut expenses that they are already doing now. Keep up the great work Governor.

Killroy

Fri, Jan 14, 2011 : 10:36 a.m.

@ Jatra, You state: Yet, contradict yourself by stating the clear benefits to having strong Universities and Colleges. You can't have it both ways!

af3201sps

Fri, Jan 14, 2011 : 9:48 a.m.

@deb Are you able to back up your statement with facts? I would certainly like some proof (than you just stating it) that the UM has not given money to the city for AAFD calls to the campus. Also, if the city fire department stops responding to UM buildings, I am certain the UM would be happy to start a UM fire department as they did with their own police department. Then, maybe the city could go ahead and lay off more firefighters as they seem to want to do anyway or start an all volunteer force in Ann Arbor.

Jatra

Fri, Jan 14, 2011 : 9:40 a.m.

Problem: Michigan lacks an educated and competitive workforce to attract new investment from employers in the wake of the manufacturing collapse. Michigan has high rates of incarceration likely linked to lack of education and opportunity. Michigan has a declining population likely due to the aforementioned lack of opportunity. Solution: Cut spending on education, cut spending on social programs, cut tax credits for the workIng poor thus increasing what they pay in, cut taxes for the upperclass and business thus decreeing what they pay in. I am hopeful that Rick can improve Michigans economy and am not completely opposed to changes in fiscal policy to do so. I strongly question the attitude held by some that the schools and colleges in the state are part of the problem. Michigans universities have served as engines for job creation, sites of outside investment and developers of innovative technology. If we look at unemployment in the state the rates are lowest in the university towns which tend to have a more diversified economy and workforce. Education is not a terrible burden placed at the feet of the taxpayers. Education is an investment which pays both economic and social dividends. Education creates an attractive workforce, drives innovation, creates opportunity, helps to reduce crime rates, improves measures of health, and encourages personal development and critical thought. Education improves our children, our communities, our states and our nation. It is an investment that serves us all not a burden that holds us back.

deb

Fri, Jan 14, 2011 : 9:12 a.m.

A way to fix ann arbors budget would be to extract the money U of M has not given Ann Arbor for fire dept service. Although they are not obliged (this is somewhat of a state/political issue. However there probably is standing for a lawsuit... )I think the request must be made continually, and ann arbor should make it known that U of M will not be covered by their fire department. It is unfair for a local population to let a gigantic state entitiy freeride on this service. It may seem a bit dramatic, harsh, and even a little bit of high statkes poker, but u of m should be given a choice to pay money (their share based on a % of land owned) for the aafd service over the past few years and from this time forward or face the fact that aafd will not respond to their properties. If a U building catches fire, let it burn, but protect the interests of those non U buildings surrounding it. Some will argue this is cruel and "what if its the hospital?" but for a university endowed with over $7,000,000,000 ( i havent checked this number lately) paying for its share of the fire bill is a tiny expense. Additonally if the city were to recieve this money, especially the payment of past expenses, we would be able to fill some of the budget gap with it....

Cash

Fri, Jan 14, 2011 : 8:57 a.m.

And how does the State of Michigan reward schools who really do tighten their belts? After EMU went all of last year with a 0% increase, the Republican State legislature gave the building funding to University of Michigan, denying EMU. Speaks volumes for how the State of Michigan rewards frugality.

loves_fall

Fri, Jan 14, 2011 : 8:48 a.m.

@Alan, that's not quite right. His salary would be $101,000 if he worked full time, but his fraction is.33 -- so actually, he's only pulling in about $33,000 from the U. I suspect if anyone's going to have to take cuts at UM it's going to be the mid-level staff, as usual.

Dr. Rockso

Fri, Jan 14, 2011 : 8:47 a.m.

Your not clowning around Killroy. Tricky Ricky is making cuts to education while lining the pockets of his buddies he is appointing in Lansing.

stunhsif

Fri, Jan 14, 2011 : 8:31 a.m.

Finally, after a long dry spell, some level headed thinking and common sense makes its way to Lansing. Now look to the best gov in the country Mr. Christie, he can give you some good advice on how to start balancing a budget!

Killroy

Fri, Jan 14, 2011 : 8:19 a.m.

I think Ricki is misguided in attempting to force Michigan's Universities and Colleges to take the brunt of the State's budget woes. The education industry in Michigan is perhaps the only thing we really have left that is producing any sort of real revenue and offering real assistance to citizens to train for new jobs. To cut these budgets is tantamount to cutting of one's nose to spite the face. So, the self-described 'nerd' slashes education. No irony there?!?

Sallyxyz

Fri, Jan 14, 2011 : 6:43 a.m.

Maybe some of Michigan's universities that are sitting on billion dollar endowments (UM, for example) need to start spending some of that cash to replace state cuts. There is NO need to lower services and lay people off if less than 15% of your total budget is from the state (as is the case for UM) and if that amount gets cut, you replace it with some of that endowment cash. Not all endowment funds are restricted. UM also has a problem with paying the top officials too much relative to the lower level staff, similar to how corporations operate. UM does this in the units also. The admin unit heads get a huge salary relative to the support staff, who actually do the work. Some faculty are way overpaid as well. Some have become very unproductive and the TA's do all the work. Corporations pay the top dogs a bundle of bucks, and pay the underlings a pittance. UM, unfortunately, in recent years, has adopted that model. Cut the salaries of the top dogs at UM, and that will save a bunch of cash.

Cash

Fri, Jan 14, 2011 : 6:39 a.m.

AnnArbor.com.....Give us this day, our daily Rick Snyder article..... But as long as we are talking about Snyder, budgets and money.... it seems Snyder is not noticing that when he points at others, a finger is pointing back at him! Come on Rick, how much did you raise the taxpayer funded expenditures with your BIG hires?? http://www.detnews.com/article/20110114/POLITICS02/101140384/Snyder-fails-to-release-salaries

Evelyn Griffin

Fri, Jan 14, 2011 : 6:26 a.m.

Maybe it is time to look at the huge salaries being paid to the top structure of the state universities. They seem to use the same logic that the big banks use in granting raises. EvieG