Stephen M. Ross gives University of Michigan record $200M
Stephen M. Ross talks to reporters Wednesday, Sept. 4, after the University of Michigan announced his $200 million donation to the business school and athletic department.
Melanie Maxwell | AnnArbor.com
The name Stephen M. Ross is already familiar to many University of Michigan students and alumni.
The school's business college was named after the New York City real estate giant when he gave $100 million toward a new state-of-the art home for the school in 2004.
On Wednesday, Ross moved into another historic place at the university: U-M announced that he'll give a $200 million donation to fund upgrades to the business school's older buildings and renovations to buildings on the athletic campus.
Ross' lifetime donation to U-M is $313 million, making him the most generous donor in U-M history. The $200 million gift is also the largest in university history.
"Stephen Ross' vision has always been about the ability of facilities to transform the human experience," said U-M President Mary Sue Coleman of the donation.
His most recent donation will be split evenly between the athletic campus and the business school. The athletic campus will be named the Stephen M. Ross Athletic Campus in the donor's honor.
Ross called U-M's combination of excellence in academics and athletics unique.
"When you fuse those together you end up with a school spirt that probably doesn’t exist at any other college in this country," he said Wednesday during an event announcing the donation.
The donation will count toward U-M's upcoming fundraising campaign, which Ross will chair, U-M announced Wednesday.
Over the past year U-M has secured a flurry of large donations in preparation for the campaign, including a $110 million gift from California billionaire and vice-chairman of Berkshire Hathaway Charles Munger to build a new residence hall for graduate students.
Helen Zell, wife of billionaire real estate tycoon Sam Zell, donated $50 million in March to the College of Literature, Science, and the Arts toward a creative writing program. Also in March a foundation formed by the now-deceased Samuel and Jean Frankel gave $25 million to the U-M Cardiovascular Center to finance clinical research and patient support. In September 2012 U-M's art school was renamed the Penny W. Stamps School of Art and Design in honor of Penny and E. Roe Stamps, who donated $32.5 million to the school.
Ross, a 73-year-old Detroit native, earned a bachelor's degree from U-M's business school in 1962. His first gift was the first nine-figure donation to the university and one of four in the school's history, with his second gift being the fourth.
His $100 million gift supported the construction of a new, modern building for U-M's growing business program. About $50 million of the donation was distributed over the course of 10 years, with the remainder of the money as a bequest of Ross' estate.
Ross also gave a $5 million lead gift to create the Stephen M. Ross Academic Center, which provides study space on the athletic campus, and $5 million for the stadium expansion project.
According to Forbes, Ross has a $4.4 billion net worth. Ross is chairman and founder of Related Companies, which is best known for the development of Time Warner Center in New York and the 26-acre Hudson Yards development currently underway on Manhattan's west side. Ross also owns the Miami Dolphins.
With the gift, Ross also becomes the third-largest donor to a business school in the United States, according to U-M. The Ross School of Business plans to use the donation to fund:
- New spaces for students to study, collaborate and connect with each other, faculty and potential employers.
- A state-of-the-art career services space, including an enhanced recruiting center .
- A space to bring together faculty, students and corporate partners to create practice-oriented research on topics of key importance to local and global firms.
- Classrooms infused with advanced technology and innovative design to support in-person and virtual collaboration and connectivity on a global scale.
- Scholarships for Ross students.
The athletic campus will use its share to:
- Bolster its academic success programs.
- Build and develop state-of-the-art facilities.
- Create new spaces that help student-athletes develop skills for success after athletics.
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602 and follow her on twitter.
Comments
bizzkid28
Fri, Sep 6, 2013 : 9:41 p.m.
He should by the Wolverines to replace the Dolphins with that money. Good to see this happen everywhere http://tiny.cc/psxy2w
groland
Thu, Sep 5, 2013 : 5:45 p.m.
Good, perhaps now they can rename the Wiley building, since Mr. Sam Wiley was indicted for tax evasion and securities fraud. Not exactly the kind of person we should be honoring at the business school.
blue85
Fri, Sep 6, 2013 : 4:55 p.m.
I've studies a lot of tax law and I can tell you it is some of the most confusing spaghetti code on the planet. It has been endlessly complicated by Congressional and Senatorial give-aways and pandering to various groups and is not designed for either clarity or financial efficacy. Some guys, probably Wiley included, try to "arbitrage" that code. Sometimes they succeed. Their success is a huge irritation to the government. Sometimes, rather than moving the Congress/Senate/Treasure toward amending the code to make it either comprehensible or cohesive, the government will indict people to try to do judicially what they didn't have the competence or political will to do legislatively. You shouldn't confuse indictments for evidence of malfeasance. The truth is usually a bit more nuanced.
genetracy
Thu, Sep 5, 2013 : 1:47 p.m.
The money should be used to build a state of the art homeless camp in Ann Arbor. Burns Park perhaps?
Somargie
Thu, Sep 5, 2013 : 4:27 a.m.
Wow...another rich guy with too much money contributing to the most unnecessary areas of UM, which most likely hasten the drain of taxable property to the City of Ann Arbor, many of these rich guys claim to love so much. Worst, none of this money will help lower tuition cost to the majority of students, lower student debt or go to the City of Ann Arbor to pay for the loss of services, taxes or adequate funding of police and fire department services. Maybe, they can use it to make their stadium noise even louder. As of now, football games can be heard over 1 mile away not only in the parking lot of Whole Foods but that Shell Station too. Sad.
Eduard Copely
Fri, Sep 6, 2013 : 11:23 a.m.
I agree with you. Then again I'm a minority student.
blue85
Thu, Sep 5, 2013 : 4:34 p.m.
"Worst, none of this money will help lower tuition cost to the majority of students, lower student debt or go to the City of Ann Arbor to pay for the loss of services, taxes or adequate funding of police and fire department services." Is it possible that your reading comprehension precluded your ability to see overtly stated in the article the fact that some of the monies will be used to lower tuition? What about that is confusing to you? Why should UM pay for the city of Ann Arbor to run their show? How many millions does UM donate in terms of free medical care? Somewhere around $200MM/year. How about scholarships? Somewhere around $150MM/year. There is roughly $1,500,000,000 in the endowment earmarked for tuition relief. Your assertions are without foundation.
Goofus
Thu, Sep 5, 2013 : 2:28 a.m.
What longterm local Ann Arbor institution can we say good-bye to next as the University gobbles up the property?
Goofus
Thu, Sep 5, 2013 : 2:27 a.m.
= National Championship. Sorry to break anyone's bubble.
a2cents
Thu, Sep 5, 2013 : 1:43 a.m.
Is the searchlight show tonight a celebration or just a new toy for the fun house?
Kafkaland
Wed, Sep 4, 2013 : 10:59 p.m.
First of all, a big Thank You to Mr. Ross for this big gift. The University will be better for it. Regarding the discussion here, it picks up on an important issue. The University generally prefers if big donors endow core academic missions, so that if we hit another budget crunch these programs are protected, no matter what. An example would be a major expensive teaching laboratory that is vital to student education in the field, but nowhere near breaking even from tuition an lab fee revenues. In good times, the university can subsidize it with revenues elsewhere, like some big intro purses, but when times get rough, it will be on the chopping block. Major donors, on the other hand, are reluctant to fund such a thing, after all it's currently bing paid for, and if it's so important that thy re asking for money fr if, te assumption is that it will be protected even in bad times. And they don't want to waste their money on something that would happen anyway, at least to their mind. So they rather spring for fancy enhancements outside of the core academic mission, that would simply not happen otherwise, like another upgrade to already excellent academic or B-school facilities. It's rare that a happy medium can be found, like in the case of the Zell donation, that is special and a credit to the donor, but still within the core academic mission of the university.
glacialerratic
Thu, Sep 5, 2013 : 12:48 a.m.
It's hard to argue that lavishing additional millions on facilities for business administration students, who check their email in the already lavish and pretentiously named Davidson Winter Garden (echoes of the conservatories of the European nobility), and additional millions on the 880 or so students who play intercollegiate athletics, falls within the core academic mission of the university.
Lyn Barron
Wed, Sep 4, 2013 : 8:55 p.m.
Dear Mr. Ross, I appreciate all you have done for the University. I was a RN,BSN there for many years. It upsets me to think that someone would say I hated anyone. I worked very hard there, and according to my patients and co-workers, did a great job. There have been some problems that I and others have encountered in regards to our treatment by the HR department at the University. I do not hate anyone. You can look anywhere on any site that I have ever written on, and you will not see hatred expressed towards anyone or even the University. My main message has been that the University needs a mediation center.
Yeah buddy
Wed, Sep 4, 2013 : 7:39 p.m.
Ironically, he is threatening to sue the city of Miami for $250 million for upgrades to the Stadium that the Miami Dolphins (who he owns) play in. Somehow I don't think this donation to UM is going to help in any in those negotiations.
blue85
Thu, Sep 5, 2013 : 4:29 p.m.
"Ironically, he is threatening to sue the city of Miami for $250 million for upgrades to the Stadium that the Miami Dolphins (who he owns) play in. Somehow I don't think this donation to UM is going to help in any in those negotiations." 1) there is no irony, he has spent $200MM on player acquisition/salary; 2) unlike institutions people are allowed to follow mental bookkeeping: presumably Mr. Ross has a portfolio of priorities, but some of those probably overlap; 3) in addition to the spending in point #1, Ross was prepared to spend matching dollars, in effect spend in partnership; he wasn't prepared to be the only one spending, and why should he do so?; it seems that there is research to suggest these projects fly best with community support...indicating an underlying demand, and struggle financially when the are one entity efforts; 4) if you ever make $400MM before tax, I'll be happy to NOT tell you how you should spend it.
SEC Fan
Wed, Sep 4, 2013 : 11:56 p.m.
@yeah buddy...perhaps some of the money should go to UM math department... :-)
Yeah buddy
Wed, Sep 4, 2013 : 9:29 p.m.
You don't think it's ironic that he tells the city of Miami that he can't afford to upgrade the stadium and that it should come from taxpayer dollars while writing a $200 million check to UM?
bighouseforever
Wed, Sep 4, 2013 : 7:55 p.m.
How's that ironic?
Sawchuk
Wed, Sep 4, 2013 : 7:14 p.m.
Thank you Mr. Ross, you worked hard and found a lucrative business that made you a lot of money. You generously donated a very large portion to your university, after providing your family would be taken care of for generations. You are a fine human being. Now, do you need any help with your business or a business partner ? (Insert laughter here) Okay, I was providing some humor, like we all need a daily dose of here. I still have hopes nearby Eastern Michigan, where I did undergraduate work before continuing a Master at Michigan, will get some financial help. Not trying to take away from this story of a fine man, and a fine university - but Eastern is severely underfunded. I could list literally, a hundred education inefficiencies. Some more visible, considerably minor items should be of note to locals. Several years ago, Eastern was the last Mid American conference team to have an indoor football facility. So they did what they could, and purchased an inflatable vinyl, heated (blowup) cover for a practice football field. Still the only Mid Am school without their own cross country course, they use a high school course 25 miles away. There are other countless inefficiencies, as I mentioned, and not just to sports - but to the priority of Education.
Eduard Copely
Wed, Sep 4, 2013 : 6:51 p.m.
... all I got was this lousy t-shirt.
Ryan Munson
Wed, Sep 4, 2013 : 5:02 p.m.
Congratulations to the University of Michigan and to higher education as a whole! I hope this spurs other donations to the higher education field.
Audion Man
Wed, Sep 4, 2013 : 5 p.m.
I think Ross should mandate that they put up an Athletic Department building onto whatever location Blimpy Burger relocates.
ManA2
Wed, Sep 4, 2013 : 4:51 p.m.
Thank you Mr. Ross. You are truly a Leader and set a terrific example for others to support a great University that has helped so many of us advance in our lives.
sesomai
Wed, Sep 4, 2013 : 4:45 p.m.
I don't think he could have found two areas of the University less in need of $100 million each.
bighouseforever
Wed, Sep 4, 2013 : 4:14 p.m.
Mr. Ross did well for himself and has been so generous in giving back to the University. It's hard to believe people are criticizing him. If you earn your money, donate it to whatever cause you would like to. We have no right to tell Mr. Ross what he can or cannot do with his money. He's donating to a school. He's not hoarding it or buying multi million dollar villas in St. Thomas for his own personal enjoyment. He is DONATING it, In fact, Ross School of Business already said part of his donation will be put towards scholarships for students. As a recent graduate of the Ross School of Business, thank you again, Mr. Ross, for your generous donation. I enjoyed my time tremendously at the school and it has helped me land my dream job. If it weren't for your first donation, I don't know if I would be where I am today. I'm sure the current class of Ross students and all future Ross students will see, even more, how incredible the school is.
LXIX
Wed, Sep 4, 2013 : 3:13 p.m.
EyeHeartA2 - stealing cake makes hot cakes then. The real world (that physical universe we all must live within) works by applying intelligent organization to the remaining resource supply. The brainier application then gleans the maximum benefit or return on investment to survive and repeat the process. Ross and his Business School seemingly fit that perpetual model - Ross invested his smarts in the Real Estate markets manipulation and earned a whopping profit which he then generously shared to help educate others. So did Zell. So far so good. On its own merit this should deserve a thankyou. However, there is more to the story than the simple gift observation. Do donors then bias the U intelligence stream? Like choosing lecturers or school subject matter taught ? The B question presented by academia and ethically taught at Michigan (not) is whether or not the Capital model is really generating an optimal survival benefit or rather exhausting everyone elses' resources to capture some fleeting ego trip for a few. Look around. Can you honestly say the current model result provides an optimal survival path for humans into the foreseeable future? Seriously. How much better could it honestly get? Suppose value returns were automatically calculated and then credited based upon the true "benefit" provided to self - and others. Continually corrected up or down based upon new information. Would Wall Street still command such vast wealth for its efforts or play a significant role in the economic machinery? What exactly did Mr. Ross accomplish that was so grand to name a school after him? The largess implies human value spectacular so what was it?. Well, some say that doesn't matter as the result is only a positive UM intelligence advance. Really? Like the next gen of UM B leaders will be more resource "productive"? Their improved model more ethical and human secure? The Proof?
LXIX
Wed, Sep 4, 2013 : 7:16 p.m.
Didn't apply to join derivative world. Why unlearn all of that reality stuff taught over at Engineering?
EyeHeartA2
Wed, Sep 4, 2013 : 4:35 p.m.
So, I guess you didn't get into the B school then?
AAW
Wed, Sep 4, 2013 : 2:47 p.m.
It's awesome that people give monies to University's and maybe the laws are different, but what about the local school district? Do you know what our local school district could do with $200 million?
blue85
Wed, Sep 4, 2013 : 3:25 p.m.
"Do you know what our local school district could do with $200 million?" 1) They could spend it down; 2) they are unlikely to husband it and make it grow the way the university will; 3) the university endowment over the last 5 years has contributed well over $1,000,000,000 to UM"s operations so I don't think you need to worry about university efficacy.
EyeHeartA2
Wed, Sep 4, 2013 : 3 p.m.
They have a website where you can contribute if you like. Here you go. Thank you in advance for your generous donation: http://www.aaps.k12.mi.us/boe.home/donations_to_the_aaps
Haran Rashes
Wed, Sep 4, 2013 : 2:26 p.m.
We should all be grateful when people who can afford to give back to their Alma Mater do so. Thank you Mr. Ross! U of M should also be thankful that Stephen Ross did not follow in the footsteps of his late uncle, also a great philanthropist, who attended that school in Ohio. The Business School down there is named the Max M. Fisher College of Business.
arborani
Wed, Sep 4, 2013 : 2:08 p.m.
Oh, the Humanities!
a2cents
Wed, Sep 4, 2013 : 2:04 p.m.
$$ to Athletic Dept :: coals to Newcastle
groland
Wed, Sep 4, 2013 : 1:55 p.m.
We just built a new business school and a new academic center for athletes. I think the development office needs to work with donors so that the money is channeled to where it is needed most.
groland
Thu, Sep 5, 2013 : 5:34 p.m.
EyeHeartA2, he can spend his money anyway he wants. But Mr. Ross does not run the University nor is he responsible for our mission of education, research, and service. This is still a public institution.
M-Wolverine
Thu, Sep 5, 2013 : 2:11 p.m.
There's no such thing as an anonymous $200 million dollar donation. That much, people are going to notice.
Audion Man
Wed, Sep 4, 2013 : 4:45 p.m.
@EyeHeartA2 Some people consider anonymous donations, tasteful.
blue85
Wed, Sep 4, 2013 : 3:22 p.m.
"I think the development office needs to work with donors so that the money is channeled to where it is needed most." I believe that there are over 400 people working on development: 1) do you honestly believe that they do NOT do just that?; 2) Do you honestly believe that your punditry can add to the university's expertise in this domain? If you are truly skilled and truly care, why not apply for a job?
EyeHeartA2
Wed, Sep 4, 2013 : 2:57 p.m.
I'm still in shock that everyone seems to be telling him how to spend his money. But go for it, send yours wherever you like and good for you as well. Let us know where it went. I'll thank you, but others will grade you.
Audion Man
Wed, Sep 4, 2013 : 2:50 p.m.
@EyeHeartA2 You seem pretty torqued off that Ross' cash isn't instantly buying our fealty.
EyeHeartA2
Wed, Sep 4, 2013 : 2:23 p.m.
That's the great thing about money. You can send yours wherever you like and Mr. Ross can do the same with HIS money. See how that works?
jdmb03
Wed, Sep 4, 2013 : 1:17 p.m.
Thank you Mr. Ross
Tom Teague
Wed, Sep 4, 2013 : 1:10 p.m.
This is slightly off topic, but I believe that's Eugene Robinson to Mr. Ross's right (far left of the photo), a UM grad, former Michigan Daily report, and winner of a Pulitzer Prize for Commentary in 2009. He was a commencement speaker that year.
Tom Teague
Wed, Sep 4, 2013 : 6:21 p.m.
FYI, my comment was overtaken by events; Eugene Robinson was pictured in a photo that ran earlier this morning.
EyeHeartA2
Wed, Sep 4, 2013 : 1:03 p.m.
Love this place. A guy gives $200M of his own money to the U and everybody is hating on him. Last time I checked, you were supposed to say "thank you" at least. 'Waaaaaaa you didn't spend your money the way I wanted you to' Sounds like our tax policy: 'Here is what I think you should spend your money on.'
Lyn Barron
Wed, Sep 4, 2013 : 3:18 p.m.
Thank you Tano, I am very happy that people are willing to share their wealth. I am sorry if what I have said in the past has offended anyone. Trying to get the message out there to help support people who have been unjustly wronged is difficult. If you can think of a better way- other than journalism- please let me know.
Audion Man
Wed, Sep 4, 2013 : 1:19 p.m.
It's a free market, EyeHeartA2- you can buy all the gratitude you want. But, on the other hand, you can't be compelled to sell it.
Tano
Wed, Sep 4, 2013 : 1:14 p.m.
I counted five comments before yours that basically consisted of nothing but thanks and praise. Even a couple of the comments that opined on better uses for the money began with thanks for the gift. There has not been a single comment that expressed anything remotely like "hating on him". What on earth are you ranting about?
LXIX
Wed, Sep 4, 2013 : 12:50 p.m.
The finest B School brick that only hot money could cut. Sort of like a kid's Rock, Paper, Scissors game - were everyone gets a conplimentary UM diploma for just showing up to play.
GratefulReb
Wed, Sep 4, 2013 : 12:44 p.m.
I wish some of this money, as well as the 7 billion the University is sitting on would go to the city of A2 and the AAPS. A better city (better roads, etc) and better schools would only help the university. I totally understand that Mr. Ross has earned the right to spend his money any way he wishes and the university is not obligated to help the city.
SemperFi
Wed, Sep 4, 2013 : 12:58 p.m.
Send some of this money to A2 and AAPS! Why? So they can squander that money too?
Kai Petainen
Wed, Sep 4, 2013 : 12:40 p.m.
Wow! THANK YOU and Go Blue!!
Sweet Life
Wed, Sep 4, 2013 : 12:39 p.m.
Thank you Mr. Ross for a very generous gift to the University. Just once, I would love to see a similarly generous gift go to "The (fill in your name here) Tuition Reduction Fund" instead of to another building. But that never seems to have the same impact for donors as having a building named after you.
M-Wolverine
Tue, Sep 10, 2013 : 1:22 p.m.
And the numbers on faculty salary? Administrator pay? New construction? How much of that cost is not only making things work or upgrading, but turning old place from functional to Taj Mahal spaces that have more to do with a 5* resport hotel and not higher education? You can throw out costs, but without comparisons they're meaningless. And it's actually the responsiblity of the party taking the action to SHOW that there's a need for such things as graduate housing. Which they obviously haven't, because you have no link to show for it. And it has to show that it wouldn't only be used, but that it's not really a "luxury purchase." And that it really serves educating students better than the money going to tuition decrease and scholarships. Evidence that it's not needed? How about the fact that for nearly 200 years there's been no need for it, and it's hardly something that most universities have or see a need for. Look I get that you're a mouthpiece for the university, and they can do no wrong. But till you can come up with some solutions for the skyrocketing cost of tuition you're just spitting into the wind. And no, the answer is not "someone give us more money." Somewhere along the line having the fanciest campus with the highest paid executives became the goal of the university, rather than educating students. Which is somethng you obviously have lost all grasp of.
blue85
Mon, Sep 9, 2013 : 4:02 p.m.
"But blue85, you act like every capital improvement job was due to plant decay, which is not the case at all. 1) per the audited annual report, depreciation runs $350MM/year to $400MM/year; 2) per audited university publications, there is $600MM in deferred maintenance; 3) per audited statements, I've noticed $25MM to $60MM being the derisory state contribution to capital projects. Feel free to refute any of the foregoing with a link to an audited number or a number off the UM website. "Take the Blimpy's situation. That money was earmarked for graduate dorms, of which there is little or no need for on campus. A luxury." OK, let's dispense with the faith-based assertions: show me the university demographics, the university housing analysis, and show me how there is neither a need nor a demand. Don't give me a specious and anecdotal argument, show me some facts that make your planning an analysis superior to what goes on at the U. "One that actually caused the city problems. Why build something new and unecessary at great cost while sticking it to your students? How much would tuition not go up if money like THAT was dedicated to them?" The university is getting a building for which the 40 year depreciation was paid for by Munger on a PV basis. In other words, the university will be able to harvest 40 years of income without the largest typical offset to income -- depreciation. How is this sticking it to the students? Under what cosmology is income NOT offset by the major expense line a bad thing. How is increased income a bad thing? "That you fail to see skyrocketing salary and turning college campuses into luxury resorts makes the ever increasing cost of education almost unsustainable means you seem to have a big problem with simple logic yourself." No, my logic is fine, as is my grasp of accounting, the time value of money, elements of the tax code, statistics, financial mathematics and bond mathematics. Your arguments are junk and devoi
M-Wolverine
Mon, Sep 9, 2013 : 2:07 p.m.
But blue85, you act like every capital improvement job was due to plant decay, which is not the case at all. But a lot of the money went into new things, or fancying them up. Take the Blimpy's situation. That money was earmarked for graduate dorms, of which there is little or no need for on campus. A luxury. One that actually caused the city problems. Why build something new and unecessary at great cost while sticking it to your students? How much would tuition not go up if money like THAT was dedicated to them? That you fail to see skyrocketing salary and turning college campuses into luxury resorts makes the ever increasing cost of education almost unsustainable means you seem to have a big problem with simple logic yourself.
blue85
Fri, Sep 6, 2013 : 4:47 p.m.
"Blue85, your point is true in principle but in practice since i have been on the faculty we have had 20 major construction projects, the endowment has increased from about 1.9 billion to 8 billion, yet tuition has increased every year, outpacing the rate of inflation. For my eldest, senior year tuition was 32% higher than her freshman year!!" Groland, neither you nor M-Wolverine seem to like/agree with the following logic: what happens if you value the path of alternative scenarios on a historical basis? In other words, you know the history that happened, but you don't have any insight (nor do I, I only offer a suggested alternative reality) into the history that did not happen. Simply stated: what would tuition be in a world where every thing that you mention is true, but donors had not stepped up? You would have several alternatives: 1) a badly degraded physical plant; 2) a budgetary gap between the depreciation charge and zero in donor contributions plus state average of $25MM/year. It is also true that CPI inflation < HEPA inflation. So you are really asking the wrong question: all of the offsets you mention did happen, but your "logic" is that well tuition went up anyway...therefore, or so I infer, you are suggesting that endowment and donor funds had no impact. On the contrary, they had a huge impact AND inflation and costs went up faster and state support went DOWN faster than the university's ability to compensate with level tuition charges. In the alternate reality I suggest: with $250MM/year in missing donor funds and with a steady endowment income $100MM/year lower, tuition would have gone up by $7,000/year (assuming 50,000 students). So while the university was not able to zero the books without tuition EVEN WITH OTHER REVENUW SOURCES TUITION WENT UP, BUT LESS THAN IT WOULD HAVE WITHOUT THOSE SOURCES OF REVENUE.
M-Wolverine
Fri, Sep 6, 2013 : 3:13 p.m.
Yet blue85, you still don't understand the point that while it will certainly benefit people outside those donation centers, when will all this money benefit students pocketbooks in tuition freezes or decreases? The answer is never. I hope you can understand that.
groland
Thu, Sep 5, 2013 : 5:41 p.m.
Blue85, your point is true in principle but in practice since i have been on the faculty we have had 20 major construction projects, the endowment has increased from about 1.9 billion to 8 billion, yet tuition has increased every year, outpacing the rate of inflation. For my eldest, senior year tuition was 32% higher than her freshman year!!
blue85
Thu, Sep 5, 2013 : 4:24 p.m.
"blue85, I think you missed his point and his snark." On the contrary, what YOU missed was me intentionally ignoring the puerile snark and the financial illiteracy of that post. You can "prove" that to yourself by looking at my other contemporaneous posts about the substitution concept. Sweet Life doesn't understand, nor possibly do you, that dollars are fungible. Because dollars are fungible, if you relieve pressure on one part of the budget, there is money that can be reallocated elsewhere. Ross's gift by benefiting the b-school, actually benefits every other school simultaneously. Thus when a donation this large is made, it almost doesn't matter where it is made, the effect is seismic and is felt everywhere else on campus. My donations don't have that effect, they don't move the needle. This donation moves the needle for everybody.
M-Wolverine
Thu, Sep 5, 2013 : 2:08 p.m.
blue85, I think you missed his point and his snark.
blue85
Wed, Sep 4, 2013 : 3:20 p.m.
"By diverting generous gifts to buildings the U can pass on all tuition increases directly into salary increases." This comment is spot on: see my comment on substitution above. Every building paid for by a donor means the ability to reallocate dollars to salary and tuition relief. Remember, state capital building allocations have run $25MM/year against a depreciation schedule of roughly $400MM/year. Without donors like Ross, UM would be in far worse shape. As it is, there is roughly, I believe, $600MM in deferred maintenance.
Jay Thomas
Wed, Sep 4, 2013 : 1:36 p.m.
By diverting generous gifts to buildings the U can pass on all tuition increases directly into salary increases.
Joseph Welch's Ghost
Wed, Sep 4, 2013 : 12:01 p.m.
I am delighted to know that these under-resourced areas of the University will finally have the financial ability to emerge from the shadow of socially irrelevant institutions such as the School of Social Work, School of Natural Resources and the Environment, School of Education, and the School of Nursing.
blue85
Wed, Sep 4, 2013 : 3:18 p.m.
Remember the principle of substitution: every dollar that is NOT used to fund Ross results in the ability to reallocate budget to the schools which you mention. In other words, by relieving budgetary pressure at Ross, those others school benefit in a pretty direct and measurable fashion. It is also worth noting the another Ross alum, Frederick Erb (and his wife), donated something on the order of $30MM to joint Ross/Erb-Institute studies done in conjunction with the school of natural resources. Hopefully, those other schools will attract their own donors in the coming campaign.
Audion Man
Wed, Sep 4, 2013 : 1:57 p.m.
@hail2thevict0r Business School- yeah, ok- I'll grant you that. But more money for the Athletic Department? We can agree to disagree.
Jay Thomas
Wed, Sep 4, 2013 : 1:53 p.m.
What a card!
hail2thevict0r
Wed, Sep 4, 2013 : 1:50 p.m.
While I agree that I it would be nice for someone to donate to different areas within the university, it's hard to argue that giving up $200 million to a public university is anything but good. Unfortunately, there are no billionaire nurses. Which is the reason why they don't get donations like this but is also the reason they need them more than others.
Audion Man
Wed, Sep 4, 2013 : 1:17 p.m.
Amen, Joseph Welch's Ghost. Amen. Perhaps they can use that money to coat the Big House in a layer of gold leaf.
Pizzicato
Wed, Sep 4, 2013 : 11:30 a.m.
Wonderful news! I do think that the new Business School is one of the more beautiful structures on campus (I'm a fan of modern architecture). I'm interested in seeing the improvements made with this donation.
Martha Cojelona Gratis
Wed, Sep 4, 2013 : 11:18 a.m.
What a great guy! Love to see people give back.
Laura J
Wed, Sep 4, 2013 : 11:16 a.m.
Thanks for giving back! Go Blue!!