Posted on 01/12/2012 7:01:24 PM PST by MichCapCon
In a letter to President Barack Obama, University of Michigan President Mary Sue Coleman blamed the rising costs at state colleges on “declining state support.”
“Higher education is a public good currently lacking public support,” Coleman wrote in her Dec. 16 letter. “There is no stronger trigger for rising costs at public universities and colleges than declining state support. The University of Michigan and our state’s 14 other public institutions have been ground zero for funding cuts.”
The state is scheduled to give the University of Michigan and its two satellite campuses about $54 million less in 2011-2012 than the previous year, a 15 percent cut. But one fiscal policy expert questions the logic in Coleman’s linking a reduction in state dollars to rising costs.
Michigan’s average compensation for full-time faculty, for example, increased from $122,943 per full-time position in 2005-2006 to $141,753 in 2009-2010, a 15 percent increase over four years.
“To say that higher education costs are increasing because of declining state appropriations confuses revenue with expenses,” said James Hohman, assistant director of the Morey Fiscal Policy Initiativefor the Mackinac Center for Public Policy. “It would be like arguing that losing $20 in the lottery makes groceries cost more. Universities have control over their expenses and can’t blame stalling state appropriations for their ever-increasing costs.”
U-M spokesman Rick Fitzgerald said the college has held down employee compensation costs in the last decade and still offers competitive salaries. Fitzgerald said U-M has made significant cuts in other areas, such as reduced energy consumption and changes in employees’ benefit plans. For U-M’s full response to this article, click here .
The University of Michigan's main campus in Ann Arbor and its satellite campuses in Dearborn and Flint received $361.8 million in 2010-2011 from the state. That was cut to $307.5 million this year.
Although state appropriations have been reduced this year, overall spending at U-M has increased.
According to the University of Michigan budget, the college’s operating expenses increased 24 percent from 2006 to 2010. U-M’s operating expenses increased from $4.25 billion in 2006 to $5.28 billion in 2010. At the same time, student tuition and fees and scholarship allowances increased 28 percent, from $675 million in 2006 to $863 million in 2010.
Some scholars believe there are other causes to tuition hikes than government appropriations.
The Mackinac Center reported in 2010 that the number of administrators and service staff at Michigan’s 15 state universities increased 15 percent while their average compensation grew 13 percent from 2005 to 2009.
As an example, the University of Michigan-Flint campus now has more full time administrators (278) than full time faculty (275).
“Taxpayers need to find out what they want from universities," Hohman said. "Those footing the bill send billions of dollars year after year and are continually asked for more, but promised nothing but a tuition discount in return. Higher education’s constant cost increases point toward a broken system that can’t be fixed by more taxpayer dollars.”
My daughter is a UMich graduate, ‘10. I am still paying the loans, and will be for a while (out of state tuition). Great school...we all loved it...but c’mon, man...this is crazy! I sent her the article. Thanks.
Liberal academia riding the Obama taxpayer ripoff trend-wave.
Nothing new.
“Higher education is a public good....”
I’m sure its pretty good for Coleman...
President Mary Sue Coleman comes in fourth, at $585,783, up 2.75 percent from last year’s compensation of $570,105. Coleman donated her raise this year to a scholarship fund.
Coleman’s total compensation package, however, exceeds $910,700. In addition to $175,000 in deferred compensation, a $100,000 yearly retention bonus and more than $50,000 in annual retirement pay, Coleman also gets the use of a car and U-M’s 162-year-old president’s house.
Coleman has also been reported to make about $230,000 for sitting on the board of Johnson & Johnson and another $137,000 for belonging to the board of Meredith Corporation, a media and marketing company
The auto business takeover by government will have repercussions on Michigan for decades to come! Perhaps our NAFTA buddies in Mexico will be willing to donate (coughing)!
Lessons learned: Automakers, arts groups and philanthropy
Snips: "Well I think it’s very different. They’re absolutely engaged corporate leaders, but I certainly think the impulse to knock on the door of one of the auto giants to have your problems solved or challenges met, I think those days are over."
Vivian Pickard is head of the General Motors Foundation, the charitable arm of GM. She says prior to bankruptcy, a lot of arts and culture organizations expected to get support from the 'Big Three'
Mexico set auto production record in 2011
Snip: The biggest-selling compact car last year in the Mexican market was the Ford Fusion, followed by Volkswagen's New Jetta and Nissan's Sentra 2.0, while among the light trucks the top sellers were the Silverado 2500, the Journey and the GMC Sierra.
The legislature in Indiana performed an audit of Indiana University a few years ago. The results were that 53% or so of the professors did not teach any classes. Another 20 -30% only taught 1 or 2 classes. Almost all of the courses were taught by graduate assistants. The graduate assistants tried to unionize to increase their wages since they were doing all the work. The whole thing was a joke. I would venture to say that most state supported universities are the same way. Probably the only thing that will break the monopolies will be on-line universities taking off and undercutting the private and public university prices. The existing public and private universities will use every trick and political pull to fight it. Every time I read one of these articles I think of the sign the OWS NYC girl carried that said “I’m $90,000 in student loan debt, have a BA degree in Hispanic Transgender, Gay and Lesbian studies and can’t find a job.” Sort of sums it up doesn’t it!
The same thing happens in the University of Wisconsin system, and at UW-Madison in particular.
I am one of those ‘sessionals’, or have been for some time.
“As an example, the University of Michigan-Flint campus now has more full time administrators (278) than full time faculty (275).”
This is the first part of the problem. Out of 100 employees ‘administrators + teachers”, 80 percent of the actual work is done by 20 percent.
You could probably fire 800 folks from UM-F without hitting anything vital.
HEY, MARY SUE! YEAH, YOU! Obama done spent all the money! - - - - Yeah, - - there is no mon——. Yeah! Good idea! Just apply directly to China.
What’s that? No, China won’t have any strings attached to the money. No! Of course not! Never!
Who, - - who am I? I work here at the Treasury.
My name? Timmy. Yeah, that’s me - - - Timmy Gee.
My title, yeah, well - - - . Well, some call me the Sheriff of Nottingham which really isn’t fair because what I do is very difficult very complex and very difficult to explain unless you have economic training as I have from some of the best schools on the East Coast and worked unselfishly with very low pay in -——.
Oh, you’re leaving? Okay. Bye. Good luck on getting your Money from China!
((She is going to need a LOT of luck!))
University of Michigan President Mary Sue Coleman blamed the rising costs at state colleges on "declining state support." ... James Hohman, assistant director of the Morey Fiscal Policy Initiativefor the Mackinac Center for Public Policy[:] ..."Taxpayers need to find out what they want from universities... Those footing the bill send billions of dollars year after year and are continually asked for more, but promised nothing but a tuition discount in return. Higher education's constant cost increases point toward a broken system that can't be fixed by more taxpayer dollars."
As far as the university funding goes, alumni contributions will probably increase this year as they as they figure to do when the football team has a successful season. Athletic Department revenues should provide an increasing funding stream as well.
Thanks for the ping/post; post; thread. Thanks to all researchers/linkers/educators about “educators”.
I’m right outside city limits. I’ll just say this. You can’t have scum without UM. Go State.
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