By Tom Reynolds

The Wayne State University Board of Governors approved a 2004 General Fund Budget of $418.9 million at its regular meeting July 30. The budget includes state appropriations of $217 million and a 9.9 percent increase in tuition.

For Fiscal Year 2004, the university is facing a 6.4 percent cut in its state appropriation that follows a cumulative 3.5% reduction earlier at mid-fiscal year. All funding cuts represent a 10.2 percent or $25.4 million overall decrease in state appropriated funding to the university. With reductions of this size, the university's total appropriation from Lansing will fall to less than $228 million - below the level that it was in October of 1998.

The combined 2004 state appropriations cut of $25.4 million and approximately$14 million in non-discretionary funding commitments present an anticipated budget shortfall of $40 million. Non-discretionary items include compensation, projected costs in utilities costs, annual requirements for faculty renewal and recruitment, research support, academic funding and investment in maintenance of materials in the university's libraries.

In total, Wayne State's expenditures for 2004 will increase $7.9 million over the current year. The approved budget reflects significant cost-cutting measures by the administration saving more than $14 million.

According to Wayne State University Provost and Senior Vice President Nancy Barrett, the cuts in state appropriations and rising operational costs have pushed tuition and fees higher despite strong measures to reduce the university's budget. "We have prepared for declining state appropriations to higher education by trimming our budget about $14.3 million. Facing such deep cuts required difficult decisions and sacrifices on behalf of the whole university community. We implemented hiring freezes, redesigned health care plans, evaluated utility costs, restructured administration and asked all divisions university-wide to submit plans for budget reductions of 5, 8.5 and 10 percent," Barrett said.

Budget cuts and revenue enhancements have, or will, occur in the following areas:

Executive Reorganization: $961,500
· Creation of an Administrative Operations division consisting of Human Resources, Public Safety, Information Technology and Auxiliary Operations

· Reassignment of most student affairs functions to the Office of the Provost

Administrative: $5.8 million

· Workforce reductions attributable to division restructuring

· Elimination of the university's mainframe systems

· Implementation of a 2.9 percent credit card processing fee and a newly imposed charge for returned checks

· Student and Exchange Visitor Information Center (SEVIS) - $50 per semester for all international students covering costs of collecting and reporting information required in provisions of SEVIS federal legislation

· Fitness Center assessment to all new students - $25 per semester

· Existing fees to be increased include: Graduate Admissions application; Degree/Certificate application; Advanced Placement Test; and Student Orientation. Academic Programs: $5.9 million (No reductions have been taken in the number of faculty lines budgeted in the schools and colleges)

· Restructuring administrative organization in schools and colleges

· Sequestered non-academic positions. University-wide Savings: $1.5 million

· Retirement Incentive Program - an early retirement program.

· Transfer of debt service associated with parking structures to Parking and Transportation Services auxiliary

· Restructuring employee health care plans to offset increases in fringe benefits costs

· All units reduced travel, dues, memberships, telephone and entertainment expenses. University-funded cellular telephones eliminated

Other initiatives currently under consideration by the university to meet the budget challenge include: eliminating courses with low enrollment and initiating position eliminations within the university's administrative employees, according to Barrett. "Foremost in our plan was to maintain faculty positions and protect vital student services. It is important that the quality of our academic programs not be diminished," Barrett said.

"Despite steps already implemented by the university, a budget short fall remains which requires an increase in tuition and fees to help offset state reductions and ensure that our critical budget needs are met - most of which are non-discretionary and governed by contractual agreement," Barrett added.

For fiscal year 2003-2004, recommended tuition and fees increases include: 9.9 percent for undergraduate students, 9.9 percent for graduate students(except students enrolled in the graduate programs in the School of Business Administration, College of Engineering and the College of Nursing where a differential tuition rate applies), and an increase in omnibus and registration fees of 9.9 percent.

The new tuition rates amount to an increase of $492.60 for most full-time Michigan resident undergraduates. Per credit hour rates for Michigan resident freshmen and sophomores will rise from $141.40 to $155.40. For juniors, seniors and post-bachelors, tuition will increase from $166.80 to $183.30 and graduate students from $238.90 to $262.60.

Based on projections for 2003-2004, Wayne State's full-time lower division students will pay $5,609 in tuition and fees, which will rank the university7th among Michigan's 15 public universities. That rate compares to $8,477at the University of Michigan, $7,092 at Michigan State University and $5,862at Ferris State University.