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 appropriation of $217 million and a 9.9 percent increase in undergraduate tuition.

For Fiscal Year 2004, Wayne State University is facing a 6.4 percent cut in its state appropriation. Wayne State was dealt a cumulative 3.5% cut 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.

Wayne State's total expenditures for 2004 will increase $7.9 million over the current year. A significant portion of the projected increases represents compensation increases, fringe benefits, utilities and building operations costs, research support and academic program funding.

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.

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 shortfall 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.

For the academic year, 2003-2004, 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.

During the current academic year, 2002-2003, Wayne State's full-time lower division students paid $4,723 in tuition and fees, which ranked the university 14th among the 15 public universities. That rate compares to $7,485 at the University of Michigan, $6,143 at Michigan State University and $5,334 at Ferris State University.

Wayne State University is a premier institution of higher education offering more than 350 academic programs through 13 schools and colleges to more than 31,000 students in metropolitan Detroit.

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