Simon poses possibility of staff layoffs, tuition hikes
By Justin Harris (Last updated: 02/15/09 10:39pm)MSU would have to cut 703 faculty and staff or raise tuition 8.9 percent to overcome Gov. Jennifer Granholm’s proposed $9.1 million cut in state funding, President Lou Anna K. Simon said Friday.
Simon
On Thursday, Granholm proposed a 3.1 percent decrease in operating funds for MSU, which means the university would receive about $283 million in 2009-10 as opposed to about $293 million in 2008-09.
By estimating next year’s standard inflation costs for the university — such as faculty salaries, utilities and health care — and taking into account the 3.1 percent reduction in state funding, Simon said during Friday’s Board of Trustees meeting the university would need to lay off more than 700 workers, raise tuition by almost 9 percent or use a combination of both.
“That’s how you would look at it in terms of either reductions of people or tuition,” she said. “Those are two extremes. We’re not going to do either extreme.”
Although Granholm has asked public universities to freeze tuition in exchange for federal stimulus money, MSU officials are hesitant to agree to the deal.
“I’m not throwing down the gauntlet today,” MSU Trustee Joel Ferguson said. “We’ll work very hard to do all the things that are necessary to make things even more efficient.
“… But, if those things don’t give us enough funds, then we’re not adverse to raising tuition.”
In November 2008, the board raised tuition 1.2 percent beginning this summer. Starting this semester, an in-state freshman taking 15 credits will pay about $10,387.17 for two semesters. An 8.9 percent tuition increase for next fall would equate to an additional $462 per semester.
Ferguson said any tuition increase instituted by the board wouldn’t be the university’s fault.
“If there has to be a tuition increase, it’s not going to be because of action this board is taking,” he said. “It’s going to be because the action the state is taking by not giving us the funds that they’re supposed to give us to augment our budget.”
Although Simon said Granholm is in a difficult position, some MSU students said cutting from the university isn’t a smart move.
“The promotion of higher education is integral to job creation and keeping people here,” international relations senior Alex Walker said. “We always see tuition raising. But it’s also terrible that we’d have to lose over 700 jobs. That’s a sticky situation.”
MSU Trustee Faylene Owen, chairperson of the board’s finance committee, said the board will work with students’ interests in mind.
“This is a very difficult time right now,” Owen said. “This just isn’t the right thing to do. We need money, and we haven’t gotten any and we’re not going to get any.”
Simon said the board and MSU officials will continue to pursue cost-cutting strategies to limit financial stress for students.
“I assure that we’re going to go through a very systematic process to prioritize things,” she said. “We will work with … the university community to try to find a pattern that is in the best interest, long-term, for the value of Michigan State and the people of Michigan.”
Originally Published: 02/15/09 10:39pm
















Kristin
02/15/09 11:45pm“If there has to be a tuition increase, it’s not going to be because of action this board is taking,” he said. “It’s going to be because the action the state is taking by not giving us the funds that they’re supposed to give us to augment our budget.”
We haven’t even done it yet, but if we do, it’s not our fault!
Steve
02/15/09 11:53pmThat retreat the board had on Mackinaw island could have saved at least one employee from losing their job.
student
02/16/09 1:09amThe truth is that is not the administration’s fault. Obviously, there are things that can be improved from the administration stand point but not that can be done in such a short period of time. Adjustments that involve decreasing a budget by this much involve years of adaptation for an academic institution. This is not like a private company were you can layoff employees, pay them and you will never see them again.
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Health Care
02/16/09 7:32amPart of what it comes down to is health care costs. I was discussing the issue with a professor (policy and economics) and he was saying that within the next 10 years or so the health care costs the University will have to pay out to employees and retirees will consume a large chunk of the budget (I believe over 50%). I want to say that I absolutely do NOT support nationalizing health care because then you’ll end up in the same situation just at the Federal level but there does need to be some sort of an exploration on the costs of health care.
KC
02/16/09 8:35amWell thank God I only have one more year left…. Tuition up 9%?? That is crazy!
Ed T
02/16/09 10:02amYour point about healthcare is an important one, Healthcare. Nationalizing our health care would not only provide more dependable care for millions of currently uninsured people (mostly the working poor), but it will help stabilize employee health care costs that are crippling American businesses (such as MSU).
Ugh
02/16/09 1:07pmI know, how about we get a new President. I’m sure MANY people are qualified and willing to take her position for a QUARTER of what she is getting paid. What she gets paid for her comfortable job is crazy, do you know how many jobs can be saved if her salary was even cut in HALF? Our doctors should be getting paid that much instead of paying someone to sit behind a desk and perform tasks that so many others are qualified for. 1st Michigan has the #1 unemployment percentage, now we’re going to have the highest percent of college drop-outs because we can’t afford to stay here.
mvt
02/16/09 7:15pmStudent, are you serious, “the salaries of professors and researchers…shouldn’t be affected”? What economic planet are you from? A university-wide salary freeze should be one of the first things ON the table. Everyone needs to share the pain and none can be exempt.
Outraged Parents
02/16/09 9:59pmDear student, you are just that. A student that has limited world insight. This is ALL the administrations and Simons fault. She has been flagrant about expenses and poor businesswomen. She approves salary increases and unions contracts. THE FACT IS: The ONLY group she has targeted is the Students.
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Aaron
02/17/09 11:03am^a 9% annual increase over 10 years amounts to 136% increase overall, for example from 10,000 to 23,600.
10000(1.09)^10
Agree w/outraged
02/17/09 11:58am“Outraged Parents” is right. Come out into the real world (both students and Administration!) and see that first and foremost the Administration needs to cut the Union/Professor/teaching staff costs. Where in the world were you ever guaranteed a life of care by your employer? Life is not fair. Get used to it. You are not entitled. This I say to the University. You are there to teach and educate, not to make a personal profit off these kids’ educations.
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staff
02/17/09 12:03pmEnraged Parents
...I’m glad to hear that you’re aware of the excessive raises I’ve recieved over the past few years. Just to keep you in the loop, the last few years, my raises have amounted to a new free wheeling lifestyle that I just can’t live without. I mean , heck it’s allowed me to fill up my auto with an extra tank of gas/month, maybe an extra dinner out/month, some extra school activities for my child/month, oh, and don’t forget the few extra gallons of milk I was able to buy.
The unions are so powerful that, not unlike the state employees union, will soon be be negotiating with university as to what level my health care coverage will drop or increase in cost to me.
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amused
02/17/09 5:17pmOutraged Parents: You’re so right, MSU’s incredibly powerful unions are the driving factor in raising education costs. Don’t tell me, your other solution to society’s ills is tax cuts for the rich.
What a joke, please feel free to immediately pull your kids from MSU and send them to one of the many public universities that are lowering their costs … if you can find one.
This is happening everywhere … open your eyes!
From Bill Moyers: Crunching College Costs, January 30, 2009
Due to the faltering economy, colleges and students are in real trouble.
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Agree w/ outraged
02/17/09 6:28pmOk, “Staff”. Tell us…what level are you? A Professor? An Associate? Or are you part of the suffering actual staff? I’ll give you costs and inflation for an actual staff position. But then tell me, how do you manage your budget at home? Do you turn around and make cuts? Obviously you do since you talk of a tank of gas extra a month or dinner out. You make the cuts that need to be made before you drop your job of which is providing the income…as below the climbing costs out there…you don’t just quit your job.
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Outraged Parents
02/17/09 8:21pmI am pleased to see the debut, but the sad fact remains. At some point in time everyone must take sacrifices and those that are being sacrificed are the STUDENTS. Not MSU faculity.
Itâs easier to raise rates when there is no opposition.
Itâs time to stop automatic tuition increases and TIME to look within each department, each employee and line item on the budget.
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Agree w/ outraged
02/17/09 10:51pmSadly, the liberal minded educators do taint these “kids” vision. Life experiences will improve their vision, but…unfortunately that will take years and at this handling of the economic problem solving in colleges…the “kids” will be the ones to pay now and in the future.
Oh!MY
02/18/09 8:16amIncrease in tuition -> decrease in # of International and Out-of-state students -> decrease in funding -> Increase in tuition
The cycle goes on