Simon poses possibility of staff layoffs, tuition hikes
Tweet
Simon
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.
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.”






Commentary
Add your $0.02, go to the comment form or follow the comment feed
Kristin
(02/15/09 11:45pm)Report
“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 11:53pm)Report
That retreat the board had on Mackinaw island could have saved at least one employee from losing their job.
student
(02/16/09 1:09am)Report
The 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. From an academic standpoint, some staff represent the support of an academic program and in such a multi-facetic and large institution, like MSU, you really need your employees to support the wide variety of services.
Also, don’t even bring to the table the salaries of the professors and researchers. They shouldn’t be affected in any way, shape or form. With this said, I support 100% how Pres. Simon is reacting to this announcement.
GO GREEN!!
Health Care
(02/16/09 7:32am)Report
Part 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 8:35am)Report
Well thank God I only have one more year left…. Tuition up 9%?? That is crazy!
Ed T
(02/16/09 10:02am)Report
Your 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 1:07pm)Report
I 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 7:15pm)Report
Student, 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 9:59pm)Report
Dear 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. Why, because the Unions have become powerful and so ingrained with governmental affairs she can go no where else. Why don’t you rebel? Because you are either on student loans or your parents are paying. Your hardship is hardly felt. But wait until you are directly paying for college. 9 % annually over 10 years is a 90% increase. Good luck paying for your Childs education. You are naïve and short sighted in your thought process. Your should be screaming to limit student increases!
Demand expense, benefits, healthcare reduction and limiting or reducing staff and union influence. It is for your benefit and your future children’s.
Aaron
(02/17/09 11:03am)Report
^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)Report
“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. These kids are there to learn and become productive. Many in the educational world think they know the answers, yet have no real practical experience outside a sheltered university community. They teach many times because it’s soft and they don’t have to go out and face an employer/world that will judge them daily in their work. Students should be holding your own (non-violent) protests or even old fashioned sit-ins. Yet most probably will turn to mom and dad to pick up the dollars still. UGH!
staff
(02/17/09 12:03pm)Report
Enraged 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. I’m realistic enough that we all must accept some degree of sacrifice during tought times, but you might want to expand YOUR insight and realize that not everyone working for the U makes a lot of money and many also have children in college.
amused
(02/17/09 5:17pm)Report
Outraged 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. The National Center for Public Policy and Higher Education gives a failing grade of “F” to 49 of the 50 states.
Take a look at the numbers:
* 26 states already have either cut their budgets for higher education, raised tuition fees or done both. * College endowments earned an average return of minus-3 percent for the 2008 fiscal year and an estimated minus-22.5 percent in the five months after that. * Public four-year college costs were up 6.4 percent on average for 2008-2009 from last year according to The College Board. In 2007-2008 tuition and fees at public institutions rose 5.7 percent; at private ones, 6.3 percent and at public two-year institutions, 3.8 percent. * Pell grants, those for the neediest students, have declined in amount in many recent years.Agree w/ outraged
(02/17/09 6:28pm)Report
Ok, “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. You make cuts at home. As parents and students, you ask us to come up with more money for what? Is there a greater level of education going on? No, you have to accept that costs will need to be across the board and shared. If you can’t come up with the “extra money” you would receive to buy those extra gallons of milk (your example)…perhaps you might need to go to water. Tap water.
I don’t remember anyone saying YOU make a lot of money. We are saying, the University needs to work within a budget and learn to work with what it has. Please, please tell me we really needed (lame example, but a definite waste) every darn dorm to have big-ass lighted Christmas decorations on the top of them costing more energy use. LOL
And as for “Amused”…just cause it’s “happening everywhere” makes it right? Geez! Let’s all jump off the bridge too. LOL No, pulling a kid from state universities just might be the key. Put it back to private “businesses”. Apply to private colleges. Heck, it’s no secret that they have better reps, smaller classes, and offer better tuition return rates given that they have great endowment funds that offset for many. Yes, problem is…too few of them for demand of college educations and for most, they can’t get in based on not hitting their standards for admission. So, many end up at public universities and get the pleasure of being held hostage to tuition hikes whenever the university wants to add a perk to their campus. :)
Outraged Parents
(02/17/09 8:21pm)Report
I 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.
It’s easier to raise rates when there is no opposition.
It’s time to stop automatic tuition increases and TIME to look within each department, each employee and line item on the budget. Salary increases, special trips, huge expense reports need to be stopped. The spend it or lose it mentality days must end.
I would like to see collective discussion about the MSU budget, as part of a NEW Transparency plan. Let’s see where all the pork is hidden and weed it out. At least expose it. I recommend: A forum of smart MSU student, built of economic students, business, law and other circurulums. Mix it with union management, facility, parents and management and let’s see what the outcome is. Trustees are a puppet of Simon. Create a board that has an odd number of votes where majority vote wins. Its Michigan taxpayer money and the students, not Simons. I bet the fraud and waste will be exposed and debated. Shouldn’t the student have a say? , and what a great business education those young students will leave with.
Students are targeted unfairly and NOT represented. They are without fair representation and the first group targeted for increases. It’s wrong-period. Simon needs to cut deep and then ask for minor increases. Union influence must stop and the facility is the best source to demand reductions in monthly dues and waste. Here I propose “Right to work” as a union state. Join or not join, it’s the facilities’ choice.
PS: Amused: My eyes are wide open and I fear for the future of affordable education. As a wiser older person that has lived a great many years, I have watched tax cuts influence economic growth, and spur small business hiring. Please, don’t allow liberal minded educators to taint your vision. Keep an open mind, you will need it to grow your business one day…Yes Tax cuts are cool.
Agree w/ outraged
(02/17/09 10:51pm)Report
Sadly, 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 8:16am)Report
Increase in tuition -> decrease in # of International and Out-of-state students -> decrease in funding -> Increase in tuition
The cycle goes on