The new state budget approved by the legislature last week is organized to recognize, for the first time, the unique character and contributions of the state’s three largest research universities and the part they play in transforming the state’s economy.
The budget legislation places U-M, Michigan State University and Wayne State University into a separate category of major research universities. The three universities, which comprise the new University Research Corridor, advocated to receive funding in a separate bill that would acknowledge their research strength and their role in the state’s economic development. The final legislation, a single bill with a separate category for the research universities, represents an important first step in that direction, says Cynthia Wilbanks, vice president for government relations.
“We believe this distinction is vital to Michigan’s future well-being,” President Mary Sue Coleman says. “Over time, it will enable the state to sharpen the focus of its investment in higher education and more effectively measure our institutions’ impact on business development and innovation.”
The state appropriation for U-M’s Ann Arbor campus for FY08 was set at $323.4 million, an increase of 1 percent on the $320 million appropriation approved in the 30-day budget voted by the Legislature last month. A projected appropriation of $320 million also was contained in the FY08 budget approved in July by the Board of Regents.
By comparison, the appropriation approved for U-M at the start of FY07 was $325.8 million. However, that figure was reduced to $320 million by the end of the last fiscal year via a mid-year rescission. The FY08 appropriation is almost $40 million lower than the 2002 appropriation of $363 million.
The budget was approved by both houses of the legislature last week, and is awaiting the governor’s signature.
