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Legislators seek to cut “wasteful” spending, reexamine Board of Trustees structure

October 5, 2011

President Lou Anna K. Simon recently denounced efforts of state legislators as they assess the efficiency of Michigan’s colleges, further polarizing the views of state legislators and administrators regarding higher education.

Sitting alongside the presidents of Wayne State University and the University of Michigan — which together with MSU make up the state’s three largest universities — the president spoke against the notion of consolidating university services Tuesday during a public meeting at the Detroit Economic Club. Her comments come in the wake of a bill introduced to the Michigan House that would create a commission to look at restructuring the state’s 15 public universities.

At the meeting, Simon said autonomy between universities allows the best decisions for each individual campus,” the Detroit Free Press reported. “:http://www.freep.com/apps/pbcs.dll/article?AID=2011110050408

“If you add layers, you add cost,” Simon said at the meeting.

Although the bill, which was introduced at the end of last month, does not make any direct changes to university governments, it would create an 11-person board to assess the efficiencies of the universities’ current systems. Although legislators supporting the bill have said they have no specific outcome in mind, they also have said the goal is to add more cohesion to the state’s public universities and cut wasteful spending. This could include the consolidation of university governments, as well as certain programs between the institutions, the legislators say.

If passed, the bill would generate scrutiny that could end up benefitting students, particularly in protecting them from further tuition increases, said State Rep. Bob Genetski, R-Saugatuck, the bill’s primary sponsor.

Genetski, along with a group of Republicans, already is trying to pass legislation that would strip MSU of millions in state funding. The legislators allege university administrators raised tuition higher than the 7.1 percent ceiling required to retain full funding, although State Budget Director John Nixon ruled the university was still eligible.

Genetski said he is disappointed by the presidents’ concern about the latest piece of legislation.
“I’m a little dismayed in the instant rejection of a bill to just have a discussion,” Genetski said. “I kind of thought that universities stood for discussions of new ideas and new concepts.”

The bill could lead to a new system that would make administrators and board members more accountable for their decisions, said State Rep. Jud Gilbert, R-Algonac, adding trustees often misplace blame for tuition raises in cuts by the state government. The bill originated from the idea that the objectives of each university could be better served under one government, he said.

So far, MSU Trustees, whose positions might be affected in the long run, are remaining largely neutral on the issue.

“I’m not sure (the bill) is going to lead us to a pot of gold at the end of the rainbow,” MSU Trustee Brian Breslin said. “But I certainly don’t feel threatened by it.”

MSU Trustee Mitch Lyons said he views the bill as a result of the board’s handling of the tuition increases this summer, although he isn’t closed off to the idea of some reforms.

“Obviously, anything that can improve university efficiency I’m for,” Lyons said.

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