Facing a decrease in state funding, MSU trustees have the right to increase tuition above the 8.5 percent rate. But university officials say they will likely avoid further tapping into students' pocketbooks.
Michigan's 15 public universities are likely to be negatively impacted early next month by an executive order from Gov. John Engler, tilting MSU's spending plans for the current fiscal year.
Even though the university can opt to increase tuition to offset an appropriation shortfall, it is unlikely the Board of Trustees will take that action, said Bob Banks, assistant provost for academic human resources.
"That would have to be deliberated on and decided as an option," he said. "It's certainly within the authority of the university to consider."
If Engler moves ahead with the order, he would effectively renege on a promise to maintain state funding at last year's levels in exchange for a pledge by university officials to keep tuition increases at or below 8.5 percent or $425, whichever is greater.
But the university likely would look to tighten departmental budgets rather than raising tuition, Banks said.
"The other clear response, apart from tuition, is to really cut the level of current expenditures of the university at one time or another," he said. "We would have to trim back the budget to use the dollars which are left by the end of the day."
MSU's Board of Trustees voted in June to raise tuition rates by 8.5 percent for this academic year.
In response to the governor's expected cuts, MSU officials have begun contingency plans for departmental budget reductions of up to 7 percent.
An expected 2002-03 budget shortfall ranging from $400 million to $600 million was announced by the House Fiscal Agency and already has caused MSU to begin searching for possible cuts.
MSU Trustee Dorothy Gonzales said she isn't sure whether the board would raise tuition again.
"We don't have it in our hands and isn't fact at this point," she said. "It's hard to say what our reaction would be. We're just speculating at this point, and it's rumored."
Chris DeWitt, spokesman for Governor-elect Jennifer Granholm, said he has heard the rumors of the executive order.
"There have been rumors about an executive order, but we don't know exactly what, if anything is going to be done," he said. "It would be premature for us to take a position either way on this matter."
State Sen. Dianne Byrum, D-Onondaga, said the vagueness of when and what the executive orders will entail has many people looking for answers.
"It's my hope that this can be done in a bipartisan fashion and we can think creatively in how we address this situation," she said. "People are worried because they know there's going to be some impact on higher education but they don't know to what extent."
