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Budget cuts addressed at meeting

McPherson, state officials talk taxes

November 26, 2003

With MSU facing numerous proposed cuts by the state, MSU President M. Peter McPherson asked several lawmakers Tuesday at the Communication Arts and Sciences Building to keep cuts to a minimum.

"We're not trying to be passive and let these folks negotiate things out," he said. "What we're hoping to have is impact before the executive order."

The forum, sponsored by The Coalition of Labor Organizations at MSU, addressed higher education cuts in the midst of a $920 million state budget shortfall.

McPherson, faculty and students listened to politicians in the state, including Sen. Virg Bernero, D-Lansing, Sen. Alan Cropsey, R-DeWitt, and Rep. Michael Murphy, D-Lansing. Representatives for Rep. Dianne Byrum, D-Onondaga, and Rep. Gretchen Whitmer, D-East Lansing, also took part in the forum.

Several legislators told the crowd that Granholm is expected to announce her executive order at some point next week. The order includes proposed changes to Michigan's current budget to balance the state's budget this year.

Michigan's 15 public universities face up to a 6-percent cut from state appropriations.

In addition to the 6-percent cut, two key MSU agricultural programs are in jeopardy. The Michigan Agricultural Experiment Station faces $36 million in sliced appropriations, which could eliminate 15 stations throughout the state.

The MSU Extension programs also are in limbo. The state spends about $28.6 million on the extension programs, which is matched by $10 million in federal funds, $18 million in county funds and more than $21 million in other grants.

Sen. Cropsey said Gov. Jennifer Granholm does not understand the significance these programs have to agriculture, Michigan's second largest industry.

"We do have a new governor and this governor did not come from a rural background," Cropsey said. "John Engler did, and he did understand these programs."

Researchers from the agricultural experiment stations study water quality and livestock.

Workers within the MSU Extension office supply research and development for the agriculture industry, including research on the West Nile Virus and food security.

Last year, the state cut the extension program's appropriations by 10 percent.

Participants in the event questioned the legislators and asked for solutions to the budget crisis.

Bernero said to save some of MSU's programming, Michigan will have to be creative in obtaining additional revenue.

He informed the crowd that he is proposing legislation that would impose a sales tax on carbonated beverages, which currently is exempt from sales tax.

The proposed legislation would bring an estimated $100 million to the state yearly, Bernero said.

During the last round of budget cuts, the state sliced MSU's budget by $33 million, resulting in MSU cutting $31 million from the university and raising tuition by 9.9 percent this fall.

McPherson told the legislators that MSU has kept tuition below the rate of inflation for seven out of the past 10 years, and the state hasn't rewarded MSU by sparing it cuts.

He added that if MSU raised tuition at the average rate, it would have an additional $350 million in its operating budget.

"Frankly, we never felt as if we were treated equally," McPherson said.

"We feel like what we did our last 10 years wasn't recognized."

Several legislators said the situation looks even more bleak, with early estimates predicting the state will be in a $700 million deficit for the 2005 fiscal year.

International relations junior Jason Ardanowski said the state needs to respond to MSU's efforts in order to preserve the quality of MSU's programming.

"We're paying more money for a lower quality product," he said "And that scenario is predicted for at least 2005.

"That's not acceptable."

Antonio Planas can be reached at planasan@msu.edu.

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