ASMSU has been surrounded by a cloud of arguments and concerns in the past two weeks about an account of unused student tax dollars.
In the face of arguments from some student groups about the $600,000 risk management account, they argued could be divided between deserving groups, many in MSU's undergraduate student government still agree it's necessary.
David Green, a financial planning specialist at Smith Barney and ASMSU's risk management fund manager since 1990, said the account increased by 20 percent last year through investments in various stocks and bonds.
The vice president of investments and portfolio manager said although some students and ASMSU members disagree with an account of unused tax dollars, it serves as ASMSU's legacy for future generations.
"Philosophically, you have a responsibility to leave something behind for students in the university by wisely supporting projects that leave something for future generations," he said, referring to ASMSU's funding of Sparty renovations that came from the risk management fund.
But a sampling of student governments at four Big Ten universities show three of them transfer unused student tax dollars into its next year's budget instead of a separate account.
Student governments at the University of Wisconsin-Madison, the University of Illinois and the University of Michigan each put unused funds into their general budgets for student groups and special events in the subsequent year.
Pennsylvania State University's student government leaves funding student groups to a separate university board. Its $2 million budget also is rolled over into the next year's budget.
Anita Leung, U-M's Michigan Student Assembly's former treasurer and current vice president, said the Michigan Student Assembly, or MSA, has a reserve fund of about $30,000 for emergencies. ASMSU's risk management account is 20 times as much.
Leung said only 23 percent of the 1,200 registered student groups at U-M received funding from MSA's Budget Priorities Committee, which allocates funding for student groups. About 40 percent of MSA's budget, or about $250,000 is used for registered student groups.
The University of Wisconsin-Madison's operating budget of more than $3 million consists of rolled-over student taxes.
The sampling of Big Ten universities also shows MSU has a similar system of distributing money to registered student groups.
The University of Wisconsin-Madison's Student Services Finance Committee requires student groups to provide a detailed budget to receive funding, similar to MSU's funding board.
ASMSU's funding board has an operating budget of about $90,000 for more than 300 registered student groups.
Jason Bucholz, ASMSU's vice chairperson of student funding, which distributes money to registered student groups, said the board denied six of 30 groups that requested money this semester.
Bucholz said none of the denied groups lost financing because of a lack of money, but rather incomplete applications or ASMSU code restrictions.
Last year, the funding board gave away $89,051 and has dispensed $40,730 this semester.
"The fact that everyone wants to give the money back to students - that's very short-term thinking," Bucholz said.
Green said last year's $76,000 gain was unusual, but the account has increased an average of 7 percent every year since it was created.
He also cautioned ASMSU to follow basic business procedures and have six months of expenses on reserve, which the risk management does, he said.
"What if something changes? There is no cushion for the organization to do students' needs," he said.
He said labeling it as a risk management account is misguided, suggesting "investment account" instead.
But Green's assessment of the risk management account came in contrast with ASMSU Student Assembly Chairperson Andrew Shepers' justification for the fund.
He said the account is used as insurance in the event ASMSU's $13.75 student tax isn't renewed or its offices are ruined, such as by a fire.
But Schepers said the account can serve as both a legacy to future generations and an emergency fund, although he still wants ASMSU to purchase an insurance policy for its offices.
"It acts as a legacy account, but also gives us a form of stability and an account to go into if something does happen," he said.
