Address to Senate Assembly

Provost Teresa A. Sullivan

November 19, 2007

SACUA-Provost Collaborations

Review of Faculty Grievance Procedure

Shared Governance

Recreational Sports

Faculty Ombuds

Budget Advisory Committee

Additional Areas of Collaboration

Registration brackets

Textbook costs

Course evaluation and placement exams

Diversity Blueprints

The Changing Mix of General Fund Revenue

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

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State Appropriation

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Indirect Cost Recovery and Other

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Tuition and Fees

62%

24%

14%

2007 appropriation amount includes mid-year base reduction; 2008 amount is projected at 2007 level.

$300

$325

$350

$375

$400

$425

FY02 FY03 FY04 FY05 FY06 FY07

$ in

Mil

lion

s

Recent State Funding in Perspective

2007 appropriation amount includes mid-year base reduction; 2008 amount is projected at 2007 level.

FY02 Appropriation at Growth in Detroit CPI

State Appropriations

$363M

$0

$102MGap

$422M

FY08

$320M

Sources of Cost Increases

•Labor Intensive

•Investment in Technology and Facilities

•Volume of Activity

•Preservation of Human Knowledge

•Competitors Buffered

Direction from Board of Regents

In order for UM to retain its quality,

accessibility and standing as a top research

University, we must find significant new

revenue streams or undertake major cost-

containment efforts.

Charge from Board of Regents

• Examine endowment spending rule

• Explore containment of space costs

• Increase UM’s tech transfer and research revenues

• Enhance Development activities

• Examine UM’s health benefits strategies

• Explore tuition stabilization programs

Areas of Cost Containment

•Space

•Energy

•Staffing

Campaign for Michigan

The Michigan Difference Campaign

University of Michigan

Cash Receipts by Fiscal Year

146122

158180 177

231218

168184

212

256 257

300

0

50

100

150

200

250

300

350

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

Faculty Support

• $285 Million raised to date

• 169 New endowed professorships

• Michigan now has 437 endowed professorships, an increase of 62% since July 1, 2000

President’s Donor Challenge: Need-Based Undergraduate

Scholarships• Targets gifts for need-based

undergraduate scholarships • Dollar to dollar match for need-

based undergraduate scholarships

• Nearly $22 million raised for a matched total of nearly $44 million in new need-based scholarships

President’s Donor Challenge: Phase II

• Targets gifts for graduate student and professional school student support.

• Every $2 from a donor is matched by $1 from the President

• $50,000 needed to create a named endowment

• The program continues until:– $40 million in gifts have been received– Or the Campaign ends Dec. 31, 2008

• In the first 60 days of the program, more than $6 Million in gifts have been committed

Interactive Chemistry 260