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Funding Update

Graduate School February 18, 2009

State of Michigan BudgetJanuary Revenue Conference

2008 2009 2010$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

Ge

ne

ral F

un

d R

ev

en

ue

, in

mill

ion

s

May

2008 C

onse

nsu

s

Adj.

May

200

7 Co

nsen

sus

UM

For

ecas

t

May

200

8 Co

nsen

sus

Janu

ary

2008

Con

sens

us

Janu

ary

2008

Con

sens

us2

UM

For

ecas

t

UM

For

ecas

t—la

st y

ear

• The State's general fund is forecasted take in about $917 M less than the $9.4 B than last

year--Red Arrow

• The FY 2009 $8.6 B in forecasted revenues in is about $578 M less than state economists projected in May.--Green Arrow

• The FY 2010 general fund revenues are expected to be $372 M less than newly projected revenues from current year— Blue Arrow

Janu

ary

2009

Con

sens

us

Janu

ary

2009

Con

sens

us

Janu

ary

2009

Con

sens

us

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12-Year Increases in Higher Education Budgets by State (FY 1997 to FY 2009)

Series10%

20%

40%

60%

80%

100%

120%

140%

160%

180%L

ou

isia

na

No

rth

Ca

rolin

a

California

Co

nn

ec

tic

ut

Ne

w Y

ork

Ala

ba

ma

New Hampshire avg.

Min

ne

so

taIllin

ois

Mis

so

uri

Michigan

So

uth

Ca

rolin

a

• National Average: 67% or 5.6%/ yr; Michigan: 17% or 1.4% / yr• In FY 1997 NC & MI had basically same appropriation. Since then, NC has

invested an additional $2.0 B into Higher Ed. MI invested an additional $300 M.

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12-Year Increases in Higher Education Budgets by State (FY 1997 to FY 2009)

10%

20%

40%

60%

80%

100%

120%N

ort

h C

aro

lin

a

Ge

org

ia

Ca

lifo

rnia

Ne

w Y

ork

Ala

ba

ma

Te

xa

s

Vir

gin

ia

Wa

sh

ing

ton

Flo

rid

a

Ind

ian

a

Ne

w J

ers

ey

Min

ne

so

ta

Illin

ois

Oh

io

Pe

nn

sy

lva

nia

Mic

hig

an

• Chart shows just those states, who in FY 1997, invested more than $1.0 B in Higher Education

• Since then, the avg. investment increase has been $1.3 B. MI increase was $300 M.

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Annual Change in Resources FY 2001 to FY 2007:

(State Appropriations & Tuition/FYES)

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Funding Gap

$79.4 M

Wayne State UniversityState AppropriationsFY 1995 to FY 2009

FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009$180,000

$200,000

$220,000

$240,000

$260,000

$280,000

$300,000

$214,356

$223,325 $220,954

$300,308

Thou

sand

s of

Dol

lars

State appropriations if increased by CPI each

year.

Actual State Appropriations

If the WSU State Appropriations were $79.4 M higher than they are today,Our tuition costs could be reduced by 40%

Stimulus Update

Only have Governor's proposal Higher Ed Bill currently in House and then goes to

Senate Proposal is to restore Governor's original

proposed 3% cut AND bring us back to FY 2008 levels This is only good for FY 2010 and FY 2011 FY 2012 our base appropriation would drop from

current level of $220 M to $214 M

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Summary Points Since 1997, the State of Michigan’s average annual increase to

Higher Ed has been 1.4%. The national average is 5.6% In FY 1997 NC & MI had basically same appropriation for higher education.

Since then, NC has invested an additional $2.0 B into Higher Ed. MI invested an additional $300 M.

If the State of Michigan would have increased WSU State Appropriations by just inflation since 2002, our current tuition rates could have been reduced by 40%.

With less state appropriations, the student’s have had to cover a larger share of the costs to go to school. In 2001, the State covered 63% of the costs for a student to attend WSU and the

student covered 30%. In 2009 the State only covers 40% and the student covers 50% of the cost of an

education

WSU tuition rates are the 4th lowest in the (ahead of EMU, OU and SVSU) for those students taking 24 credit hours. WSU tuition rate is $2000 less than our closest peer research institution

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