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FEBRUARY 11, 2005 -- Michigan Governor Jennifer Granholm has filed an executive order to cut the current higher education budget by over $27 million for the current fiscal year. Michigan Tech's portion of the cut totals $855,000. The appropriations committees of both the state house and senate must approve the executive order before it takes effect. The committees are expected to consider the order early next week. "The cost-cutting and revenue-enhancing measures we have continued to pursue and accelerate throughout the year are helping," said President Glenn Mroz. Mroz said he believes these measures mean that the university can absorb these cuts. However, he said that the state cut jeopardizes plans to decrease the university's deficit going into fiscal year 2006. The governor also proposed providing universities with one-time funds for special maintenance. For Michigan Tech, this amount would total $2.8 million. However, there is no guarantee that universities will receive this funding. The proposal requires that the state sell bonds, which would need to be approved by both houses of the legislature. "An even larger issue faces us in the governor's budget for next year," Mroz said. The current budget language for FY06 calls for universities to hold tuition and fee increases to 5 percent or $307, whichever is greater. The language also prevents universities from instituting new student fees and calls for increasing resident undergraduate financial aid by at least the same percentage as tuition and fee increases. Mroz said he will ask the governor to specify "need based" financial aid in the budget language. "We had hoped to be able to decrease our debt and go into next year in a stronger position to attack our deficit," Mroz said. "This presents a more challenging situation." |