MTU PRESIDENT SUGGESTS NEW BUDGET
FORMULA FOR STATE'S TOP UNIVERSITIES

LANSING--The president of Michigan Technological University today (March 10) suggested that the Legislature consider a new formula for providing appropriations to the state's top universities.

President Curt Tompkins told the House Subcommittee on Higher Education Appropriations that Michigan Tech, Michigan, Michigan State and Wayne State deserve special consideration when it comes to funding support because of the unique benefits their programs provide to the Michigan economy.

"The University of Michigan is the state's flagship institution and one of the top public universities in the world," he said. "Michigan State University is a leading land grant university and the oldest land grant institution in the United States. Wayne State is the state's urban research university, and Michigan Tech is the only public, doctorate-granting nationally ranked technological university in the Upper Midwest. These four schools are the only Michigan institutions in the top 100 engineering and science research and development universities in America and for each dollar of state appropriations they attract from 30 cents to more than a dollar in federal government and industry R&D funding."

Tompkins noted that Michigan, Michigan State, and Michigan Tech are ranked among the top public universities in America by both U.S. News & World Report and Kiplinger's Personal Finance Magazine and these three schools account for more than 90 percent of the students who come from overseas to study in Michigan.

Each of these four institutions, said Tompkins, have been recognized by the National Science Foundation with Career Awards to top young faculty in engineering and science and each has been recognized as playing a leading role in the economic development of Michigan by being selected to host the four meetings of the Governor's Innovation Forum and by being represented on the Board of Directors of Michigan Technologies, Inc.

Tompkins noted that most of the engineers graduated in Michigan each year are produced by these four schools and that engineers are essential to the success of the state's businesses and industries. "Yet aggregate enrollment in engineering across all Michigan public universities has been fairly flat during the past 15 years and the Governor's Workforce Commission on which I serve has forecast shortages of engineers in Michigan for the next several decades." In fact, he said, "Michigan is a net importer of engineers and is already experiencing a significant shortage. This need is great enough that last year Governor Engler wrote to the engineering alumni of Michigan Tech, Michigan, and Michigan State, asking them to return to Michigan to fill critical employment needs."

Tompkins said that of Michigan Tech's approximately 26,000 engineering alumni under 65 years of age, about 18,000 currently work and live in Michigan. "Interestingly, more than half of Michigan Tech's engineering graduates who came from outside Michigan have found jobs here in Michigan," he said. "I think this is remarkable."

Tompkins said any policy or practice that "penalizes our universities for attracting the best and brightest out-of-state students to study engineering in Michigan and help fill the shortage of engineers in our state goes against the best interests of Michigan business and industry.

"In fact, it would be smart for the State of Michigan to pay a premium for each engineering degree generated by a Michigan university. It would be smart in our appropriation strategy to build our state's capacity to educate engineers."

Tompkins told legislators there are three appropriation practices that inhibit Michigan Tech and the state's other top engineering schools from filling the needs of Michigan industry for engineers. One is the "across the board" method of appropriation that does not recognize the critical mission of engineering schools relative to the economic development of the State. The second is the accounting method that does not recognize the worth of non-resident students in engineering and science. And the third "is the particularly hurtful practice of failing to provide incremental general funds to support operations and maintenance of new buildings at our public universities, even though 100 percent incremental operating funds are provided to new or expanded prisons."

Tompkins asked legislators to correct these practices by implementing the following strategies:

  1. Provide, in addition to "across the board" appropriation increases, an additional $7,324 per engineering degree granted, based on degrees awarded the previous fiscal year. This would provide approximately $22 million to the state's engineering programs. The money would come from the pool currently obligated to the tuition tax credit--a program Governor Engler has asked the Legislature to repeal.
  2. In calculating the ratio of state appropriation per student, give schools like Michigan Tech credit for the out-of-state students they attract to engineering and science.
  3. Provide incremental operating and maintenance funds for new university buildings.

Tompkins said legislators can help the Big Four universities build their capacity to educate more engineers and scientists in Michigan by treating engineering and science education differently than other aspects of higher education, which are less costly to provide.

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03/10/99

MTU News