This is part one of many of my reviews of the MSU budget and where our money is going. Right now I’m taking baby steps down the trail of money, soon we’ll get into specific projects and purchases, but right now I’m simply attempting to identify where to look for those projects and purchases.
First, I’d like to address the idea of a tuition freeze. There’s a group on Facebook called the “Michigan State University Transparency and Accountability Initiative,” they’re basically attempting to get the university to be open and transparent about their spending. Of course I would advocate for all staff salaries to be put online as well as all spending. After all, the spending is computerized within the university as it is, why not put it on the internet?
The group is inviting people to an open mic night at the next ASMSU meeting to discuss a tuition freeze. As much as I’m against an increase in tuition, I think a freeze isn’t going to do much good. For starters, the university would stand to lose between $11,110,176 and $14,181,860 if they simply didn’t increase tuition based on the rate of inflation. The first number would be a freeze on undergraduate tuition with the average student taking 14 credits for two semesters, the last number is all students assuming a 14 credit average as well. Again, that’s how much they would lose by not increasing tuition at the rate of inflation. Couple that with the $9,000,000 the state is cutting in funding and in one year the university would lose roughly $21,646,018 in funding, just over 2.3% of the entire budget.
The university is in a budgetary pickle, all I’m asking is they look at spending cuts first and then tuition increases. I have no problem if the university increases tuition based on the rate of inflation each year, and based on the amount of money they receive from the state each year. However, even in years when state allocation has gone up, tuition has gone up over the rate of inflation as well. I would recommend that the university increase the tuition for next year by the rate of inflation, that would amount to an $11 increase per credit per semester. That works outs to a $308 increase for a student taking 14 credits for the entire year.
By the way, I think it might be better for the university, and the state for that matter, to decrease out-of-state tuition and increase out-of-state enrollment very slightly. This would make Michigan State more competitive with other universities and a good chunk of people that graduate in a state, stay in that state upon graduation. Just a thought.
Okay, now that we’ve settled the idea of a tuition freeze, it’s time to get into part one of where your money is going. In this part I simply looked at home much the allocated funds for each college went up by from 2007-2008 to 2008-2009. If the percent change was 4.5% or less I consider it spending for maintaining the college. If the percent increase was over 4.5% I consider it additional spending. Let me stress, I’m not passing judgment on the additional spending colleges, I’m simply pointing out that they’re receiving more money than it should cost to maintain their college. Certainly colleges will need additional spending to expand, and expansion is a good thing, but I wouldn’t be able to pass judgment on an increase in allocation without seeing the spending rolls.
Of the 18 colleges listed in the budget, six of them (Agriculture and Natural Resources, Arts and Letters, Business, Communication Arts and Sciences, and Social Science), saw an increase of less than 4.5%. 12 colleges (Education, Engineering, Human Medicine, Music, Natural Science, Nursing, Honors, Osteopathic Medicine, Residential College in Arts and Humanities, James Madison, Lyman Briggs, and Veterinary Medicine) saw an increase of more than 4.5%.
After determining which colleges received additional spending, I broke down the spending increase for each item listed in their budget. My goal was to find a pattern among all of the colleges; and that’s exactly what I found.
The common thread was a line in the budget named “Dean Special.” I’ll explain what exactly that means a little later. 11 colleges had this category listed in their budget, in every college that saw an increase in spending under the level of maintaining (4.5%), they saw a decrease in the “Dean Special” allocation. And it wasn’t just a decrease, it was a decrease of an astounding 47.75% on average.
Six of the seven colleges that saw an increase of 4.5% saw an increase in the “Dean Special” category. Five of those seven saw an increase greater than 10%. The average increase for a college over the 4.5% level in the “Dean Special” category was 17.05%.
So I saw a clear pattern; when “dean special” spending went up, the college was allocated money for additional spending. So it stands to reason that I ask what exactly dean special is.
I emailed the Office of Planning and Budgets and Brent Johnston, Assistant Budget Officer, replied to my email. He gave me a decent overview of exactly what universities use the “dean special” category for.
Thanks for your question. There are numerous elements that make up the components of most “Special” accounts. First, as colleges experience turn over with professors, the recruitment process can take upwards of a year. When colleges experience these openings, they will typically allocate the salary dollars to their “special” account in order to utilize them to fund temporary replacements, etc. Secondly, “Dean’s Special” funds are often related to “Off Campus Credit Instruction” (OCCI). When a college offers course through the web, or off campus, and students take those courses who are not also taking on-campus classes, a portion of the revenue from those offerings are passed to the college. These funds are available for the Dean, and their college, to use on expenditures for offering these courses, and other strategic and programmatic priorities. Finally, most colleges utilize these accounts to retain some degree of fiscal flexibility in order to be able address unforeseen needs. The most common occurrence in this regard is funding for additional sections of classes if initial enrollment projections are low. In all cases, these dollars are budgeted as “salary” as most expenditures from these areas will be related to compensation and, as a result, this is the most accurate allocation. However, should the expenses be related to another expenditure type, they can be reallocated for that use.
Basically I’ll sum up that entire explanation in a few words; it’s a safety net. If a professor leaves, they can utilize that line in the budget for temporary professor’s salaries. They can use that category for wiggle room spending, and revenue from online courses paid by non-university students is allocated there was well.
In total the “Dean Special” category is allocated $6,273,078.
And that’s where your money is going. Well, at least some of it.
–jb