Creating the Corridor

Creating the Corridor

Joe SerwachThe University of Michigan

Public Policy 778, Professor Elisabeth Gerber

October 22, 2010

Ford vs. Chevy, Freep vs. the News and U-M vs. MSU vs. WSU• Harvardization of Higher Ed: Every

university for itself, fighting for its share of state dollars, duplication.

• “In summary, during the last half of the 20th century, the University of Michigan’s influence in Lansing plummeted,’’ - former U-M President James Duderstadt

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From state U to Tuition-supported U

Climate change• More stakeholders: As state support declined, other

stakeholders rose in importance: federal support, tuition, donors, healthcare revenue, business.

• Term Limits: Constant change in officials. • Selectivity/cultural divide: More applicants,

higher standards and a growing gap between rich and poor, high education vs. low education.

• Partner or perish: Government, the public and fiscal realities all encourage more collaboration, partnering and alliance building, leverage resources

“Our University has performed remarkably well given this economic downturn. In fact, universities from throughout the country are calling us, eager to understand – and replicate – what is becoming known as the Michigan Model.,’’ – University of Michigan President Mary Sue Coleman.

Michigan State University

Approach to change

Systemic Across the board

Mode of implementation

Created partnerships and cut costs where it made sense

20% across department budget cuts planned

Outcome

Tuition increases about 5% per year. Boosted financial aid at double digit rates including 12% this year

In-state tuition: $11,738Out-of-State: $34,230

Increased tuition at a more rapid percentage, narrowing gap between U-M and MSU

In-state tuition: $11,935

Out-of-State: $28,270

Sources: US News world report 2009 to 2010 best colleges rankings, U-M and MSU budget sites.

The Pot Luck Dinner

1. The “winter that never ends,’’ a seven year statewide recession forced U-M into an ongoing crisis/opportunity vision of the state.

2. “Partner or perish.’’ Encouraging new partnerships with business, communities and other institutions.

3. Family ties: “Let us help’’ replaced “We need.’’

4. “Us against the world” replaced neighbor vs. neighbor.

5. Building bridges. Everyone brings something to table

The Michigan Model

Hope is more interesting than doom and gloom