MSU trustees set general fund operating budget for 2002-03

Contact: Terry Denbow, Vice President for University Relations, (517) 355-2262, denbow@msu.edu

Jun 28, 2002

EAST LANSING, Mich. - Pursuant to guidelines established in May, the Michigan State University Board of Trustees on Friday established a general fund operating budget of $681.9 million for the university for 2002-03.

That's up from $650.7 million last year and includes an anticipated 0 percent increase in appropriations from the state.

The budget includes:

  • a tuition and fee rate increase of 8.5 percent.
  • a 3 percent increase in student financial assistance and pay ranges for students working on campus.
  • a merit-based faculty and academic staff salary increase of 4 percent.
  • a 2 percent reduction in the university base budget - a cut necessary to fund increases in health care expenses - and a further 1 percent reduction in unit budgets to fund initiatives to sustain quality.

The tuition increase is in line with a promise made earlier this year by the presidents of Michigan universities not to raise tuition by more than 8.5 percent or $425, whichever is greater. In return, Gov. John Engler and legislative leaders agreed not to reduce state spending on higher education from this year's $1.7 billion level.

MSU freshmen and sophomores who are Michigan residents will pay $179.75 per credit hour this fall. Juniors and seniors who are Michigan residents will pay $200.50 per credit hour.

The board also set the budget for the Michigan Agricultural Experiment Station ($47.9 million), MSU Extension ($49.3 million) and Intercollegiate Athletics ($54.1 million).