Grand Valley Responds to State Budget Cuts

Grand Valley State University Board of Trustees on February 14 approved a revised budget to handle the cut in state appropriations. The new budget absorbs the 2 percent decrease ordered by departing Governor John Engler without cutting university services.

The $1.2 million in reductions to the budget come from four sources. Delaying scheduled maintenance will save $250,000. The university locked in natural gas rates early this year and will save $300,000 as a result. A boost in tuition dollars from an increase in enrollment gives the university $300,000 more, and a withdrawal from Grand Valley's contingency fund of $350,000 will make up the rest.

President Mark A. Murray told the board, 'These are creative solutions to managing the cuts, but they will still hurt. We have another 1.5 percent coming for this year and undoubtedly more next year. We'll discuss those challenges into the spring.'

Gov. Jennifer Granholm issued an executive order February 19 that included an additional 1.5 percent reduction to Grand Valley's appropriation, from $58.8 million to $57.9 million. The administration and the board have not yet determined how to handle the additional reduction of $900,000, although Murray has already said a tuition hike for fall 2003 is inevitable.

Granholm will present her budget for fiscal year 2004 during the first week of March. There is a $1.8 billion gap between current spending and revenue projections. Higher education is expected to again be subjected to reductions in appropriations.