Address to Senate Assembly Provost Teresa A. Sullivan November 19, 2007

SACUA-Provost Collaborations Review of Faculty Grievance Procedure Shared Governance Recreational Sports Faculty Ombuds Budget Advisory Committee

Additional Areas of Collaboration Registration brackets Textbook costs Course evaluation and placement exams Diversity Blueprints

The Changing Mix of General Fund Revenue 62% 24% 14% 2007 appropriation amount includes mid-year base reduction; 2008 amount is projected at 2007 level.

$300 $325 $350 $375 $400 $425 FY02FY03FY04FY05FY06FY07 $ in Millions Recent State Funding in Perspective 2007 appropriation amount includes mid-year base reduction; 2008 amount is projected at 2007 level. FY02 Appropriation at Growth in Detroit CPI State Appropriations $363M $0 $102M Gap $422M FY08 $320M

Sources of Cost Increases Labor Intensive Investment in Technology and Facilities Volume of Activity Preservation of Human Knowledge Competitors Buffered

Direction from Board of Regents In order for UM to retain its quality, accessibility and standing as a top research University, we must find significant new revenue streams or undertake major cost- containment efforts.

Charge from Board of Regents Examine endowment spending rule Explore containment of space costs Increase UM’s tech transfer and research revenues Enhance Development activities Examine UM’s health benefits strategies Explore tuition stabilization programs

Areas of Cost Containment Space Energy Staffing

Campaign for Michigan The Michigan Difference Campaign University of Michigan Cash Receipts by Fiscal Year

Faculty Support $285 Million raised to date 169 New endowed professorships Michigan now has 437 endowed professorships, an increase of 62% since July 1, 2000

President’s Donor Challenge: Need-Based Undergraduate Scholarships Targets gifts for need-based undergraduate scholarships Dollar to dollar match for need- based undergraduate scholarships Nearly $22 million raised for a matched total of nearly $44 million in new need-based scholarships

President’s Donor Challenge: Phase II Targets gifts for graduate student and professional school student support. Every $2 from a donor is matched by $1 from the President $50,000 needed to create a named endowment The program continues until: –$40 million in gifts have been received –Or the Campaign ends Dec. 31, 2008 In the first 60 days of the program, more than $6 Million in gifts have been committed

Interactive Chemistry 260