University of Michigan - Michiganensian Yearbook (Ann Arbor, MI)

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DR. JAMES D. BRUCE Vice President Earhart Foundation has aided the Univer- sity throughout the last year in bringing stu- dents together for detailed consideration of various social problems. Seminars and con- ferences have been used to broaden their knowledge of these things. As President Ruthven says. The aim of the project is not to train professional social workers, but to provide a background of practical experi- ence which will make for a better, because more intelligent, citizenship. The President further recommends that a student counselor in religion be associated with the President ' s office in the near future. His function should be to aid the student in solving those vital problems which arise in the spiritual and cultural growth of every individual. The New Budget OBVIOUSLY the greatest problem faced by the administration in the past year has been that of balancing the budget to meet the $738,000 cut which resulted from the 1 5 per cent reduction in the mill tax made by a special session of the State legislature in 1932. For the past sixty years state sup- port of the University has come mainly from the mill tax. During that time it has fur- DEAN JOHN R. EFFINCER College of Literature, Science, and the Arts nished a reliable source of income and has maintained the operation of the University upon a thoroughly non-political basis. The mill tax is designed to maintain the income of the University upon a basis proportionate to the financial resources of the state. Hence, as the income of the University is automatic- ally reduced as the equalized valuation of the state falls, further limitations are not properly a part of the theory behind the tax. But as Shirley W. Smith, Vice President and Secretary of the University, said in an article written by him on the subject. Xo one questions the necessity or the propriety of the 1 5 per cent reduction, which the special session of the Legislature last spring made in the proceeds of the mill tax for the year 1932-33. It was a necessity of the times and the University accepted it as its contribution to the general welfare. Mr. Smith points out, however, that in 1933-35 the reduction in valuation which will continue to act as a part of the mill tax theory will add $214,- 000 more to the reduction made in the Legis- lature. Mr. Smith ' s comment on this is interesting. It seems doubtful whether any other divi- sion of the state government has been called on to make such a reduction in its operating Page Three

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SHIRLEY W. SMITH Vice President CLARENCE S. YOAKUM Vice President for the progress made in the study of Uni- versity activities, in revising the organiza- tion, and in the laying of the groundwork for expanding the activities of the University as a character-building organization. President Ruthven makes it plain that it is not the policy of the administration to stand still. Constant research and study are essential to maintain the growth of the Uni- versity in harmony with the most advanced trends in educational development. And so the administration is directing the University today with an eye to the greater institution of tomorrow. The application made of this principle in the past year is illustrated by the following statement in President Ruth- ven ' s report: For each unit to do its work well is not sufficient; there must be con- tinuing effort to centralize information about the departments, to study and evaluate methods which are proving successful in other institutions, and to coordinate the activities of departments if the University is to perform its several functions with reason- able efficiency. With the aid of the Facul- ties, material progress has been made this year in these fields, without any tendency to produce a stereotyped institution. One phase of this development is evi- denced by a plan instituted this year to equalize teaching loads and place the de- termination of salaries upon a sounder basis. According to this plan staff members will each year receive two information blanks upon which they will record the distribution of their time. With the aid of this informa- tion, it is hoped that inequalities may be ironed out and the work of the Faculty placed upon a more efficient and satisfactory basis than ever before. It has been previously stated that the administration is now taking steps toward greater emphasis upon character develop- ment. Although the greatest force in this direction must inevitably be the classroom relationship between student and teacher, President Ruthven states in his report that it would seem that the large institution at least could enrich its contribution to the spiritual growth of the student by bringing to his attention the formal courses in religion and philosophy in the curriculum, by offer- ing him practical experience in human rela- tions, and by providing a counselor to assist him in developing his philosophy of life. He continues that the first of these objectives is easily achieved. Michigan has experienced reasonable success with the second. The Page Two

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DEAN JOSEPH A. BURSLEY Men DEAN ALICE C. LLOYD Women expenditures. It would seem further that the mill tax has justified the claims made through the past sixty years that it would automatic- ally decrease the University ' s income should the state meet with sustained depression of its resources. The new budget was presented to the Board of Regents at their May meeting in 1932. At that time President Ruthven sum- med up the problem which had been met by the budget in the following words: To the end of effecting economies the last Legis- lature reduced the appropriation for the Uni- versity of Michigan by approximately $738,- 000. Considering the other sources of income of the University, coming from student fees, service fees, income from endowment funds, etc., its total income for the 1932-33 fiscal year thereby became reduced by approxi- mately 1 1 per cent, and the administration was therefore faced with administering the University for the coming year on this re- duced income basis. It is interesting to note how these reduc- tions were made in the accounts of the vari- ous expending agencies in the University. As President Ruthven said, In balancing the budget every activity and position was care- fully studied to determine where expenses could be decreased with the least permanent damage to the institution. The plan of blanket cuts was not applied because it was believed that such a method would not prove an economical one. The following reductions were made in general divisions. In the President ' s Office and the General Business Office the cut amounted to 14.8 per cent. The income of Other General Offices was reduced 5.7 per cent, or $11,122. The decrease in depart- ments of instruction and research amounted to $446,367.24, or approximately 9.94 per cent. The University Extension Service was given a cut of 11.24 per cent, and a decrease of 9.46 per cent, or $11,080 was made in Business departments. Finally there was a reduction of $63,504 in the account termed Operation and Maintenance of Physical Plant . All in all the reductions, exclusive of the University Hospital which operates on an independent basis, amounted to $587,- 618.55. University reserves were used to meet the remainder of the $738,000 cut. After the Legislature passed the act limit- ing the University ' s share of the mill tax there was considerable speculation as to what the effect would be upon salaries in the University. This was recognized as one of Page Four