Gilbertson says state tax increase 'necessary' at annual address

President discusses state budget deficit, addresses effects of Proposal 2

February 12, 2007 —

President Eric R. Gilbertson proposed a tax increase for the state of Michigan at his annual State of the University Address on Thursday, Feb. 1.

Speaking in front of an audience of staff, faculty, and students in the Rhea Miller Recital Hall, Gilbertson said an increase in taxes and a replacement for the Single Business Tax was "necessary" to increase the state's economy.

The economic problems that the state has faced the last several years have hit SVSU in both generic and specific ways. Students have seen their tuition rise every year as the state's revenues - and, as a result, the University's appropriations - decrease. Meanwhile, in January, Governor Jennifer Granholm vetoed a bill from the state legislature that would have provided money for SVSU's proposed health sciences facility, a $28 million project.

"We have done our best to prepare," Gilbertson said. "With a contingency fund and the strong enrollments that were earned this year, we expect to manage without cutting departmental budgets or withdrawing positions that have been authorized for hiring."

Despite the University's stable state, Gilbertson emphasized that the state's economic woes must be addressed in the next couple months, as legislators will ultimately decide on a budget for the upcoming fiscal year.

He conceded that the state government cannot change the economy by itself, but added that it was not useless in aiding in the cause.

"What government can do is give us good government," he said.

Part of this, he explained, was Granholm's "wise" decision to appoint a bi-partisan commission to make recommendations about the state's budget. Gilbertson offered his own thoughts.

"The budget crisis in Lansing is real and serious and can no longer be deferred, much less solved, with temporary fixes or politically expedient maneuvers," Gilbertson said, before adding, "Michigan is not over-taxed - at least relative to other states with which we might wish to be compared."

He explained that economic prosperity did not come simply from the lowest taxes. Instead, it comes from "an educated workforce, enviable quality of life, and safety, civility, and creativity."

To create such necessities, Gilbertson said someone would have to pay for it, including "all of us." He called for a replacement of the SBT, saying, "It was, perhaps, a bad tax - but a necessary form of taxation."

He added that our taxes must be raised, even though it is a tough decision for legislators to make.

"Only we can tell them to have the courage to make wise and honest choices," he said. "And that will require that they raise our taxes. May they have the courage and foresight to do so, and may we have the courage and the foresight to support them when they do."

Gilbertson also addressed the recently passed Proposal 2, the state constitutional amendment that eliminates the affirmative action selection processes in state organizations and universities. He explained that while the University would have to change its actual policy, the amendment would not alter SVSU's philosophy.

"There is nothing ... in this or in any other constitutional provision that even hints that we should not be actively recruiting students or staff from ... historically under-represented populations," he said.

He added that it is in the University's strategic plan to represent the racial and ethnic diversity of the high schools of SVSU's four surrounding counties: Saginaw, Bay, Midland, and Tuscola. Of high school graduates in those four counties, Gilbertson said, 12.49 percent are from minority groups. SVSU's student body is comprised of 13.16 percent of students from the same groups.

"This did not come about by accident," he said. "And these efforts will be vigorously continued."

Gilbertson also said the University would be working with legal counsel to prepare guidelines for departments and offices for admitting students and hiring staff and faculty.

He touched on several other topics, including enrollment (total students increased 1.21 percent over a year ago while credit hours increased 1.83 percent), international students (329 from 40 different countries), faculty numbers (55 percent have been hired in the past 10 years, while 23 percent have been at SVSU for over 20 years), and the University's endowment (increased by more than $6 million).

The president concluded by paraphrasing a former SVSU football coach, who, after a disappointing season, said, "I firmly believe that the future is ahead of us." Intentionally pointing out the obvious, Gilbertson took it one step further.

"I believe the future ahead of us is bright," he said, "but only if we make it so."