LANSING – The majority of the state’s 15 public universities cover more than 80 percent of their employees’ health insurance premiums, according to data submitted to a Michigan Senate subcommittee.
The information comes as the Senate considers legislation (SJR C and SB 7 ) that would require all public employees, including those at universities, to pay at least 20 percent of the cost of their health insurance. Based on the data submitted to the Senate Appropriations Higher Education Subcommittee, nine of the schools have employees paying less than 20 percent on average.
The schools where employees pay less than 20 percent are Central Michigan, Eastern Michigan, Ferris State, Lake Superior State, Michigan State, Northern Michigan, Oakland, Saginaw Valley State and Western Michigan universities. Some classes of employees at those schools pay more than 20 percent while others do not. And Western overall is close to the 80/20 split with the university covering an average of 80.1 percent and employees covering 19.9 percent. Saginaw Valley reported that employee contributions range from nothing to 41 percent.
Universities meeting or exceeding the 80/20 standard were Grand Valley State University, Michigan Technological University, University of Michigan-Ann Arbor, U-M-Dearborn, U-M-Flint and Wayne State University. The entire U-M system is shifting to a 70/30 split.
The subcommittee issued a report this week detailing the answers university officials provided on a series of questions about their operations. The subcommittee is expected to report a budget for the 15 schools Tuesday (SB 178 ).
Lawmakers asked university officials to describe cost-saving measures to address state funding cuts. Universities listed several each.
Central Michigan University reported saving $21 million through self-insurance from 2003-10. Eastern Michigan University said it had cut staff by 140 since 2004. Ferris State University said it was instrumental in developing the state’s Natural Gas Purchasing Consortium. Grand Valley State University reported having cut operating costs per degree by 15 percent and Lake Superior State University said it had privatized the university bookstore and frozen pay for faculty from 2010-13 and administrative personnel from 2008-11.
Michigan State University said it had cut $123 million out of its budget base over the past nine years, including $29.4 million in the current fiscal year. Michigan Technological University said its efforts to contain energy costs had yielded $4.3 million since 2005. Northern Michigan University said it had required all official university communication with students to be online, such as grades, course bulletins, billing and payment plans. Oakland University said it had made more than $21 million in permanent and one-time budget reductions since the 2002-03 fiscal year.
Saginaw Valley State University reported renegotiating contracts for mail and telecommunication services and sought competitive bids for banking and audit services. The University of Michigan reported cutting energy consumption by 14 percent in 2010, saving $5.2 million. U-M-Dearborn said it had transferred ownership of the Henry Ford Estate, saving $200,000 annually and millions in restoration and maintenance costs. U-M-Flint said by using the Ann Arbor campus’s catalog system saved the Flint campus $500,000.
Wayne State University reported eliminating a college, combining two other colleges to form the College of Liberal Arts and Sciences and cutting more than 200 positions. Western Michigan University said it budgets for 608 fewer positions.
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