Michigan public universities list $4.2B unrestricted assets

DETROIT (AP) -- Michigan's public universities have about $4.2 billion on their books as "unrestricted" net assets, up about 24 percent from the previous fiscal year, according to a report published recently. The figure for the fiscal year that ended June 30, 2011, is up from about $3.4 billion and is based on a review conducted of the schools' financial documents by the Detroit Free Press. The numbers don't include Wayne State University's information, since the school operates under a different fiscal year and its total wasn't yet ready. Some parents and university students said officials should tap at least some of the money in the reserve accounts to lower tuition rates. "It's good to have money for new buildings, but what if no one can afford to go to them?" said Mike Clancy of Lansing, whose daughter is a sophomore at Grand Valley State University. The "unrestricted" money generally is meant for special one-time projects, though school governing boards may use it as desired. Officials at several schools, however, said that using that money would have negative long-term effects. At the University of Michigan, unrestricted net assets climbed about 42 percent, the biggest one-year gain among the schools reporting numbers. The school has $2.6 billion among its three campuses and health system. "There are no external rules that restrict how we spend that paycheck," said University of Michigan spokesman Rick Fitzgerald said. "But that does not mean we don't have obligations to meet with that paycheck." At Eastern Michigan University, the Pray-Harrold Building got a $42 million renovation paid for in part by funds classified in financial records as "unrestricted" net assets. Such assets at the school were down about 28 percent to $40.5 million. Oakland University increased the assets by about 20 percent to $145.8 million from the fiscal year ending June 30, 2010. Michigan State University increased the assets by about 24 percent to $789 million. "MSU has chosen not to shortchange long-term needs in order to ease near-term fiscal challenges," said spokesman Kent Cassella. Of that money, only $8 million isn't already targeted for special projects, he said. Boards and management, in many cases, have already designated money for specific projects, such as construction. "All of the designated purposes ultimately benefit students through scholarship support, capital improvement, faculty support and student service improvements," said Oakland University Chief Financial Officer John Beaghan. Published: Wed, Jan 18, 2012