A budget is a very complex and dynamic subject. It takes a lot of planning and organization from a team of directors. This explains why a lot of people, specifically students, refrain from venturing to find out exactly what their tuition money is spent on.

The question that is often tossed around is whether or not students get their money’s worth. Like a budget, this question is equally as intricate. It comes down to what a student values in an education.

Some people look at education on an extrinsic level. A student might value an education for the consequences that stem from it. Other people might look at education intrinsically. They value education for what it is. 

Assistant Vice President and Director for the Office of Planning and Budgets, David S. Byelich, would like to point out that an education at Michigan State University is both extrinsically and intrinsically valuable. Instead of putting emphasis on the cost of tuition, Byelich puts emphasis on value. 

“What we’re trying to do is preserve that value we have today and try to build that for people tomorrow and in the future through the budget,” Byelich said. “Our process is ongoing.”

The 2008-2009 budget was updated in June 2008. Due to the ever-changing economy, the baseline adjustment increased 3.9 percent. 

“In order to keep the place going with the same amount of service as last year, this is necessary,” assistant budget officer Brent Johnston said. 

Other components included in the budget are stewardship, health care, faculty recruitment and retention, utilities, financial aid and appropriations backfill. When you add all of the components together, there is an 8.7 percent increase of tuition.

According to Johnston, the board said the increase was too much. It resulted in the board deciding to take 1.9 percent out of their own operation to reduce the costs. Johnston compared it to saving approximately $10 million. This continues to leave MSU operating with the smallest tuition revenue and appropriations per student in the Big Ten.

Compared to other Big Ten schools, MSU has also managed to top the list of schools with students receiving financial aid as well as grant aid. Although financial aid is only a 0.6 percent increase of our tuition money, it is not to be overlooked. 

“Financial aid is tremendously important,” Johnston said. 

There are two forms of financial aid: need-based and merit-based. Need-based students are selected from households with a low income. 

“MSU has invested in the importance of these students,” Johnston said. 

Students can receive aid from part of a federal grant called the Pell Grant. What the Pell Grant does not cover, the Spartan Advantage program will. Roughly 800 students are receiving this type of financial aid. A portion of the financial aid also goes to people from different geographical locations. 

“We want to be globally represented,” Johnston said. “It is another way to enhance student experience and create more value.”

Without financial aid, LeAnne Thomas would never have been able to attend MSU. 

“It gives me the option to make a better life for myself and get a good job,” no preference freshman Thomas said.

Thomas valued the opportunity to come to MSU because she is a first generation college student in her family. Throughout her senior year of high school, Thomas struggled with the idea of attending college, leading to a lot of issues with her parents. 

“I’m really happy to be able to prove myself,” Thomas said. “I value education a lot more.” 

Thomas was able to study abroad in Ireland. It is that type of value that she will be able to take with her for the rest of her life.

Aside from the financial aid, baseline adjustment and appropriations backfill, the stewardship and utilities components of tuition received the most attention in terms of a percentage increase.  Stewardship includes dedicating money to facility needs. It also includes computing. The current business operating systems is 40 years old and in need of some improvement. 

Stewardship also consists of a section called advancement, meaning development for the university. Development happens through fundraising, donor support and endowments. The increase in utilities can be attributed to the dramatic climb in coal prices. However, the expenditures to run the physical plant continue to rank among the lowest in the Big Ten.        

According to Byelich, 70 cents of every dollar spent at MSU is on people. 

“Day in and day out we wrestle with the equation of accessibility and affordability,” Byelich said. 

Like any other big corporation, the budget office has to be a leader in dealing with issues and solving operating problems. Asking advice from students, faculty and collective bargaining groups is all part of the process. At the end of the day, all of the people involved in planning the budget said they want to see the students succeed. 

To grasp the concept of valuing success, Byelich painted a mental image. He sees value as a student who has just graduated and is on his way to his first job. The student is assigned his first project. He can look back on his experiences with MSU and say, “I am here because I was able to study abroad and network with some of the best companies around.” 

“That’s value,” Byelich said.

Erica Schumann, an international relations and comparative cultures and politics sophomore, never thought about not going to college.  Schumann was successful in valuing her education both intrinsically and extrinsically. She pointed out that having a diploma from MSU was great in and of itself, but was also quick to suggest that most of the reason she decided to attend was because of the community of students. 

“Everyone here is in the same boat,” Schumann said. “We all succeed together, not just one person.” 

As a member of James Madison College, Schumann found a very cooperative environment with other students. That is something, she said, you might not get at another university. 

“I’ve never questioned the cost,” Schumann said. 

Her theory is that she is getting everything she deserves and more. She said that her experience at MSU is one she will never forget and something she will always have with her.   

When the tuition question pops up in the future, maybe the question to be asking is, “How valuable is education?” The continuing trend of tuition prices might not stop right away, but there are other issues to consider. According to the budget office, MSU has been consistent through their unique study abroad programs, the Wharton Center outreach program, alternative forms of materials and the Product Center, just to name a few. As MSU continues its reputation as one of the top 100 internationally recognized universities in the world, is it safe to say that students are getting their money’s worth? 

For more information on the 2008-2009 budget, visit www.budget.msu.edu.