<p>sakky,
I think barrons raises some valid concerns about U Michigan’s endowment and tuition costs and the school’s ability to cover its costs. The situation there is not acute now and you are absolutely correct that U Michigan has large endowment assets (ranks 9th according to the latest NACUBO data published (admittedly old as it is from 6/30/06). But I’m sure you also know that U Michigan’s per capita endowment is only $141k which places the school 26th among national universities. That's still good, but probably not the cushion that the school would like to have. </p>
<p>As far as tuition cost, I looked at U Michigan’s IS and OOS tuition cost as compared to other public universities ranked in the USNWR Top 50. U Michigan has the third highest IS tuition cost of the 18 public universities measured. For a cross section of private universities that might serve as comparables, it gets much better as U Michigan is cheaper than nearly all of the comps for OOS tuition, but many of the private universities offer merit aid of some type so the advantage might not be as great as it appears. </p>
<p>State budgets are a problem all over the country and Michigan is certainly no exception. Ultimately, the U Virginia target model (become fully self funding and function as a privately funded public university) is very possibly going to be necessary because of all of the state funding cuts. This has not come to pass yet and will take time, but if it does, then ALL of the top public universities will need to do a lot of fundraising if they want to stay competitive.</p>
<p>The state funding problems have implications for students and faculties and the overall resources that a public university can deliver to its students. If a financial squeeze hits and resources get even more scarce, the stories that we hear from time to time about the difficulty of getting one’s courses (eg, your stories about UC Berkeley) will become much more common. This is a legitimate concern for all in the education industry (administrators, faculty, students, alumni, etc) and that includes publics and privates. </p>
<p>For the record, U Michigan's IS and OOS costs compare as follows:</p>
<p>PUBLIC UNIVERSITIES<br>
U Michigan $ 9,723 , $ 29,131 </p>
<p>Penn State $ 12,164 , $ 22,712
U Illinois UC $ 9,882 , $ 23,968
W & M $ 9,210 , $ 26,725
U Virginia $ 8,500 , $ 27,515
UC Davis $ 8,109 , $ 27,177
U Texas $ 7,630 , $ 20,364
UC S Barbara $ 7,010 , $ 25,694
UCSD $ 6,888 , $ 25,372
UC Irvine $ 6,794 , $ 25,478
U Wisconsin $ 6,726 , $ 20,726
UC Berkeley $ 6,654 , $ 25,338
UCLA $ 6,522 , $ 25,206
U Washington $ 5,985 , $ 21,283
U North Carolina $ 5,034 , $ 19,682
Georgia Tech $ 4,926 , $ 20,272
U Florida $ 3,206 , $ 17,791 </p>
<p>PRIVATE UNIVERSITIES<br>
U Michigan $ 9,723 , $ 29,131 </p>
<p>Tulane - , $ 36,610
Boston College - , $ 35,674
Lehigh - , $ 35,610
Northwestern - , $ 35,429
U Rochester - , $ 35,190
Notre Dame - , $ 35,187
Cornell - , $ 34,781
Carnegie Mellon - , $ 34,578
Case Western - , $ 33,908
NYU - , $ 33,420</p>