Transcript Northern Michigan University Budget Hearing

General Budget Orientation
and Discussion
Mr. Gavin Leach, Vice President for Finance and Administration
Fund Types
 Current funds (Operating)
● General fund
● Designated fund
● Auxiliary fund
● Expendable restricted fund
 Non-current funds (Non-operating)
● Student loan fund
● Endowment fund
● Plant fund
● Insurance fund
● Agency fund
Current Fund (Operating) Activities
 General Fund
● Academic and instructional programs and their administration – programs
primarily supported by appropriation, tuition and fees, indirect cost recoveries,
investment income, and incidental revenues of departments
● Base budget
 Recurring budget line items such as personnel, supplies, equipment, utilities, debt
service, and other related expenditures
● Designated and carryover budget
 University funds remaining from the prior fiscal year. These funds include amounts
contractually committed (i.e., purchase orders issued, unspent faculty contractual
travel funds), general operating reserves, and departmental operating carry-over
balances.
 Designated Fund
● Operations that generate revenues for specific purposes that are not restricted
by donors, supporting agencies, or patrons – generate revenue to support
their ongoing operations but may receive some general fund support and also
include departmental equipment reserves
● Major operations include: intercollegiate athletics, Superior Dome operations,
Berry Events Center, recreational services, telephone systems, NMU
Foundation support, printing services, etc.
Current Fund (Operating) Activities
(continued)
 Auxiliary Activities Fund
● Activities of revenue-producing, self-supporting activities that perform a
service for, but are not themselves educational and general activities, and do
not receive state support
● Major operations include: Residence Life, Dining Services, Bookstore,
University Center operations, and the Health Center
● Recurring budget line items such as personnel, supplies, equipment, utilities,
debt service, and other related expenditures
 Expendable Restricted Fund
● Funds that are restricted for specific purposes stated by the supporting
agencies or donors
● Primary funding sources include federal financial aid, private scholarships,
and federal, state, and local grants
Non-current Fund Activities
 Student Loan Fund
● Maintained to account for loans to students of the institution
 Endowment Fund
● Maintained to account for money or investments received for endowments where donor
has specified that the principal may not be expended, term endowments (donor
specified period to hold principal), and funds functioning as endowment (donor did not
require funds be held in perpetuity, but governing board has decided to treat as
endowment)
 Plant Fund
● Funds held to account for: the acquisition of physical properties to be used for
institutional purposes, renewal and replacement of institutional properties, retirement of
indebtedness of institutional properties, and funds expended and invested in institutional
plant properties
 Insurance Fund
● Funds held to account for institution’s employee insurance and institutional physical
plant and liability insurance programs
 Agency Fund
● Funds received by the institution to be held or disbursed only on the instruction or behalf
of the person or organization from whom they are received – custodial funds (i.e.,
amounts withheld for taxes, social security, insurance, etc.)
NMU Total Resources Operating Budget
Total = $165.9 million
Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and Fees, Dining Revenues,
and Residence Life Revenues the Total Resources Operating Budget would be $192.3 million.
General Fund Budget
General Fund Budget Process Timeline
Fiscal Year 2009-10
 February:
 February:






March/April:
April 30/May 1:
May/June:
May/June??:
June ??:
July 16/17:
Governor State of the State
Governor Executive Budget to the
legislature
House Budget Subcommittee Hearing
Board of Trustees Meeting
Senate Budget Subcommittee
House and Senate floor votes
House/Senate Conference Committee
Board of Trustees Meeting
(may need special board meeting to set tuition
and fees)
General Fund Resources
NMU Total Resources General Fund Budget
Total = $102.4 million
Note: This graph displays total resources net of scholarships costs. If scholarship costs were not deducted from Tuition and
Fees the Total Resources General Fund Budget would be $112.9 million.
Total General Fund Resources History
(Source: Actual General Fund Revenues State of Michigan HEIDI Database)
1981
1991
2001
2008
To maintain financial reporting consistency with fiscal years ’81, ’91, and ’01 data, financial aid was not deducted from ’08 tuition and fee revenue.
Appropriation
Appropriation History
(shown in 000,000s)
Fiscal Year Equated Student (FYES)
 Calculation:
● Total undergraduate credit hours divided by 30 equals 1
FYES
● Total graduate credit hours divided by 24 equals 1 FYES
● NMU Total FYES for FY2008 = 8,428
 Fall 2007 Headcount (FY2008) = 9,358
 Fall 2008 Headcount (FY2009) = 9,347
NMU Appropriation per FYES
Appropriations per FYES
Fiscal Year 2008-2009
FY 2009 Appropriation divided by FY2008 FYES
Source: Presidents Council, State Universities of Michigan
Tuition and Fee Rates
Fiscal Year 2008-2009
Annual resident undergraduate tuition and fee rates
Source: Presidents Council, State Universities of Michigan
Non-resident Tuition and Fee Rate Comparison
FY2008-2009 Annual nonresident undergraduate tuition and fee rates
Source: Michigan President’s Council Report on Tuition and Fees for FY2008-09
General Fund Expenditures
Total Costs per FYES: NMU vs. Michigan 12
Fiscal Year 2007-2008
Michigan 12 (M12): excludes Michigan State University, University of Michigan Ann Arbor, and Wayne State University)
State Comparison of NMU vs. M11 Universities
Revenues and Expenditures per FYES Fiscal Year 2007-2008
Resources
State Appropriation for State FY
General Fund Tuition and Fees
Less: Financial Aid
Subtotal-Net Tuition and Fees
Investment Income
Indirect Cost Recovery
Federal Funds
Other General Fund Revenue
Total Resources
Rank
3
11
4
12
3
6
5
8
9
Expenditures
Instruction
Research
Academic Support
Subtotal-Academic Programs
Public Service
Student Service
Institutional Support
Plant Operations
Auxiliary Enterprises
Transfers
Total Expenditures
10
8
1
9
6
4
9
5
4
5
7
NMU
M11 Avg*
$5,478
$4,204
$7,388
$8,695
($1,296)
($1,095)
$6,092
$9,790
$110
$91
$41
$127
$0
$3
$124
$256
$11,845
$14,470
$4,720
$48
$1,827
$6,595
$69
$883
$1,297
$1,536
$250
$1,338
$11,969
$5,553
$167
$1,497
$7,217
$122
$717
$1,562
$1,349
$220
$1,036
$12,223
Difference
$1,274
($1,307)
($201)
($3,698)
$19
($86)
($3)
($132)
($2,625)
($833)
($119)
$330
($622)
($53)
$166
($265)
$187
$30
$302
-$254
NMU Total Cost per FYES History
 FY 1998: $ 9,643 (10 years)
 FY 2002*: $10,343 (5 years)
 FY 2008*: $11,969
● Total costs per student (FYES) increased a total 24.1%
over the past 10 years (approximate average increase of
2.4% per year since 1998)
* Includes costs for implementation of TLC (NMU’s notebook computer program – providing all full-time students with notebook
computer on two-year replacement cycle)
History – Total Revenues per FYES
Source: State of Michigan HEIDI Database
History – Appropriations per FYES
Source: State of Michigan HEIDI Database
History – Tuition Revenue per FYES
Source: State of Michigan HEIDI Database
History – Financial Aid per FYES
Source: State of Michigan HEIDI Database
History – Investment Income per FYES
Source: State of Michigan HEIDI Database
History – Total Expenditures per FYES
Source: State of Michigan HEIDI Database
Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.
History – Instruction per FYES
Source: State of Michigan HEIDI Database
History – Research per FYES
Source: State of Michigan HEIDI Database
History – Academic Support per FYES
Source: State of Michigan HEIDI Database
Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.
History – Total Academic Programs per FYES
(Instruction, Research, and Academic Support)
Source: State of Michigan HEIDI Database
Note: NMU’s costs include implementation of the TLC (notebook computer program) during this time period.
History – Public Services per FYES
Source: State of Michigan HEIDI Database
History – Student Services per FYES
Source: State of Michigan HEIDI Database
History – Institutional Support per FYES
Source: State of Michigan HEIDI Database
History – Plant Operations per FYES
Source: State of Michigan HEIDI Database
Note: Includes heating plant / utilities
History – Plant Operations
(excluding utilities) per FYES
Source: State of Michigan HEIDI Database
Note: Includes heating plant / utilities
History – Utilities per FYES
Source: State of Michigan HEIDI Database
Note: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.
History – Plant Operations (excluding utilities)
per Square Foot
Source: State of Michigan HEIDI Database
History – Auxiliary Activities per FYES
(Primarily Intercollegiate Athletics)
Source: State of Michigan HEIDI Database
Note: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.
Auxiliary Activities Total Expenditures
(Intercollegiate Athletics)
Expenditure
1998
2003
2008
CMU
$0
$0
$0
EMU
$4,582,379
$4,609,233
$8,883,914
GVSU
$1,814,411
$3,445,430
$4,932,951
FSU
$1,778,603
$2,089,400
$2,637,774
LSSU
$650,000
$0
$0
MTU
$0
$0
$0
NMU
$1,879,999
$2,042,613
$2,107,503
OU
$1,029,639
$1,916,215
$2,228,667
SVSU
$1,058,838
$1,476,481
$2,190,830
UM-D
$550,582
$62,163
$480,322
UM-F
$0
$0
$0
WMU
$9,985,247
$8,112,358
$7,156,763
Source: State of Michigan HEIDI Database
Note: Note LSSU went from reporting $268 per FYES in 1998 to $0 for 2003 and 2008.
History – Transfers per FYES
Source: State of Michigan HEIDI Database
Budget Reduction History

General Fund budget cuts/operational savings/ reallocations
●
●
●
●
●
●

FY2003-04:
FY2004-05:
FY2005-06:
FY2006-07:
FY2007-08:
FY2008-09:
$6.5 million
$2.8 million
$1.5 million
$3.0 million
$1.3 million
$1.8 million
Organizational efficiency – consolidation of organization
structure and increased productivity = lower cost
●
5 vice presidents to 2
● 5 academic colleges to 3

NMU faculty and staff are the most productive among the 15
public universities (student-to-staff ratio)
Productivity: Student-to-Staff Ratios
 NMU has the best overall staffing efficiency ratios of the
Michigan public universities
●
Productivity (student-to-staff ratio) 27.9% greater than state
average (M11 universities)
●
Productivity increase of 6.2% over past 5 years (approximate
average increase of 1.2% per year)
Staffing Type
Administrative
Faculty
Service
Total
#1
Productivity*
Rank
#1
#1
#5
* Based on number of students divided by the number of staff.