Transcript Dr. Les Wong, President Mr. Gavin Leach, Vice President for Finance and Administration.

Dr. Les Wong, President
Mr. Gavin Leach, Vice President for Finance and Administration
Overview

Budget and Appropriation History
 General fund resources
 Appropriation funding history
 Budget history
 Total costs
 Staffing efficiency
 Rising utility costs

General Fund Projected Budget Adjustments and
Roadmap Initiatives

Tuition and Fees Summary and Alternatives
Budget and
Appropriation History
Total General Fund Revenues
* This graph displays total resources net of scholarship costs and does not include one-time carry-over balances.
Appropriation
Appropriation
Appropriation History
History
(shown in 000,000’s)
(shown in 000,000s)
* FY2003 appropriation after both Executive Orders and the State Supplemental
Appropriation per FYES
Budget Reduction History

General Fund budget cuts/operational savings/
reallocations of $13.8 million since 2003






FY2003-04:
FY2004-05:
FY2005-06:
FY2006-07:
FY2007-08:
$6.5 million
$2.8 million
$1.5 million
$3.0 million
$1.3 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)

FY1997:
$9,868 (10 years)

FY2002: $10,481 (5 years)

FY2007: $11,091
 Total costs per student increased a total 12.4% over the
past 10 years or an average of 1.2% per year since 1997
 The CPI over this time period increased by 29.2%

NMU has the best overall staffing efficiency ratios of the
Michigan public universities
 Productivity (student-to-staff ratio) 32.5% greater than state
average
 Productivity increase of 13.3% over past 5 years (average
increase of 2.6% per year)
Staffing Type
Administrative
Faculty
Service
Total
Productivity*
Rank
#1
#1
#4
#1
* Based on number of students divided by the number of staff.

FY1997:
$2,542,210 (10 years)

FY2002:
$3,207,992 (5 years)

FY2007:
$4,888,480
 Total utility costs have increased a total 92.3% over the past
10 years or an average of 9.2% per year since 1997
 The CPI over this time period (Dec CPI) increased by
29.2%
General Fund Tuition and
Budget Considerations
Fiscal Year 2008 – 2009
General Fund Tuition and Budget Considerations for
FY2008-2009

Maintain quality, access, and affordability

Inflation

Competitive tuition with our peers

Roadmap initiatives

Appropriation (1% increase)

Continued cost containment measures

Potential mid-year reductions in appropriation
 The continuing decline in the Michigan economy

Enrollment (projected 0.7% to 1.0% decrease)
Tuition and Fee Guideline

Initial tuition guideline benchmark is consumer price
index plus 1% (for initiatives)
 Consumer Price Index (CPI): 2.8%
 CPI + 1%: 3.8%
Tuition and Fee Rate Comparison
Fiscal Year 2007-2008
Annual resident undergraduate tuition and fee rates
*CMU Freshmen rate is $9,120
*FSU freshmen rate is $8,460
Source: Michigan President’s Council Report on Tuition and Fees for FY2007-08
Tuition and Fee Rates
Fiscal Year 2008-2009
Annual resident undergraduate tuition and fee rate adjustments
University
MTU
MSU
UM-D
FSU
OU
UM-F
UM-AA
SVSU
CMU
GVSU
NMU
LSSU
WMU
EMU
WSU
% Increase *
8.20%
6.80%
6.50%
6.30%
6.29%
5.90%
5.60%
3.70%
To be announced - July 17
To be announced - July 18
To be announced - July 18
To be announced - July 25
To be announced - July 25
To be announced - July 30
To be announced - July 30
Per Semester **
$403
$325
$255
$270
$249
$218
$311
$116
* Based on media reports
** Per semester increase is based on applying percentage increase to tuition and fees as reported in the
Michigan President’s Council Report on Tuition and Fees for Fiscal Year 2007-08 and/or
Roadmap Initiatives for FY2008-09
Innovation:
Resources for innovation and faculty staffing
Campus attributes:
Enhance facilities through facilities upgrades/maintenance
Continued support for academic equip. replacement needs
Meaningful lives:
Retention-financial aid to assist students in completing education
Community engagement/Innovation:
Enhanced staffing to support corp. collaboration
and fundraising for new programs
Subtotal-Roadmap initiatives
$500,000
$300,000
$60,000
$100,000
$275,000
$1,235,000
Tuition Guideline
(Fiscal Year 2008-2009)
2.8%
3.8%
CPI (Consumer Price Index)
CPI + 1%
% of
Budget
% Rate
Change
Operational
Impact
Model #1: Tuition Guideline Model --> CPI + 1%
State appropriation
47.4%
Tuition and fees *
52.6%
1.0%
6.4%
* Implement majority of fiscal year 2008-2009 roadmap initiatives
3.8%
* Resources available to partially offset potential mid-year state aid reductions
1.0%
5.9%
* Moderate reductions in fiscal year 2008-2009 roadmap initiatives
3.6%
* Limited resources available to partially offset potential mid-year state aid reductions
1.0%
5.5%
* Significant reduction in fiscal year 2008-2009 roadmap initiatives
3.4%
* Potential mid-year state aid reductions would pressure tuition and result
in further budget reductions
1.0%
4.5%
* Significant reduction in fiscal year 2008-2009 roadmap initiatives
2.8%
* Potential mid-year state aid reductions or higher than projected enrollment decline
(Tuition increase ** -- per semester: $215; annual: $430)
Operations increase (overall budget % increase)
* Implement $1.75M cost savings/reallocations to limit tuition increase
and a projected enrollment decline of 1%
Model #2
State appropriation
47.4%
Tuition and fees *
52.6%
(Tuition increase** -- per semester: $199; annual: $398)
Operations increase (overall budget % increase)
* Implement $1.75M cost savings/reallocations to limit tuition increase
and a projected enrollment decline of 1%
Model #3
State appropriation
47.4%
Tuition and fees *
52.6%
(Tuition increase** -- per semester: $185; annual $370)
Operations increase (overall budget % increase)
* Implement $1.8M cost savings/reallocations to limit tuition increase
and a projected enrollment decline of 1%
Model #4
State appropriation
47.4%
Tuition and fees *
52.6%
(Tuition increase** -- per semester: $153; annual $305)
Operations increase (overall budget % increase)
* Implement $1.8M cost savings/reallocations to limit tuition increase
and a projected enrollment decline of 1%
would force mid-year tuition increase and further budget reductions
* Percentage includes other income.
** Resident undergraduate student tuition and fees.
Annual Undergraduate Tuition and Fee Rates
(Fiscal Year 2008-09)
FY07 -- Resident undergraduate (30 credits)
FY08 -- Resident undergraduate (30 credits)
FY08 -- Annual increase
FY08 -- Per semester increase
FY08 -- Percent change
FY07 -- Nonresident undergraduate (30 credits)
FY08 -- Nonresident undergraduate (30 credits)
FY08 -- Annual increase
FY08 -- Per semester increase
FY08 -- Percent change
Tuition
Model 1
6.4%
$6,709
$7,138
$430
$215
6.4%
Tuition
Model 2
5.9%
$6,709
$7,106
$398
$199
5.9%
Tuition
Model 3
5.5%
$6,709
$7,078
$370
$185
5.5%
Tuition
Model 4
4.5%
$6,709
$7,010
$302
$151
4.5%
$10,645
$11,326
$682
$341
6.4%
$10,645
$11,276
$632
$316
5.9%
$10,645
$11,230
$586
$293
5.5%
$10,645
$11,126
$482
$241
4.5%
Annual Graduate Tuition and Fee Rates
(Fiscal Year 2008-09)
FY07 -- Resident graduate (24 credits)
FY08 -- Resident graduate (24 credits)
FY08 -- Annual increase
FY08 -- Per semester increase
FY08 -- Percent change
FY07 -- Nonresident graduate (24 credits)
FY08 -- Nonresident graduate (24 credits)
FY08 -- Annual increase
FY08 -- Per semester increase
FY08 -- Percent change
Tuition
Model 1
6.4%
$5,445
$5,794
$350
$175
6.4%
Tuition
Model 2
5.9%
$5,445
$5,766
$322
$161
5.9%
Tuition
Model 3
5.5%
$5,445
$5,746
$302
$151
5.5%
Tuition
Model 4
4.5%
$5,445
$5,690
$246
$123
4.5%
$7,797
$8,298
$502
$251
6.4%
$7,797
$8,258
$462
$231
5.9%
$7,797
$8,226
$430
$215
5.5%
$7,797
$8,150
$354
$177
4.5%
Base Adjustments for FY2008-09
Adjustment Description
Inflationary increases:
Compensation
Supplies, equipment & services
Utilities
Model #1
%
Model #2
%
Model #3
%
Model #4
%
$2,175,000 3.4%
$505,000 1.8%
$1,000,000 18.3%
$3,680,000 3.7%
$2,175,000 3.4%
$505,000 1.8%
$1,000,000 18.3%
$3,680,000 3.7%
$2,175,000 3.4%
$505,000 1.8%
$1,000,000 18.3%
$3,680,000 3.7%
$2,175,000 3.4%
$505,000 1.8%
$1,000,000 18.3%
$3,680,000 3.7%
Reductions/reallocations (Operational cost savings and
costs below projections)
-$1,750,000 -1.7%
-$1,750,000 -1.7%
-$1,800,000 -1.8%
-$1,800,000 -1.8%
Net operations budget adjustment
$1,930,000
Subtotal-Inflationary increases
1.9%
$1,930,000
1.9%
$1,880,000
1.9%
$1,880,000
1.9%
Roadmap initiatives:
Innovation:
Resources for innovation and faculty staffing
Campus attributes:
Enhance facilities through upgrades/maintenance
Continued support for academic equip. replacement needs
Meaningful lives:
Retention-financial aid to assist students in
completing education
Community engagement/Innovation:
Enhanced staffing to support corporate collaboration
and fundraising for new programs
Subtotal-Roadmap initiatives
Financial aid -- accessibility/increase with tuition increase
Total operational adjustments
$500,000
$400,000
$350,000
$100,000
$300,000
$60,000
$250,000
$50,000
$200,000
$50,000
$75,000
$21,000
$100,000
$95,000
$70,000
$75,000
$275,000
$225,000
$200,000
$100,000
$1,235,000
1.2%
$693,000 0.7%
$3,858,000
3.8%
$1,020,000
1.0%
$656,000 0.7%
$3,606,000
3.6%
$870,000
0.9%
$617,000 0.6%
$3,367,000
3.4%
$371,000
0.4%
$520,000 0.5%
$2,771,000
2.8%