APRIL 7, 2010 Northern Michigan University Campus Forum : the steps ahead Les Wong

Two parts ◦ Part I: Implement by June 30, 2010 ◦ Part II: Implement by January 1, 2011 *Addendum: The contingency plan Delivering a plan for

AL, AR, IN, KY, LA, MS, NV, OK, TN, WV IA, ID, MI, MO, NM, OH, SC, SD, TX, WY AK, AZ, DE, FL, ME, MT, NC, ND, PA, WI CA, GA, HI, IL, KS, NE, OR, RI, UT, WA CO, CT, MA, MD, MN, NH, NJ, NY, VA, VT Sources: Bureau of Labor Statistics, Survey of Current Business, December 2009; U.S. Census Bureau, 2007 American Community Survey, 2007 State and Local Government Estimates, and Annual Estimates of the Resident Population of the United States. States’ Educational Attainment Rates, Per Capita Income, and Tax Revenue The Path to Prosperity: A Policy of Public Investment in Higher Education

Assumptions: Cover expected 3.1% appropriations cut Cover projected 2.5% increase in operational expenses Tuition increases: part of the model but unknown at this time The Plan Step 1 Today to June 30, 2010

Energy conservation ($200,000 min.) Only targeted, high priority hiring ($250,000) Achieve 12 early retirements via Governor’s/legislators’ MPSERS plan ($1 million) Implement remaining academic budget balancing strategies ($400,000) The Plan Step 1 Today to June 30, 2010

Reconfigure several areas ◦ Restructure/merge Academic Information Services (AIS) with Administrative Information Technology (AdIT) $375,000 ◦ Reorganize Human Resources $50,000 The Plan Step 1 Today to June 30, 2010

Tuition: Examining 3 tuition models ◦ Changes in financial aid at federal level ◦ Unknown State of Michigan budget ◦ NMU Board of Trustees will set tuition at July board meeting Goal: Maximize efficiencies, protect curriculum, protect jobs, position the university The Plan Step 1 Today to June 30, 2010

Assumptions ◦ Continuation budget in an election year ◦ No new money to NMU ◦ $1.7 billion dollar revenue gap pushed to new governor and legislature ◦ Continued spending of ARRA funds ◦ Executive Orders likely in 2011 ◦ Revenue, Reform, Cuts: Michigan’s challenge ◦ Position eliminations become inevitable The Plan Step 2 July 1, 2010 to January 1, 2011

Academic Programs ◦ Formally establish criteria for reallocation of resources to high need areas  Provost, deans, and Educational Policy Committee  Focus: programs that serve students and economy ◦ Identify 3-5 enhanced or new academic program initiatives.  Provost, deans, academic units  Proposals to faculty governing bodies during fall semester 2010 ◦ Identify 3-5 programs for termination  Provost, deans, academic units  Proposals to faculty governing bodies during fall semester 2010 The Plan Step 2 July 1, 2010 to January 1, 2011

Other areas of campus ◦ Reconfigure/reorganize athletics  Varsity, Club, and Intramural level  Proposal for termination of low participation programs  Proposal to initiate new programs Reconfigure these departments and processes: ◦ USOEC ◦ Counseling Services and Health Promotions to better meet student needs/interests ◦ Continuing Education: set revenue goals ◦ Improve the Link between Admissions and International Programs Office The Plan Step 2 July 1, 2010 to January 1, 2011

Other areas of campus continued: Facilities – create plans for the following: ◦ Demolish Carey Hall ◦ Set timeline to close West Hall ◦ Secure state funds to retrofit Jamrich  If successful, closure up to 2 years ◦ Continue to seek funding for Combined Heat and Power plant (CHP) Employee Benefits: continue review Develop a detailed contingency plan to address mid-year executive orders in The Plan Step 2 July 1, 2010 to January 1, 2011

GOAL: By January 1, position the university to withstand significant midyear reductions if called upon to do so. This means stabilizing costs, increasing revenues, avoiding inefficiencies, and avoiding service duplication Not just budget cutting Must identify current efforts that have little return on our investment Act on opportunities to enhance student experience and preserve integrity of curriculum The Plan Step 2 July 1, 2010 to January 1, 2011

Stable Well-positioned We have a roadmap We have a campus master plan We will direct our own change NMU today is

Five-Year Facilities Master Plan Summary Update Facilities Overview ◦ 64 buildings ◦ 3.5 million square feet of space ◦ 684 acres  359 acres on main campus  120 acres (Longyear Forest)  206 acres (Mount Marquette) ◦ 3.6 miles of roadway ◦ miles of sidewalk ◦ Asset value of $368.7 million (historical cost of facilities)  $133.1 in accumulated depreciation  $235.6 million in net capital assets

Five-Year Facilities Master Plan Summary Update Deferred Maintenance ◦ $180.9 million in deferred maintenance ($97.7 GF; $83.2 Non-GF) State Capital Outlay Requests ◦ Bio-Mass Fueled Combined Heat and Power Cogeneration: $65 million ◦ Jamrich Hall Modernization: $33.9 million ◦ Renovation and Addition to Learning Resources Center: $65.6 million ◦ Academic Facilities Upgrades: $8.98 million ◦ Sam M. Cohodas Hall Renovation: $18.4 million

Five-Year Facilities Master Plan Summary Update Projects (current project planning) ◦ Superior Dome roof: $3 million to $4 million (over two years) ◦ Jacobetti roof: $1.5 million ◦ Building door access controls/fire alarm security/mass notification/energy management system/replacement: $5.0 million (over three years) ◦ Performance contract on energy projects: $2.3 million - $2.8 million ◦ General maintenance projects on academic facilities and grounds: $1.4 million ◦ Marketplace modifications: $3.5 million (over five years) ◦ Apartment and residence hall general maintenance projects: $0.6 million ◦ Campus signage/wayfinding: $0.8 million (over five years)