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Dr. Les Wong President Mr. Gavin Leach, Vice President for Finance and Administration July 9, 2010 Budget and Tuition.

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Presentation on theme: "Dr. Les Wong President Mr. Gavin Leach, Vice President for Finance and Administration July 9, 2010 Budget and Tuition."— Presentation transcript:

1 Dr. Les Wong President Mr. Gavin Leach, Vice President for Finance and Administration July 9, 2010 Budget and Tuition

2 Small group meetings around campus January 10, 2010 – Sent 10 planning points for campus to focus their thinking Focus of senior staff and President’s Council agenda Focus of Academic Cabinet KEY:Sustain quality instruction Preserve the student experience Delivering a plan for 2010-2011

3 PlanAction Making significant changes to the way we use our facilities, which will impact class schedules and work weeks. This includes space and schedule consolidation to maximize use of classroom space to generate energy savings Began priority scheduling by zones; adjusted building system activation and shutdown tighter to building schedule Examine employee scope of work and seek to maximize coverage and assignments Began restructuring job duties across divisions to maximize coverage of administrative functions; Service levels will be examined and changed; workforce and succession planning will be considered MPSERS retirement will create staffing changes across university operations; facility system and service levels through performance contracting 10 Planning Points

4 PlanAction Seek some permanent building closures Demolition of Overtime completed; reviewing plans for Carey Hall Review academic portfolio. Determine what measures will be used to evaluate continued department support. EPC has begun process with Provost to review academic portfolio Review sports team portfolio. What array of varsity, club, and intramural activities justifies continued investment and/or opportunities for enrollment growth and revenues? Athletic Director has begun review process of all programs to determine best mix and opportunity for enrollment growth and revenues Assess, evaluate, and decrease technology costs Reorganized technology departments; reduced costs on technology staffing, purchases, and insurance Identify and invest in new revenue positive initiatives Expanding graduate programs and online programs; changed dining services operations

5 10 Planning Points PlanAction Examine unit and divisional reorganizations including support services and auxiliary functions Cash handling operations between dining, auxiliary, and financial services; reorganizing other accounting operations; technology Identify and implement new policies and procedures that bring about savings in benefits/services, including health care savings and retirements savings Restructured health plan in FY2010 through cooperative arrangement with 12 universities (MUCH) projected to reduce costs by $200,000 annually; MUCH will be sending out an RFP soliciting information from health care TPAs; discussions with benefits liaison group on health and other benefits; completed RFP on life and LTD resulting in projected savings of $90,000 over three years; exploring prescription drug carve-out

6 NMU’s expenditures increased at an average annual rate of 2.21% per year over the past 10 years which is below the rate of inflation. Reductions in operating costs have been accomplished by: ◦ Reorganizations ◦ Streamlining processes that have reduced administrative staffing ◦ Reducing overall staffing 3% while increasing enrollment 27.8% ◦ Changing the mix of faculty to be more in line with other state universities ◦ Increasing class size and extensive use of technology to deliver services ◦ Cutting administrative costs ◦ Cutting health care benefit costs (through restructuring health plan and employee share of costs However, some costs cannot be controlled: ◦ Energy prices ◦ Health care costs ◦ State mandates for pension costs Controlling Costs

7 FY2010-11 Tuition and Budget Planning

8 State of Michigan Assumptions ◦ Continuation budget in an election year ◦ No new money to NMU – projected 3.1% reduction ◦ Executive Orders likely in 2011 ◦ Michigan’s challenge: Revenue, Reform, Reductions State of Michigan

9 Other Concerns Unknowns ◦ Direction of flat, slow growth State budget with new Governor and legislature in January ◦ Enrollment stability ◦ Employment patterns ◦ Employee retention

10 Fiscal year 2011 NMU Goals Maintain affordable tuition and fees Maintain enrollment Protect curriculum Control costs Maximize efficiencies Protect ability to invest in and grow programs Increase financial aid to protect and assist need-based students and ensure access to Northern

11 Alternative B Control costs – limit net expenditure adjustments to 0.9% (budget reductions of $1.1 million) Increase tuition and fees by $205 per semester for full-time resident undergraduate students (maintain second lowest tuition and fees in the state) Issue a tuition credit of $192 for full-time resident undergraduates – fall semester increase will be reduced to $13 for students versus the prior year with the credit Increase financial aid by 9.5% ($1.1 million) Increase nonresident undergraduate tuition and fee $226 per semester (since they are not eligible to receive stimulus credit on tuition and fees) Increase graduate rate by $28 per credit hour – to enhance support expanding graduate programs (NMU has lowest grad rate in state) Tuition Alternatives Summary Highlights

12 Need-based Students (Alternative B -- Impact of $205 per semester tuition increase)

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

14 Questions

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