1. Academic Senate Presentation on FY 2007 Budget April 3, 2007

2. Description of Budget Funds General Fund Budget Detail Budget Development Process Budget Management Policy Agenda

3. Operating Funds General Fund – Primary support from State of Michigan and student tuition; supports academic mission of the University Designated Fund – Supported primarily from gifts and grants for designated purposes Auxiliary Fund – Self-supporting operations of the University Expendable Restricted – Restricted State and Federal grants and contracts

4. Non-Operating Funds Plant Fund – Unexpended appropriations for construction/maintenance; reserves for maintenance and debt services; value of physical properties Student Loan Fund – Private gifts and government grants for student aid Agency Fund – Funds held in custody for students and University-related organizations Foundation

5. FY 2007 Operating Funds Revenue $211 Million

6. FY 2006 General Fund Spending

7. Instruction and Academic Support Research and Public ServiceStudent Service Institutional SupportPlantStudent AidAll Other FSU62.4%MTU8.3%UMF7.4%LSS15.6%UMA15.0%WMU11.2%NMU14.3% MSU61.5%UMA7.5%EMU6.6%CMU13.3%LSS14.3%MTU10.2%SVS13.9% GVS57.4%MSU6.0%UMD6.6%UMF13.0%UMF13.4%LSS10.1%OAK12.7% EMU56.9%WSU5.4%NMU6.5%UMD12.2%GVS12.4%UMA9.4%CMU10.8% UMD56.2%AVG4.8%GVS6.4%SVS11.8%NMU12.2%EMU8.8%LSS8.8% WMU56.2%CMU3.6%OAK5.9%OAK11.5%AVG12.0%NMU8.5%UMA8.6% OAK55.1%WMU2.3%FSU5.5%EMU11.2%WSU12.0%SVS8.3%MTU7.8% UMF54.1%UMF2.3%LSS5.4%MTU10.6%UMD11.8%AVG8.1%FSU7.7% AVG54.0%GVS2.0%CMU5.2%WSU10.6%EMU11.0%GVS7.5%UMD7.7% CMU53.7%EMU1.9%WSU5.1%GVS10.0%MSU10.9%MSU7.5%WMU7.1% WSU53.4%UMD1.3%MTU4.9%FSU9.9% WMU10.3% WSU7.0%AVG7.1% SVS50.7%OAK0.8%SVS4.9%AVG9.3%SVS10.2%OAK5.5%WSU6.6% MTU49.4%LSS0.7%AVG4.6%WMU9.2%FSU9.1%CMU5.5%UMF5.1% NMU49.0%NMU0.6%UMA4.0%NMU9.1%MTU8.7%FSU5.3%GVS4.3% UMA48.4%SVS0.3%WMU3.7%MSU8.6%OAK8.5%UMF4.8%EMU3.6% LSS45.1%FSU0.0%MSU3.0%UMA7.1%CMU7.9%UMD4.2%MSU2.5% Michigan Public University – FY ’06 GF Spending Percentages

8. Revenue Operations 23% Expense Ferris’ FY 07 General Fund Operating Budget - $148 Million

9. Budget Development Process Fiscal Planning Assumptions –Expenses Fixed Cost Increases Initiatives –Revenue State Appropriation Enrollment

10. Major FY 07 Cost Increases - $8 Million Fixed Costs Compensation$4.7M Utilities$.5M Scholarship$1.3M Initiatives Academic Incentive$.6M Pharmacy $.3M UCEL $.6M

11. Sources of Support State Appropriations Reallocation of existing resources –$1.3 Million identified for FY 2007 Student Tuition

12. State Appropriation Difficult to project, political decision, generally no formula –May know as early as June or as late as October what that funding will be Initial FY 2007 recommendation was a 1.7% increase for Ferris State or $844k –MPSERS bill increased by $1.2 million

13. Tuition Recommendations Student Fees Committee – campus wide committee – advisory to the president –Representatives from Academic Senate, Student Government, Enrollment Services, Business Office, Financial Aid, Academic Affairs, Marketing, Budget Office Committee receives charge from President and typically makes recommendations in April

14. Tuition Recommendations President receives advisory recommendation from committee –May ask for alternatives/revisions President reviews with vice presidents Recommendation made to Board

15. FY 2007 Tuition Recommendation The Student Fees Committee recommended moving undergraduates fully to per-credit last fall at $268 per credit –1 st Credit = 1.1% increase –15 th credit = 19.3% increase

16. FY 2007 Tuition Recommendation Consensus was that increase needed to be less than 10 percent Recommendation to Board of Trustees was for an 8.6 percent increase –In expectation a lower increase might be recommended an alternate 6.8 percent was also prepared

17. FY 2007 Tuition Recommendation Budget reductions to make up difference –Prorated based on each unit’s portion of budget Academic Affairs - $126k Finance - $33k Executive - $5k Student Affairs - $11k General Counsel - $2k Advancement - $4k

18. Final FY 2007 GF Budget Fall enrollment was less than had been anticipated with the July budget State appropriation approved at 2.9% Additional budget reduction of $2M

19. FY 2007 Budget Reductions - $1.2M Unit Academic Finance Executive Gen. Counsel Student Advance. %/Total 69% 18% 3% 1% 6% 2% Reduction One $126k $ 33k $ 5k $ 2k $ 11k $ 4k Reduction Two $690k $181k $ 29k $ 13k $ 59k $ 24k Total Reduced $816k $214k $ 34k $ 15k $ 70k $ 28k

20. Academic Affairs Reductions Total Reduction Academic Enrollment Incentive Net Reduction Additional New Dollars UCEL Enrollment Incentive Pharmacy Expansion ($816,000) $606,789 ($209,211) $570,495 $344,135

21. Budget Management Policy Overview Describes how allocated resources may be used Designates authority and accountability for use of funds to the vice presidents –Vice Presidents may delegate that authority Prescribes common rules for use of resources Available on the Web (Business Policies)

22. Presentation available on the Web –http://www.ferris.edu/htmls/administration/president/budgetinfopage.htmhttp://www.ferris.edu/htmls/administration/president/budgetinfopage.htm Terms and definitions Today’s PowerPoint presentation Budget Management Policy –http://www.ferris.edu/htmls/administration/buspolletter/bpl0001.htmhttp://www.ferris.edu/htmls/administration/buspolletter/bpl0001.htm