Budget and Tuition

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

2. Delivering a plan for 2010-2011 • 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

3. 10 Planning Points

4. 10 Planning Points

5. 10 Planning Points

6. Controlling Costs • 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

7. Tuition and Budget Planning FY2010-11

8. State of Michigan • 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

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. Tuition AlternativesSummary Highlights 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)

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