Post on 15-Jan-2016
transcript
Dr. Les WongDr. Les WongPresidentPresident
Mr. Gavin Leach, Mr. Gavin Leach, Vice President for Finance and AdministrationVice President for Finance and Administration
July 9, 2010July 9, 2010
Budget and TuitionBudget and Tuition
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 2010-2011Delivering a plan for 2010-2011
PlanPlan ActionActionMaking 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 Points10 Planning Points
10 Planning Points10 Planning Points
PlanPlan ActionActionSeek 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
10 Planning Points10 Planning Points
PlanPlan ActionActionExamine 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
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 CostsControlling Costs
FY2010-11FY2010-11Tuition and Budget Planning
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 MichiganState of Michigan
Other ConcernsOther Concerns
Fiscal year 2011 NMU GoalsFiscal 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
Alternative BControl 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 AlternativesTuition AlternativesSummary HighlightsSummary Highlights
Need-based StudentsNeed-based Students(Alternative B -- Impact of $205 per semester tuition increase)(Alternative B -- Impact of $205 per semester tuition increase)
Annual
EFC FY10 # of w/$205 Incr 2009-2010 Incr (Decr) in(Need Categ) Students NMU Tuition Pell Grant * NMU BOT ARRA Credit Net Tuition Net Tuition Net Tuition
0 1,791 $7,864 $5,550 $2,000 $192 $122 $174 ($52)
1-500 259 $7,864 $5,300 $1,550 $192 $822 $854 ($32)
501-1000 168 $7,864 $4,800 $1,270 $192 $1,602 $1,624 ($22)
1001-1500 161 $7,864 $4,300 $980 $192 $2,392 $2,404 ($12)
1501-2500 297 $7,864 $3,550 $860 $192 $3,262 $3,274 ($12)
2501-4617 568 $7,864 $2,048 $700 $192 $4,924 $4,926 ($2)
* EFC = Expected Family Contribution (0 EFC = Highest need level)
* Average award per EFC group.
2010-2011 Award TableNet Tuition For Students Receiving Pell Awards
Automatic Need Based Awards
NMU today isNMU today is
Stable
Well-positioned
We have a road map
We have a campus master plan
We will direct our own change
QuestionsQuestions