1

CAMPUS FORUM

February 21, 2011

2www.michigan.gov

3Source: 2011 citizen’s Guide to Michigan’s Financial Health

4Source: 2011 Citizen’s Guide to Michigan’s Financial Health

5

Total State Budget Gap(per Governor’s Budget Recommendation)

- $1.4B Revenue-Expenses- $1.9B Change in Michigan Business Tax- $3.3B

6Source: 2011 Citizen’s Guide to Michigan’s Financial Health

7

Governor’s Proposed 2012 Budget

• 22% Decrease in Higher Education Funding

• Opportunity for Additional Funds Linked to Tuition Restraint

8

Governor’s Proposed 2012 Budget

Michigan Tech:

-$10.5M (out of $47.9M)

+$3.3M if Tuition Increase ≤7%

$7.2M Net Reduction

9

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

State Operation Appropriationsto Michigan Technological University

FY1965 through FY2012

Unadjusted Adjusted with CPI Adjusted with HEPI

Appr

opria

tions

(in

Thou

sand

s)

Adjusted to FY1984 Dollars

10

Formula Funding(Proposed for FY2013)

“The formula will encourage universities to graduate a highly educated workforce in a timely manner and conduct research that contributes to the overall economic

strategy for Michigan.”

Fiscal Years 2012 and 2013 Executive Budget Recommendation

11

Potential Performance Measures

• Number of degrees awarded

• Second year retention rate

• Graduation rate (6 year)

12

Michigan Tech 5-Year Budget Development

2012-2017• Support the Core Mission:

“instill the knowledge and confidence that graduates need to be top ranked in the degrees we offer”

13

Budget DevelopmentGuiding Principles

• Balanced Budget• Tuition Restraint• Strategic Hiring• Strategic Realignment/Investment• Timing

14

Specifically ….

• No Furloughs• No University-Wide Salary Reduction• No University-Wide Hiring Freeze• Tuition Increase < 7%• Strategic Budget Reductions in Low Single Digits,

not across-the-board• Strategic Consolidation of Positions and

Realignment of Responsibilities through Attrition

15

• Financial Data Group (3D’s) has met with Deans and Most Directors

• Review with Board of Control

• Review with Senate Leadership

• Carry Forward/Contingency Policy in Place

• Increase Philanthropic Support

• Restructure Billing of Mandatory Fees?

• Examine Credit Card Policy?

• Ideas?

16

In Other Words ….

• No Knee Jerk Reactions

• Follow Our Strategic Plan

17

Strategic Plan

• Approved by Board of Control on July 16, 2009

Major Goals Remain SamePeopleDistinctive EducationResearch/Scholarship/Creativity

• http://www.mtu.edu/stratplan/

181965

19671969

19711973

19751977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072009

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Fall Enrollment 1965-2010

Distance LearningOn Campus

191991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

200

400

600

800

1000

1200

1400

566

670

1256

Graduate Enrollment1991-2010

19761977

19781979

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20101,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1,406

1,800

1,439

1,736

1,523

1,809

22%

28%

23%

26%

Female Enrollment 1976-2010

21

Michigan Technological UniversityTenured/Tenure Track Faculty by Gender

2006-07 through 2010-11

2006-07 2007-08 2008-09 2009-10 2010-11Male 235 239 241 244 253 Female 65 71 71 85 89

Total 300 310 312 329 342

Percent Female 21.7 22.9 22.8 25.8 26.0

Note: Figures include all tenured and tenure track instructional and research faculty. Also includes those faculty on sabbatical or on unpaid leave of absence. Deans, associate deans, department chairs, executives and professional staff with tenure are excluded.

22

Research Expenditures(in millions)

23

Current Fund FY11(in thousands)

Original 2nd QtrProjection Projection

Revenue 245,429 245,444

Expense (245,218) (246,115)

Net Income 211 (671)

Current Fund Balance 15,524 14,642

Note: Current Fund includes General Fund, Designated Fund, Auxiliaries, Retirement and Insurance, and the Expendable Restricted Funds.

24

MICHIGAN TECHNOLOGICAL UNIVERSITY Generations of Discovery

Campaign Progress Summary as of January 31, 2011

Alumni & Friends $ 95,167,255Corporations 37,504,073Private Foundations 2,349,198Gifts-in-Kind 5,012,559Grand Total $140,033,086

25

Impact of Gifts• $8M in Scholarships/Fellowships• Increase from 3 to 16 Named Professorships and Chairs• Gifts Used to:

– Remodel Physics Labs– Remodel 5th Floor of EERC– Seaman Museum– Career Center Remodel in Administration Building– Graduate School Conference Room– Equip New KRC Building– Many Student Enterprise & Senior Design Projects

26

Questions