Board of Trustees Meeting Thursday, September 22, 2016 1 General - PowerPoint PPT Presentation

Board of Trustees Meeting Thursday, September 22, 2016 1

General Fund Budget Update Mr. R. Gavin Leach Vice President for Finance and Administration 2

NMU Mission and Vision Vision Mission Northern Michigan University Northern Michigan University will become the university of challenges its students and choice in the Midwest for employees to think independently and critically, students seeking a quality develop lifelong learning habits, academic program with acquire career skills, embrace individualized attention in a diversity, and become high-tech learning environment productive citizens in the Key elements: regional and global community. • Quality academic programs • High-touch • High-tech 3

NMU Core Values Distinctly Northern • Community • Opportunity • Rigor • Environment • Inclusion • Connection • Innovation 4

NMU Strategic Plan Strategic Focus Areas Strategic Outcomes • Academic Excellence • Enhancing prestige and distinction • Student Success • Establishing new and • Domestic and Global responsive approaches Outreach and Engagement • Expanded partnerships • Investment and Innovation • Growing enrollment 5

Total Enrollment (Final Fall Headcount) 9,417 9,405 9,159 8,918 8,781 8,303 7,850 2010 2011 2012 2013 2014 2015 2016 (proj) 6

NMU Budget Factors Limited resources • State funding • Tuition restraint language and level of NMU tuition • Enrollment Mandated and inflationary expenditures • Fair Labor Standards Act (FLSA) overtime rule changes • Minimum wage increase • Board of Light and Power 30% rate increase Strategic Plan Investments • Investing in innovation 7

FY2016-2017 Budget Summary Projected Expenditure Increases Inflation Original Revised • Compensation and support inflationary costs [3.0%] $2,634,000 $2,550,000 Compensation – salary, benefits, and promotions o Support – property and liability insurance, software maintenance, o facility maintenance supplies, athletic compliance, database defense software, and library acquisitions less expense offsets Mandates • Increased state mandates [minimum wage increase - $0.40/hr.; January 1] $69,000 $69,000 • Increase federal mandate [New FLSA compliance requirements; December 1] $200,000 $200,000 Utilities [Board of Light and Power 30% rate increase; October 1] $541,000 $541,000 • Investments Athletic initiatives [2 new sports: W-golf; M-swim/diving] $438,000 $438,000 • Total Projected Expenditure Adjustments $3,883,000 $3,798,000 3.67% 3.59% 8

FY2016-2017 General Fund Budget FY2016-17 General Fund Budget Estimates Original Revised 2.60% Approp Inc 2.60% Approp Inc Category -6.00% Enroll Change -6.60% Enroll Change 4.20% Tuition Inc 4.20% Tuition Inc REVENUES State appropriation $1,171,500 $1,171,500 Tuition and fees [includes structural chg, differential rates, dist educ fe $1,004,300 $945,500 Less: Scholarships/Financial Aid (tuition and need based) -$644,300 -$63,500 Net Tuition and fees $360,000 $882,000 Investment and departmental income $50,000 $65,000 PROJECTED REVENUE CHANGE $1,581,500 $2,118,500 Percentage change 1.50% 2.00% EXPENDITURES Expenditure change $3,883,000 $3,798,000 Budget adjustments and reinvestment funds -$2,301,500 -$2,279,500 Extended Learning and Community Engagement Programs $600,000 PROJECTED EXPENDITURE CHANGE $1,581,500 $2,118,500 Percentage change 1.50% 2.00% 9

Fiscal Year Process to Address Deficit • Established structural budget adjustment and reallocation targets for divisions ($3.0 million) • Divisional structural budget adjustments identified • Proposed adjustments reviewed by Strategic Planning and Budgeting Advisory Committee • Identified adjustments included in proposed general fund budget • Continue to identify one-time operational savings • Utilize one-time cash resources to offset current year shortfall • Reinvest in programs producing enrollment and revenue growth 10

FY2016-2017 Identified Adjustments Academic Affairs Division College of Arts and Sciences $620,000 College of Health Sciences and Professional Studies $492,000 College of Business $163,000 Academic Information Services $109,000 Registrar $ 29,000 Academic and Career Advisement Center $250,000 Academic Service Learning $ 11,000 Dean of Students $ 75,000 Superior Edge/Student Leader Fellowship Programs $ 25,000 Extended Learning and Community Engagement Division College of Technology and Occupational Sciences $250,000 11

FY2016-2017 Identified Adjustments Finance and Administration Division Information Technology $260,700 VP Finance and Administration $ 71,600 Facilities $ 47,700 Financial Aid $ 30,000 Human Resources $ 15,000 President’s Division Intercollegiate Athletics, Recreational Sports, and Olympic Training Site $250,000 Board of Trustees $ 10,000 General University Adjustments Reserves and Technology program $200,000 12

Questions? 13