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

Board of Trustees Meeting

Thursday, September 22, 2016

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General Fund Budget Update

• Mr. R. Gavin Leach

Vice President for Finance and Administration

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Northern Michigan University challenges its students and employees to think independently and critically, develop lifelong learning habits, acquire career skills, embrace diversity, and become productive citizens in the regional and global community.

NMU Mission and Vision Mission Vision

Northern Michigan University will become the university of choice in the Midwest for students seeking a quality academic program with individualized attention in a high-tech learning environment

Key elements:

• Quality academic programs
• High-touch
• High-tech

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NMU Core Values

Distinctly Northern

• Community
• Opportunity
• Rigor
• Environment
• Inclusion
• Connection
• Innovation

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NMU Strategic Plan

Strategic Focus Areas

• Academic Excellence
• Student Success
• Domestic and Global

Outreach and Engagement

• Investment and Innovation

Strategic Outcomes

• Enhancing prestige and

distinction

• Establishing new and

responsive approaches

• Expanded partnerships
• Growing enrollment

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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)

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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

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FY2016-2017 Budget Summary

Projected Expenditure Increases

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Inflation Original Revised

• Compensation and support inflationary costs [3.0%]

$2,634,000 $2,550,000

• Compensation – salary, benefits, and promotions
• Support – property and liability insurance, software maintenance,

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%

FY2016-2017 General Fund Budget

FY2016-17 General Fund Budget Estimates 2.60% Approp Inc 2.60% Approp Inc

• 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% Category Original Revised

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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

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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

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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

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Questions?

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