Budget and Tuition Update

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

2. Overview • Budget and Appropriation History • General fund resources • Appropriation funding history • Budget history • Total costs • Staffing efficiency • Rising utility costs • General Fund Projected Budget Adjustments and Roadmap Initiatives • Tuition and Fees Summary and Alternatives

3. Budget and Appropriation History

4. Total General Fund Revenues * This graph displays total resources net of scholarship costs and does not include one-time carry-over balances.

5. Appropriation Appropriation History (shown in 000,000s) Appropriation History (shown in 000,000’s) * FY2003 appropriation after both Executive Orders and the State Supplemental

6. Appropriation per FYES

7. Budget Reduction History • General Fund budget cuts/operational savings/ reallocations of $13.8 million since 2003 • FY2003-04: $6.5 million • FY2004-05: $2.8 million • FY2005-06: $1.5 million • FY2006-07: $3.0 million • FY2007-08: $1.3 million • Organizational efficiency – consolidation of organization structure and increased productivity = lower cost • 5 vice presidents to 2 • 5 academic colleges to 3 • NMU faculty and staff are the most productive among the 15 public universities (student-to-staff ratio)

8. NMU Total Cost per FYES History • FY1997: $9,868 (10 years) • FY2002: $10,481 (5 years) • FY2007: $11,091 • Total costs per student increased a total 12.4% over the past 10 years or an average of 1.2% per year since 1997 • The CPI over this time period increased by 29.2%

9. Productivity: Student-to-Staff Ratios • NMU has the best overall staffing efficiency ratios of the Michigan public universities • Productivity (student-to-staff ratio) 32.5% greater than state average • Productivity increase of 13.3% over past 5 years (average increase of 2.6% per year) Productivity* Staffing TypeRank Administrative #1 Faculty #1 Service #4 Total #1 * Based on number of students divided by the number of staff.

10. Utilities: Continued rising costs • FY1997: $2,542,210 (10 years) • FY2002: $3,207,992 (5 years) • FY2007: $4,888,480 • Total utility costs have increased a total 92.3% over the past 10 years or an average of 9.2% per year since 1997 • The CPI over this time period (Dec CPI) increased by 29.2%

11. General Fund Tuition and Budget Considerations Fiscal Year 2008 – 2009

12. General Fund Tuition and Budget Considerations for FY2008-2009 • Maintain quality, access, and affordability • Inflation • Competitive tuition with our peers • Roadmap initiatives • Appropriation (1% increase) • Continued cost containment measures • Potential mid-year reductions in appropriation • The continuing decline in the Michigan economy • Enrollment (projected 0.7% to 1.0% decrease)

13. CPI (Consumer Price Index)

14. Tuition and Fee Guideline • Initial tuition guideline benchmark is consumer price index plus 1% (for initiatives) • Consumer Price Index (CPI): 2.8% • CPI + 1%: 3.8%

15. Tuition and Fee Rate Comparison Fiscal Year 2007-2008 Annual resident undergraduate tuition and fee rates *CMU Freshmen rate is $9,120 *FSU freshmen rate is $8,460 Source: Michigan President’s Council Report on Tuition and Fees for FY2007-08

16. Tuition and Fee Rates Fiscal Year 2008-2009 Annual resident undergraduate tuition and fee rate adjustments * Based on media reports ** Per semester increase is based on applying percentage increase to tuition and fees as reported in the Michigan President’s Council Report on Tuition and Fees for Fiscal Year 2007-08 and/or media reports

17. Roadmap Initiatives for FY2008-09

18. Tuition Guideline (Fiscal Year 2008-2009)

19. Annual Undergraduate Tuition and Fee Rates (Fiscal Year 2008-09)

20. Annual Graduate Tuition and Fee Rates (Fiscal Year 2008-09)

21. Base Adjustments for FY2008-09