Proposed University Operating Budgets

7/14/2011 2

Proposed University Operating Budgets

Fiscal Year Ending June 30, 2012

July 14, 2011

Central Michigan University is a strong institution and is committed to:• Ensuring quality student learning• Increasing retention and graduation rates • Preparing students for success after graduation• Increasing student financial aid• Attracting and retaining highly talented, dedicated

faculty/staff and students• Investing in future academic programs and capital

projects

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2000-01 Appropriations Per Fiscal Year Equated Student (FYES)

$10,958

$9,674 $9,248

$8,017

$6,931

$6,094$5,228 $5,115

$4,788 $4,629 $4,617 $4,351 $4,305 $4,063$3,808

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

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2010-11 Appropriations Per Fiscal Year Equated Student (FYES)

$3,658

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Same buying power as $2,867 in 2001

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Michigan Public UniversitiesTuition Comparison – Undergraduate

FALL 2010 FTIAC TUITION CREDIT HOUR RATES

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Michigan Public UniversitiesTuition Comparison – Undergraduate

FALL 2011 FTIAC UNIVERSITY TUITION CREDIT HOUR RATESAPPROVED RATES IN GREEN AND OTHER IN RED @ 7%

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2011‐12 CMU Michigan Resident Undergraduate Tuition Rates

Fall 2010-11 undergraduate rate: $346/credit hourFall 2011-12 proposed undergraduate rate:

Dollar & Percent Increase

Rate Per Hour

$12 ~ (3.47%) $358

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Note: Does not apply to current students who are still covered under The CMU PromiseTM – 2,118 students

Michigan Public UniversitiesTuition Comparison – Undergraduate

FALL 2011 UNIVERSITY FTIAC ANNUAL TUITION & FEESAPPROVED RATES IN GREEN AND OTHER IN RED @ 7%

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Note: The effective total annual cost for CMU including The CMU PromiseTM cohort for Fall 2011 equals $10,416

Tuition Increases

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University Tuition % GVSU* 7.00%NMU* 7.00%OU 7.00%MTU 6.95%LSSU 6.94%MSU 6.90%SVSU 6.90%UM - D 6.90%WSU 6.90%UM - F 6.80%UM - AA 6.70%WMU 6.66%FSU 5.14%EMU 3.65%CMU 3.47%

* Universities modeled @ 7%

FY 2011-12 Tuition Rates

2011-12 Tuition Rate Percentage IncreasesApproved rates in blue and others in red @ 7%

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Financial Plan

• Declining state appropriations• Plan decreased student enrollment – 2.1% • Financial aid investment- $3.8M:

• 9.1% increase from 2010-2011• Infrastructure investments - $2.7M• Additional tenure-track faculty investment- $2.2M

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CMU Financial Aid

• $39.5M of CMU funds are invested in student financial aid Centralis Scholarships Multicultural Recognition Scholarships Grad Fellowship Grants Board of Trustees Academic Excellence CMU Grants CMU 3.5 ScholarshipsMichigan Indian Tuition Grants

• Additional $3.8M funds invested for FY 2011-12• Increased BOT Academic Scholarships - $200,000 (23%)• Increased CMU grants (need based aid) - $2M (37%); $1M directed at

juniors and seniors• Increased study abroad scholarships - $76,000 (76%)

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CMU Financial Aidcontinued:

• Created new scholarship grants:• CMU Access Grants for 1st generation students - $650,000• Distinguished student awards - $895,000

• Continue $320,000 in work study funds to replace funds eliminated by State of Michigan

• Overall approximately two-thirds of CMU undergraduate students receive financial aid

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Budget Assumptions

Revenue:

• Decreased state appropriation funding by $12M, in additionto several years of previous reductions

• $22M total since 2002• Planned decrease in undergraduate student enrollment,

2.1% • Modest undergraduate resident tuition increase, 3.47%

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Budget AssumptionsExpense:• $12M expenditure reduction (2011-12 - $9M base and $3M one-time;

2012-13 - $3M base first quarter) • Reduced 25.55 FTE vacant positions

• Personnel Management• Campus wide position management • Continue savings from outsourcing services• Vacant position eliminations

• Supplies & Equipment• Continued emphasis on conservative fiscal spending• Utility budget remains stable for the third year based on existing square

footage

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Budget AssumptionsExpense continued:

• Expense Reduction Plan

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Spring 2010 Budget Decision: $5,210,550

Spring 2011 Plan: Central Administration Division $1,000,000 Academic Affairs Division 1,889,450 Finance & Administrative Services Division 700,000 President's Division 100,000 Development & External Relations Division 100,000 Total: 3,789,450

Sub-Total $9,000,000

2012-13 Plan: 3,000,000

Total University Budget Reductions $12,000,000

Proposed 2011‐12 University Operating Budget

• Proposed Revenue Schedule• Total University Operating Budget

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2010-11 2011-12Approved Proposed

Unrestricted General Unrestricted General Fund Budget Fund Budget

Revenue Net State Appropriations $80,064,200 $68,079,200 Tuition and Fees - On Campus 189,691,837 204,596,263 Tuition and Fees - ProfEd 42,988,417 46,848,546 Departmental Activity 13,410,286 14,079,203Total Revenue $326,154,740 $333,603,212

2010-11 2011-12Approved Proposed

Non-General Non-General Fund Budget Fund Budget

Revenue Parking Services 2,734,000 2,734,000 Residences and Auxiliary Services $71,560,509 73,872,194 Telecommunications 5,447,995 5,695,330 Athletics 6,106,632 6,431,011 Events Center* N/A 150,000 Public Broadcasting 3,906,675 3,913,525 University Health Services 1,992,872 2,030,073 University Recreation* N/A 737,999 Total Revenue $91,748,683 $95,564,132

*Part of General Fund in 2010-11

Non-General Fund

Central Michigan University

General Fund with ProfEd

Proposed Revenue ScheduleJuly 14, 2011

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Approved Proposed 2010-11 2011-12

University Budget University BudgetRevenues General Fund $326,154,740 $333,603,212 Non-General Fund 91,748,683 95,564,132Total University Revenues $417,903,423 $429,167,344

Expenditures General Fund $326,154,740 $333,603,212 Non-General Fund 91,748,683 95,564,132Total University Expenditures $417,903,423 $429,167,344

Total Net Revenue/Loss $0 $0

Note: General Fund includes subsidy to non-general fund areas

Central Michigan University2011-12 University Budget

Revenue and Expenditure SummaryJuly 14, 2011

Recommendations

• Undergraduate tuition• Applies to all on‐campus Michigan resident undergraduate students except those still on The CMU PromiseTM

• Adopt 2011‐12 Operating Budgets

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• Questions/Comments

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