APRIL 7, 2010APRIL 7, 2010Northern Michigan University

Campus Forum : the steps aheadCampus Forum : the steps ahead

Les WongLes Wong

Two parts

◦Part I: Implement by June 30, 2010

◦Part II: Implement by January 1, 2011

*Addendum: The contingency plan

Delivering a plan for 2010-2011Delivering a plan for 2010-2011

AL, AR, IN, KY, LA, MS, NV, OK, TN, WV

IA, ID, MI, MO, NM, OH, SC, SD, TX, WY

AK, AZ, DE, FL, ME, MT, NC, ND, PA, WI

CA, GA, HI, IL, KS, NE, OR, RI, UT, WA

CO, CT, MA, MD, MN, NH, NJ, NY, VA, VT

Sources: Bureau of Labor Statistics, Survey of Current Business, December 2009; U.S. Census Bureau, 2007 American Community Survey, 2007 State and Local Government Estimates, and Annual Estimates of the Resident Population of the United States.

States’ Educational Attainment Rates, Per Capita Income, and Tax Revenue

The Path to Prosperity:The Path to Prosperity:A Policy of Public Investment in Higher EducationA Policy of Public Investment in Higher Education

Assumptions:Cover expected 3.1% appropriations cutCover projected 2.5% increase in

operational expensesTuition increases: part of the model but

unknown at this time

The Plan 2010-11 Step 1The Plan 2010-11 Step 1Today to June 30, 2010Today to June 30, 2010

Energy conservation ($200,000 min.)

Only targeted, high priority hiring ($250,000)

Achieve 12 early retirements via Governor’s/legislators’ MPSERS plan ($1 million)

Implement remaining academic budget balancing strategies

($400,000)

The Plan 2010-11 Step 1The Plan 2010-11 Step 1Today to June 30, 2010Today to June 30, 2010

Reconfigure several areas

◦Restructure/merge Academic Information Services (AIS) with Administrative Information Technology (AdIT) $375,000

◦Reorganize Human Resources $50,000

The Plan 2010-11 Step 1The Plan 2010-11 Step 1Today to June 30, 2010Today to June 30, 2010

Tuition: Examining 3 tuition models◦Changes in financial aid at federal level◦Unknown State of Michigan budget◦NMU Board of Trustees will set tuition at July

board meeting

Goal: Maximize efficiencies, protect curriculum, protect jobs, position the university

The Plan 2010-11 Step 1The Plan 2010-11 Step 1Today to June 30, 2010Today to June 30, 2010

Assumptions◦Continuation budget in an election year◦No new money to NMU◦$1.7 billion dollar revenue gap pushed to new

governor and legislature◦Continued spending of ARRA funds◦Executive Orders likely in 2011◦Revenue, Reform, Cuts: Michigan’s

challenge◦Position eliminations become inevitable

The Plan 2010-11 Step 2The Plan 2010-11 Step 2July 1, 2010 to January 1, 2011July 1, 2010 to January 1, 2011

Academic Programs◦ Formally establish criteria for reallocation of

resources to high need areas Provost, deans, and Educational Policy Committee Focus: programs that serve students and economy

◦ Identify 3-5 enhanced or new academic program initiatives. Provost, deans, academic units Proposals to faculty governing bodies during fall semester

2010◦ Identify 3-5 programs for termination

Provost, deans, academic units Proposals to faculty governing bodies during fall semester

2010

The Plan 2010-11 Step 2The Plan 2010-11 Step 2July 1, 2010 to January 1, 2011July 1, 2010 to January 1, 2011

Other areas of campus◦ Reconfigure/reorganize athletics

Varsity, Club, and Intramural level Proposal for termination of low participation programs Proposal to initiate new programs

Reconfigure these departments and processes:◦ USOEC◦ Counseling Services and Health Promotions to

better meet student needs/interests◦ Continuing Education: set revenue goals◦ Improve the Link between Admissions and

International Programs Office

The Plan 2010-11 Step 2The Plan 2010-11 Step 2July 1, 2010 to January 1, 2011July 1, 2010 to January 1, 2011

Other areas of campus continued:Facilities – create plans for the following:

◦Demolish Carey Hall◦Set timeline to close West Hall◦Secure state funds to retrofit Jamrich

If successful, closure up to 2 years◦Continue to seek funding for Combined Heat

and Power plant (CHP)Employee Benefits: continue reviewDevelop a detailed contingency plan to

address mid-year executive orders in 2011-2012

The Plan 2010-11 Step 2The Plan 2010-11 Step 2July 1, 2010 to January 1, 2011July 1, 2010 to January 1, 2011

GOAL: By January 1, position the university to withstand significant midyear reductions if called upon to do so. This means stabilizing costs, increasing revenues, avoiding inefficiencies, and avoiding service duplication• Not just budget cutting• Must identify current efforts that have little return

on our investment• Act on opportunities to enhance student

experience and preserve integrity of curriculum

The Plan 2010-11 Step 2The Plan 2010-11 Step 2July 1, 2010 to January 1, 2011July 1, 2010 to January 1, 2011

StableWell-positionedWe have a roadmapWe have a campus master planWe will direct our own change

NMU today isNMU today is

Five-Year Facilities Master Plan Five-Year Facilities Master Plan Summary UpdateSummary Update

Facilities Overview◦ 64 buildings◦ 3.5 million square feet of space◦ 684 acres

359 acres on main campus 120 acres (Longyear Forest) 206 acres (Mount Marquette)

◦ 3.6 miles of roadway◦ 13.95 miles of sidewalk◦ Asset value of $368.7 million (historical cost of

facilities) $133.1 in accumulated depreciation $235.6 million in net capital assets

Five-Year Facilities Master Plan Five-Year Facilities Master Plan Summary UpdateSummary Update

Deferred Maintenance◦ $180.9 million in deferred maintenance ($97.7 GF;

$83.2 Non-GF)

State Capital Outlay Requests◦ Bio-Mass Fueled Combined Heat and Power

Cogeneration: $65 million◦ Jamrich Hall Modernization: $33.9 million◦ Renovation and Addition to Learning Resources

Center: $65.6 million◦ Academic Facilities Upgrades: $8.98 million◦ Sam M. Cohodas Hall Renovation: $18.4 million

Five-Year Facilities Master Plan Five-Year Facilities Master Plan Summary UpdateSummary Update

Projects (current project planning)◦ Superior Dome roof: $3 million to $4 million (over two years)◦ Jacobetti roof: $1.5 million◦ Building door access controls/fire alarm security/mass

notification/energy management system/replacement: $5.0 million (over three years)

◦ Performance contract on energy projects: $2.3 million - $2.8 million

◦ General maintenance projects on academic facilities and grounds: $1.4 million

◦ Marketplace modifications: $3.5 million (over five years)◦ Apartment and residence hall general maintenance projects:

$0.6 million◦ Campus signage/wayfinding: $0.8 million (over five years)