1. 1 July 20, 2007 B oard of Trustees Meeting Focus Discussion

2. 2 Fiscal Year 2007-2008 G eneral Fund Budget

3. 3  Budget and Appropriations History ◦ Fiscal Year 2006-07 Total Operating Budget ◦ Fiscal Year 2006-07 General Fund Budget ◦ Appropriation funding history ◦ Budget reduction history  Fiscal Year 2006-07 One-time funding needs  Fiscal Year 2007-08 Base Budget needs  Tuition summary O verview

4. 4 T otal Resources Operating Budget Total - $178.3 million

5. 55 **This graph displays total resources net of Scholarships costs. T otal General Fund Resources Budget Total - $96.0 million

6. 66 1981 1991 2001 2006 To maintain financial reporting consistency with fiscal years ’81, ’91, and ’01 data, financial aid was not deducted from ’06 tuition and fee revenue. T otal General Fund Resources

7. 7 A ppropriation History (shown in 000,000’s) S tate Mandates * (shown in 000,000’s) * FY2003 appropriation after both Executive Orders and the State Supplemental * State mandates include Michigan Public School Employee Retirement System (MPSERS), Indian tuition waiver, minimum wage, and MI-OSHA requirements. A ppropriation 7

8. 88 * Appropriation per FYES if NMU receives $4.2 million delayed appropriation ** Appropriation per FYES if NMU does not receive $4.2 million delayed appropriation A ppropriation per FYES

9. 9 B udget Reduction History  General Fund budget cuts/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  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)

10. 10  FY2006-07 One-time funds ◦ Reduced payment of FY2006-07 appropriation ($807,000 or 1.7%) ◦ Delayed August 2007 payment of $4.2 million  FY2007-08 base budget ◦ Base appropriation reduction from FY2006-07 (1.7%) ◦ No further reduction in appropriation ◦ Return of $4.2 million delayed FY2006-07 appropriation payment in October 2007 G eneral Fund Budget Assumptions

11. 11 Fiscal Year 2006-2007 G eneral Fund One-time Funding Needs

12. 12 F Y2006-07 General Fund One-time Needs

13. 13 Fiscal Year 2007-2008 G eneral Fund Budget

14. 14 B ase Revenue Adjustments for FY2006-07 (adjusted for FY2007-08)

15. 15 P rojected Cost Adjustments (Fiscal Year 2007-08)

16. 16 B udget Reductions/Reallocations (Fiscal Year 2007-08)

17. 17 S tate Mandate Increases (Fiscal Year 2007-08)

18. 18 I nitiatives (Fiscal Year 2007-08)

19. 19 Fiscal Year 2007-2008 T uition and Fees

20. 20 Source: State of Michigan HEIDI Database Annual resident undergraduate tuition and fee rates * NMU includes portion of Freshmen Student Athletic Fee ** CMU Freshmen rate is $7,530 T uition and Fee Rates Fiscal Year 2006-2007

21. 21 Source: Presidents Council Tuition and Fees Report Annual resident undergraduate tuition and fee rates T uition and Fee Percentage Increases Fiscal Year 2006-2007

22. 22 Annual resident undergraduate tuition and fee increases per semester (based on media reports) T uition and Fee Semester Increases Fiscal Year 2007-2008 *For new students Fall 2007 **Fall 2006 to Fall 2007 Comparison (6.7% summer to fall)

23. 23 T uition Guideline (Fiscal Year 2007-08) *The 10.% assumes NMU receives the $4.2 million delayed appropriation.

24. 24 * Scenario 3: nonresident increase same dollar amount as resident G eneral Fund Budget Model Summary (Fiscal Year 2007-08)

25. 25 A nnual Tuition and Fee Rates (Fiscal Year 2007-08)

26. 26  Eliminate initiatives ($1.3 million)  $2.9 million balance – staffing and programming reductions and delayed university improvements and/or mid-year tuition and fee increase ◦ $2.9 million is the equivalent of eliminating 50 positions or an additional 6.3% in tuition and fees G eneral Fund Budget (if $4.2M is not received)

27. 27  Competitive with our peers  Maintain quality, access, and affordability  Move forward with strategic initiatives T uition and Fees