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

2.  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 Overview

3. B udget and Appropriation History

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

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

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.  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.  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 Type Rank Administrative #1 Faculty#1 Service#4 Total#1 * Based on number of students divided by the number of staff.

10.  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. Fiscal Year 2008 – 2009 G eneral Fund Tuition and Budget Considerations

12.  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) G eneral Fund Tuition and Budget Considerations for FY2008-2009

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

15. Source: Michigan President’s Council Report on Tuition and Fees for FY2007-08 Annual resident undergraduate tuition and fee rates *CMU Freshmen rate is $9,120 *FSU freshmen rate is $8,460 T uition and Fee Rate Comparison Fiscal Year 2007-2008

16. * 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 Annual resident undergraduate tuition and fee rate adjustments T uition and Fee Rates Fiscal Year 2008-2009

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. B ase Adjustments for FY2008-09