Periodic Updates - Update #38
CENTRAL MICHIGAN UNIVERSITY
OFFICE OF THE PRESIDENT
January 22, 2004
To: CMU Colleagues and Students
From: Mike Rao
Subject: CMU Update #38
Welcome back. Best wishes for a healthy and productive
spring semester at the university. Another update seems to
be in order. I hope that you find this informative.
BUDGET UPDATE
In December, the Governor issued an executive order for a
five percent current-year state appropriation callback for
public universities, which amounts to $4.1 million for CMU.
The senior staff budget advisory group (SSBAG) is currently
reviewing proposals from budget directors about how to
address this latest reduction. $1.5 million of one-time
appropriations and $538,000 of base appropriations for the
current year were held in reserve and will help in
addressing the $4.1 million. The remaining $2.0 million of
mid-year reductions will be addressed together with
reductions necessary for the 2004-2005 year. These cuts will
be made at the same time—probably after March. Inasmuch as
possible, all reductions involving positions for the
mid-year callback and 2004-2005 reductions will be discussed
later in the spring.
News for the 2004-2005 fiscal year is also looking bleak.
The state has projected a budget shortfall of $1 billion for
the year that will begin October 1, 2004. The impact of this
shortfall on higher education and CMU is not yet clear.
However, the state will likely have to look to higher
education to solve part of their problem because higher
education is funded by the state's general fund and that is
where the $1 billion shortfall resides. Governor Granholm
will present her State of the State address on January 27
and is expected to present a budget proposal for 2004-2005
in mid-February. Then, the legislative budget process will
begin. SSBAG and I will follow developments at the state
closely as we continue to deliberate on CMU budget proposals
for 2004-2005 and beyond. Plans will be announced this month
by Provost Storch for seeking input from the university
community about budget reductions and will include an email
option and one or more additional budget forums.
In the midst of the current budget crisis, the university's
top priority remains student and faculty learning, with a
focus toward teaching and research. The university will
continue its efforts and investment in areas such as
outreach, research, fundraising, government relations,
marketing, and admissions—all of which have an important
return for the institution in both the short and long terms.
Most of these areas support academic excellence at the
university, as well as help relieve pressure from dwindling
resources. It is important to not allow appropriation
reductions to create for CMU a downward spiral. We are not
an average university and certainly do not want to become
one.
EMPLOYEE BENEFIT COST INCREASES
In previous updates, I have often referred to increases in
employee benefit costs as having a significant impact on the
CMU budget. One specific example is the total contribution
the university is required to make to the Michigan Public
School Employees Retirement System (MPSERS). The university
anticipates the contribution for 2004-2005 will be $7.9
million, which would represent an increase of 17 percent
when compared to the current year's contribution. To put
that level of increase into perspective, if we received an
approximate 1.5 percent increase in state appropriations,
the university would be putting all of those dollars into
funding the MPSERS contribution increase. Benefit cost
increases such as this anticipated one for MPSERS and the
fact that the university has realized a 15 percent decrease
in state appropriations since July 1, 2002 might help
illustrate one of the reasons that tuition goes up and
universities cut expenditures at the same time.
MARTIN LUTHER KING, JR. WEEK
As the university joins the nation this week in celebrating
the life and work of Dr. Martin Luther King, Jr., I look
forward to the opportunity to welcome his son, Martin Luther
King III to campus. Monica and I also look forward to
joining many in the university community at the annual Unity
Ball on January 23.
MEDC
A seminar will be held in the Park Library Auditorium on
Friday, January 23, at 1 p.m. hosted by the Central Michigan
Research Alliance, of which CMU is a member, and the
Michigan Economic Development Corporation. The seminar will
provide information about what type of projects the state
will consider funding out of the Technology Tri-Corridor
money this year. Up to $25 million in funding is available
through the program and will be awarded in a competitive
process. The deadline for applications is January 31, 2004.
I encourage registration for this seminar at
www.medc.michigan.org/ttc by all who are interested in
this important topic.
RESEARCH UPDATE
Congratulations to Psychology Professor and Chair Gary
Dunbar, who recently was honored with a lifetime achievement
award from the Faculty for Undergraduate Neuroscience, an
international association of neuroscience educators.
Professor Dunbar has been a strong advocate for
undergraduate research and a national leader in the FUN
organization.
CMU faculty and staff members continue to succeed in
securing external funding to support their intellectual work
and that of students. For information on funded projects,
please see
http://www.orsp.cmich.edu/awards.htm. Following are a
few recent examples of research activity by faculty, staff,
and students:
CAPITAL CAMPAIGN – A NEW VISION OF
EXCELLENCE
The campaign continues with the receipt of several major
gifts to CMU:
ANNUAL UNIVERSITY CAMPAIGN
Participants in the Annual University Campaign, the annual
solicitation to faculty, staff and retirees, surpassed
expectations by donating over $521,000 to CMU, an increase of
$150,700 over last year's campaign total. This total came from
858 donors — 121 more than the previous year. Since its
inception, the Annual University Campaign has generated more
than $3.8 million in support of student scholarships, creative
endeavors and applied research, and on-going program support.
CMU ATHLETICS
Congratulations to Athletics Director Herb Deromedi, who
will be inducted into the Michigan Sports Hall of Fame on March
30. He remains the winningest coach in MAC football history.
Herb also received the Champions of Life Award at the GMAC Bowl
on December 18, 2003. It is given annually to a representative
from the Mid-American Conference, Conference USA and the
Mountain West Conference for achieving great success in their
field through dedication and hard work.
Brian Kelly was introduced as CMU's new head football coach
at a press conference in early January. He led Grand Valley
State University to Division II national championships in 2002
and 2003. Please join me in welcoming him and his family to CMU.
I also wish former head coach Mike DeBord well as he continues
his coaching career at the University of Michigan.
REGIONAL ACCREDITATION
The Steering Committee for the Higher Learning Commission
accreditation self-study and its five subcommittees continue to
make progress. A website to allow the community to track their
activities is available at:
http://www.provost.cmich.edu/viceprovost/accreditation/hlc_accreditation_self-study.htm.
COLLEGE OF BUSINESS ADMINISTRATION
Recently, undergraduates of the College of Business
Administration were finding jobs at a higher rate of placement
than ever before. The rate for business graduates jumped to 89
percent, an increase of 6.5 percent from the previous year.
Adding in students who go on to graduate school, the rate is
more than 92 percent. Starting salaries for all business
graduates average $35,600.
Congratulations to Midland health care executive Terence
Moore, who received the university's Master of Business
Administration Outstanding Alumni Award in December. Terry Moore
has undergraduate and graduate degrees from CMU, has published
more than 50 articles in health care journals and authored or
co-edited eight books.
STATE OF THE UNIVERSITY ADDRESS
Since 2001, I have delivered a "State of the University"
speech. After much review, it appears that this formal address
is not effective for communicating with constituents on campus.
In fall 2004, I will continue to address my faculty colleagues
at each of the academic college meetings at the beginning of the
semester. In addition, an opportunity to interact with staff
employees – perhaps an "all staff" meeting prior to the
beginning of the year – will also be introduced. Further details
will be provided as fall approaches.
