TO:	The CMU Community
FROM:	Michael Rao
SUBJECT:	CMU Update 54

CMU Appropriations in the State Budget

The Governor has signed a bill that includes $80.0 million to CMU for 2005-2006. Included in the total appropriation is $139,800 base funding for CMU allocated by the Governor and $1.4 million allocated by the House funding formula. It also includes $631,500 that will be considered for inclusion in CMU’s base budget as a “book closing restoration” in November or December of this year. With these three amounts in the university’s base budget, CMU effectively begins this year with only approximately $150,000 more in state appropriations than it had at the beginning of last year, before the executive order cut that became necessary last spring.

In addition to the operating funds appropriated to CMU in the 2005-2006 state budget, the K-12 state budget included $250,000 for the establishment of a Lending Library for Low-Level Incidence Disabilities, a project led by psychology professors Sharon and Carl Johnson. This is new funding for which we are grateful to Senators Cropsey, Jelinek, and Switalski and Representatives Moolenaar and Caul, who were instrumental in including this funding in a very tight budget. CMU will also receive a third year of funding of $75,000 for the accelerated certification program in the College of Education and Human Services due to the support of these same individuals.

2005-2006 Operating Budget

At its July 14 meeting, the CMU Board of Trustees approved The CMU Promise, an initiative that guarantees tuition rates for a fixed period of time depending on class standing and eliminated mandatory fees. The CMU Promise also endeavors to protect academic quality, particularly following three years of significant reductions in state appropriations due to statewide revenue shortfalls.

CMU’s base expenditures grow by about $10 million every year due to costs that include salary and benefits for faculty and staff, health care, and utilities. In addition to providing students and their families with a clear sense of the costs of college through to degree completion, another important benefit of The CMU Promise tuition plan is that no additional cuts or position eliminations have had to be implemented for 2005-2006. Following $30 million in cuts in previous years, it had become clear that students were beginning to experience the impacts of layoffs and other reductions. It was also clear that with one of the lowest tuition and appropriations per student, combined with cuts, that CMU was in danger of losing its ability to foster a productive learning environment.

Fundamentally, the university has no more to spend from the state this year than last year. Nonetheless, for the first time since 2001, the university will be able to implement some modest budget enhancements—both from funds provided by The CMU Promise and internal resources saved by specific offices. Some entities within the university have been able to accumulate some carry forward funds and selected budget enhancements, such as increasing library hours and reinstating an academic advisor position, are being funded from those internal resources. With the continued instability of Michigan’s economy, some anticipated university revenues will be held until the latter part of the year.

The Budget Review Advisory Council (BRAC) reviewed and provided feedback on a number of enhancements, mainly academic, including:

• $1.0 million allocated for the CMU: 2010 Vision Plan; specific allocations will be recommended by the Institutional Strategic Planning Committee
• $1.5 million in academic enhancements, including new faculty positions, library acquisitions, and base funding for Health Professions building opening and operating needs
• $1.3 million in increased funding for supplies and equipment, with $960,000 designated for academic units
• $900,000 in additional scholarship funding and elimination of the undergraduate student graduation application fee
• $500,000 in health and safety needs
• $300,000 for diversity initiatives including enhancing study abroad service to students and addressing athletic gender equity needs
• $1.3 million toward debt service for Satellite Energy Facility, Education Building, and Beaver Island Academic Center projects
• $1.3 million allocated to matching budget dollars to activity level, net of $410,000 of budget reductions in the university’s central administration medical reserves and compensated absences accounts

Doreen Root – Academic Structure
Pam Gates – Academic Program Structure
Pat Fox – Admissions
Linda Gillingham – Degree Audit & Graduation
Cheryl Vallance – Equivalency Determination
Michelle Howard – Graduate, Undergraduate, & ProfEd Advising
Cindy Rubingh – Student Accounting

• Report any problems of high temperatures to the Facility Management Service Center at 6547.
• Keep windows closed
• Keep shades closed at night
• Have doors fixed that don’t close fully
• Keep outside doors closed
• Turn ALL lights and energy consuming appliances and devices off when not in use
• Have leaky water faucets repaired