Council to Develop Budget Reduction Plan
an executive order likely and estimates of its impact ranging from
a 5-15 percent reduction in state funding for the current fiscal
year, NMU President Mike Roy said the President’s
Council is exploring measures to address a potential shortfall.
At the university forum Oct. 22, Roy
said that with the estimates
circulating now, Northern could face a reduction of anywhere from
$2.3 million to $7 million.
should know by Thanksgiving what the exact number will be, but we
can’t wait that long to begin the process,” he said. “I told the
President’s Council at its Wednesday meeting that it should develop
a reduction plan of $4.6 million, based on the middle-ground assumption
of a 10 percent executive order. That plan must be in place by the
end of November so that we can present it to the university community
and then take it to the NMU Board of Trustees’ December meeting.
might say that’s not much time, but any executive order will impact
our funding for this fiscal year (which began July 1), so the sooner
we implement reductions, the sooner we can offset the shortfall.
We’re working on a much more compressed timeline than the last time
has already made one decision:
to put the Quad II renovation on hold pending a proposal that would
redirect funds bonded for that project to the Magers Hall renovation.
Both projects are estimated at $5.8 million. Roy
said the funds had been bonded
previously, so they are available to the university. NMU cannot
funnel the money to general fund operations, but can redirect it
to a more critical construction need – student housing.
and residence life covered the bulk of the debt service for the
Quad II project,” Roy
said. “Smaller portions were covered by dining services and the
general fund. Now housing and residence life – an auxiliary operation
– will take over the entire bonding debt, which creates a savings
for the general fund. By doing Magers first, we will be able to
meet our need for student housing and add revenue to housing and
residence life, putting that area in a better financial position
when it takes on the construction of new student apartments and
returns to the Quad II renovation.”
said faculty and staff will
be kept up to date on the council’s progress via the CAMPUS
newsletter and university forums.
realize that there are going to be a number of rumors circulating,”
he said. “I hope the faculty, staff and students will be patient
and not fuel the rumors, but attend the forums and read material
intended to keep them informed of what is going on. We will do our
best to communicate effectively and efficiently with the campus
large part because of his need to remain focused on the state budget
situation, Roy announced at the forum that he would not seek the
NMU presidency on a permanent basis.