NMU
Spared Major Cuts
Northern
will receive $80,000 in restored funding under a tentative state
spending agreement reached Friday by Gov. Jennifer Granholm and
legislative leaders. But factoring in the base-budget implications
of an executive order enacted last December, the university remains
$724,000 below the state funding level of one year ago.
Northern’s
FY2006 budget, as approved by the Board of Trustees last month,
was developed around the governor's budget recommendation, which
called for NMU to receive $804,000 less than its FY2005 state funding
level.
“It’s
good that our planning was on the right track,” said Gavin
Leach (Finance and Administration). “The restored funding
means we won’t be faced with having to make additional major reductions
on campus this fall beyond the reducations and cost-saving measures
already identified in the general fund budget approved by the board.”
Northern
will receive slightly more than $45 million in state funding for
FY2006. President Les Wong said the outcome is
much better than the 5 to 10 percent cuts for Northern originally
proposed by the House and Senate.
“This
keeps our budget basically intact, but we still have huge challenges
ahead of us as we move into the next legislative process,” Wong
said. “A per-student funding gap remains, and discussions about
formula funding will continue. It’s very clear some legislators
are still very interested in a formula approach to funding higher
education, but we’re relieved the House proposal for this year wasn’t
adopted. As much as the cuts would have hurt us, the proposed formula
would have hurt us even more in the long term.”
According
to Gongwer News Service, House Speaker Craig DeRoche was pleased
that, beginning in July 2006, funding for universities will be allocated
in a method similar to what the House GOP had proposed. Universities
that offer certain types of degrees would get more money.
When
asked if he was disappointed that NMU and WSU are escaping cuts,
DeRoche was quoted in Gongwer as saying, “From our perspective,
it isn’t the dollar amount; it’s the formula. The transition (to
a formula) is being made, and eventually those that would have otherwise
received cuts hopefully by their own initiative in directing programs
toward their outcomes will end up with more money.”
The
agreement reached Friday does not include the governor’s proposed
changes to the Merit Award program. She wanted to boost the award
from $2,500 to $4,000 and make it payable upon completion of two
years of college. While details of the spending plan remain to be
worked out, it appears higher education and K-12 fared better than
other state departments.
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