Addendum #9






The attached Budget Request is required to be submitted on an annual basis to the State of Michigan.   It represents the University’s projected needs for the next fiscal year, in this case fiscal year 2004-2005.  Northern Michigan University has always submitted its budget request on the basis of estimated needs exclusive of a tuition increase.  The request is also used to highlight areas of continued budget pressure and any new initiatives the University is undertaking.  In Northern’s case, we identified a state mandate (MPSERS retirement contributions), health care costs that continue to exceed inflation on a state and national basis, utility costs that are expected to exceed inflation, and debt service on capital projects to meet maintenance and facilities requirements for future growth.   Based on these factors, Northern is submitting a State Budget Request of $4,112,000.  The budget increase represents a 2.7 percent increase in the total general fund budgeted expenditures on a per fiscal year equated student (FYES) basis, or 4.2 percent increase in total expenditures, and is the equivalent of an 8.8 percent increase in state appropriation.





State Budget Request

Requested Increase in 2004-2005 Operating Budget







Compensation, staffing, and support cost increases            $2,322,000

Scholarships and financial aid increase                                     300,000


Other cost adjustments:


1.       Michigan Public School Employees Retirement

                  System   (MPSERS)                                                300,000

2.       Health insurance                                                              600,000

3.       Utilities                                                                              350,000

4.       Debt Service                                                                     750,000


Subtotal – OPERATING BUDGET COST INCREASES       $4,622,000


Less:  Tuition Revenue


1.       Enrollment Increase                                                    (     510,000)



           TOTAL INCREASE REQUESTED                              $4,112,000