Staff Report | News

CMU to get only 1 percent hike

Central Michigan University will receive an increase of $819,400 and a total of approximately $82.7 million in funding from the state of Michigan for the 2009 fiscal year.

Gov. Jennifer Granholm and both Michigan houses approved different educational budgets earlier this year.

All wanted around a 3 percent increase for higher education funding, but a 1 percent increase for higher education funding was what they ultimately agreed on.

Leslee Fritz, spokesperson for the State Budget Office, said the change happened because of differences in revenue projections from winter to the beginning of summer.

“The governor, economists and experts meet in January and again in May, and the state’s revenue picture declined pretty significantly,” Fritz said. “We will have $400 million less than we thought we would have in January, and a number of the governor’s recommendations had to be reduced. All of those items will get an increase in the 2009 budget, but it will not be the number of increases recommended in January.”

Carol Haas, CMU’s director of financial planning and budgets, said she has prepared a standstill budget that she will present to the Board of Trustees July 17.

This budget does not account for any increases in CMU’s funding, and Haas said it is important to know what the exact numbers are before planning.

“We are going to hold it until we know for sure,” Haas said.

The concern, according to Haas, is a potential mid-year cut.

Haas said in the 2006-2007 fiscal year, there was an executive order cut that made CMU lose funding.

“We’re going to hold this (increase) out in reserve for now,” Haas said.

Departments hit hard by the approved budget include K-12 funding, Department of Corrections, which lost $50 million of increased funding, and the Department of Community Health, which lost $25 million of increased funding.

In addition, state employees will also be paying larger co-pays in their health insurance costs.

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