University cautious with state funding

With the state of the economy in crisis, Central Michigan University is being cautious about spending its state allocations.

Because of the recent economic conditions in the state, CMU is determining if the state will call back any of the funds, said Steve Smith, director of media relations.

CMU received a 1 percent increase of $819,400 of the total of approximately $82.7 million in funding from the state for the 2009 fiscal year. CMU’s 1 percent increase in funding was allocated this summer after CMU lobbied for a 3 percent increase.

“We are taking a wait-and-see approach to see where the governor feels funds should be cut,” Smith said.

For now, CMU is holding the money, and it remains to be seen whether CMU will see every dollar it thought it had coming.

It is possible, however, that the state could ask for all of the increase back. CMU has seen funds called back in previous years.

Gov. Jennifer Granholm called back $1.4 million with mid-year budget cuts in 2005.

This time around, with the auto industry in peril, it remains possible that CMU could experience yet another trickle-down effect, government officials said.

“It is too early in the fiscal year (which started on Oct. 1) and there is too much uncertainty in the national economy and the auto industry to know for certain at this time how much will need to be cut and what areas of the budget will be cut,” Office of the State Budget Spokesperson Leslee Fritz said.

However, while it is not yet apparent how much and where cuts will be made, it does appear cuts will happen.

“The governor has indicated that she expects to make mid-year budget cuts before the end of this year,” Fritz said.

For now, all CMU can do is watch and wait.

“We are watching the state’s projected budget with a close eye,” Smith said.

Should the state take allocations away from CMU, it is not yet known what would happen.

“There isn’t a formal plan that has been developed,” said Barrie Wilkes, associate vice president for financial services and reporting. “Based on what I have read, with the state’s revenue shortcoming, they will need to make cuts somewhere.”

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