COLUMN: CMU’s financial shape is strong, no matter what is said

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Central Michigan University has a strong financial foundation.

That’s the truth.

If it didn’t, the government would step in, figuring $68 million of tax money goes toward the university each year.

During University President George Ross’ State of the University speech he even said, “And the state of Central Michigan University is indeed strong.”

Central Michigan Life’s Friday editorial stated, “University President George Ross said Central Michigan University was in strong financial shape in his State of the University Address Wednesday.”

I received a call from Steve Smith, director of public relations, early Friday morning saying we had misquoted Ross and asked if we could fix the situation by printing a correction.

He said the context was in an academic sense, as Ross had spoken about academia prior to saying the quote.

I refused, citing my major issue — when any president, especially of a university, tells you their company is “indeed strong,” that encompasses finances, academics, students and faculty.

Smith explained to me the rhetoric, saying governors and presidents say similar things all the time during their state of the state, or nation, but that doesn’t mean they are financially in good shape.

When did CMU become a place so concerned about the politics of giving a speech?

I asked Smith whether CMU was financially struggling and he declined comment, saying that was not the issue.

An editor’s note was added to the online version of the editorial and I added Ross’ direct quote to give more clarity to readers.

As Ross was giving his State of the University, several buildings over in Powers Hall, Vice Provost of Academic Administration Ray Christie said under oath that CMU never had an issue with giving the Faculty Association what they had originally asked for in contract talks between the two.

“We’ve never stated we could not afford it,” Christie said.

But would a university admit it can afford pay increases if it is financially struggling?

CMU has acted like the victim in all of the FA contract talks, claiming it lost $12 million in Michigan funding this year, which is true.

What CMU isn’t saying is the added 3.47 percent tuition increase will more than make up for the $12 million loss from the state.

For the 2010-11 fiscal year CMU made $189,691,837 from on-campus tuition dollars.

For the 2011-12 fiscal year CMU is anticipating $204,496,263.

That’s nearly $15 million, which makes up for any loss in appropriations they received. In fact, CMU made almost an additional $3 million from on-campus tuition, and that’s not including increases for ProfEd and other programs at CMU.

Just a year ago, then-Board of Trustees Chairwoman Stephanie Comai called CMU a “rock-solid place financially.”

Now, here is another interesting fact: CMU is paying $5 million a year for five years to fund the College of Medicine.

A college would not start a $25 million investment if it didn’t figure out its finances first.

That’s the bottom line.

CMU might have, but if it didn’t anticipate a lack of Michigan funding, several administrators need to be fired.

Now fast forward to today, the College of Medicine is almost complete, we are still waiting on millions in donations and CMU administrators are complaining that we do not have enough money.

Seems odd, doesn’t it?

Maybe Ross’ quote was taken out of context, I’ll leave that for you to decide, but I do think that the speech is a part of a bigger problem at CMU: The administration seems too concerned with politics rather than making correct decisions.

Current Board of Trustees’ Chairwoman Sarah Opperman has refused comment on the FA and CMU contract issues, forwarding all contact to Steve Smith.

She is the same person who makes decisions on our budget, our administrators and is appointed by the government.

Central Michigan Life has complained time and time again about the openness of this university, for the availability of everybody who is a “decision-maker” at this university to have a voice and tell us what they think.

Now, the one person whose words might mean a little bit more than Ross’ goes silent.

This is just another ploy, and I am tired of this political rhetoric CMU has decided to give not only from its president and public relations but its’ Board of Trustees as well.