Operating budget will increase 1.9 percent to $492 million in 2016-17
Central Michigan University's Operating Budget will increase by 1.9 percent to $492 million in 2016-17 — $9 million more than last year's budget.
The Board of Trustees approved the budget at its third meeting of 2016 Tuesday in the Bovee University Center. At their last meeting on April 29, the trustees increased instate undergraduate tuition to $405 per credit hour.
CMU's operating budget has increased by $51.6 million since 2013-14 — a 12 percent increase. That budget was worth $441 million.
"Realistically, will costs continue to increase? Yes. We'll continue the endeavor to control those costs," said President George Ross after the meeting. "I wish I could tell you it's going to stop growing, but that's not a realistic answer."
The budget increase, Ross said, represents an investment and is "encouraging the university is able to accomplish" as much as it can with this budget.
With costs going up and state funding going down, Vice President of Finance and Administrative Services Barrie Wilkes said the university can address the issue a number of ways. It will focus on trying to grow its endowment and other revenue sources.
"(The goal is) so there isn't so much pressure on tuition," Wilkes said. "The state has cutback on state appropriations. Michigan is not unique in that way. It has put a lot more pressure on increasing tuition, so we're trying really hard to break that cycle and diversify revenue so it's not so focused on tuition dollars."
The university's endowment is more than $100 million and is expected to grow to $140 million, Wilkes said.
For the full report on the 2016-17 Operating Budget, go here.
