More cuts expected this year
CMU administrators said they anticipate more budget cuts for this year as the state’s economy remains stagnant and unemployment rates rise.
George Ross, vice president of Finance and Administrative Services, discussed the philosophy and objectives of the 2003-2004 operating budget during an open forum sponsored by the Budget Review Advisory Council Tuesday.
A crowd of about 30 were present, most of which were CMU faculty members.
Ross said CMU started the 2003-2004 academic year with $81.5 million in state appropriations, compared to $90 million last year — a $8.5 million decrease.
“What I want you to come away with here is remembering that this is where we’re sitting in the state of Michigan.”
Kathy Wilbur, Governmental Relations and Public Affairs vice president, said the financial situation at CMU is reflective of what is happening throughout the nation.
“The fiscal picture, even in this budget year, is very bad,” she said. “We are looking at a shortfall of $500 million in Lansing, and $500 million is a pretty big hole for them to have to be able to fill.”
Wilbur said the shortfall, which used to reflect sales figures, is now beginning to reflect unemployment rates.
She said she remains hopeful the economy will be better by 2005, but talks in Lansing are projecting a possible billion-dollar problem by that time.
Thomas Storch, executive vice president and provost, said the fiscal problems are not unique to Michigan.
“I wasn’t here when all this was taking place, but I have spent time at other universities and what we’re facing here is common among all states in the union,” Storch said.
Wilbur and Ross said they anticipate more budget cuts this year.
One graduate student was present to voice his concerns and asked Ross what possible plans — aside from raising tuition — the university has to deal with such a situation.
Ross said increasing tuition will always be a reality, but other possible solutions include fund-raisers and reallocation of funds.
Ross presented data comparing CMU’s 2003-2004 tuition and mandatory fees rate of $5,218 to those of 14 other state universities.
Of the 14 schools, only Northern Michigan University and Saginaw Valley State University have lower rates than CMU.
“As much as it costs to go to this university, we’re still a bargain,” Ross said.
Ross discussed the hardships of closing a $21.5 million budget gap this year and said one of the criticisms that bothers him most is that the campus community doesn’t feel included in decisions.
“We took recommendations from all across campus,” he said. “We received over 400 suggestions and we looked at every single one of them.”
CMU spends an average of $800,000 each day of the calendar year, he said.
“Our total budgets are in excess of $300 million on this campus and we have to manage all those budgets,” Ross said. “I’m the son of a Mississippi sharecropper, so $300 million is a lot of money to me.”
Ross said he was skeptical of a few things when he came to CMU last December.
“We had all the academic types on one side and all the administrative types on one side and I thought it was never going to work,” he said, referring to the budget crisis.
Ross said it has worked, and he wants to continue promoting communication across the university in regard to budget issues.
“I think it’s important we understand our budget and challenges facing us,” he said. “We want to move forward and have your input.”
The forum is the first in a series of three focusing on CMU’s budget and financial planning process.
The next will take place Oct. 20 during the Student Government Association meeting and the series will conclude with a third forum in November.
