UPDATE: CMU to step up planning for 15 percent state higher-ed budget cuts
Central Michigan University will be more aggressive in its fiscal planning after Gov. Rick Snyder announced plans for a 15-percent cut to higher education in his 2012 budget.
The university has been involved in contingency planning for a while, but administrators will now step up their efforts, said Kathy Wilbur, vice president of Development and External Relations.
CMU has until next semester before the budget cuts will impact it because the state government runs on an Oct. 1 fiscal year, University President George Ross said. The university had heard rumors of 15- to 20-percent cuts prior to Snyder's Thursday announcement.
“The conversation has always been 15 to 20 percent, at least the last couple weeks,” Ross said. “We’ll be huddling up the beginning of the week to see where we are with prioritizations.”
The university began budgeting for reductions last spring, when it made $5.2 million in cuts through personnel and other cost reductions, Ross said. This is a start toward covering the $12 million reduction that may be needed if Snyder’s proposed budget is approved.
The 15-percent decrease in university funding will save the state $222 million, according to Snyder’s proposal. Eighty-three million dollars will be set aside to award universities which do not raise tuition more than 7.1 percent.
“That 15 percent is actually contingent on complying to that rate cap; the cut could be deeper (if they don’t),” said state Rep. Kevin Cotter, R-Mount Pleasant. “If CMU were to raise tuition at an amount not to exceed 7.1 percent then there would be an opportunity to recapture some funds ... if they were able to do that then the cut would be 15 percent.”
There are no proposed cuts to community college funding and it will stay at the 2011 level of $296 million.
“We’re certainly very pleased that Gov. Snyder has recognized the importance of community colleges in restoring the Michigan economy,” said Mid Michigan Community College spokesman Matt Miller.
Wilbur said CMU will be involved in the conversations in Lansing while the higher education bill goes through the state legislature.
Cotter said it is important to understand that Snyder’s proposal still has to be voted on by the state Senate and the House.
He said he looks forward to meeting with representatives from CMU and other voters to talk about the potential impact of the cuts on the university.
“(Snyder’s proposal) is really just the first step of the budget process,” Wilbur said.
