April 7, 2010

1. April 7, 2010 Northern Michigan University Campus Forum : the steps ahead Les Wong

2. Delivering a plan for 2010-2011 • Two parts • Part I: Implement by June 30, 2010 • Part II: Implement by January 1, 2011 *Addendum: The contingency plan

3. The Path to Prosperity: A Policy of Public Investment in Higher Education States’ Educational Attainment Rates, Per Capita Income, and Tax Revenue AL, AR, IN, KY, LA, MS, NV, OK, TN, WV AK, AZ, DE, FL, ME, MT, NC, ND, PA, WI CA, GA, HI, IL, KS, NE, OR, RI, UT, WA CO, CT, MA, MD, MN, NH, NJ, NY, VA, VT IA, ID, MI, MO, NM, OH, SC, SD, TX, WY Sources: Bureau of Labor Statistics, Survey of Current Business, December 2009; U.S. Census Bureau, 2007 American Community Survey, 2007 State and Local Government Estimates, and Annual Estimates of the Resident Population of the United States.

4. The Plan 2010-11 Step 1 Today to June 30, 2010 Assumptions: • Cover expected 3.1% appropriations cut • Cover projected 2.5% increase in operational expenses • Tuition increases: part of the model but unknown at this time

5. The Plan 2010-11 Step 1 Today to June 30, 2010 • Energy conservation ($200,000 min.) • Only targeted, high priority hiring ($250,000) • Achieve 12 early retirements via Governor’s/legislators’ MPSERS plan ($1 million) • Implement remaining academic budget balancing strategies ($400,000)

6. The Plan 2010-11 Step 1 Today to June 30, 2010 • Reconfigure several areas • Restructure/merge Academic Information Services (AIS) with Administrative Information Technology (AdIT) $375,000 • Reorganize Human Resources $50,000

7. The Plan 2010-11 Step 1 Today to June 30, 2010 • Tuition: Examining 3 tuition models • Changes in financial aid at federal level • Unknown State of Michigan budget • NMU Board of Trustees will set tuition at July board meeting • Goal: Maximize efficiencies, protect curriculum, protect jobs, position the university

8. The Plan 2010-11 Step 2 July 1, 2010 to January 1, 2011 • Assumptions • Continuation budget in an election year • No new money to NMU • $1.7 billion dollar revenue gap pushed to new governor and legislature • Continued spending of ARRA funds • Executive Orders likely in 2011 • Revenue, Reform, Cuts: Michigan’s challenge • Position eliminations become inevitable

9. The Plan 2010-11 Step 2 July 1, 2010 to January 1, 2011 • Academic Programs • Formally establish criteria for reallocation of resources to high need areas • Provost, deans, and Educational Policy Committee • Focus: programs that serve students and economy • Identify 3-5 enhanced or new academic program initiatives. • Provost, deans, academic units • Proposals to faculty governing bodies during fall semester 2010 • Identify 3-5 programs for termination • Provost, deans, academic units • Proposals to faculty governing bodies during fall semester 2010

10. The Plan 2010-11 Step 2 July 1, 2010 to January 1, 2011 • Other areas of campus • Reconfigure/reorganize athletics • Varsity, Club, and Intramural level • Proposal for termination of low participation programs • Proposal to initiate new programs • Reconfigure these departments and processes: • USOEC • Counseling Services and Health Promotions to better meet student needs/interests • Continuing Education: set revenue goals • Improve the Link between Admissions and International Programs Office

11. The Plan 2010-11 Step 2 July 1, 2010 to January 1, 2011 Other areas of campus continued: • Facilities – create plans for the following: • Demolish Carey Hall • Set timeline to close West Hall • Secure state funds to retrofit Jamrich • If successful, closure up to 2 years • Continue to seek funding for Combined Heat and Power plant (CHP) • Employee Benefits: continue review • Develop a detailed contingency plan to address mid-year executive orders in 2011-2012

12. The Plan 2010-11 Step 2 July 1, 2010 to January 1, 2011 GOAL: By January 1, position the university to withstand significant midyear reductions if called upon to do so. This means stabilizing costs, increasing revenues, avoiding inefficiencies, and avoiding service duplication • Not just budget cutting • Must identify current efforts that have little return on our investment • Act on opportunities to enhance student experience and preserve integrity of curriculum

13. NMU today is • Stable • Well-positioned • We have a roadmap • We have a campus master plan • We will direct our own change

14. Five-Year Facilities Master Plan Summary Update • Facilities Overview • 64 buildings • 3.5 million square feet of space • 684 acres • 359 acres on main campus • 120 acres (Longyear Forest) • 206 acres (Mount Marquette) • 3.6 miles of roadway • 13.95 miles of sidewalk • Asset value of $368.7 million (historical cost of facilities) • $133.1 in accumulated depreciation • $235.6 million in net capital assets

15. Five-Year Facilities Master Plan Summary Update • Deferred Maintenance • $180.9 million in deferred maintenance ($97.7 GF; $83.2 Non-GF) • State Capital Outlay Requests • Bio-Mass Fueled Combined Heat and Power Cogeneration: $65 million • Jamrich Hall Modernization: $33.9 million • Renovation and Addition to Learning Resources Center: $65.6 million • Academic Facilities Upgrades: $8.98 million • Sam M. Cohodas Hall Renovation: $18.4 million

16. Five-Year Facilities Master Plan Summary Update • Projects (current project planning) • Superior Dome roof: $3 million to $4 million (over two years) • Jacobetti roof: $1.5 million • Building door access controls/fire alarm security/mass notification/energy management system/replacement: $5.0 million (over three years) • Performance contract on energy projects: $2.3 million - $2.8 million • General maintenance projects on academic facilities and grounds: $1.4 million • Marketplace modifications: $3.5 million (over five years) • Apartment and residence hall general maintenance projects: $0.6 million • Campus signage/wayfinding: $0.8 million (over five years)