Thursday, June 30, 2022

A special formal session of the Board of Trustees of Northern Michigan University was held on Thursday, June 30, 2022, via Zoom videoconference. The meeting was convened at 2:30 p.m. by Chair Stephen E. Young.

Trustees present included:

Mr. Stephen E. Young, Chair	Mr. Jason T. Morgan
Ms. Lisa I. Fittante	Mr. Gregory J. Seppanen
Ms. Alexis M. Hart, Vice Chair	Dr. Kerri D. Schuiling, ex officio
Mr. Robert E. Mahaney

Trustees absent included:

Ms. Melissa A. Holmquist

Ms. Tami M. Seavoy

Senior Staff and Counsel present included:

Mr. Brad Canale, Chief Executive Officer – NMU Foundation

Dr. Dale Kapla, Interim Provost and Vice President for Academic Affairs

Mr. R. Gavin Leach, Vice President for Finance and Administration and Treasurer of the Board of Trustees

Ms. Deanna Hemmila, Executive Director – Board/Government Relations

Ms. Cathy A. Andrew, Secretary of the Board of Trustees

Mr. Kurt McCamman, Legal Counsel

The meeting was also live-streamed on YouTube at https://bit.ly/nmuavstreaming

ROLL CALL

Secretary Andrew took roll call and noted that a quorum was met with six (6) Trustees present.

COMMITTEE REPORT

Finance Committee

Trustee Mahaney, Chair of the Finance Committee, reported on a meeting held today, Thursday, June 30, 2022. A copy of the report is appended to these minutes. (Addendum #1)

TUITION AND FEES – FISCAL YEAR 2023

Mr. Gavin Leach, Vice President for Finance and Administration, provided a report on the analysis of the key factors involved in the tuition and fees setting process for fiscal year 2023. (Addendum #2)

The following action was taken:

It was moved by Trustee Hart and seconded by Trustee Seppanen to approve the proposed fiscal year 2022-2023 tuition and fee rates as follows:

· Annual undergraduate rate increase of 3.9%

· Resident and nonresident lower division rate increase by $238 per semester

· Resident and nonresident upper division rate increase by $250 per semester

· Extension/online undergraduate tuition increases be the same as on-campus

· Graduate tuition increases by $24/credit (3.9%)

· Clinical lab sciences, nursing, natural sciences, and TOS differential tuition increase by $1/credit

Discussion followed:

Trustee Morgan thanked Vice President Leach for the solid explanation and background related to what the university is looking at and investing in. He proposed the following for consideration, discussion, and possible amendment to the motion: Increasing the financial aid amount by $100,000, making it an even $1M, if the university receives additional funding of approximately $200,000 from the State of Michigan than was originally anticipated. This would better support students, which would also give some indication to the State that if they give NMU more revenue in appropriations, it would be used to maintain lower tuition and/or increase financial aid to support students.

Chair Young called for discussion related to Trustee Morgan’s proposal.

Trustee Seppanen clarified the proposal: If the university receives an additional $200,000 or more from the State, we look at taking $100,000 of those funds and adding it to the financial aid increase that Vice President Leach presented.

Trustee Mahaney stated this is a commendable idea that he is not opposed to. He requested time to reflect on this proposal until the final numbers are received from the State before any commitments are made. He also reminded the Trustees that the current budget already contains a significant deficit number. He would like to defer the decision as the Board can go back post-date budget setting to add to the financial aid budget.

Trustee Hart concurred with Trustee Mahaney as she would like additional information and further discussion.

Trustee Seppanen said he likes this idea and is supportive of the concept. Once there are solid numbers from the State, he would like to discuss this further at that point.

Trustee Morgan said he is okay with discussing this further when the budget is received; however, he has some discomfort with the idea that NMU will have the same tuition increase regardless of the appropriation amount received from the State.

Chair Young stated the meetings scheduled in July are a Retreat and not a formal meeting. A determination will need to be made to work out how to have that discussion.

Being no further discussion, Chair Young called the question.

The motion carried by a vote of 5 –1.

Chair Young thanked Trustee Mahaney, the Finance Committee, and Vice President Leach and his team for the work that went into this noting it is not easy process and a lot of work goes into it.

FORMAL RECOMMENDATIONS

The following action was taken:

It was moved by Trustee Hart, seconded by Trustee Morgan, and supported by a vote of 6 – 0, to approved the Formal Recommendations. (Addendum #3)

Chair Young adjourned the meeting at 2:50 p.m.

Respectfully submitted,

/signed/ Cathy A. Andrew

Secretary of the Board of Trustees