Minutes of the Special Meeting of

Friday, July 22, 2005



A special conference call meeting of the Board of Trustees of Northern Michigan University was held on Friday, July 22, 2005, in the Board of Trustees Meeting Room, 602 Cohodas Administrative Center, Northern Michigan University, Marquette, Michigan.  The meeting was convened at 9:09 a.m. by Chair Karl Weber.


Trustees present included:         Karl A. Weber, Chair

                                                Larry C. Inman, Vice Chair (via conference call)

                                                Alan T. Ackerman (via conference call)

                                                Samuel S. Benedict (via conference call)

                                                Brian D. Cloyd (via conference call)                                         

                                                Jon G. LaSalle

                                                Mary C. Lukens (via conference call)

                                                Douglas B. Roberts (via conference call)

                                                Leslie E. Wong, President (ex officio)


Board and senior staff present included:


        Pamalene Grundstrom, Executive Assistant to the President and Secretary of the Board

        Alfred N. Joyal, Provost and Vice President for Academic Affairs

        Michael J. Roy, Vice President for Finance and Administration and Treasurer of the Board

        R. Gavin Leach, Associate V.P. Finance and Planning

        Thomas P. Hustoles, University Legal Counsel (via conference call)

        David S. Haynes, University Lobbyist





President Wong reviewed information on tuition increases at other Michigan Universities, ranging from 7.5 percent to 19 percent.  He said today's recommended tuition increase of 9.8 percent is the result of several months of work by the President's Council involving discussions on budget reductions and cost containments.  The recommendation is based on several assumptions including a 3.5 percent net increase in General Fund expenditures and the Governor's recommended 1.9 percent budget reduction (our state appropriation level is unknown at this time). 


Dr. Roy reviewed our budget assumptions, tuition and fees recommendation (Addendum #1), and related increase in general fund financial aid/scholarships.  He gave a general overview of the budget reductions that will be discussed during the Board's August 4-5 meeting.  Discussion followed and Dr. Roy and Mr. Leach responded to questions and comments from Trustees.  Dr. Roy said with our proposed tuition increase, NMU will likely remain second lowest in the state.  If we receive a 10 percent reduction as proposed in the Senate, we may have to consider an additional tuition increase as well as further budget reductions and cost containments.  Mr. Leach agreed to get back to the Board in response to a question about the projected compensation increase.  Discussion continued about the state appropriation level and how we will address additional budget reductions that may come in the future.  The Board discussed the pros and cons of the proposed tuition increase and expressed concern about Northern's ability to continue to provide a quality, affordable education while reducing our costs.  President Wong said the budget and planning team is completing work on a multi-year plan to address the issue of cost containment while maintaining availability of our quality programs and services for students.  That information will be presented to the Board at its August 4-5 retreat. 


Discussion continued about how NMU compares with peers in costs and where we might look internally to address future budget reductions as we attempt to move our costs per FYES closer to the state average.  Trustees expressed various points of view about how we should accomplish that.  President Wong said this topic will fit into the Board's discussion of the proposed three-year plan during the August retreat. 


The Board then took the following action:


It was moved by Mr. Inman and supported by Mr. Cloyd to accept the recommended tuition and fee increases as presented: 

(See Addendum #1)


On a roll-call vote, the Board voted as follows:


                                     Aye                            Nay


                                                                        Mr. Ackerman

                                    Mr. Benedict

                                    Mr. Cloyd

                                    Mr. Inman

                                    Mr. LaSalle

                                    Ms. Lukens

                                                                        Dr. Roberts

                                                                        Mr. Weber


The motion was thus carried by a majority of five for and three against.





Chair Weber adjourned the meeting at 10:03 a.m.


Respectfully submitted,




Pamalene R. Grundstrom, Secretary of the Board