09/20/07
NORTHERN MICHIGAN UNIVERSITY
RECOMMENDED GENERAL FUND OPERATING BUDGET
EXPLANATION OF BUDGET CHANGES
FISCAL YEAR 2007-2008
     
Change
BUDGET RESOURCES
    State appropriation (decrease of 1.7%) ($807,000)
    Tuition and fees
      Rate increase of 9.25% residents with same dollar amount increase for non-resident students $3,912,000
      Adjustment from FY2007 217,000
      Bad debt reclassification from expense to revenue offset (line item reallocation) (569,798)
          Subtotal-Tuition and fees 3,559,202
    Less:  Scholarships
              Indian tuition waiver (55,000)
              Adjustments from 2007 (95,000)
              Net scholarship inflationary increase/national academic awards (485,353)
                 Subtotal-Scholarships (635,353)
    Department income (rental income) 34,000
    Investment income (increased investment and endowment revenues) 225,000
    Carry-over (decrease in departmental balances - includes reduction of $4.2 million appropriation
                     delayed payment) (2,442,965)
                RESOURCES ($67,116)
BUDGET EXPENDITURES
    Personal services:
      Non-represented and contractual increases $2,553,586
      MPSERS increase 250,000
      Faculty staffing 150,000
      Assoc Provost-Student Services office staff base support from auxiliary overhead (line item reallocation) 164,839
      Graduate stipends 100,000
      Departmental reallocation of funds 76,405
      Minimum wage 75,000
      Grant development 60,000
      Internationalization 40,000
      Faculty staff recognition awards 25,000
      Extended library hours 6,000
          Subtotal-Personal services $3,500,830
    Supplies and services:
      Credit card fees 68,000
      Printing/postage increase 33,000
      MIOSHA compliance (eye wash and annual testing) 16,000
      Hazardous waste disposal 10,000
      Health Center support moved to overhead offset (line item reallocation) (33,500)
      Departmental reallocation of funds (76,440)
      Departmental support cost savings (200,000)
      Bad debt reclassification to revenue offset (line item reallocation) (569,798)
           Subtotal-Supplies and services (752,738)
    Utilities (projected decrease) (200,000)
    Equipment, lease, and library acquisitions:
      Capital equipment replacement (increase from $600,000 to $625,000) 25,000
      Departmental reallocation of funds 3,630
           Subtotal-Equipment, lease, and library acquisitions 28,630
    Transfers:
      Debt service (retirement of debt) (122,000)
      Administrative Information Technologies
         System software maintenance support 77,000
         Compensation/minimum wage support 46,531
         Personnel savings (55,516)
           Subtotal-Administrative Information Technologies 68,015
      Intercollegiate Athletics
         Athletic medical trainer/coaching adjustments  75,573
         Transportation/team travel support 75,000
         Compensation/minimum wage support 56,653
         Incentive loans to base funding 41,000
           Subtotal-Intercollegiate Athletics 248,226
      Facilities maintenance (long-term facilities maintenance funds; $2.5 million goal) 140,000
      Intramural recreational services (compensation/minimum wage increases) 25,546
      Other 
        Mail Services (compensation/minimum wage support) 2,684
        Micro Repair (minimum wage support) 604
        Departmental reallocation of funds (2,948)
           Subtotal-Other transfers 340
      Learning Resources (compensation support) 32,608
      NMU Foundation (compensation support) 11,731
      USOEC (Board approved funding based on additional net tuition revenues) 96,000
    Overhead reimbursement:
        Auxiliary Services 
          Health Center support moved to overhead offset (line item reallocation) 33,500
          Overhead recovery for services (100,000)
          Overhead recovery to base for Assoc Provost-Student Services office staff (line item reallocation) (164,839)
            Subtotal-Auxiliary Services (231,339)
        Off campus and summer session (summer session reallocations/overhead recovery for services) (470,000)
    Carry-over
        Departmental (decrease in departmental balances) (14,403)
        Obligated by contractual commitments (increase in year end commitments) 269,127
        Budgeted for subsequent fiscal year (includes reduction of $4.2 million appropriation delayed payment) (2,697,689)
                EXPENDITURES ($67,116)