Saturday, the fiscal 2012-year officially began and state appropriations for public Michigan colleges have slimmed down 15 percent, following a 2.8 percent decrease in 2011.
Colleges across the state have scrambled to stay on budget by raising tuition and making cuts. Eastern Michigan University has been forced to do the same, but is beginning to examine the budget to prevent the crisis from happening again next year.
“We’ll monitor it closely so tuition isn’t affected as much next fall,” Roy Wilbanks, Board of Regents Chair, said. “This winter’s tuition is included in the 2012 budget already, so it’s next fall we’re focusing on.”
Proposed by Gov. Rick Snyder in February, passed by the state legislature in May and then reiterated in a report published by the House Fiscal Agency Sept. 16, Michigan’s cuts follow a national trend in which states are decreasing higher education spending. Still, members of EMU’s board admit they weren’t completely prepared.
“We had planned for it to be down significantly, but underestimated that,” Wilbanks said. “The budget is planned based on a set of assumptions — appropriations and student enrollment. We predicted enrollment to rise 1.7 percent, but instead, it dropped almost 1 percent.”
After a zero percent tuition increase for one year while holding a two-year growth streak, EMU experienced a tuition fee increase of 3.65 percent this fall.
Roughly 22.8 percent of the school’s budget runs on state funds. The University of Michigan raised tuition 6.7 percent and state appropriations will make up 16.9 percent of the school’s general fund revenue.
As a result, enrollment is down 0.07 percent and the number of credit hours down? 1.4 percent at Eastern this fall. If both sectors continue to decline significantly, a budget amendment will go into effect for the following year, according to Wilbanks.
“We’d cut expenditures more than likely,” Wilbanks said. “It could impact some staff but not students.”
These are, essentially, the same decisions made for this year — general cuts to personnel and operating, which were necessary after signs of a budget shortfall became apparent.
In a Board of Regents meeting last month, it was announced by John Lumm, Chief Operating Officer, the school is facing a $1.7 million budget deficit, which could grow to $5-$6 million by the end of the fiscal year.
To balance the shortfall, Eastern will have to carefully manage expenses and make strategic cuts. The Board is not in favor of making layoffs, although 81 jobs were cut in June to save $4.24 million. Last year’s budget was short $3 million, as opposed to this year’s shortage.
