Eastern Michigan University’s budget crisis isn’t losing momentum; the shortfall is up to $4.6 million — $2.9 million more than what was announced at last month’s Board of Regents meeting.
At a meeting Tuesday, the university addressed the shortfall by stating a plan is in order to control spending and compensate for the expected losses. John Lumm, chief financial officer to EMU, said the deficit could grow to $5 or $6 million by next June, which marks the end of FY 2012.
“We have set a target that provides a match for last year,” Lumm said. “We were hopeful in continuing that. We’re trying to match last year… The short-term improvements are what we would envision using this year.”
Specific recommendations won’t be suggested until the next meeting on Dec. 15.
Until then, obvious reasons for the budget deficit at EMU are being examined, including state appropriations.
This year, state-funded universities suffered the largest cut in the history of higher education in Michigan — 15 percent.
Following last year’s 2.8 percent decrease, it’s more than an adjustment, according to Lumm.
“There was, once again, a deficiency identified in terms of capitalization of fixed assets,” Lumm said.
An overall jump in net assets, mostly due to noncash revenue recognized for the capital appropriations in the Pray-Harrold renovations occurred. Instead of decreasing by $3 million, net assets raised from $24.7 million to $255.8 million.
According to a count taken Sept. 15, the number of students enrolled for the fall semester dropped 0.69 percent. At that time, EMU’s total enrollment stands at 23,341 — 162 fewer students than last fall — counting for 18,555 undergrads and 4,786 grads.
In turn, the number of credit hours taken by undergrads has fallen 0.89 percent and grads by 5.39 percent, totaling 1.38 percent. Tuition and fees fell by $2.7 million. Another $1.9 million was from poorly informed investments.
As for comments about next year, President Susan Martin spoke up about outlays:
“Our expectation is that there probably will not be a capitol outlay for this session, which ends Dec. 31. However, there may be an opportunity next year in 2012, so it is not impossible that we could get a capitol outlay within this fiscal year. We’ve been assured by many that we will be rewarded for tuition restraining.”
