MICHIGAN TECH HOLDS TUITION HIKE TO 3 PERCENT
DEARBORN--The Michigan Tech Board of Control stuck with legislative guidelines and held resident undergraduate tuition increases at 3 percent during its regular meeting held here Wednesday (July 7). Non-residents and graduate students, however, will see higher rate hikes when classes commence this fall.
Resident students with lower level standing (freshmen and sophomores) will pay increases of $127 next academic year, up from this year's figure of $4,236 to $4,363. Resident undergraduates with upper level rank (juniors and seniors) will experience a $133 increase, from $4,437 to $4,570. Non-resident undergrads of lower level status will pay $10,577 next year, up $500 or 5 percent above the current year costs. Upper level non-residents will be required to pay $10,978, an increase of $700 or 6.8 percent. Resident graduate students will see their tuition ticket rise $500 or 12.9 percent, up from $3,876 to $4,376. Non-resident graduate level students will see their tuition climb $800 or 9.6 percent, up from $8,307 to $9,107.
The tuition figures were part of a new general fund budget of $99,729,000 which was also approved by the Board. Michigan Tech's current operating budget is $94,872,000.
The new budget also calls for employee salary and wage increases averaging 4 percent, 3 percent of which will be designated for merit and 1 percent for market and equity. The increases will be implemented in two steps, the first becoming effective June 27 and the second on December 26 of this year.
"As we prepared the proposed budget for Fiscal Year 1999-2000 and looked at financial plans for 2000-2004, the University budget team decided to take several actions," said MTU President Curt Tompkins. "Among those were 1) to employ conservative enrollment and tuition projections; 2) increase health care co-pays for employees, effective January 1, 2000; 3) maintain a minimum $500,000 contingency reserve; and 4) exercise vigilant control over funds that become available from employee turnover."
Tompkins said that to put the University back on track with its five-year budget plan, Michigan Tech needs to establish a commitment to 6 percent salary increases during the period 2000-2004. "Frankly," he said, "in previous years the magnitude of the salary increase pool has been treated as a 'plug variable' constrained by what is left after many other obligations are made. We now need to place the salary pool toward the front of the line rather than at the back of the line."
The Board approved retaining the consulting firm of The Washington Advisory Group to assess issues facing Michigan Tech in five broad categories: 1) institutional strategy, 2) governance and organization, 3) positioning the University and technology transfer, 4) recognition and cooperation, and 5) special initiatives. It is expected that the Michigan Tech Fund will provide $50,000 of the consulting contract costs, the Dow Foundation will provide $65,000, and the balance of $65,000 will come from the Fiscal Year budgets of 2000 and 2001.
Tompkins also announced that The Washington Advisory Group and a national search firm will assist the University to identify candidates for the position of provost at Michigan Tech. "We will be looking for a provost with a very impressive background in science or engineering to build on our continuing progress, as we strengthen our position among the top nationally-ranked technological universities," said Tompkins. He said Executive Vice President and Provost Fred Dobney has agreed to stay on until June 30, 2000. Tompkins thanked Dobney for his role in the improvements at Michigan Tech during the past six years.
The Board also announced a comprehensive five-year employment contract with President Tompkins, renewable for three years. The package calls for a salary increase from $186,000 to $199,000 annually, with a housing allowance of $1,500 a month, and deferred income of $45,000 a year if Tompkins stays for five years.
Board Chair James Mitchell said the Board's contract offer came after a survey of university presidents' compensation showed that in Michigan alone, the presidents of Central Michigan, Eastern Michigan, Michigan State, Wayne State, Western Michigan and the University of Michigan were all being paid base salaries exceeding that of Tompkins. In addition, six Michigan universities pay their presidents deferred compensation ranging from $28,000 to $45,000 per year. Mitchell said that most university presidents also receive a housing allowance of $2,000 to $2,500 per month in addition to the access to some type of university facility where they can entertain university guests. "During the past eight years we have emphasized competitiveness in the marketplace and equitable salaries for outstanding faculty and staff to attract and retain the brightest and best for Michigan Tech," Mitchell said. In that spirit, he said that Tompkins' new contract makes Michigan Tech competitive with other leading universities in presidential compensation. The Michigan Tech Fund has established a "Leadership Excellence Fund" which will make off-budget funds available to the Board for covering the deferred compensation component.
In what Mitchell described as a pleasant surprise, Tompkins responded to the contract offer by pledging the proceeds of his deferred compensation package back to the Leadership Excellence Fund pursuant to a charitable remainder trust. Mitchell said the Board was pleased with Tompkins' decision to endow the Fund and that the action was another indication of the president's "tireless dedication and devotion to Michigan Tech."
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07/07/99