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Board Approves Spending Cuts
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DECEMBER 17, 2003 -- Michigan Tech's Board of Control agreed to a series of spending cuts Dec. 12 to shave approximately $2.5 million from the university’s budget.
The cuts, proposed by university president Curt Tompkins, were developed to address an unanticipated $9 million revenue shortfall. The state is expected to cut MTU’s appropriation by 5 percent, or $2.5 million. In addition, a miscalculation of tuition revenue has reduced budget estimates by another $7 million, from $61.3 million to $54.3 million.
A total of $1.1 million will come from a pay reduction for faculty and staff equivalent to five days of work. In return, staff will receive an equivalent number of days off and faculty will be allowed a reduction in non-teaching effort.
The reduction in pay will be spread out over pay periods through the rest of the fiscal year to mitigate the impact on employees’ paychecks.
Another $400,000 will be saved this year by adjustments to employee insurance and health benefits. The university is expected to save $900,000 annually from the changes, starting next fiscal year.
On the plus side, the university is receiving an unanticipated $250,000 payback from its risk management and insurance pool. In addition, its payment to the Michigan Public School Employees Retirement System will be approximately $320,000 less than originally projected.
Lastly, the university has not spent $359,000 it received as a supplemental appropriation from the state.
The board approved a BS degree in Psychology, which will be instituted in fall 2004 if it is approved by the state academic affairs officers. The new degree is expected to increase enrollment among women and improve retention among students interested in degrees outside of engineering and technology. |
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