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Preliminary Budget Shows Deficit
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MAY 7, 2004 -- Michigan Tech will continue to cut spending and streamline operations to reduce a projected $7.9 million general fund deficit for the fiscal year beginning July 1, 2004 (fiscal year 2005). In a meeting May 7, the university's Board of Control discussed a preliminary budget, which will be revised over the next few weeks.
Interim President Glenn Mroz said his goal is to have a balanced general fund budget to present to the board's finance committee in mid-June.
"The structural budget deficits and decreases in state aid from $55.2 million in 2002 to $47.2 million this year have combined to intensify our budget challenges," Mroz said. "We cannot expect to conduct business as usual and expect Michigan Tech to grow and prosper."
At $100 million, the general fund is the largest of the university's five funds that comprise the $169 million total budget. When considering all five of these funds, the projected deficit for fiscal year 2005 is $3.5 million.
Mroz has implemented an administrative reorganization, resulting in savings of nearly $230,000 for the next fiscal year. He said he will continue to look at ways to streamline operations. He also expects action on a series of recently completed budget reduction reports.
"Some of these items would result in $1,000 in savings; some could reach seven figures," said Dan Greenlee, chief financial officer. "All of those savings add up and would be of significant help as we work toward a balanced budget."
The current preliminary budget includes lower tuition revenue and higher salary and benefit costs than previous projections. |
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