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Tech Ends Year in the Black
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AUGUST 13, 2004 -- Michigan Tech's current fund, which encompasses all university revenues and expenses, ended the 2003-04 fiscal year (FY04) $1.4 million in the black, CFO Dan Greenlee told the Board of Control Aug. 5.
The university achieved this relatively healthy bottom line despite cuts in MTU's state appropriation totalling $8 million over the last two years. However, the financial picture will soon be less rosy unless the university eliminates a systemic general fund deficit, Greenlee cautioned.
As predicted, the general fund finished the year an estimated $2.5 million in the red. That hole was offset by revenues in other funds, including a surplus of about $3 million in auxiliary activities. Unfortunately, that extra money from auxiliaries won't be available next year or for several years to come.
"Starting in 2006, we won't have $2.5 million in excess revenue from the residence halls because we'll be paying off bonds," Greenlee said. Payments on the $32.9-million bond issue funding improvements to Wadsworth, McNair and Douglass Houghton Halls begin October 2005.
"We have to be cautious," he said. "We are borrowing from other funds to run the university, and we can't lose sight of the fact that we have to balance the general fund."
The administration presented a balanced general fund budget for the current fiscal year, FY05, which the board passed June 25. Greenlee said that tuition payments for the fall semester indicate that tuition revenues are in line with budget projections.
In other business, the board agreed to hear reports in October from its two ad hoc committees charged with instituting a presidential search. The team chaired by Board Member David Brule will make recommendations on selecting a search firm, while the team chaired by Board Member Norman Rautiola will develop proposals on the membership of a search committee.
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