|Tech on Track for Balanced Budget
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|SEPTEMBER 24, 2004 -- Revenue for Michigan Tech's current fiscal year (FY04) meets the university's projections and the budget is on target to be balanced, President Glenn Mroz reported to the campus community on Wednesday.|
During his second open forum in as many months, Mroz also discussed criteria for the 2005-06 budget, noted the need for a larger endowment, reviewed enrollment targets, and announced that his self-evaluation statement for the University Senate is now posted on the web.
Mroz said tuition revenue for this fall will exceed budget estimates by about $230,000. He expects state revenue to equal the targeted $50.2 million for the year. The state appropriation includes a $1.5 million "rebate," provided to universities that keep tuition below the rate of inflation.
With a 2.3 percent tuition increase for 2004-05, Tech posted the lowest percentage increase in the state.
"This was approved last spring, so that we could provide some degree of certainty to our students and parents," Mroz said. "We remain committed to our promise."
He also noted that a 1 percent tuition increase grosses about $500,000, but nets about $370,000 after considering tuition discounts.
In developing the 2005-06 budget, Mroz said he and his executive team will focus on continued belt-tightening and increasing revenue. He said the budget will be balanced, "just like 2004-05," and will include consideration of funding compensation increases. "We have to do that or our good faculty and staff will leave."
Mroz said he is hopeful that the state will provide an increase. "Each one percent increase in state appropriations means $490,000 to our budget," he said.
He also said more aggressive enrollment targets and increased emphasis on sponsored research will add to the bottom line.
"Each $1 million in sponsored research adds $350,000 in indirect cost recovery," he said. He reminded the audience that enrollment targets originally set for 2010 are being moved up to 2007. He reaffirmed the targets of 6000 undergraduates and 1000 graduate students.
"An increased enrollment of 265 students means a net revenue increase of $1.3 million," he said.
The long-term financial solution is to work to increase the university's endowment, Mroz said. "We have to augment this partnership we have with the state," he said. "We have to increase our endowment."