PRELIMINARY BUDGET SHOWS DEFICIT

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). The Board of Control discussed a preliminary budget May 7, which will be revised over the next few weeks.

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 five funds that comprise the university's $169 million total budget. When considering all these funds, the projected deficit for fiscal year 2005 is $3.5 million.

Because of the university's financial condition, the board opted not to rescind the furlough days. Under the program, the salaries and wages of faculty and nonunion staff were reduced by the equivalent of five days' effort.

Mroz discussed the recent administrative reorganization, which will result in savings of nearly $230,000 for the next fiscal year.

The savings accrued in part through the elimination of two positions, the executive director of enrollment management and the executive director of university relations. In addition, general fund support for the vice president for advancement position, which is vacant, will be taken over by the Michigan Tech Fund. Plus, transportation allowances for the CFO, the provost and the vice president of governmental relations were abolished, and half the amount added to the officers' base salaries.

The board approved salary adjustments amounting to an overall increase of $57,258 for four officers, based on changes in their responsibilities. Increases were announced for the vice president for administration, the vice president for research and the vice provost and dean of student affairs, and the CFO's salary was reduced. Mroz's salary was set at a flat $195,000, with no additional travel allowance or other benefits beyond the standard MTU fringe benefit package.

Mroz was also reappointed to a three-year term as dean of forest resources and environmental science. He is expected to return to that position when a new president comes on board.

Mroz 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 preliminary budget projects a reduction in tuition revenue of $1.2 million in fiscal year 2005, from $54.7 million to $53.5 million, and an increase in salary and fringe benefit costs from $98.4 million to $102.7 million. While the budget includes no raises, it does have salaries returning to pre-furlough-days levels. Health-care costs actually came in under budget this year, rising 7 percent instead of the expected 13 percent, and the 2004-05 budget includes a similar increase of 7 percent.

The board elected Rodger Kershner chair and Mike Henricksen vice chair for the upcoming year. They take office at the first meeting after June 30, the end of the fiscal year.

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MICHIGAN TECH BOARD "TAKES THE PLEDGE"

APPROVES NEW DEGREE PROGRAMS, SETS ROOM AND BOARD RATES

The Board of Control voted to "take the governor's pledge" May 7 and cap next year's tuition increase at 2.3 percent.

"We hope this will remove some uncertainty for students and their parents as they make their financial plans for next year," President Glenn Mroz said.

While the state has cut this year's appropriation to Michigan Tech by 5 percent, from $49.7 million to $47.2 million, Governor Jennifer Granholm has promised to restore 3 percent, or $1.5 million, if the university holds any increase in next year's tuition to the rate of inflation, now estimated at 2.3 percent. In addition, Granholm has promised not to cut appropriations during the upcoming fiscal year for public universities that observe the tuition cap. The pledge is based on the understanding that the state legislature approve the governor's recommendation.

If the university were not to take the pledge, it would have to hike tuition over 11 percent to raise an equivalent amount of revenue.

The board also gave initial approval to several new degree programs and set room and board rates for the upcoming academic year.

The School of Forest Resources and Environmental Science plans to offer four new graduate degrees: a Master of Forestry and three Master of Science degrees in Forest Ecology and Management, Applied Ecology, and Forest Molecular Genetics and Biotechnology. In addition, it proposes to start a new BS in Wildlife Ecology and Management next fall.

The new master's degrees reflect the School's existing strengths in ecology, forestry and biotechnology. While graduate students have long been able to focus their studies on these areas, their degree titles have not always reflected their specialization.

The Department of Humanities has developed a BA degree in Communication and Culture Studies with three concentrations: contemporary culture, communication in human interactions and global contexts, and communication media.

"We're very excited about putting forth this degree," said department chair Robert Johnson. "It's different from the other degrees now offered at Michigan Tech, and we hope it will not only be attractive to students, but will also be an integral part of the Michigan Tech of the future."

The new degree programs now go before the State Board of Academic Officers and must receive final approval from the Board of Control before being adopted.

The board approved increases in the room-and-board rates ranging from 4.4 percent to 5.2 percent, depending on the type of room. The increase is due in part to the cost of new fire safety improvements, including sprinklers.

The annual cost of a standard occupancy room and 19-meals-per-week plan in most university residence halls will rise from $5,775 to $6,076, with the cost of a standard Wadsworth Hall suite room increasing from $6,501 to $6,789. Students can save $99 by selecting the 14-meal plan, $198 with the 10-meal plan, and $1,221 with the five-meal plan.

Rent increases in university apartments will range from 3.4 percent to 3.6 percent. Students will pay $444 for a two-bedroom apartment, up from $429.

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MICHIGAN TECH RISES TO "CHALLENGE X"

HOUGHTON--Michigan Technological University is one of a handful of U.S. and Canadian universities selected to take part in the latest advanced vehicle technology competition, Challenge X.

"It's going to be the premier student automobile competition," predicted William Predebon, chair of MTU's Department of Mechanical Engineering-Engineering Mechanics. "They have raised it to another level."

Sponsored by the U.S. Department of Energy and General Motors, Challenge X: Crossover to Sustainable Mobility challenges engineering students across North America to explore vehicle solutions that minimize energy consumption and reduce emissions while maintaining the vehicle's utility and consumer appeal.

Teams from 17 schools were chosen from more than 100 applicants to participate in the competition. It replaces FutureTruck, which is winding up this year. At kickoff ceremonies Tuesday in Washington, DC, teams received $10,000 in seed money to jump-start their efforts.

Students will spend the first year of the three-year Challenge X designing their vehicle on the computer. The second year, they will receive the Equinox, a GM sport utility vehicle, and begin putting their plans into action.

"It's up to the schools to decide how to approach the problem," Predebon said. "At Michigan Tech, we've been emphasizing hybrid technology."

Associate Professor John Beard, longtime advisor for MTU's FutureCar and FutureTruck teams, will also help shepherd the Challenge X effort.

"It's probably the most challenging engineering contest that's been put on," he said. "It's another level up from FutureTruck. With all the engineering we're going to do, it's very exciting."

MTU's FutureTruck teams have traditionally used advanced design technology, particularly gas-electric hybrid engines, to build their entries. "We're going to use all our strengths to make it lighter, faster and more fuel-efficient," Beard said. "With gas at $2 a gallon, I don't know what could be more appropriate."

Challenge X will be part of Michigan Tech's Enterprise Program, in which interdisciplinary student teams solve industry problems or participate in high-end competitions.

Other universities participating in Challenge X are Mississippi State University, Ohio State University, Pennsylvania State University, Rose-Hulman Institute of Technology, San Diego State University, Texas Tech University, University of Akron, University of California at Davis, University of Michigan, University of Tennessee, University of Texas at Austin, University of Tulsa, University of Waterloo, University of Wisconsin-Madison, Virginia Tech and West Virginia University.

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BOARD APPROVES TENURE, PROMOTION RECOMMENDATIONS

The Board of Control approved the administration's recommendations on faculty promotions and tenure May 7.

The following assistant professors without tenure were promoted to the rank of associate professor with tenure: Theresa Ahlborn (Civil and Environmental Engineering), David Flaspohler, Chandrashekhar Joshi (SFRES), Casey Huckins (Biological Sciences), Anne Wysocki (Humanities), Huann-Sheng Chen (Mathematical Sciences), Samuel Coates and MaryFran Desrochers (Technology). David Nitz (Physics), an associate professor without tenure, was granted tenure.

Donna Michalek (MEEM) was promoted from assistant professor with tenure to associate professor with tenure. Igor Kliakhandler and Shuanglin Zhang (Mathematical Sciences) were promoted from assistant professor without tenure to associate professor without tenure.

The following were promoted from associate professor with tenure to professor with tenure: William Sproule (Civil and Environmental Engineering), Jacqueline Huntoon (GMES), Carl Anderson, Song-Lin Yang (MEEM), Steven Carr (Computer Science), Marilyn Cooper (Humanities) and Ulrich Hansmann (Physics).

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FACULTY RECEIVES SUPPORT FROM DOE NANOSCIENCE CENTER

Nanoscience research lead by Assistant Professor Yoke Khin Yap (Physics) has been selected as a project in the new Center for Nanophase Materials Sciences (http://cnms.ornl.gov) that is currently under construction at Oak Ridge National Laboratory.

Selected nationwide through a merit-reviewed, competitive process, the User-Initiated Nanoscience Research Program consists of 42 research projects. Yap's research theme is "Controlling Nanostructures of CVD-Multiwall Carbon Nanotubes" and is the only project selected from Michigan.

This nanoscience research program will provide users with no-cost access to ORNL research capabilities and staff in order to conduct research in areas that were identified as having strong user interest as well as connections to present nanoscience research strengths at ORNL.

Yap and his graduate students are currently involved in the research of carbon nanotubes. Both single-wall and multi-wall carbon nanotubes are grown on campus by chemical vapor deposition techniques. Yap has established techniques to control the growth location, orientation and density of carbon nanotubes (http://www.phy.mtu.edu/yap/index.html). These results were reported in the Materials Research Society spring meeting held April 12-16 in San Francisco.

CNMS is among the five new nanoscale science research centers initiated by the Office of Basic Energy Sciences (http://www.sc.doe.gov/bes/BESfacilities.htm) to serve researchers from universities, national laboratories and industry. The director of CNMS, Doug Lowndes, visited MTU April 28-May 1. He conducted a Physics Colloquium, and a lecture to undergraduates sponsored by the NSF nanotechnology undergraduate education project on campus.

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