Dear NMU Parents,
Below is a letter I sent to students today about NMU’s campus-wide approach in developing a budget reduction plan for 2010 and 2011. As parents, I know that you understand how important it is to have a plan for tough situations so that one can react responsibly when action is needed. Right now, Northern (or any other university in Michigan and most other states) does not know the scope of state appropriation decreases we will actually face. But due to the economic picture, the most responsible thing we can do is to prepare for changes that range from small to large. I will be working on a standard Parent Partnership newsletter later in the week to update you about campus activities, as well as important dates and events. For now, I wanted you to have the exact information your students has, in case your son or daughter wants to discuss NMU’s budget reduction process with you. We remain committed to the high-quality university experience your student now enjoys. Preserving it will be challenged, but I am confident that we will become an even better university.
My most important point to the students and to parents is that all recommendations brought forth will be preliminary and will be open for discussion. When recommendations become decisions, you will be kept informed. Until that time, two-way communication will be standard operating procedure. So you and your students will have many opportunities to provide input on any proposed changes you feel strongly about.
Thank you for your time and involvement with NMU.
Dr. Les Wong, NMU President
Monday, Feb. 2, 2009
Dear NMU Students,
The nation’s economic situation will take considerable effort to turn around and, like most things in transition, will take some time. With that in mind, I want to keep students informed about our budget planning process so that you’ll understand some of the discussions you’ll be hearing throughout campus. NMU has been actively working on a budget reduction plan for many months. This plan anticipates state appropriation cuts to NMU in the current year (2009), as well as 2010 and 2011. Our planning has been in gear for nearly 10 months, but planning numbers have been elusive during that period. Recent data from state and federal agencies has now enabled us to set some numbers to work with. On Wednesday (Jan. 28), we gave the President’s Council the budget reduction targets, along with a set of deadlines to guide us. Two preliminary budget reduction plans per division are due February 18, one reflecting a 6 percent cut and another for a 10 percent.
The overall budget reduction target for NMU is $10 million. This is a large number, I know. Our goal is not to scare anyone, but to be strategically prepared for any situation, from small cuts to the worst-case scenario. The $10 million figure is a worst-case scenario. We based that number on the projected 14.3 percent deficit the state faces in 2010. We also took into consideration our current operating costs and projected increases (such as utilities), our enrollment levels and the continuing downturn of the national economy.
Here are five critical things for students to understand:
1) We do not know how large or small cuts to NMU’s state appropriations will ultimately be, but because change doesn’t happen quickly, it’s imperative that the university make plans now that could be implemented in short fashion if we need to do so in the future.
2) An all-campus forum has been scheduled for March 12 (3 p.m., Reynolds Recital Hall). I will be presenting and discussing the recommendations made to me. However, when you see these recommendations or hear about them being discussed, keep in mind that they are still “preliminary” recommendations. They are not done deals. Students will have an opportunity to make their opinions known before decisions are made final.
3) Student input will be taken very seriously. Can I guarantee that all student recommendations will be honored? No, of course not. But there will be many ways students will be able to share their thoughts: via e-mail to NMUPres@nmu.edu, face-to-face during forum discussions and by contacting ASNMU members. What I can guarantee is that comments will be carefully considered, and that the best ideas that help us move forward will be implemented. Given the quality of feedback I’ve received from students in the past, I expect a strong presence of student voices in our final decisions.
4) I can also guarantee that the full amount of the budget reduction – regardless of how big or small it turns out to be – will not be covered solely by a tuition increase. We never start with tuition in developing a budget; we always look for service efficiencies, new revenue sources and increased enrollment/retention efforts first. We make decisions about tuition increases toward the end of the process.
5) Although this tough economic downturn is among the worst that the United States has endured, I assure you that Northern Michigan University has weathered many bad economic periods in its nearly 110-year history. We will change, but we will change for the better – and you can play a role in that. You also have an opportunity to learn from this situation as you watch how departments strategically explore and implement ideas involving change. From this, you may take with you lessons about how organizations face challenges and think through difficult problems while developing and implementing action plans. Regardless of what field you work in after graduation, what city, town or state you live in or how financially secure you are, there will always be periods of change in your life
I know a lot of fellow presidents who worry about involving students in budget reduction planning. I’m not worried about NMU students overreacting because I know you will approach this situation in a mature, responsible fashion and that you will have many ways to make your concerns known. You may not fully understand every recommendation and the factors tied to it, but the senior management, deans, department heads and ASNMU reps will be available to explain plans that are being seriously considered.
Lastly, I want to once more remind students that if your individual or family financial situation has changed due to the economy (a parent has lost a job or you’ve been laid off, etc.) and you are having trouble meeting payment plan obligations because of these changes, please alert the staff in the Student Service Center. They can serve as a resource to help you analyze your options. If you have any questions about how your individual or family’s changed financial situation applies to the financial aid application process for next fall, please do not hesitate to contact the NMU Financial Aid Office. Both the Financial Aid Office and the Student Service Center are located in Hedgcock.
Let me close by saying that your university is well positioned to engage in the changes we need to make and I am confident that NMU is in a strategic position many other universities would like to be in. Thankfully, the top priority of most faculty and staff is our students and the commitment to give you a great university experience. Northern is a smart and agile campus, which has demonstrated in the past its ability to get things done cooperatively and quickly. Most importantly, we have a student body that is actively engaged in the university and the community. The best asset one needs to confront change is talent and commitment. NMU has both in abundance. I look forward to working with you as we move NMU forward.
President Les Wong
Questions or comments can be sent to NMUPres@nmu.edu. Parents who are not already receiving e-mail notification of the NMU Parent Partnership newsletter updates but wish to do so can subscribe to the Parent Partnership newsletter. This is also the link where parents can make changes to their e-mail address. If you no longer wish to receive this newsletter, you can unsubscribe at any time.