Need for Administrative Prioritization
Central Michigan University, like many other higher education institutions, will be facing challenging economic times in the years to come. While the university was able to avoid major budget reductions this year, the future looks uncertain and foreboding. A reduction in state funding looks likely. The forecast for the general fund budget for the State of Michigan in the 2011-12 budget year is currently estimated to have a $1.8 billion shortfall. The recent election results suggest that significant tax increases to provide additional state resources are extremely unlikely.
Over the last 15 years, the portion of CMU's general fund budget that the state provides has declined from 75 percent to 25 percent in 2010-11. The university has adapted by increasing enrollment and also by significantly increasing the tuition paid by students. In fall of 2000, CMU's on-campus enrollment was 18,471. In fall 2010, the on-campus enrollment had increased to 21,290. In 2000, the in-state undergraduate tuition rate was $108 per credit hour; this has increased more than 200 percent to $346 per credit hour for the 2010-2011 academic year. CMU's tuition for new freshmen is now the fourth highest among the 15 public universities in Michigan. It is extremely unlikely that these trends can continue.
The demographics of the State of Michigan lead to the prediction that the size of the Michigan high school graduating classes will be decreasing in the years to come. This will affect the potential pool of students that CMU has traditionally drawn upon for our new freshman classes. Given the economy, concerns about access, external competition and other factors, it is very unlikely we can continue to raise tuition at the levels we have done so in the past. Limits on tuition increases and stable or, more likely, declining future enrollments along with reduced state support will ensure that CMU will not have the financial resources to fund all programs and functions at the desired levels. The university must direct resources, both financial and employee time and effort, to areas that will yield the greatest impact for students and faculty and put us in the best competitive position during the next decade.
We must make resource decisions, investing in areas that will advance the university in an increasingly competitive environment. Decisions to be made regarding administrative/service unit functions will be heavily based upon how they impact the revised mission statement approved by the university's Board of Trustees at their December 2, 2010, meeting and the President's goals.
CMU Mission Statement: At Central Michigan University, we are a community committed to the pursuit of knowledge, wisdom, discovery and creativity. We provide student-centered education and foster personal and intellectual growth to prepare students for productive careers, meaningful lives and responsible citizenship in a global society.
On May 24, 2010, the CMU Board of Trustees endorsed President George E. Ross' goals for the 2010-2011 academic year. Six areas of focus were identified: strategic planning; student success; diversity and global engagement; scholarship, research and creative activity; partnership and public engagement; and resources, infrastructure and culture. Each goal was further defined by more specific objectives and action steps. The review and evaluation of academic/service unit functions flows directly from Goal 6.
Goal 6: Resources, Infrastructure and Culture: Provide the appropriate financial, human and physical resources to achieve the mission of CMU. The university personnel and physical infrastructure should be enhanced to move it toward national prominence. The resources and infrastructure must be built upon a solid foundation of core values that serve as the moral compass for governance and decision making.
The second action step for this goal is to "Complete a review of all administrative areas and service centers to assess areas of excellence and strength and to align and restructure university organization and staffing in support of the university's academic mission, vision and core values. Allocate resources to enhance areas of need and consolidate/eliminate departments/units where necessary." This goal also had the original completion date of January 2011, which also has been extended to Fall 2011.
In addition, the Board of Trustees specifically asked for a process to prioritize academic programs and administrative units at their September 23, 2010, meeting. A process of review of administrative units in other divisions also is being conducted, although using different approaches.