president john m. dunn's state budget presentation

Senate Appropriations Higher Education Subcommittee

February 22, 2010

President Dr. John M. Dunn

1

WMU Points of Excellence

• Fine Arts

• The Evaluation Center

• College of Aviation

• Math and Science Education

• Creative Writing

• Engineering Management

• Geosciences

• Our Graduates

2

WMU is a National Research University

• Carbon Sequestration• Bio-Fuels• Center for Advanced Vehicle Design and Simulation• “Green” Manufacturing• Nanosensors for Toxins• Printed Electronics• Physics Research with the National Laboratories

and U. of C. at Berkley and Stanford• Mallinson Institute for Science Education• Pedestrian Safety for the Sight Impaired

3

It’s About Our Students

• Lee Honors College

• Phi Beta Kappa

• iOMe Challenge Winners

• Veterans

• Seita Scholars

• Student Leadership

4

Important Initiatives Underway

• Sustainability/”Green” Campus

• Eaton Corp. and CAViDS Partnership

• Medical School Development

• Community College Partnerships

• Internships 101

• The Western Edge

5

WMU is Ahead of the Curve on Reforms

• Second Lowest Administration Costs

• State-of-the-Art Energy Management

• Outsourcing for Savings

• Health Care Program is 30% Lower than State’s

• Financial Aid Commitment Predates State Mandate

6

Administrative/Professional Staffas a Percentage of Student Enrollment

7

Health Care Costs

8

• State of Michigan Net Employer cost: $10,900

• WMU Net Employer Cost: $8,359

The State of Michigan’s Costs are 30% HIGHER that WMU’s costs.

WMU Employees’ Cost Share Ranges from 5% for Single Coverage, to 43% for Family Coverage.

WMU Electric Cost Savings

9

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

$5,000,000.00

$0.0300

$0.0400

$0.0500

$0.0600

$0.0700

$0.0800

$0.0900

$0.1000

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Fiscal Year

Cumulative Cost Avoidance Consumers Energy Michigan Electric Average WMU Generated Electricity

WMU Success in Lowering Power Plant Green House Gas Emissions

10

0

200

400

600

800

1,000

1,200

1,400

1,600

Ton

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Calendar Year

Emissions Reduction = 91%

Physical Plant Cost Savings

Total Gross Square Feet Cleaned 7,472,094

Portion of Total Sq. Ft. Outsourced 2,084,942

Total Custodial FTE 189

Total Gross Sq. Ft. Cleaned per FTE 39,535

WMU Total cost /GSF $1.37

National Average for Like Sized Universities $1.44

Lower than Average Costs Saves over $520,000 Annually

11

Our Concerns

• State Funding Commitment - A Generational Change has Taken Place

• There are Consequences for our Students

12

A Generational ChangeIn 1980:

• The state provided 72% of WMU’s funding

• WMU’s Tuition was $945 per year

• Minimum wage was $3.10/hour

Students could work full-time through the summer, earn enough to pay for their tuition at WMU, and have $1,275 remaining for other expenses.

13

A Generational ChangeIn 2010:

• The state now provides 33% of WMU’s funding

• WMU’s Tuition is $8,382 per year

• Minimum wage is $7.40/hour

Students working full-time through the summer will only earn enough to pay for 2/3 of their tuition. Students can’t work their way through college. They have to borrow their way through college.

14

Our Concerns

• Biggest Driver on Student Tuition is State Support

• WMU Ranks 10th in the State

15

If the State had Maintained its Funding Commitment of 1980, Our Tuition would be $5,192 - - 38% LESS than it is today.

Michigan Universities2009-10 Resident Tuition and Fees

Undergraduate Lower Division

16

Our Concerns• State has Walked Away from Infrastructure

and Student Financial Aid Support– Example: Debt Service on a $60 million building

will add 3% to the tuition base

– Last year, our students received $5,754,500 in state financial aid

– This year, our students will receive $843,700 in state financial aid

17

The average amount our students borrow, from entering to graduation is $19,000.