NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
Tuesday, March 17, 2009, Hagerty center

CALL TO ORDER – Chair K. Ross Childs called the study session to order at 9:00 a.m.

REVIEW AND APPROVAL OF AGENDA – Chair Ross Childs welcomed the audience and explained that trustees would be discussing various budget factors, but no decisions would be made at today’s meeting.  On a motion by Bill Myers, seconded by Doug Bishop, the agenda was approved.

PUBLIC INPUT – Trustees heard public input from the following individuals:

Ann George, Communications faculty, said in these tough times faculty members are needed to teach the core skills required in a “knowledge economy.”  She hoped faculty would not be an area where the board will consider cuts.

Tammy Livengood, Faculty Council Chair, encouraged the Trustees to adopt a budget that allows the college to continue to grow.  She said faculty and the NMC community have been fiscally responsible for many years and will continue to be.

DISCUSSION ITEMS – Budget Development

President Tim Nelson presented a history and overview of the budget that he shared in the eight small-group meetings held for faculty and staff over the last ten days.  His recommendation contains the following assumptions: in-district tuition, 0.0% increase; in-state tuition, 2.8% increase; out-of-state tuition, 3.7% increase; State aid, 0.0% increase; property taxes, 2.38% increase; and salaries, 2% increase. He noted that Michigan students would qualify for the Michigan Tax Credit with this scenario. Two employee groups (faculty and support staff) currently have step-and-scale plans and maintenance/custodial compensation is negotiated.  The administration is currently working on a Request for Qualifications for a consultant to help us determine whether the compensation systems we are using are the systems that will take us forward.

The three areas for board focus are tuition levels, compensation, and assumptions regarding state and local revenue.  Three scenarios were provided in the board materials for discussion.  Trustees asked Cathy Jones to demonstrate several other scenarios and their impacts on the bottom line. 

President Nelson said the college anticipates a large last-minute enrollment as people determine they cannot afford to go elsewhere. Many of the added courses will be in core transfer subjects.  He said that hiring full-time or adjunct instructors will be determined in part by whether the demand is deemed to be long-term; demographics tell us 18-22 market is declining.
In answer to a question about potential budget cuts, President Nelson stated that trimming operational costs has been happening constantly for the past eight years. Bidding out services has resulted in substantial savings, and three additional areas will be bid out this year. Everybody has been asked to defer expenses that do not impact quality.

PUBLIC INPUT – Chair Ross Childs offered the audience another opportunity for public input.  The following individuals spoke: 

Margaret Fox, a Tech/Parapro employee, said employees work hard to be fiscally sound in their areas, do not purchase things they do not need, and wait to spend if they can.  She thanked the trustees for all they do in support of NMC.

Anne George stressed that the Communications faculty feel strongly about benefits students gain by having full time faculty members.  She noted growth in administrators and not in faculty.

President Nelson pointed out that administrators with teaching responsibility replaced full time faculty members in Aviation, Automotive and Nursing, and that is a possibility for Law Enforcement in the future. There has also been growth in IT and student support areas. 

Chris Keenan noted that faculty members are 100% supported by the general fund, but over 12% of staff are specially funded by means such as grants.

Chair Ross Childs stated he appreciates the budget process, which has continued to improve every year.  There is more input from faculty and staff than ever.

President Nelson explained State and Federal funding considerations that might hold colleges to a 0.0% increase in order to qualify.  NMC’s share on one Federal bill could be a $350,000-$400,000 each year for three years; increasing in-district tuition could make us ineligible for that.

Trustees discussed their current thinking relative to tuition levels.  It was agreed to put tuition on the March 23, 2009 agenda for action without filling in the rates.  Discussion will be continued at that meeting.

The board requested that Cathy Jones run two additional scenarios, one with $2 added to each of the student categories and one with a moderate % increase for all categories. Trustees also asked to see a detailed list of the organizations used to compare faculty and staff salaries.

Recorded by Karen Sabin