MINUTES OF THE MEETING of the FINANCE COMMITTEE May 15, 1968 jThe Finance Committee convened at Kellogg Center at 7:00 p.m. ;The following members were present: Messrs. Harlan, Hartman, Merriman, Nisbet, Smith, Stevens ^Thompson, and White; President Hannah and Secretary Breslin. jAbsent: No one. 1. At the last Trustees meeting the Board authorized a tentative budget. The House Ways and Means Committee has increased the appropriation for Michigan State University by $208,788 and for Oakland University by $480,141, It is assumed that this bill will pass the House, and it will then undoubtedly go to a conference committee. ; | • It is hoped that the Trustees will approve a registration fee, or student health fee> or an increase in student fees sufficient to balance the budget at both institutions. These items were discussed at length at the Wednesday evening session. Roger Wilkinson and Provost Neville presented the following information with reference to the budget problem for 1968-69. PROPOSED 1968-69 GENERAL FUND ALLOCATION 1967-68 Budget Adjustments to Base: Overhead - Computer Overhead - Centers and Institutes Adjust to conform to Michigan Manual - English Language Center Adjusted Base Budget Inescapable Additions: Wage and Salary Adjustments Academic Areas - 6% Non-Academic Areas - 6% $66,513,255 $685,000 225,000 181,000 1,091,000 $67,604,255 $2,147,180 553,320 2,700,500 Other commitments Academic Areas Physical Plant Business - Service Operations and Student Services Implementation of Committee of 16 Report $1,469,576 ' 524,850 822,867 200,000 Suggested 1968-68 Budget SUMMARY OF 1968-69 GENERAL FUND REVENUE Current Income Adjustments (Overhead - English Language Center) $3,936,263 300,000 Increase: State Appropriations Fee Revenue Total Funds Available Needs Funds Available® -—~^**- . Additional Funds Needed Reconciliation: Reported to Trustees - April 1968 Implementation Committee of 16 Report POSSIBLE METHODS OF RAISING ADDITIONAL REVENUE a. $12 Health Fee - 7 credits or more - 108,500 students - 4 terms $1,302,000 89,000 (Departments and Kellog Center services) $1,491,000 b. $10 Registration Fee $1,367,000 (136,690 registered for 4 terms) continued - - 3,017,293 $73,322,048 $66,513,255 1,091,000 $67,604,255 4,236,263 $71 840,518 $73,322,048 71,840,518 $ 1,481,.530 $ 1,281,530 200,000 $ 1,481,530 Finance Committee Meeting Minutes, continued May 15, 1968 1. Budget items, continued Possible methods of raising additional revenue, continued 6JLJL3 ' : • I: jDiscussion j1968-69 Budget S c. Student Fees - $12 per term increase in maximum and minimum $1,390,555 | Resident Undergraduate Resident Graduate Non-Resident Undergraduate Non-Resident Graduate Fee Reduction - Undergraduate Fee Reduction - Graduate Present $118-167 143-177 400 410 49 34 Proposed $130-179 155-189 415 425 49 34 d. Student Fees - Increase percentage 1% to 1.1% $1,863,000 Resident Undergraduate Resident Graduate Non-Resident Undergraduate Non-Resident Graduate Fee Reduction - Undergraduate Fee Reduction - Graduate Present $118-167 143-177 400 410 49 34 Proposed $130-185 155-195 420 430 55 40 Student Fees Increase percentage 1% to 1.1% $1,521,700 Minimum $10 Maximum $15 Resident Undergraduate Resident Graduate Non-Resident Undergraduate Non-Resident Graduate Fee Reduction - Undergraduate Fee Reduction.- Graduate Present $118-167 143-177 400 410 49 34 Proposed $128-182 153-192 415 425 54 39 f. In response to a question as to what fee schedule would be required if the resident undergraduate minimum was at $125 instead of $128, the answer was that an out-of-statei fee increase of $20 rather than the suggested $15 would probably produce the funds j required. After much discussion, it was agreed that Mr. Wilkinson would prepare an additional tabulation based on the assumption of no increase in the minimum fee to permit determining the feasibility of such a plan. A request was made that Mr. Wilkinson calculate what would be required in a flat fee charge if the present system relating fees charge to family income was to be discarded. \ The discussion terminated with the understanding that Mr. Wilkinson would prepare a new j tabulation of all of these possibilities and including any others that were suggested by I individual Trustees and distribute them to all members of the Board within the next few I ; days. The tentative salary schedule as prepared by the officers of the University was presented by the Provost and the President and by Chancellor Varner for Oakland University. j After much discussion, it was agreed that the Trustees would notify Mr. Neville or Mr. Varner of any questions about individual salary recommendations within the next few days, and that final consideration of the salary schedules would be delayed until a special Board meeting or the next regular Board meeting after the legislature has finally acted upon appropriations. Questions were raised with reference to the possibility of eliminating any reserve or contingency funds, curtailing of services, etc.-- all designed to reduce the amount of fee increase that might be required. Adjourned.