Trustees to consider 2020-21 general fund budget proposal Thursday

KALAMAZOO, Mich.—The general fund budget for the fiscal year that begins July 1 is one of the top action items up for consideration when the Western Michigan University Board of Trustees convenes at 11 a.m. Thursday, June 25.  A livestream of the meeting will be accessible at wmich.edu/trustees.

An interim sexual and gender-based misconduct policy, a dynamic pricing strategy for room, board and apartment rates, and a labor agreement with the International Alliance of Theatrical Stage Employees are also among agenda items before the board, in addition to the 2020-21 general fund budget proposal.

WMU's general fund has two main revenue sources—tuition and state funding. Both are expected to be constrained in 2020-21 due to COVID-19's economic repercussions. As a result of these constraints, WMU has projected a shortfall of between $45 million and $85 million in the 2020-21 fiscal year and has been implementing associated budget reductions based on the most conservative financial modeling.

WMU administration is recommending that trustees approve an up to 90-day continuation of the current operating budget as University officials continue to work through the funding challenges and uncertainties WMU and all of public higher education is experiencing because of the pandemic.

Yet unknown, for instance, is the University's appropriation from the state of Michigan, which itself is facing an estimated $6.1 billion shortfall between this fiscal year and next.  State funding accounts for about 25 percent of WMU's general operating budget, and the state has not yet indicated how its multibillion-dollar shortfall will impact funding for Michigan's public universities. The state may take budget action closer to the conclusion of its fiscal year, which ends on Sept. 30.

There is also uncertainty associated with WMU's largest revenue stream—tuition—which accounts for about 75% of the operating budget. National modeling suggests that the pandemic will impact higher education enrollment, as students and their families are also challenged by COVID-19-related financial hardships. The degree of the enrollment impact is not yet known.

If trustees approve the continuation budget Thursday, University officials intend to bring an updated 2020-21 general fund budget proposal to the board for consideration in mid-September. By then, fall enrollment will be known and state funding may be as well.

Additional items on June 25 agenda are faculty tenure and promotion recommendations, other personnel moves and Board of Trustees 2021 meeting dates. Find the board's full agenda and associated materials at wmich.edu/trustees/agendas-minutes.

 

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