The Executive Committee of the NMU Chapter of the American Association of University Professors (AAUP) is seriously concerned about our university’s current budget situation and the lack of administrative transparency and candor.
During the last two months, there has been much discussion about a budget deficit caused by falling tuition revenue from reduced enrollment (estimated at either $2.6 or 2.8M—both have been reported). Yet the NMU Administration has provided little information to the campus community. Consequently, there has been much tension and speculation among the university community about whether classes, services, faculty, or staff might be eliminated. At fall convocation, President Erickson did not mention the budget situation, but focused on core values and strategic planning. At a “Town Hall” meeting for faculty held on September 22, attendees learned very little about how the administration plans to deal with the purported budget shortfall, but were repeatedly encouraged to view the situation as “an opportunity” for innovation and strategic growth. We would like the administration to refocus their comments from all the things they are not doing—and all the things they would like to be doing–to state clearly what budget-cutting measures are being enacted.
It is the position of the NMU AAUP that the NMU Administration has done a very poor job of explaining how the $2.6M short-term budget deficit is being managed. The reason why there so many “rumors” currently in circulation is because there is so little legitimate and reliable information available. The Administration has provided little concrete information about what goals, targets, guidelines, criteria and/or policies are being used to decide what cuts to make. Lack of clear communication creates an information vacuum that encourages speculation, and gives the impression of indecision, uncertainty, or a hidden agenda.
One advantage of administrative “decentralization” is it accommodates local decision-making, but it also allows upper-level policymakers to deflect responsibility and criticism. For all the waffling, it is clear that painful decisions have already been made. Most notably, non-tenured faculty, including adjunct, contingent, and term, regardless of degree or qualifications, are being laid off due to the non-renewal of contracts.
Recently we learned that the university has received a $9.4M refund from the MPSERS pension system–a large unanticipated influx of discretionary income. Generally a windfall (“a piece of unexpected good fortune, typically one that involves receiving a large amount of money”) is good news that would be quickly shared. For a fuller discussion on the 9.4 million dollar refund and the pension fund obligations, read “The Mysteries of the MPSERS Monies”
At NMU, a portion of the refund would allow us to cover our immediate short-term obligations and still have $6.8 to add to university reserves. Why is the NMU Administration downplaying this good fortune and continuing to implement “necessary budget reductions”? One explanation is that this refund makes it hard to justify a deeper agenda intended to impose austerity budgets and to achieve further faculty reductions.
Therefore, it is the position of the NMU AAUP Executive Committee
- That it is impossible to proceed with efforts to resolve the “budget deficit,” when the NMU Administration is unable or unwilling to present a coherent plan identifying specific ameliorative measures.
- That immediate cuts imposed without systematic and strategic review, solely to save money in the short term, run the risk of causing permanent damage to university programs and run counter to the goal of recruiting students.
- That the current budget deficit can and should be resolved by using some of the windfall refund, and a moratorium on budget reductions be imposed until the end of the current academic year.
- That a moratorium will allow the time necessary to develop the proposed university-wide program reprioritization process in order to establish clear criteria for program evaluation and future resource allocation.
It is important that administrators are fiscally responsible, and accountable for their decisions. At NMU, the lack of “transparency” and trust between the upper-level managers and the people who work to fulfill the university’s educational mission has been a problem for a long time, creating a difficult and demoralizing environment. Currently Northern Michigan University is facing many challenges, and we all need to be part of the solutions. For these reasons, we encourage the NMU Administration to try again to seriously address these and other issues through sustained engagement with the campus community.
We invite you to comment on how the budget cuts have affected your department or you personally. If you are comfortable sharing this information on this website, you can e-mail our NMU AAUP President Becky Mead at rmead@nmu.edu
NMU AAUP Executive Committee
See how Ferris State is using its refund at: http://fsutorch.com/2015/09/30/ferris-receives-18-3-million-refund-from-michigan/
See how other universities plan to use the money:
Other useful links:
“Faculty Fear Job, Course Cuts for Winter 2016 Semester” Northwind, 30 Sept. 2015.
Video of Faculty Town Hall meeting, 22 Sept. 2015: http://mediasite.nmu.edu/NMUMediasite/Play/36540fa2b5f64296b1f1641a9d58e0701d
“AAUP Hopeful Pension Refund Could Save Jobs,” Northwind, 7 Oct. 2015, http://www.thenorthwindonline.com/aaup-hopeful-pension-refund-could-save-jobs/
“Erickson Addresses Packed Town Hall Meeting,” Northwind, 14 Oct. 2015. http://www.thenorthwindonline.com/erickson-addresses-packed-townhall-meeting/