EMU REGENTS OK 2002-2003 GENERAL FUND OPERATING BUDGET

YPSILANTI – The 2002-2003 general fund operating budget of $193.4 million was approved for Eastern Michigan University by the Board of Regents at its regular meeting June 25.

The budget represents an increase of $14.98 million or 8.4 percent net increase over the prior year. The amount is $1.1 million more than proposed in the 2002-2003 budget strategy approved November 27, 2001.

The change is attributed to helping meet contractual obligations such as a $7.3 million increase in collective bargaining compensation as well as $3.1 million increase in the cost of benefits. The budget does not accommodate any across-the-board or inflationary costs for general operations.

The key budget parameters assume the following:

Enactment of a fiscal year 2003 State of Michigan appropriation of $87.6 million

Enrollment levels that project 565,485 student credit hours, an increase of 4.2 percent over 2001-02.

And the limiting of undergraduate resident tuition to not more than 8.5 percent or $425 per FYES – whichever is greater.
The regents also approved a recommendation that $3.6 million be designated for non-base initiatives and contingencies. Funding for the non-base expenditures would be provided by enrollment gains.

AUXILIARY FUND BUDGET: The board approved the $38.02 million 2002-03 Auxiliary Fund Operating Budget. The auxiliary budget is an increase of 10.4 percent over last year’s budget. The revenue increase reflects a 6.25 percent increase in room and board rates and the previous board-approved increase in parking rates.

It anticipates an operating expense budget of $30.89 million, up from 8.5 percent from last year. The increase in expense is due to debt service related to the $6 million parking expansion and more planned maintenance (repairs to facilities).

The total net of operations is set at $7.12 million. Housing and Dining Services will spend$4.83 for maintenance and renovation projects in 2002-03. In addition, $850,000 will be set aside for long-term improvements to housing and dining facilities.

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