Campus finances 'on the right track'
Chancellor Domenico Grasso says the campus’ financial strategy has good footing and it’s important to continue making informed and thoughtful decisions regarding budget planning.
Chancellor Domenico Grasso recently shared an update on the university's financial standing and how campus will maintain a positive financial position heading into fiscal year 2021.
The first piece of good news? Last week the Michigan House and Senate, with approval by Gov. Gretchen Whitmer, passed a budget that kept UM-Dearborn's state appropriation flat in comparison to last year. “Typically, receiving word that our appropriation would be flat in comparison to last year would be cause for budget difficulties and disappointment, however, given the circumstance and our planning efforts, we welcomed the news,” Grasso says.
In addition to stable state appropriation into fiscal year 2021, tuition revenue remains strong with students actively taking more credit hours. “Adopting a block tuition strategy has worked and we remain cautiously optimistic that this credit hour trend will continue during the upcoming winter semester.”
However, Grasso says campus needs to continue to make informed, careful and thoughtful decisions regarding budget planning because of uncertainties that include International student restrictions and impact on enrollment, state appropriation funding for FY22 and beyond, and the pandemic’s long-term economic impact.
For the remainder of FY21, campus units will continue restricting:
- Non-essential expenditures including travel, conferences and consultants.
- New non-essential construction.
- Hiring of non-essential permanent personnel. Please note, requests for positions that will have an impact on student success and safety, health and well-being of the university will be reviewed and approved by the chancellor and provost.
- Salary increases.
Further guidance on spending related to these areas can be found at the COVID-19 response page.
“The hard work and financial prudence shown by our community throughout the pandemic has allowed UM-Dearborn to remain on solid financial ground, but there's still work that needs to be done,” Grasso says. “We will continue to follow our current budget strategy because it is the best way to ensure the long term security of the university's resources in support of our mission to provide an excellent education to our students.”