MARQUETTE, MI— The Northern Michigan University Board of Trustees today approved a fiscal year 2024-2025 general fund operating budget that includes $2.6 million in new investments and initiatives that align with NMU's strategic priorities.
“Northern will remove barriers to student access by increasing financial aid and scholarships by more than $1 million,” said Gavin Leach, vice president for Finance and Administration. “We have also set aside funding for additional positions and lab/classroom supplies that promote academic enhancement and student success. To elevate the campus experience and well-being, NMU will further invest in staffing and support services in the areas of sustainability, diversity and inclusion, and athletics Title IX/NCAA compliance.”
Other areas receiving a funding boost are community outreach and university infrastructure enhancement and protection. Leach added that one of the biggest investments Northern made this year, prior to developing the new budget proposal, was in its people. This includes a major investment in our faculty through a Memorandum of Understanding approved in April, which provided wage increases covering the final two years of the AAUP union's five-year contract.
The 2024-2025 general fund budget approved by the board is about $131.1 million, an increase of nearly $5.8 million from the previous fiscal year. NMU's total enrollment is up nearly 3% this fall, with 1.6% of that among on-campus students and the remainder driven by online Global Campus students. Leach said the enrollment growth, combined with a state appropriation boost of 1.6%, provided revenues that enabled the university to maintain a balanced budget that covers contractual and inflationary expenditures, while still allowing for strategic investments.
The board approved three other budgets—auxiliary services, housing and residence life, and designated fund—along with NMU's five-year master plan and 2025-26 capital outlay request, both of which universities are required to submit annually to the Michigan Department of Management and Budget. The priority project identified in the capital outlay request remains the Northern Enterprise Center (College of Business), at $19.1 million.
Trustees agreed to increase President Brock Tessman's $459,000 base salary by 2%, which mirrors the percentage increase that non-represented employees received in July. He will also receive a performance bonus of $50,000 for meeting previously identified goals and objectives, as outlined by the Board of Trustees.
Alexis Hart, chair of the board's executive committee, said goals were developed in collaboration with Tessman after he joined NMU that aligned with what trustees wanted to see the university achieve.
“Enrollment was one goal, and we're all incredibly pleased to see that trending in a positive direction, both in student headcount and diversity,” Hart said. “We've also experienced greater retention as a result of many efforts and investments that have taken place related to student success. Our organizational structure is well-placed to succeed and sustain with recent appointments. The changes are evident. Dr. Tessman has brought energy to campus and leadership defined by humility, transparency, collaboration and a very strong vision. I thank him for the wonderful transition and the difference he's making, and I am excited to make this recommendation.”
“I recognize fully that I am a cog in a much larger team,” Tessman said in response to the vote. “I am proud of what we've achieved so far, and I think it's just the beginning. The bonus is significant and humbling. My wife Kristin and I are committed to investing that amount and perhaps more as part of our emerging campaign focusing on student success and scholarships. That's why we're all here, and I appreciate the opportunity to further our progress as a university in service to our students.”
