“Miami University is in very strong financial condition.”

“Miami University is in very strong financial condition.” That was the conclusion heard by more than 60 FAM faculty who came out to hear university finance expert Howard Bunsis’s presentation on Miami’s finances. View Dr. Bunsis’ slide presentation.

Dr. Bunsis’ conclusion was “supported by Miami’s solid reserves and cash flows, modest debt levels, and increasing state support.”

For instance, the university has 1.5 years worth of reserves on hand compared to an average of a half-year at Ohio’s remaining state universities. The deep reserves comes from 10 straight years of bringing in more money than expenses. But Bunsis noted that administrative expenses are growing at multiples of instruction expenses. From 2016-23, salaries for all faculty increased 14% while management salaries increased 42%.

Based on Miami’s solid finances, confirmed by outside bond rating agencies, Bunsis concluded that Miami can easily afford FAM’s pay proposals without touching their reserves. This is important considering Bunsis said faculty salaries are well below Miami-identified peer institutions at all campuses.

FAM-T has now passed across all of our proposals (including our full economic proposal), and we are waiting patiently for management to respond. Here’s the full bargaining update for March 13.