Ann Arbor — The University of Michigan Board of Regents approved on Thursday a $3.1 billion budget that increased tuition for students in the fall, had “cost containment” measures for university departments and boosted financial aid.
UM’s tuition increase is lower than Michigan State University’s. For in-state undergraduate students, UM is raising tuition and fees 3%, or $275 a term, budget documents showed, but out-of-state and graduate students will see a more significant increase of 4.9%. MSU is raising tuition 3.99% for undergraduate students.
UM’s room and board will rise 6%, or about $467 a term, for the fall term when classes start Aug. 31.
Several university departments saw substantial increases in the budget. These included the Division of Police and Public Safety, which received a 39.2% boost, which budget documents attribute to “an out-of-cycle request approved after the FY26 budget was finalized, which includes a strategic shift to replace external security contractors with permanent DPSS staff.”
The public safety spending increase comes amid anti-Israel protests and the harassment and vandalism of the homes of the university’s regents and several top university officials, as activists pressure the university’s regents to divest Israel investments from the UM endowment.
Federal prosecutors have accused eight people linked to the University of Michigan of orchestrating threats against university leaders, police and businesses with a wave of crimes designed to force the university to sever ties with Israel.
Provost Laurie McCauley said there were four “uncertainties” that the budget attempted to address: state appropriations, research funding, international student enrollment and mandatory costs such as employee health care.
The Michigan Legislature is still working out the state budget for fiscal year 2027, although lawmakers said a “framework” is in place. By law, the state’s budget is expected to be completed by July 1 each year. But lawmakers have frequently cruised past that July 1 deadline and, last year, also passed its constitutional deadline of Sept. 30 as the Democrat-led Senate and Republican-controlled House negotiated over priorities.
McCauley said the university expects no increase in state appropriations, a flattening that McCauley said “functions as a new budget cut.” For Fiscal Year 2026, UM received $373.4 million, a 2.1% increase from the year before.
University adopts campuswide ‘cost containments’
To address these budget uncertainties, university departments will be expected to find “cost containments.” The university’s website describes this as having “units across campus” each year “identify lower-priority activities, programs, and expenditures they can eliminate, perform more efficiently, or support through alternative funding.”
The University of Michigan’s supplemental budget showed that university departments found over $38 million in savings and reallocations. The departments with the largest reductions include the School of Environment and Sustainability at 7.9%, the School of Information at 6% and the Medical School with a 4.6% decrease.
By contrast, the university spent 57.5% more on legal and professional fees, which the documents attribute to “increased litigation costs, external counsel, and trademark management.”
Proposed Legislature cuts
The university is also facing another Republican-driven budget cut in the upcoming state budget.
Similar to the last fiscal year budget the Republican-controlled House passed, the House approved cuts of about 62% to UM and Michigan State University. The Democratic-led Senate has fought these proposed cuts in the past and won small boosts in funding.
Under the scenario that the House’s version of the higher education budget is approved by the House and Senate and is signed by Gov. Gretchen Whitmer, UM would lose $222.4 million in state funding.
satwood@detroitnews.com
This article originally appeared on The Detroit News: University of Michigan regents boost tuition 3%, police budget 39%
Reporting by Sarah Atwood, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
By Sarah Atwood, The Detroit News | USA TODAY Network
