UM Raises Tuition 1.5%, Budget Grows 6.75%
University of Michigan Board of Regents meeting (June 17, 2010): Budget presentations dominated the June meeting, the time of year when regents are asked to approve what have become inevitable tuition hikes for the university.
University of Michigan provost Teresa Sullivan, left, and vice provost Phil Hanlon brief the media about tuition rates immediately prior to the regents meeting on June 17. Hanlon will become provost when Sullivan leaves at the end of the month for her new post as University of Virginia president. (Photos by the writer.)
This year, with two regents dissenting, a tuition increase of 1.5% for in-state undergraduates was approved for the Ann Arbor campus. UM executives noted that it’s the lowest rate increase in 26 years – but if their projections for state appropriations prove too optimistic, they cautioned that they might need to return to request raising tuition later in the fiscal year.
University officials say they’re buffering the tuition increase by substantially adding to the amount of financial aid available to students – $126 million, up $8.3 million from the current year. They’re also launching a new “economic hardship” program, adding $500 in financial aid per year for up to four years for qualified students.
Tuition makes up a large portion of the general fund operating budget. For the Ann Arbor campus, a budget of $1.55 billion in FY 2011, which begins July 1, marks a 6.75% increase from FY 2010.
Regents also approved the FY2011 budget for the UM Hospitals and Health Centers – revenues are projected to top $2 billion for the first time during this year, with a $66 million operating surplus.
And UM athletic director Dave Brandon gave a briefing on the athletic department budget, though it doesn’t require regental approval. Projected revenues of $105 million includes $38.19 million from ticket sales, while the budgeted $100.3 million in expenses includes a $9.22 million debt service payment for Michigan Stadium renovations.
In addition to budgets, regents approved several construction projects, including a $56 million renovation of Alice Lloyd Hall and a $1.6 million repair of Burton Memorial Tower, which will close the landmark site – and silence its carillon – for about a year, starting in August. [Full Story]