UM Raises Tuition 6.7%, Budget Grows 2.2%

University of Michigan’s tuition will increase 6.7% in the coming year for in-state first- and second-year (lower division) undergraduates, following approval by the board of regents at their June 16, 2011 meeting. (A year ago, tuition increased 1.5% for in-state undergraduates at the Ann Arbor campus.) Tuition and fees for lower division in-state students will be $6,317. Tuition for non-resident lower division undergraduates will increase 4.9%, to $18,891. Voting against the tuition increases were regents Denise Ilitch and Larry Deitch.

University officials emphasized the context for these increases: The FY 2012 budget reflects a $47.5 million cut in UM’s state appropriation to $268.8 million – a decline of 15% compared to FY 2011. The budget also includes $9.2 million in student need-based financial aid.

Tuition makes up a large portion of the general fund operating budget. For the Ann Arbor campus, a budget of $1.58 billion in FY 2012, which begins July 1, marks a 2.2% increase from FY 2011.

Regents also approved the FY 2012 budget for the UM Hospitals and Health Centers – revenues are projected at $2.169 billion, with a $23.5 million operating loss. The loss is due in large part to $89.4 million in costs related to the opening of the new C.S. Mott Children’s and Von Voigtlander Women’s Hospitals.

UM athletic director Dave Brandon gave a briefing on the athletic department budget, though it doesn’t require regental approval. Projected revenues of $121 million include $45.5 million from ticket sales, while the budgeted $109.8 million in expenses includes a $2.2 million debt service payment for Crisler Arena projects.

This brief was filed from the boardroom of the Fleming administration building, on UM’s Ann Arbor campus. A more detailed report will follow: [link]