Regents approve FY27 budget (June 25, 2026)

Dear Colleagues,

This afternoon, the Board of Regents approved UM-Dearborn’s $180 million general fund budget for fiscal year 2027. This year’s budget maintains our focus on affordability, accessibility, and student success.

The budget includes an undergraduate tuition increase of 3.9%, which is below Michigan’s tuition restraint amount of 4.0%. Increases for many students are expected to be offset by financial aid.

Balancing the budget, unfortunately, required $5 million in reductions. This is due largely to an anticipated 13.6% decrease in graduate student enrollment, as a result of ongoing visa delays for international students. I, along with the university’s senior leadership and deans, have been working for over a year on contingency plans that respond to our budget challenges in a way that is fiscally responsible and equitable. 

Due to the financial constraints, base pay increases are not currently feasible for this fiscal year. However, the budget includes a one-time, 1% payment for all full-time, regular, non-bargained-for faculty and staff hired prior to February 1, 2026. The amount will be prorated for those with less than a full-time appointment. If the university receives higher than expected state funding and fall enrollment meets our forecasted targets, we may implement additional increases, either as adjustments to base pay or as one-time payments.

All regular, non-bargained-for faculty and staff will also receive additional paid time off over the Thanksgiving and Christmas holidays. Human Resources will be sending more information on the one-time payments and the paid time off soon.  

I want to express my sincere appreciation to all of you for your continued dedication and understanding. I also want to thank our Faculty and Staff Senates, as well as our university Budget Committee, who all made important contributions to our budget conversations. Finally, I would like to thank Vice Chancellor for Business Affairs Bryan Dadey and his team for leading the budgeting process. 

You can read more about the FY27 budget on the UM-Dearborn news site. 

Sincerely,
Gabriella Scarlatta
Interim Chancellor