U-M Regents Approve University Budget (June 15, 2023)
Dear Colleagues,
Today, the U-M Board of Regents approved our fiscal year 2024 operating budget. This year’s $170 million general fund budget was constructed on the following assumptions and responsibilities: flat enrollment, a 4% state appropriation increase, more than a 6% increase in financial aid, 1% across-the-board merit increase, and university commitments to bargained labor and minimum wage agreements.
While this year’s budget planning process was challenging, with the continued decline of graduating high school students, significant cost inflation, the State of Michigan budget still not finalized and considering the priorities outlined above, the budget is balanced, aligns with our mission and is the best plan forward for our university.
Tuition increases reflect our commitment to providing a quality learning experience while remaining fiscally prudent. Our budget includes a 4.4% tuition increase for full-time, in-state undergraduate and graduate students, equating to a $312/$396 increase per semester. This increase falls below the latest Higher Education Price Index and the U.S. Bureau of Labor and Statistics’ annual inflation rate of 5.2% and 4.9%, respectively. Non-resident tuition will increase by 6%.
The budget includes a 1% across-the-board merit increase for all faculty and staff, effective September 1. Consideration for an additional salary increase will be evaluated during the fall semester based on enrollment and financial performance indicators. Any additional increase would be effective January 1.
Despite our merit pool being lower than what I, and all of us, would like to see, we would like to express our appreciation for your commitment to our students and great work completed over this past academic year by reducing campus operations and allowing faculty and staff to enjoy paid time off during specific time periods this year. The university will close the entire week of November 20 for the Thanksgiving holiday and December 21 and 22, in advance of the season days. The campus shutdown will also aid in reducing our carbon footprint.
The campus budget is one of the most complex and difficult tasks to plan and administer. There was much thought, analysis, discussion, and debate leading up to today’s budget announcement. In keeping with my commitment to shared governance and transparent and inclusive decision-making processes on campus, both the Faculty and Staff Senates were engaged in the budget conversation and offered suggestions to navigate these challenging times. I am grateful for their continued input and support. I would also like to thank Vice Chancellor for Business Affairs Bryan Dadey, his staff, and all of my senior leaders who discussed and helped consider all our options. UM-Dearborn has fared well considering the pandemic, state K-12 demographics, national anti-college narratives, and other factors not in our control.
What we can control we are doing and doing well. Our strategic plan, GoBLUEprint for Student Success, serves as the guidepost for important university decisions. We recently finalized a strategic enrollment management plan, reduced non-academic unit budgets, and are making deliberate decisions on such expenses as capital and deferred maintenance projects.
Thank you for supporting our current budget direction and university priorities. We will be monitoring and assisting in enrollment efforts and other financial commitments, a shared campus-wide priority, and I will continue to update you on economic matters throughout the year.
With sincere appreciation and gratitude,
Go Blue and Go Dearborn!
Domenico Grasso
Chancellor