LANSING – Instate students at the University of Michigan’s main campus in Ann Arbor will see tuition rise by 2.8 percent for the 2012-13 school year after approval Thursday by the U-M Board of Regents of the school’s budget. The board also approved a 3.6 percent increase for U-M Flint and 3.7 percent for U-M Dearborn.
The moves put all three universities in position to receive additional funding as part of the tuition restraint language built into the state’s 2012-13 fiscal year budget, which made the funding available as long as schools kept tuition increases below 4 percent.
Meanwhile, Michigan Technological University’s Board of Control also passed its general fund budget of $165.5 million Thursday for fiscal year 2012-13 with a 3.9 percent tuition increase for Michigan resident undergraduates.
After July 1, 2012, the average instate tuition will be $14,448, an increase of $538 over the 2012 fiscal year. The increase is 0.1 percentage point below the 4 percent cap that the state set for universities to receive tuition restraint funding. And because of a $1.7 million increase in state funding, the tuition increase for the 2012-13 fiscal year is the lowest in eight years, the university said in a statement.
State appropriations for Michigan Tech are expected to total $42.4 million, approximately 17 percent of the total university budget.
However, state law requires the university to return $5.6 million of the state appropriation to pay the its cost for retirees still covered under the Michigan Public School Employees Retirement System, costing Michigan Tech the equivalent of $800 per student.
The board was told that if those retirees were on the university’s current retirement plan, tuition could be $800 lower.
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