Facing rising costs across nearly every area of campus operations, Central Michigan University’s Board of Trustees approved a tuition increase and a balanced operating budget during its formal meeting on Thursday, June 26.

For domestic, lower-level undergraduate students -- those with 55 academic credit hours or fewer -- tuition will increase by $22, bringing the gross cost before any sort of scholarships, aid or other discounts to $499 per credit hour. For undergrads with 56 hours or more, the jump is $27 per credit hour, to $552.

That means a domestic freshman or sophomore taking a 12-hour credit load should anticipate paying $5,988 per semester or $11,976 each year, according to Student Account Services and University Billing information. A domestic junior or senior will expect to pay $6,624 per semester or $13,248 per year, starting this fall.

Increases also applied to graduate and specialist degree paths.

Vice President of Finance and Administrative Services Mary Hill led much of the presentation, emphasizing that the university remains committed to its mission of access and affordability, even as inflationary and structural cost challenges continue to shape higher education finances across the country.

Tuition changes

The board approved tuition increases across undergraduate and graduate programs. Master’s and specialist programs will rise by $36 per credit hour to $829 per credit hour, and doctoral programs will increase by $34 per credit hour to $929 per credit hour.

Hill pointed out that CMU remains one of the most affordable public universities in Michigan. Based on the Michigan Association of State Universities Tuition and Fees Report, during the 2024-25 academic year, CMU ranked 13th out of 15 public universities in the state for lower-level undergraduate tuition and mandatory fees.

“We think we do a very good job of trying to keep higher education affordable,” Hill said. “These rates are below the restraint cap that the state of Michigan puts in place, and we plan to keep it that way.”

Hill also emphasized that the published tuition rates do not reflect what most students actually pay. Significant merit- and need-based financial aid reduces out-of-pocket costs for the majority of students at CMU, she said.

Budget overview

The board also approved CMU’s 2025-26 operating budget. It was based several key assumptions, Hill said, including:

A slight increase in enrollment numbers for first-time students in any college (FTIAC)
Conservative projections related to enrollment and retention
A 2.5% increase in state appropriations, once the legislature finalizes the budget
Tuition increases aligning with the state tuition cap

"Hundreds of hours have been spent on this, over and over again," Edward Plawecki, the chair of the board's Finance and Facilities Committee said.

Jennifer DeHaemers, the vice president of student recruitment and retention, announced Wednesday that enrollment numbers are projected to decline this fall, including with FTIAC and transfer students. Additionally, the governor has yet to sign the state's final budget for the 2026 fiscal year, which includes funding for the state's public colleges and universities.

There are other influences at play, too.

Hill explained that students entering CMU are increasingly coming in with college credits they earned in high school, which impacts how quickly they progress to graduation.

“Students are bringing more credit hours due to early-middle college and dual enrollment,” Hill said. “With that, we recognize that students are graduating more quickly if they come in as a sophomore level instead of a freshman level. They've already earned several credit hours, obviously that means they're going to get to to their full credits that they need for their degree" faster.

The university’s total budget increased by approximately $19.1 million from the previous fiscal year, to $462.4 million. On the revenue side, increases are projected to come from tuition, state appropriations, student fees, housing and dining and additional athletics' revenue from game guarantees.

Just shy of 51% of the university's revenues are pegged to student tuition; state appropriations are expected to cover 21.5% of the bills; residence and auxiliary services should account for 14.1% of the income; and the remainder is projected to come from "other revenue."

The board previously approved a roughly 4% increase housing prices and a 3% hike to meal plans in February.

"Fifty years ago, when I was here, the state appropriation was between 75 and 80% of the univeristy's budget," Plawecki said. "You see the challenges we have today when the appropriation is between 20 and 22%."

On the expense side, salaries, compensation and benefits continue to make up the largest portion of CMU’s costs, followed by investments in supplies, equipment and financial aid.

The new budget also includes strategic investments in high-demand academic programs, such as:

· The new nursing program, which launches its first cohort this fall

· Expansion of the online counseling program

· Development of alternative teacher certification pathways

"We believe that the budget is balanced, is fiscally sound and we continue to have a very solid credit rating," Plawecki said. "This is the first budget in several years that does not include budget cuts and does positively include dollars ... for new growth initiatives. All of their hard work has helped keep this university on very solid financial footing."

Rising cost pressures across campus

While the university is avoiding cuts for 2025-26 -- the first time in several years it hasn't faced such reductions -- CMU leaders were clear that cost pressures remain a serious concern. Inflation may have eased in some areas, but the university continues to experience rising costs in areas from academic supplies and software licenses to utilities and food contracts.

In particular, insurance premiums -- including property, liability and employee health benefits —have seen significant increases.

"With every year when we look at tuition, we have to take into account other things that are going on around us," Hill said. "This year, inflation was not as high, and that's a good thing, but there were still some cost pressures."

To manage these increases, the university has implemented strategies including:

· Competitive bidding processes for services and suppliers.

· Taking advantage of group buys

· Prioritizing subscriptions and equipment to scale back items like academic journals that are not widely used

Despite these measures, Hill stressed that continued vigilance will be necessary to sustain long-term financial stability.

College of Medicine tuition approved

The board also approved a tuition increase for the College of Medicine’s 2026-27 academic year, which is typically set a year in advance. In-state tuition will increase by $1,426 to $48,961, and out-of-state tuition will increase by $2,111 to $72,729.

Like other university programs, the College of Medicine is facing rising costs related to medical supplies, insurance and employee compensation. According to Hill, despite the increase, CMU’s medical school remains highly competitive, drawing over 7,000 applicants annually for 104 available seats.