UM-Dearborn’s FY 2027 Budget Plan: Tuition, Aid, and Enrollment Strategies
In a move to address pressing financial realities and maintain educational accessibility, the Board of Regents has sanctioned a $180 million budget for the University of Michigan-Dearborn for the fiscal year 2027. This decision, made during their meeting on June 25, reflects strategic financial planning and shifts in student financial support.
A significant portion of this budget, amounting to $28.5 million, is earmarked for institutional financial aid, prominently featuring the Go Blue Guarantee. In the 2025-26 academic year, this initiative, along with other forms of aid, enabled 41% of full-time, in-state undergraduates—totaling 2,008 students—to have their tuition and fees completely covered by scholarships and grants.
Of these students benefiting from full coverage, 73% received aid through the Go Blue Guarantee. The program’s recent expansion now includes Michigan families with annual incomes up to $125,000, making 374 more students eligible for the scholarship last year. Additional financial aid options such as the Michigan Achievement Scholarship and Pell Grants continue to support students.
The budget’s approval comes with a proposed undergraduate tuition hike of 3.9%, translating to $312 per semester for in-state students and $672 for those out-of-state. This increase remains within Michigan’s tuition restraint limit of 4.0%. Notably, the university aims to offset these hikes through expanded full-tuition assistance programs.
However, challenges persist. The university predicts a 13.6% decline in graduate student enrollment due to hurdles in international student admissions and static state funding. The rising costs of goods and services, particularly health insurance, have necessitated $5 million in budget reductions to maintain financial balance.
Chancellor Gabriella Scarlatta and her team have been proactive, working on contingency strategies for over a year. These include strategic cuts of approximately 4% across various colleges and units, additional review processes for hiring, and the reintroduction of an orientation fee for new undergraduates, which had been paused due to the pandemic.
Efforts to counteract the drop in international enrollment include initiatives spearheaded by Vice Provost Melissa Stone. New programs such as the Great Lakes Scholarship and fresh community college transfer agreements aim to attract domestic students. Stone emphasized the benefits of the state’s free community college initiative, which, coupled with nine new transfer agreements, facilitates a seamless transition to UM-Dearborn for students achieving their associate degrees.
In an effort to support faculty and staff, the budget provides for a one-time, 1% payment to all regular, non-bargained-for employees hired before February 1, 2026, with amounts adjusted for part-time appointments.
Chancellor Scarlatta highlighted the budget’s reflection of the financial challenges faced statewide, stating, “Our FY ’27 budget reflects the current fiscal reality at UM-Dearborn, as well as at many other universities across Michigan.” She stressed the importance of sustaining affordability and institutional sustainability amidst these challenges.
“We will continue to move promising enrollment initiatives forward, while remaining focused on our mission to deliver a world-class, accessible college education and make a meaningful impact in our local community,” Scarlatta added.
