MARQUETTE — The Northern Michigan Board of Trustees on Monday approved a tuition increase of 4.2% for the 2021-22 academic year for resident undergraduates although the increase will be offset by federal stimulus funds.

The vote was 7-1, with trustee Jason Morgan casting the negative vote after indicating he was “not comfortable” with the amount.

“The process of making a recommendation to the board involves quite a few factors,” NMU President Fritz Erickson said. “Among those are careful examination of what the cost increases have been for our operations, whether it’s electrical bills or sewer bills, additional cost for compensation, cost for really the operation of the institution.”

Other factors, he noted, were what the state planned to give to the university, the school’s strong financial viability, and direct costs to students and their families, with NMU roughly $2,000 below the median of its sister institutions in Michigan.

However, Erickson said no definite word from the state had come yet, but federal dollars have made a difference.

“It’s really important to know that much of our calculations is also predicated on the relief dollars we are able to provide our students,” Erickson said. “So, much as we did last year, we will have better than a net zero impact on tuition this year, given we’ll be able to provide our students in the fall with between $750 and $1,000, which will more than offset any tuition increase for this year.”

Gavin Leach, NMU vice president of finance and administration, said the target has been controlling costs and trying to best education for students, with tuition and fees including a laptop computer, software services and broadband access.

The board approved grants starting at $750 that will be funded by the Higher Education Emergency Relief Fund for full-time students. The grants effectively lower most full-time resident students’ tuition and fees charges from a year ago by a minimum of $123 per semester.

Trustee Greg Seppanen expressed some concern over the future of tuition rates, noting that the federal funds are a one-time addition that won’t be available when tuition rates are set next year.

“It’s pretty apparent there’s going to be a pretty huge impact on next year’s tuition costs no matter how you cut it relative to the lack of support from the federal government and the CARES (Coronavirus Aid, Relief and Economic Security) Act,” Seppanen said.

Leach said the tuition still will remain “significantly lower” than other state universities.

“We’ll keep our tuition rates as affordable as possible overall,” he said.

Erickson said the reality is that over the last 20 years, there has been a “disinvestment” from the state regarding higher education.

“What causes our price tag to go up is that the state is contributing — and continues to contribute — significantly less,” he said. “The state’s disinvestment is really the cause of why universities like Northern, and every other university, every other of our 14 institutions, is in that same boat.”

Leach pointed out that in 2002, NMU received $52 million from the state to operate, and in 2022, it is expected to receive $48.8 million.

“The last thing I want to do as a trustee is raise tuition,” said Robert Mahaney, board finance chair. “One of the things I’m most proud of at Northern is that we do have — relative to our peers, relative to any public or private institution in the state, even the nation — we are very cost competitive.”

To remain competitive, he stressed that NMU must invest in new facilities and programs.

“And they’re not cheap,” said Mahaney, who said NMU has shown good fiscal restraint.

State appropriation figures also are unknown.

“The best state funding proposal that’s out there right now is for a zero percent increase,” Mahaney said. “We know right now, based on what we see, that we are going to have significantly increased costs next year.”

He called the tuition rate “a very good” compromise.

“We’re able to, at least for the current year, keep our net tuition overall costs below last year, which I think is a significant accomplishment,” Mahaney said. “At the same time, it gives us the flexibility to charge the type of tuition that we’re going to need to charge to keep this university financially healthy and to meet all our obligations going forward in the event that that funding doesn’t exist next year.

“But at the same, if there are additional funds that we can pass in the way of scholarships next year, we can do that at that time.”

NMU said in a news release that at the February meeting, the board approved a flat increase in the standard room and board rate for a traditional residence hall for the upcoming academic year. In April, Northern offered HEERF Act emergency grants of up to $800 to eligible students to help offset pandemic-related financial impacts suffered during the 2020-21 academic year.

NMU also reported that students can apply the HEERF grants directly toward their tuition and fees, which for the average full-time resident undergraduates will be $6,011 per semester.

The non-resident undergraduate rate rose by the same dollar amount as for resident students. Graduate program and Global Campus tuition rates both increased by 4.2%.

To see all of NMU’s tuition, room and board, and other fees, go to nmu.edu/tuition. Fall billing statements will be posted to student accounts the week of July 12, with bills available for viewing through eBill on July 23. The due date is Aug. 13. Information about payment plans is available at nmu.edu/paymentplans.

NMU plans to return to predominantly in-person instruction and on-campus living with the start of fall classes on Aug. 23.

Christie Mastric can be reached at 906-228-2500, ext. 250. Her email address is cbleck@miningjournal.net