NMU Board of Trustees approves balanced budget for 2026-27 fiscal year
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MARQUETTE -- The Northern Michigan University Board of Trustees approved a balanced general fund budget for the 2026-27 fiscal year on Friday, successfully closing an anticipated $8 million deficit through proactive strategic planning
The projected shortfall was driven primarily by a 16% surge in healthcare costs, contractual compensation cost increases, inflationary pressures and a decline in current-year enrollment, following several years of growth.
According to Gavin Leach, executive vice president for Finance and Administration, university leadership anticipated much of the deficit early in the budget planning process due to regional demographic shifts resulting in fewer college-bound high school graduates.
To bridge the gap, Northern Michigan University implemented early mitigation measures, primarily through a voluntary depression program offered last spring and targeted divisional expenditure programs.
These strategic adjustments deliver a balanced budget that maintains NMU's long-term financial position and keeps the university operating efficiently, without interrupting student services or academic programming.
Additionally, the board approved the 2026-27 operating budgets for residence life, auxiliary services and designated funds.
Board Chair Missie Holmquist highlighted the work done by university officials to combat declining enrollment, saying she felt confident in NMU's future.
"It really shows how amazing our faculty and staff are, supporting our students," said Holmquist. "We have such opportunity to continue to highlight that as we're looking at some of these enrollment challenges," Holmquist said. "I feel confident in our abilities to face some of these headwinds.
During President Chris Olsen's report to the board, he highlighted several items, including meeting with other Upper Peninsula institutions of higher education, the new Experience Grants program, which will provide funding to students seeking high-impact learning opportunities such as internships and travel study and also commented on a recent survey by Art & Science group which showed 93% of parents of college students believe a college degree offered good return on investment, debunking the myth that college is not worth the cost.
"The ROI is absolutely unquestioned from a financial point of view. It is an amazing investment," Olsen said. "We will continue, as a university, to do our best to correct those myths."
Leach also paid special recognition to the staff of the university’s Educational Access Network, a groundbreaking regional broadband initiative recently sold to Michigan Broadband Services for $21 million.
"I want to thank all the staff and the 30 student workers we had regularly employed for this program for making the EAN such a success and a historic accomplishment for the university," Leach said.