NMU Board of Trustees Approves Balanced Budget

The Northern Michigan University Board of Trustees approved a balanced general fund budget for the 2026-2027 fiscal year during its regular meeting today, successfully closing an anticipated $8 million deficit through proactive strategic planning.

The projected shortfall was driven primarily by a 16 percent 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 separation program offered last spring and targeted divisional expenditure reductions.

These strategic adjustments deliver a balanced budget that maintains NMU's strong long-term financial position and keeps the university operating efficiently, without interrupting student services or academic programming.

Additionally, the Board approved the 2026-2027 operational 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. 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 percent 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, securing long-term benefits for the university and local communities.

"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.

In other action at today's formal session the board:

• Approved 2027 board meeting dates

• Held special recognition for the retirement of Cathy Andrew, board of trustees secretary, for 30 years of service to the university and board. "Thank you for everything you have done for NOrthern Michigan University and the board of trustees"

• Granted Dr. Roger M. Strand the status of Professor Emeritus of Biology, effective Oct. 1.

• Approved a donation of an original artwork valued at $7,200 from artist Norbert Marszalek to be displayed in the DeVos Art Museum.

• Approved naming the academic department within Library and Instructional Support "University Library and Archives," effective immediately.

• Established the School of Community, Justice, and Human Services, bringing together Criminal Justice, Social Work and Counseling and Consultation Services under one coordinated academic and administration structure.

• Approved board appointments (expiring June 30, 2029) of Kari Gulvas for Francis Reh Public School Academy and Shianne Uskilith for Nah Tah Wahsh Public School Academy.