Michigan State University President Kevin Guskiewicz told faculty and staff Thursday that the school would reduce its general spending budget by 9% over two years, blaming rising healthcare costs, operational expenses and declining state support.

However, the Union of Non-Tenure Track Faculty says those explanations lack transparency and don’t match the data it has — or hasn’t — been shown. The UNTF represents close to 900 teaching faculty on campus and an additional few hundred MSU Extension employees by next year.

In an email to faculty and staff, Guskiewicz, alongside MSU’s finance office, said he and the university’s executive vice presidents have started to carefully review administrative unit and college budget reviews.

“We can clearly see the care with which unit leaders and their financial teams have proposed spending cuts, focusing first on things like external contracts, hiring freezes, travel allotments, programmatic costs and other areas before considering actions that would impact current personnel,” Guskiewicz wrote in the email.

Guskiewicz called the cuts “a moment of sacrifice,” saying that the Office of the President will absorb the 9% cut in the coming fiscal year, as well as additional cuts the following year. He also said that there are plans across units to not fill vacancies while eliminating executive positions to reduce “administrative layers” within the organization.

“Our structural deficits stem primarily from double-digit increases in the cost of centrally funded employee health care and other operating cost increases, plus a general fund budget deficit from un-budgeted headcount and financial aid at the end of last year,” Guskiewicz said. “While MSU has operated with modest recurring deficits that we’ve been able to cover in prior years, we now view these as unsustainable.”

Guskiewicz also gave notice that MSU is anticipating reduced income from federal actions such as research cuts, restrictions on international student enrollments and possible additional state appropriations shortfalls, saying the magnitude of the effects is uncertain. These effects will add to “our financial and planning challenges,” Guskiewicz said. “So, we must address our current budget and the significant increases in health care and operating costs to better navigate uncertainties.”

Guskiewicz said other budget considerations include state appropriations and the university’s provision of student financial aid, noting appropriations per resident undergraduate student have fallen by 44% since fiscal year 2000 when adjusted for inflation.

Still, Guskiewicz praised MSU’s ability to “hold tuition increase rates to the lowest level of all Michigan public universities” and consistently increase university-funded financial aid, the latter of which has grown by an average of 7% annually.

Continuing on in the email, Guskiewicz addressed questions about continued investments in the university’s infrastructure, noting that facilities projects are often funded through non-general fund sources, public-private partnerships or the recently launched comprehensive fundraising campaign.

“Such investments in our future are critical to generating new opportunities, expanding our reach and contributing to Michigan State’s long-term success,” Guskiewicz said. “At a time when general fund resources are limited, it is more important than ever to tap into other revenue sources to advance our university in creative and innovative ways, but those sources often come with more restricted uses.”

As far as financial planning, Guskiewicz said MSU’s budget office had been working on structural improvements to its financial planning and practices before his arrival in March 2024.

“When I became president, I shared that one of my initial priorities would be to comprehensively assess MSU’s financial health and consider how we can best invest our resources to achieve operational excellence,” Guskiewicz said. “Since then, I have looked closely at our budget model and the state’s appropriations formula and have examined stress points, available reserves, hiring and spending trends, and forecasted operating budget trends.”

Guskiewicz said the university has brought its deans and vice presidents into “more detailed discussions” around identifying strategies, potential budget savings and specific actions that could be taken to relieve the budget pressures, asking all units to submit its budget proposal before June 6. These budget proposals aim for general funding reductions of 9% over the next two years.

The proposal review process will take into consideration its “alignment with university goals and priorities,” Guskiewicz said. In particular, executive leaders will be looking for “potential economies of scale” and “potential conflicts or overlaps across unit submissions.” Executive leaders will be in direct contact with units by the end of June.

Towards the end of the email, Guskiewicz said he recognized the concerns about how the university’s financial challenges will impact the Spartan community, making clear that MSU is not in a financial crisis, but making “thoughtful, proactive reductions” to avoid more severe and reactive cuts in the future.

“I know this has been difficult, and I am grateful to all Spartans for showing patience and continuing to advance the university’s critical teaching, research and outreach missions amid uncertainty,” Guskiewicz said. “We are all in this together, and through our collective efforts, we will ensure the university’s financial health moving forward.”

For Victor Rodríguez-Pereira, the president of The Union Non-Tenure Track Faculty, there’s been a lack of transparency and difficulty in getting straight answers about the university’s financial situation throughout the entire process.

“There have been no clear answers as to the impact these cuts will have on the quality of education offered at MSU,” Rodríguez-Pereira wrote in an email to The State News. “Most of the information I know about these cuts has been through word of mouth, people at other units sharing information not available to the wider university community (most importantly, to the faculty) and this all led to widespread misinformation.”

Rodríguez-Pereira said the timing of the announcement was troubling as well, since President Guskiewicz announced the cuts and the process through which the cuts would be made in early May when faculty was “neck-deep” in finals, and students were gone, stating there was no time to even ask questions until it was too late.

Support student media! Please consider donating to The State News and help fund the future of journalism. Donate

“We have been in communication with several people across many different offices on campus, and are still getting in touch with others so that we can get as much information as possible,” Rodríguez-Pereira said. “We have also expressed our concerns publicly through our communications with our members, and I have done the same in my capacity as Faculty Senator.”

MSU Faculty Senate Chair Angela Wilson said about two weeks ago, the University Steering Committee supported a resolution regarding the budget, saying the resolution expressed some of the faculty’s concerns.

“Today’s messaging followed a discussion that the President had with Faculty Senate leaders last week to follow up on the resolution, where we encouraged further communication,” Wilson said in an email to The State News. “Overall, I am sure that all of us are surprised about the significant budget issues.”

Wilson however said these types of challenges are occurring at universities all over the country, stating that there is a balance between the rising costs of what it takes to run a university, from teaching, to support services, to buildings and trying to keep costs down.

“A 9% reduction is significant,” Wilson said. “Any trim impacts the university in some way. At this point, not all of the reductions have been shared yet, as these are still being determined.”

Noting other concerns UNTF has with the budget cuts, Rodríguez-Pereira said they are concerned that “MSU is using (or is trying to use) the real danger posed by the assault on higher education by the federal government as a pretext for austerity measures that to this day they have failed to justify with data or any other information.”

“We’ve heard from different sources that part of the deficit is caused by MSU’s legal settlements from the last decade, as well as other similar liabilities,” Rodríguez-Pereira said. “It’s concerning that MSU might be passing the bill on its employees for the failures of our leaders.” (Rodríguez-Pereira would later say that during a May 27 meeting, University Steering Committee Vice Chairperson Jack Lipton referenced the reasons behind MSU’s budget deficit.)

Rodríguez-Pereira acknowledged MSU being vocal about wanting to avoid personnel cuts. However, he said many academic units have been cutting their budgets since the COVID-19 pandemic. As a result, there are many academic units where faculty have already been teaching courses above their usual workload because many of the units were already understaffed.

“These cuts are going to force many departments to have to cut personnel, at which point I wonder: who’s going to teach those classes, faculty members who are already overworked and underpaid? UNTF represents some of the lowest-paid faculty on campus,” Rodríguez-Pereira said. “Connected to this, and most importantly, what quality of education can we offer, considering all this? We see this, while seeing MSU approving spending money building new athletic facilities and similar attractions, and it makes us wonder if we are a university or an athletic franchise.”

In response to today’s email sent by Guskiewicz, Rodríguez-Pereira said the contents inside are new information for people in his camp, stating they don’t know what it means, asking if MSU made a mistake with last year’s budget.

The confusion and dissatisfaction with MSU has led the UNTF to launch a petition with the goal of putting the cuts in the university’s general spending budget on pause.

“MSU exists as a public investment made by the people of Michigan,” the email sent to UNTF members reads. “MSU students and their parents have an immediate interest in the damage being done to the school, and alumni deserve to know about the devaluing of their degree.”

Students will pay nearly $400 more to attend Michigan State University for the 2025-26 academic year.

Tuition will be raised 4.5% for in-state students, the university said, unless the Legislature approves a cap at a lower percentage.

The state of Michigan typically determines the amount universities can increase tuition for in-state students..

LANSING — Students will pay a few hundred dollars more to attend Michigan State University for the 2025-26 academic year, but the exact amount is still in flux while state legislators iron out Michigan’s next budget.

Trustees voted June 13 at a meeting in Traverse City to raise tuition 4.5%, but included language that will reduce that amount if the state budget includes a cap that is lower than that, the university said.

The state Legislature typically determines a percentage cap by which universities can raise tuition for in-state students, and if an institution goes over that amount it is no longer eligible for millions in state funding.

MSU’s tuition increase is more than last year’s of 2.7% for in-state undergraduates, and more than the University of Michigan’s increase of 3.4% for next year.

MORE: Michigan State trustees pause demolition of IM West, OK study to decide building’s future

Last year, the cap on tuition increases was 4.5%, and both Democratic Gov. Gretchen Whitmer and the Democratic-controlled Michigan Senate proposed that same cap for the coming fiscal year in their budget recommendations. However, the Republican-controlled Michigan House of Representatives previously recommended a 3% cap, but the bill passed with a substitute that brought the cap to 4.5%.

“If you’ve been reading or listening to the news this week, then you have heard of the threat of additional state appropriation cuts,” said Trustee Sandy Pierce, who chairs the board committee of budget and finance. “State appropriations per resident undergraduate student has fallen by 44% since fiscal year 2000 when adjusted for inflation.”

Pierce was likely referring to the recent state House recommendation that millions of dollars be diverted from MSU and the University of Michigan to other universities across the state. MSU would see a state operations funding cut of about 18%, or $56.6 million. U-M would see a cut of about 65%, or $234.4 million.

House Majority Leader Brian Posthumus said in a statement the proposal would prioritize in-state residents over out-of-state and international students. MSU and U-M receive millions more in tuition and living costs from students coming from outside of Michigan.

MORE: MSU Board of Trustees approves hiring of AD Batt, extension for hockey coach Nightingale

As of now, per-semester base costs for undergraduate students from Michigan will increase by $399. Freshmen will pay $8,458 per semester, sophomores will pay $8,653 and most juniors and seniors will pay $9,642. Juniors and seniors from Michigan who are in the Eli Broad College of Business or the College of Engineering will pay $9,935 per semester.

Undergraduate students from outside Michigan and international students will also see a per-semester base rate tuition increase of $399. Freshmen and sophomores will now pay $22,150 and juniors and seniors will pay $22,818. Juniors and seniors who are in the Eli Broad College of Business or the College of Engineering will pay $23,127 per semester.

Graduate students will see per-credit-hour costs increase by a similar rate, the university said.

The university said in a statement that the budget allocates an additional $6 million to student financial aid.

Proposed cuts to MSU, U-M

The state’s final budget may take some time to negotiate between the Republican-led House and the Democratic-led Senate. Lawmakers have a July target date to finalize it, but the deadline is the end of the current fiscal year, on Sept. 30.

The two sides are far apart on higher education funding, among other issues.

“Michigan’s largest universities have been getting way more than their fair share for far too long,” Rep. Greg Markkanen, R-Hancock said in a June 11 statement. Markkanen chairs the House Higher Education and Community Colleges budget committee.

“Our plan sets things right by trimming the fat off MSU and U of M and distributing that funding amongst our 13 other remarkable universities,” he said.

The House’s proposal also cuts about $717,000 combined from two university departments, MSU’s AgBioResearch and MSU Extension’s general fund. Specific programs funded through those funds are also targeted. MSU’s Project GREEEN (Generating Research and Extension to meet Environmental and Economic Needs) would lose $5.6 million in state appropriations.

Both Whitmer’s and the House’s proposals would prevent MSU’s AgBioResearch and Extension from using appropriations for the Agricultural Climate Resiliency Program, which addresses environmental sustainability issues in Michigan agriculture and promotes the protection and efficient use of water resources.

The House also proposes cutting $80,000 the Future Farmers of America Association receives from MSU.

MSU’s current financial issues

Questions about state funding are coming at an already difficult time for MSU. President Kevin Guskiewicz, along with Chief Financial Officer Lisa Frace and other top university officials, wrote in a May 7 memo to department heads and deans that the university would be going through 9% cuts over the next two years due to the university’s “modest recurring deficit over the past two years.” The cuts are being made to get the university back to financial stability, officials said.

During the meeting, Guskiewicz said his office would cut the full 9% this year with smaller cuts the next, but specific details about what would be cut were not available June 13.

Other financial issues the university and others nationwide are facing include navigating cuts to research funding, paused research projects and the potential loss of international students due to federal moves to restrict them from studying in the United States.

More restrictions on universities

The House proposal adds several other restrictions and state reporting requirements for university administrators.

Universities would have to “report on information related to the current university president, provide a list of the number of out-of-state students by state origin, provide a list of the number of international students by citizenship, certify that all enrolled students are lawful residents, and provide the contact information of students who are not lawful residents to the director of MiLEAP.”

If institutions did not report this information, along with other required information on university finances, budget, revenue, expenditures and employee compensation, they would have 5% of operations funding withheld.

Public universities also would not be able to devote more than 10% of their total salary spending on administration without half of whatever they spend over that cap being taken from state operations funding under the House’s plan. Last year, MSU spent about $1.5 billion on salaries, and this year’s budget shows the university expects to spend nearly $1.6 billion. According to the House’s proposal, MSU could not spend over $160 million on administrative salaries. It was unclear how much MSU currently spends on administrative salaries.

The House also added language that furthers several Republican priorities, including threatening funding for public universities that participate in intercollegiate athletics from allowing “biologically defined males from participating in biologically defined female sport teams.” Universities also would have funding taken away for having any common spaces that are restricted by sex or race, or having any public ceremonies or gatherings restricted by sex or race.

The House proposal also states if public universities spend money on diversity, equity and inclusion, that amount of money would be taken from state operations funding. Last year, MSU spent at least $2.5 million on its Office of Institutional Equity and Inclusion, the university’s functional budget report shows.

U-M raises tuition

U-M raised its tuition rates June 12. In-state tuition and fees for in-state undergraduates will increase by about $610, or 3.4%, for an annual rate of $18,346. Tuition and fees for nonresident undergraduate students will increase by $3,016, or 4.9%, for an annual rate of $63,962, according to information posted on the university’s website.

Wayne State University’s Board of Governors is expected to meet June 26 to set their budget.

Contact Sarah Atwood at satwood@lsj.com. Follow her on X @sarahmatwood.

LANSING, Mich. — Michigan House Republicans unveiled a $2.4 billion higher education budget on Wednesday that would slash state funding for the University of Michigan and Michigan State University by approximately $300 million annually, targeting their large endowments and out-of-state student enrollments. The proposal, which advanced out of the House Appropriations Committee along party lines, has sparked sharp criticism from Democrats and university officials.

Under the plan, the University of Michigan’s Ann Arbor campus would face a $335 million reduction in state aid, a 91.6% cut from current levels, while Michigan State University would see a $237.4 million decrease, equating to a 73% reduction. The House Fiscal Agency reports that the net reductions, after accounting for scholarship reallocations, would amount to $239 million for UM and $62 million for MSU.

State Rep. Greg Markkanen, R-Hancock, chair of the House Higher Education and Community Colleges budget committee, defended the cuts, stating, “Michigan’s largest universities have been getting way more than their fair share for far too long. Our plan sets things right by trimming the fat off MSU and U of M and distributing that funding amongst our 13 other remarkable universities.”

The proposal redistributes funds to Michigan’s 13 other public universities, with institutions like Wayne State University potentially seeing a 28% increase in state aid, and others up to 31%. The budget divides the $1.6 billion in current university funding into two pots: campus investment funds for infrastructure and technology, and scholarship money for in-state students. However, critics argue the $272.4 million in scholarship aid primarily offsets student costs and does little to mitigate the universities’ operational losses.

“A budget reduction of the scale proposed by the House would hinder our ability to deliver the high-quality, affordable education that Michigan students expect and deserve,” said Amber McCann, MSU spokesperson. “We are proud of the role MSU plays in driving Michigan’s future — and we believe the state budget should reflect that value, not diminish it.”

Chris Kolb, UM’s vice president for government relations, called the proposed cut “deeply disappointing,” emphasizing that “U-M contributes a 24-to-1 return on investment to Michigan’s economy, ranks No. 1 nationally in both degree value and research volume and educates tens of thousands of students from every one of Michigan’s 83 counties.” He warned that “a cut of this magnitude would undermine that success and sends the wrong message about what the state values.”

The budget also imposes restrictions, withholding funding from universities that maintain diversity, equity, and inclusion (DEI) programs, allow transgender women to compete in women’s sports, or fail to verify students’ legal residency status. Additionally, it caps administrative spending at 10% of salary budgets and penalizes universities raising tuition beyond 3% or $489 annually.

State Rep. Matt Maddock, R-Milford, framed the cuts as targeting “woke” universities, saying, “We’re making cuts to the woke universities and giving it to the non-woke universities or the less woke universities.”

House Democrats condemned the proposal. “Seems like they’re letting DC rhetoric stomp on Midwest values,” said state Rep. Alabas Farhat, D-Dearborn. “If you are a student or a parent of someone who attends any university in the state of Michigan, you should understand that House Republicans do not care about you.”

The plan faces significant hurdles in the Democratic-controlled Senate, which passed a budget in April increasing university funding. With negotiations ongoing, the budget must be finalized by Oct. 1 for the 2025-26 fiscal year. University leaders warn that the cuts, combined with recent federal research funding reductions, could jeopardize academic programs and economic contributions.

Rep. Samantha Steckloff, D-Farmington Hills, questioned the budget’s projections, noting “huge discrepancies” in expected scholarship revenue for universities like Michigan Tech and Wayne State. “The math is not adding up,” she said during the committee hearing.

The proposal comes amid broader financial challenges for UM and MSU, which are already adjusting budgets due to federal cuts to agencies like the National Institutes of Health and the Department of Energy. MSU President Kevin Guskiewicz recently warned of “hard decisions” ahead, while UM has implemented hiring and spending reviews to brace for further reductions.

As the budget battle unfolds, Michigan’s flagship universities face an uncertain future, with potential impacts on students, faculty, and the state’s economy hanging in the balance.

LANSING, Mich. (WLNS) — Michigan State University has named Dr. Jim Hintz as its new Vice President for Student Affairs.

Jim Hintz – Associate Vice Chancellor for Student Affairs – Student Success and Engagement (Michigan State University)

Michigan State University President Kevin M. Guskiewicz said Hintz “brings the right mixture of experience and an inclusive approach essential to a position focused on supporting the university’s student population,” in a news release sent to 6 News.

“His experience building strong, student-centered programs and his collaborative leadership style make him an outstanding choice to guide our Student Affairs unit and programs. I’m confident he will strengthen our campus community and help ensure every Spartan feels a strong sense of belonging and support,” said Guskiewicz.

Advertisement Advertisement

Advertisement Advertisement

MSU facing ‘financial challenges’ due to budget deficit

MSU began the search for a new vice president of Student Affairs position in December 2024, in consultation with the Academic Governance Steering Committee. This search followed the realignment of the university’s Student Life and Engagement unit into two offices: Residential and Hospitality Services and the Division of Student Affairs.

The university says that the vice president of Student Affairs “manages a team that collectively leads student engagement and campus life activities closely aligned with the university’s student success goals for undergraduate and graduate students.”

Additionally, the position oversees facilities that support student activities and programming, including the MSU Union, Multicultural Center, and Student Recreation and Wellness Center.

Advertisement Advertisement

Advertisement Advertisement

The role, in coordination with the provost, also supports the university’s health and well-being initiatives.

State lawmakers propose huge cuts for MSU, U-M

Hintz currently serves as the acting Associate Vice Chancellor for Auxiliary, Health and Wellbeing at the University of Illinois.

Before Hintz’s career at the University of Illinois, he held leadership positions at Purdue University, the University of Connecticut-Storrs, and Ohio University.

Hintz earned his doctorate in educational leadership from Indiana State University. He earned a master’s degree in College Student Personnel from Ohio University, as well as a bachelor’s degree in Social and Managerial Science.

Advertisement Advertisement

Advertisement Advertisement

“MSU’s commitment to inclusive excellence and student success deeply resonates with my values,” said Hintz in a news release sent to 6 News. “I look forward to collaborating with students, staff, and faculty to foster a vibrant, supportive campus community where every student can thrive.”

Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For the latest news, weather, sports, and streaming video, head to WLNS 6 News.