The Northern Michigan University Board of Trustees has approved the 2014-15 budget.
They have approved a general fund operating budget of nearly $108 million, which marks a 2.4% decrease from last year's budget.
"Budget reductions are necessary in large part because of the projected drop in enrollment and associated tuition revenue attributed to declining high school demographics," says Gavin Leach, vice president for finance and administration.
In addition, Leach says there are increased operational expenses, including personnel contractual obligations, the state minimum-wage hike and rising costs associated with utlities, health care and maintenance and property liability insurance.
Public universities in Michigan received more state funding that last year, but Leach says it isn't enough to counter the loss of tuition revenue combined with rising expenses.