News & Events

The University of Michigan has maintained its place as one of three public universities to make the top 15 U.S. institutions in the QS World University Rankings 2025 edition released June 4.

U-M ranked 44th overall among 1,503 universities across the globe, and 15th among 197 institutions in the United States. The University of California, Berkeley was sixth and the University of California, Los Angeles was 13th among U.S. institutions.

The rankings are based on nine factors:

• Academic reputation (30%)
• Employer reputation (15%)
• Employability (5%)
• Faculty-student ratio (10%)
• Citations per faculty (20%)
• Proportion of international faculty (5%)
• Proportion of international students (5%)
• International research collaboration (5%)
• Sustainability (5%)

Among those categories, U-M scored highest for its academic excellence followed by the richness and diversity of its international research partnerships and the employability of its graduates.

University exploring opportunities to optimize mobility, connectivity

The University of Michigan is revisiting a Campus Connector transportation concept that would enable people to move between the Central, Medical and North campuses in minutes.

As an initial step, U-M will convene a virtual Industry Day on June 6, where prospective vendors will receive an overview of the project’s goals, scope and requirements.

The university expects to launch a corresponding request for qualifications this summer, inviting potential partners to submit information for the design, construction and long-term operation of the system.

“We’re embarking on a formal process to optimize our university transit network and create a more connected, more cohesive Ann Arbor campus,” said Geoff Chatas, executive vice president and chief financial officer.

“As our university community grows, so does the need for a more efficient transportation network. Though we’ve explored the Campus Connector previously, we’re excited to relaunch this initiative, collaborate with surrounding communities and examine ways to build a system that would be fast, convenient, environmentally sustainable and equitable.”

The Campus Connector concept would include a core automated transit system, which serves select hubs via an elevated guideway, as well as a corresponding high-efficiency, high-capacity bus rapid transit system.

Because the automated transit system would not share roadways or otherwise impede regular vehicular traffic, organizers expect the project to decrease local traffic congestion. It also is anticipated to decrease parking demand and increase local economic development opportunities, as it would connect relatively less dense North Campus stations to the Medical and Central campuses.

In addition to providing quicker and more convenient cross-campus transportation, the Connector would aim to complement universitywide work toward carbon neutrality and serve as a model for sustainable mobility.

Although the Connector would increase the university’s energy demand, it would decrease commuting-related greenhouse gas emissions. As U-M seeks to procure 100% of its purchased electricity from renewable sources, the transit system ultimately would derive its energy entirely from renewables.

Concurrently, U-M continues to acquire battery-powered electric buses as it works to electrify its vehicle fleet. Carbon neutrality, climate action and environmental justice are core values in multiple universitywide initiatives, including Vision 2034, Campus Plan 2050 and the Connector project.

U-M has been actively exploring the Campus Connector concept for several years in collaboration with the city of Ann Arbor and various local and regional stakeholders.

The project recently has moved forward alongside Campus Plan 2050, a long-term effort to explore how the Ann Arbor campus should be designed to support the university’s mission, and Vision 2034, which seeks to define what U-M wants to accomplish and how it will evolve over the next 10 years.

The university will share additional information regarding potential technologies, routes and funding sources for the Campus Connector as the project progresses.

The University of Michigan is moving ahead with plans to construct on-campus solar power installations with a capacity of 25 megawatts across the Ann Arbor, Dearborn and Flint campuses, including Michigan Medicine and Athletics.

The Board of Regents voted May 16 to hire Radial Power, a Houston-based distributed energy and sustainability solutions firm, to design and build the installations. The action follows a February 2023 call for proposals to build large-scale solar projects across all U-M campuses.

“On-campus solar is a tremendous opportunity for the university,” said Geoff Chatas, executive vice president and chief financial officer.

“We look forward to collaborating with Radial Power and our community partners to build innovative installations that will reduce our operational greenhouse gas emissions, spur sustainable business practices, and provide a powerful symbol of our commitment to climate action.”

The total amount of electricity generated would equal the power consumed by approximately 3,000 homes annually. U-M is pursuing installations totaling approximately 20 megawatts on the Ann Arbor campus and 5 megawatts between the Dearborn and Flint campuses.

Project locations have yet to be determined, although the university will prioritize large rooftops, existing parking decks and parking lots, and will consider ground-mounted arrays.

“These installations will visibly demonstrate our ongoing transition to renewable power and our commitment to ensuring meaningful community benefits, both on and off campus,” said Shana S. Weber, associate vice president for campus sustainability.

“This is one way the University of Michigan serves as a living and learning laboratory for our students, for higher education, for Michigan and for the broader region.”

Installations will be phased in over three years. Once operational, they will help move U-M toward its goal of eliminating direct campus greenhouse gas emissions by 2040.

Radial Power was chosen from 16 firms that responded to the university’s initial call for proposals. In addition to emissions-reduction benefits, Radial will prioritize opportunities to facilitate living-learning laboratory opportunities for the U-M campus community. The firm also will donate 10% of the effort’s proceeds to solar projects in surrounding communities, with relevant partners to be identified.

The contract is estimated to cost approximately $70 million, excluding potential expenses related to building modifications needed before installation.

U-M’s on-campus solar push is one strategy in its overarching commitment to achieve universitywide carbon neutrality by 2040. Carbon neutrality, climate action and environmental justice also are core components of ongoing central Vision 2034 and Campus Plan 2050 efforts.

A full rollout of plan is expected this fall

Following a year of campus engagement to discuss ideas for the future of the Ann Arbor campus, and the conclusion of work on the Vision 2034 strategic vision, a high-level, preliminary draft preview of Campus Plan 2050 is now available.

Organizers will continue to develop the plan before its formal release in the fall.

The preview, which can be found on the Campus Plan 2050 website, consists of a series of framework and systems plans outlining greenspace, mobility enhancements and potential locations for future facilities, among other features.

“Campus Plan 2050 will help enable us to make Vision 2034 possible. It is exciting to be able to share some of the initial draft planning recommendations now, in advance of a more comprehensive report in early fall,” said Sue Gott, associate director for planning and communication and a key coordinator for the campus planning.

“We are fortunate to have had such tremendous input from the campus community to help formulate these ideas.”

While the campus plan addresses near-term development opportunities, it also outlines a long-term vision of possibilities for the Ann Arbor campus through a 25-year framework. Development zones and areas indicate various locations where a range of projects are possible. The university plans to determine specific projects for these zones as needs evolve.

Campus Plan 2050 highlights include:

Academic mission

To enhance U-M’s academic mission, an Innovation District would provide a mixed-use region on North Campus, with a focus on research for a diverse array of academic units, and space for interdisciplinary research, startups, industry and governmental partners, retail and other amenities.

New projects for updating and creating facilities also will be identified and explored as the needs of U-M schools and colleges change in the continued pursuit of life-changing education for U-M students.

Geo-exchange and solar

Expanding the use of geo-exchange and solar power will help U-M meet its carbon neutrality goals. Geo-exchange uses the steady temperature of Earth’s subsurface to heat and cool buildings with ground-source heat pumps.

Three campus geo-exchange projects are underway and many more could be developed, along with a greater number of solar-power installations.

Hotel and conference center

An on-campus hotel and conference center would provide a dedicated venue — potentially located on North Campus — where U-M could provide a space for academic convening and hosting major national conferences and other large events.

Optimized transit network

In anticipation of continued university growth, and building on continued efforts to improve campus connectivity, U-M is exploring a transportation concept that will feature a high-efficiency, high-capacity rapid transit bus system and an automated transit system on an elevated guideway.

The network would aim to ensure a more cohesive Ann Arbor campus, improve campus mobility, reduce congestion, and advance carbon neutrality and sustainability efforts. The university expects to share updates on process, technologies and timelines in the coming weeks.

Student housing

The university will continue its effort to increase on-campus housing, including the Central Campus Housing Development currently under construction, with a potential second phase planned.

Campus Plan 2050 is a presidential initiative that is carefully designed to align with Vision 2034, U-M’s recently launched 10-year strategic vision that focuses on four impact areas: Life-Changing Education; Human Health and Well-Being; Democracy, Civic and Global Engagement; and Climate Action, Sustainability, and Environmental Justice.

The yearlong planning process for Campus Plan 2050 included active participation of U-M students, faculty, staff, alumni and other partners.

“The draft plan provides a framework for aligning our objectives for campus planning with the aspirations outlined in Vision 2034 and gives us a long-term roadmap for the future of the Ann Arbor campus,” said Christopher Culley, the other key coordinator for the campus planning effort and associate vice president for planning and strategic initiatives in the Office of the Executive Vice President and Chief Financial Officer.

“The draft presented today reflects a work in progress. Further development of the plan will be completed this summer, and a final plan will be presented to the campus community at the beginning of the fall semester. It will lay the foundation for many exciting changes in the years to come.”

With more than 105,000 applicants, the University of Michigan again set a record for application volume, with a growing number of prospective first-year and transfer students looking to enroll for the fall 2024 term.

The university continues to be a top choice for prospective first-year students, with more than 98,400 applying for the fall term, up 12% from the nearly 88,000 applications for fall 2023.  

“Students and families from Michigan and around the world understand the profound impact and value of a University of Michigan education,” said Adele C. Brumfield, vice provost for enrollment management.

“Our exceptional faculty, cutting-edge facilities and technologies designed to enhance the educational experience, and vibrant campus environment are just a few of the numerous factors driving the increasing interest in our university from high-achieving students.”

Contributing to the overall application growth were increased applications from first-generation students (+14%), in-state (+3%), out-of-state domestic (+14%), students of color (+15%), international students (+12%) and students from self-reported low-income backgrounds (+17%).

The admissions office also saw nearly 6,675 transfer-student applicants, also up 12% from last year. Transfer applications increased in several categories, including out-of-state (+20%), first-generation (+10%), students from self-reported low-income backgrounds (+7%) and students of color (+23%).

The majority of admissions decisions for first-year and transfer students have been released. Students offered admission to U-M have until May 1 to accept.

“Our aim is to attract and develop a dynamic and diverse incoming undergraduate class by showcasing the rich array of academic and extracurricular opportunities at U-M and by highlighting the impact a U-M education can have on future achievements,” said Erica L. Sanders, assistant vice provost and executive director of undergraduate admissions.

During the rest of April, the admissions team will host events in collaboration with campus partners, on campus, throughout the state of Michigan, around the country and world. The programs serve to provide additional details to admitted students and families, answer questions and encourage the students to accept their U-M offer.

With the ongoing challenges and delays associated with the FAFSA Simplification Act, the university decided to use information available in the CSS Profile to provide estimated financial aid packages to incoming students, rather than wait until FAFSA data was available.

The CSS Profile is a supplemental financial aid application used by U-M and other colleges. Students who were admitted and submitted the CSS Profile received their estimated financial aid package within two weeks of receiving their admission decision, so they have a picture of the financial support available to them. Students will still need to submit a FAFSA to ensure they are receiving the federal financial aid for which they qualify. 

“This has been a challenging year for families as they have navigated the changes related to the FAFSA Simplification Act. We continue to work with students and families to ensure that they are aware of the range of financial aid opportunities available to them as they navigate their academic choices,” said Tammie L. Durham Luis, assistant vice provost of enrollment management and executive director of financial aid.

More detailed enrollment numbers will be available after the official student count in the third week of classes in the fall.

The fall semester begins Aug. 26 on the Ann Arbor campus.

The University of Michigan remains one of the premier universities in the country for graduate education, according to the 2024-25 edition of U.S. News & World Report’s Best Graduate Schools.

The rankings were released April 9.

Every year, U.S. News ranks professional school programs in six areas: business, education, engineering, law, medicine and nursing. It also periodically ranks programs in the sciences, social sciences and humanities, health and other areas.

Here’s a snapshot of U-M’s rankings that are part of this year’s announcement:

• The Marsal Family School of Education ranked No. 3.   
• The Gerald R. Ford School of Public Policy ranked No. 4.  
• The College of Pharmacy ranked No. 2.  
• The School of Public Health ranked No. 5. 
• The Stephen M. Ross School of Business ranked No. 12.  
• The School of Nursing’s Doctor of Nursing Practice program ranked No. 8, and its master’s degree program ranked No. 7.

The rankings do not include engineering or clinical psychology programs. U.S. News & World Report announced it was delaying the release of that information this year so it could “appropriately address queries from participating graduate schools.”

In addition, U-M’s law and medical schools no longer participate in the U.S. News & World Report graduate rankings.

According to U.S. News, the rankings for the six main discipline areas are based on expert opinions about program excellence and statistical indicators that measure the quality of a school’s faculty, research and students.

U-M officials said they are pleased that the university continues to be recognized as a leader in graduate education. They also noted that while U-M values the measurements of academic and research performance, rankings lists don’t consider all of the factors that contribute to the quality of an institution or program.

In addition to the overall program rankings, U-M received rankings in several specialty areas. Of those, two placed in the No. 1 spot: nuclear engineering and social policy.

The specialties at U-M that received rankings this year were:

Business (full-time MBA): accounting (4), management (2), marketing (3), production operations (3), international (9), finance (9), executive MBA (9), entrepreneurship (6) and supply chain (10).

For part-time MBA programs, the Stephen M. Ross School of Business ranked sixth, UM-Dearborn ranked 110 and UM-Flint ranked 143rd.

Computer science: artificial intelligence (11), programming language (16), systems (7) and theory (15).  

Education: curriculum and instruction (3), educational administration (9), education policy (5), education psychology (2), elementary teacher education (3), higher education administration (2) and secondary teacher education (2).

Nursing: Master’s Nurse Practitioner – family (6), Master’s Nurse Practitioner – adult gerontology/primary care (8), midwifery (6), Master’s Nurse Practitioner – adult gerontology/acute care (7), Doctor of Nursing Practice – family (6), Doctor of Nursing Practice – adult gerontology/primary care (3).

Public affairs: environmental policy and management (5), health policy and management (2), public policy analysis (2) and social policy (1).

Public health: environmental health science (6), epidemiology (5), health policy and management (3), social behavior (6) and biostatistics (4).  

In addition to the rankings noted above, UM-Flint ranked No. 126 in occupational therapy, No. 92 in physical therapy, and No. 61 in nursing anesthesia.

After a year of gathering input from the campus community, the University of Michigan has released its strategic vision for the next 10 years and has pledged to be the defining public university, “boldly exemplified by our innovation and service to the common good.” 

Vision 2034 — detailed in an initial 43-page report — calls upon the university to leverage its interdisciplinarity and excellence at scale to educate learners, advance society and make groundbreaking discoveries to impact the greatest challenges facing humanity.

“Together, we have created a new vision that will open horizons and opportunities while drawing on our ethos, our tremendous strengths and our exceptional capabilities as a university,” President Santa J. Ono said in a video message announcing the vision.

The vision incorporates strategic planning efforts across the institution — including at UM-Dearborn, UM-Flint and Michigan Medicine — as well as other campuswide initiatives such as Culture Journey, DEI 2.0 and Campus Plan 2050.

The university will focus its efforts to make a significant impact in four key areas:

• Life-Changing Education.
• Human Health and Well-Being.
• Democracy, Civic and Global Engagement.
• Climate Action, Sustainability and Environmental Justice.

To support its vision, the university will make strategic investments in seven commitment areas:

• Purpose-Driven Education and Student Experience.
• Research, Scholarship, Discovery and Artificial Intelligence.
• Community Health Support, Prevention and Performance.
• Arts and Creative Expression.
• Diversity, Equity and Inclusion.
• Faculty and Staff Engagement and Experience.
• Innovation, Partnerships and Economic Development.

The university will celebrate each of the four impact areas with a yearlong series of events. The 2024-25 academic year will be dedicated to democracy and civic engagement.

The university’s vision is guided by its values and mission and reflects the aspirations of the U-M community.

“Our vision is not a strategic plan, but rather a guide for where we will focus our efforts over the next 10 years,” Ono said. “It is a first in our history and builds on our 200-year legacy of leadership and impact.”

In January 2023, Ono announced the university would engage the U-M community in a strategic vision process led by U-M’s three executive vice presidents — Laurie McCauley, provost and executive vice president for academic affairs; Geoffrey Chatas, executive vice president and chief financial officer; and Marschall Runge, executive vice president for medical affairs, chief executive officer at Michigan Medicine and dean of the Medical School.

More than 25,000 students, faculty, staff, alumni, donors and local community members engaged in the yearlong vision planning effort.

Their input informed the impact and commitment areas including the set of guiding statements outlining aspirational goals for the university for each area.

The vision report points to current initiatives across the university as examples of the types of efforts that could be created or receive additional support.

Within the impact area of “life-changing education,” programs like Wolverine Pathways, which offers free college preparation to seventh- through 12th-grade students in Detroit, Southfield, Ypsilanti and Grand Rapids, and free online courses through the Center for Academic Innovation, which extends the reach of U-M courses to more than 11 million global learners, are helping to increase access to a U-M education.

For “human health and well-being,” the vision report noted the work of the Well-being Collective, a central hub for a systemwide approach to supporting student, faculty and staff well-being across campus and a national model for a health-promoting campus.

For “democracy, civic and global engagement,” the report singles out civic engagement efforts by UMich Votes — a non-partisan campus coalition whose mission is to improve the accessibility of voting — and Turn Up Turnout — a student organization with a presence on all three U-M campuses — which educate and encourage voting behaviors among students.

For “climate action, sustainability and environmental justice,” the report points to the Planet Blue Ambassador program that, with more than 9,000 students, faculty and staff, helps to advance sustainability through actions on and off campus and supports the university’s commitment to become carbon neutral by 2040.

In addition, several projects underway will create facilities to support the vision in the near term. They include:

• The Hadley Family Recreation and Well-Being Center will offer world-class facilities for exercise, connection and wellness when it opens in the fall of 2025.
• The Dan and Betty Kahn Health Care Pavilion, a new hospital that will house a state-of-the-art neurosciences center, advanced imaging, and high-level, specialty care services for cardiovascular and thoracic patients, will open in the fall of 2025.
• The Central Campus residential complex will add 2,300 undergraduate beds and a 900-seat dining hall on Central Campus when it opens in the fall of 2026.
• The U-M Center for Innovation in Detroit, a cutting-edge research, education and entrepreneurship center designed to advance innovation, talent-focused community development and stimulate economic development in Detroit will open in the spring of 2027.

In unveiling the vision, Ono has called upon the community to embrace the vision and the work ahead. “We’ve established our vision. Let’s make it a reality. So, let’s look to Michigan, and let’s dare to achieve our dreams,” Ono said.

The full Vision 2034 report is available on the Vision 2034 website.

The Board of Regents has approved the schematic design for the University of Michigan Center for Innovation in Detroit, a six-story building expected to open in spring 2027.

The lower floors of the building will contain public-facing programs while the upper floors will be dedicated mostly to graduate programs. The building broke ground in December and preliminary site work has been ongoing.

“The UMCI is a catalyst for positive change and, as such, presents itself along Grand River Avenue as a ‘Gateway for Innovation,'” said Hana Kassem, design principal for the architectural firm Kohn Pedersen Fox.

“It proudly bears the University of Michigan spirit focusing on progress and inclusivity which is embodied in its dynamic forward-leaning form and the portal that cuts through it, inviting access to all. Its transparent facade at street level engages the passerby, showcasing innovation, by putting making and research on display.”

The action at the regents’ March 28 meeting also authorized the university to proceed with construction, provided that bids are within the project’s $250 million budget.

The first two floors will house public programs, a cafe and shared office space for the U-M Detroit Center, Admissions Office, the School for Environment and Sustainability’s Sustainability Clinic and others, while levels three through six are planned for multidisciplinary graduate research.

Included within the building is shelled space that will provide flexibility and expansion opportunities in the future.

The project broke ground in December at the intersection of Grand River Avenue and West Columbia Street. Construction is scheduled to be completed in spring 2027.

The proposed 200,000-gross-square-foot building will be the first of three buildings to be constructed on the site. The other two buildings — an incubator space and a residential building — are to be constructed by a developer at a future date.

UMCI will be a world-class research, education and entrepreneurship center designed to advance innovation and talent-focused community development to propel city, region and statewide job creation and inclusive economic growth by stimulating economic development in Detroit.

Programming at the innovation center will offer a mixed-model approach that includes both master’s degree and workforce development programs that will focus on technology and innovation.

“UMCI will bring together the best of the University of Michigan to catalyze economic development in the city of Detroit,” said Provost Laurie McCauley. “It will house a robust portfolio of academic programs, including new interdisciplinary graduate degrees and certificate programs aligned to the skills of the future needed to attract startups as well as major employers to the region.

“UMCI will also host a multitude of community engagement activities for the residents of Detroit, ranging from K-12 programs like the Michigan Engineering Zone to the Detroit Neighborhood Entrepreneurs Project and many more.”

Last fall, the regents approved agreements related to land donation and purchases from Olympia Development, and a $100 million gift from donor Stephen M. Ross. The project also received a $100 million grant from the state of Michigan.

An additional $50 million will be raised from donors, said Geoffrey Chatas, executive vice president and chief financial officer.

The center, along with the P-20 Partnership at the School at Marygrove, the $40 million Rackham building renovation, the U-M Detroit Center, which opened in 2005 in Midtown, and hundreds of other projects U-M works on with community partners around the city, are examples of how the university has stepped up its community engagement in Detroit in recent years.

University of Michigan Health will purchase 7.28 acres of vacant land at the former Kmart headquarters in Troy, and plans to build a multi-specialty facility on the property to expand specialty clinical services and increase patient access to the Oakland County region.

The Board of Regents approved the purchase March 28.

U-M Health, Michigan Medicine’s clinical division, will buy the parcel at 3100 W. Big Beaver Road for $4.42 million from owner Forbes/Frankel Troy Ventures LLC.

“We are thrilled to announce our plans for a long-term presence and commitment to patients in Oakland County, in keeping with our efforts to create a statewide network of care that allows Michiganders the ability to receive our world-class care close to home,” said Marschall S. Runge, CEO of Michigan Medicine, dean of the Medical School, and executive vice president of medical affairs.

“We are planning development of a facility that focuses on advanced specialty and diagnostic services. This is a starting point for a broader and deeper U-M Health presence in southeast Michigan.”

“We believe this new investment will bring our U-M Health expertise to a whole new community of patients, providing easier access for metro Detroit residents to our nationally renowned clinical expertise and innovation,” said David Miller, president of U-M Health.

“We are excited to move into a prominent, easily accessible location in Troy, where we will continue to expand our presence. We expect this new facility will be a location for advanced and innovative clinical programs including multi-disciplinary cancer care.”

In alignment with Michigan Medicine’s commitment to sustainability, this building will follow university guidelines regarding Leadership in Energy and Environment Design to minimize negative environmental impacts.

This is among multiple U-M Health projects expected to increase patient access. Others include the 12-story D. Dan and Betty Kahn Health Care Pavilion, set to open in 2025 in Ann Arbor, and the Ypsilanti Health Center in downtown Ypsilanti, set to open in late 2024.

On its 10th Giving Blueday, the University of Michigan community rallied to give nearly $5.3 million to support students, research, medicine, the arts, athletics and more.

Gifts came from more than 11,500 donors across the U.S. and around the world, including alumni, students, faculty, staff, retirees and friends of the university, and were made to all three campuses and Michigan Medicine.

The university’s annual day of giving, which took place on March 13, was extended until noon the following day due to technical difficulties that may have prevented some donors from making a gift through the giving website.

Launched in 2014, Giving Blueday has received almost 100,000 donations totaling over $52 million in the last 10 years.

“The fact that we have been doing this for a decade now speaks volumes about the energy and passion of our community and its commitment to supporting all of the things that make Michigan the special place that it is. We’re grateful that people recognize the important work we are doing on our campuses and around the world,” said Tom Baird, vice president for development.

Nineteen different challenges were offered this year, such as the Cuteness Overload challenge and Raise the Bar challenge, providing supporters with opportunities to unlock additional funds for their causes. More than 140 student organizations raised funds on Giving Blueday as well, including the Engineering Global Leadership Honors Program, UM-Dearborn’s MASA, and UM-Flint’s Women’s Soccer. 

The unit receiving the most gifts through the Giving Blueday website was LSA, while the student organization that received the most gifts was MRacing Formula SAE. Among student organizations and causes that won giving challenges throughout the day were Wolverine Pathways, Michigan Marching Band – Elbel Club, and Wolverine Support Network.

On Giving Blueday 2023, more than 11,200 donors gave more than $5.3 million to the university.

Enjoy these photos from the U-M football team’s national championship game Jan. 8, captured by the staff of Michigan Photography. Click each image for a larger version and more information.

The Board of Regents has approved agreements related to land donation and purchases, and a $100 million gift from top donor Stephen M. Ross to build the U-M Center for Innovation in Detroit.

At their Oct. 19 meeting on the UM-Flint campus, regents approved:

• A gift agreement with Ross for $100 million paid out over 10 years.
• A donation of 2.08 acres at the intersection of Grand River Avenue and West Columbia Street from Olympia Development of Michigan on which to build the UMCI, and the $9.6 million purchase of 1.18 acres across from the UMCI on which to build a parking structure.
• Proceeding with the project and hiring the architectural firm of Kohn Pedersen Fox to design the six-story building.

“UMCI is essential to our future, and that’s why I’m so excited about today’s decision by the Board of Regents,” President Santa J. Ono said.

“I’m also incredibly grateful to Gov. Gretchen Whitmer and the state of Michigan for its $100 million grant, to Stephen Ross for his generous gift and vision, to Detroit Mayor Mike Duggan, who has championed this project from the start, and to our many other supporters and friends and partners who are making this future possible. 

“Our founding as a university traces back to Detroit in 1817, so it’s critical to me that we are more than the University _of _Michigan, we are also the university for Michigan.”

The university will break ground on the UMCI by the end of the year, at a date to be determined. Approval of the project also means a director can be hired to help shape the center’s offerings.

UMCI will be a world-class research, education and entrepreneurship center designed to advance innovation and talent-focused community development to propel city, regional and statewide job creation and inclusive economic growth by stimulating economic development in Detroit.

“The action we have just taken — approving the construction of the University of Michigan Center for Innovation in Detroit — elevates our commitment to Detroit and the state of Michigan to a new level,” Regent Mark Bernstein said.

“This center will advance innovation and talent-focused community development to propel job creation and inclusive economic growth by stimulating economic development in the city of Detroit.”

Board Chair Regent Sarah Hubbard said her primary question — “What’s in it for the University of Michigan?” — has been answered.

“I feel strongly that because this board has worked together to probe and approve the terms of this deal and delay it for a few months to make sure we are getting the absolute best deal that we can I am now going to be supportive and look forward to this amazing thing in Detroit and doing much to improve academic excellence there,” Hubbard said.

The center, along with the P-20 Partnership at the School at Marygrove, the $40 million Horace H. Rackham Educational Memorial building renovation, the U-M Detroit Center, which opened in 2005 in Midtown, and hundreds of other projects U-M works on with community partners around the city, are examples of how the university has stepped up its community engagement in the city in recent years.

“The University of Michigan is coming back home!” Detroit Mayor Mike Duggan declared. “Thank you to President Santa Ono and the U-M regents. With their action today, the University of Michigan will be a huge part of Detroit’s future with the new innovation center.

“This was made possible by the generous donation of Stephen Ross, the support of Gov. Whitmer and the state of Michigan, and the partnership of Chris Ilitch. Detroit’s future just got even brighter today because of all their efforts.”

The UMCI is expected to take three years to build at a cost of $250 million. It will be funded with the Ross gift plus $100 million from the state of Michigan. An additional $50 million will be raised from donors, said Geoffrey Chatas, U-M executive vice president and chief financial officer.

Chatas, Provost Laurie McCauley and Tom Baird, vice president for development, made the recommendation to regents.

“The center is also designed to advance innovation and talent-focused community development to enhance job creation in the region and propel economic growth in the great city of Detroit,” Chatas said. “We are grateful for the tremendous support given to this initiative by both the state of Michigan and Stephen Ross, and we are committed to ensuring these investments in Detroit and the university make a lasting impact.”

UMCI will be built to accommodate the academic and community programs including three distinct types of activity — graduate education, talent-based community development and community engagement — all in the service of economic development and job growth for Detroit.

McCauley said graduate programs would focus on technology, robotics, sustainability and computer science, with inaugural degrees in robotics and electrical engineering sponsored by the College of Engineering, urban technology from A. Alfred Taubman College of Architecture and Urban Planning, and sustainability and just transitions from the School for Environment and Sustainability.

“We look forward to deepening our connections with Detroit through service and education, and to continued partnership and engagement across the Detroit community as this exciting endeavor moves forward,” McCauley said.

The center will increase U-M’s ability to support academic and research activity in the city while sparking more engagement with the Detroit community from faculty and students, and will support ongoing university programs for Detroit high school students such as the Michigan Engineering Zone and ArcPrep.

In addition to the academic programs, the Center for Innovation also will provide non-credit-based talent development programs that will cover in-demand skill areas, such as programming, data science, entrepreneurship, sustainability and leadership.

“These efforts have already begun this year, including a series of successful youth camps and adult learning programs offered to Detroit residents in the form of the ‘Saturdays in the D’ program. We look forward to hosting these activities in the U-M Center for Innovation once constructed,” McCauley said.

Baird noted that, with this donation, Ross has given more than $460 million to U-M.

“Mr. Ross has deep family roots in Detroit, and he is incredibly committed to both the university and the Michigan community,” Baird said. “From its onset, he has been a stalwart supporter of this very exciting opportunity for U-M, Detroit and the state of Michigan.”

Regents also approved $20 million from the overall project budget to go for early bids to specialty contractors and for site preparation. Regents will be asked to approve the remaining construction contracts and schedule when the schematic design is presented for approval, Chatas said.

Chatas said UMCI would be the first of three buildings to go up on the 4-acre property owned by Olympia. The land not being used by UMCI would allow for two other buildings to be constructed by a developer at a future date.

Chatas said the early work would include design assistance on the exterior wall system along with mechanical, electrical and plumbing systems.

UMCI will benefit from being near the proposed $1.5 billion, 10-building, mixed-use development that Related Companies and Olympia Development have joined forces to develop in The District Detroit near the Fox Theatre and professional sports stadiums.

As UMCI proceeds, it also presents opportunities for the Rackham Memorial building, located in Detroit’s Midtown, Chatas said. It could offer a chance to collaborate with community partners in new ways.

“We are excited to continue the design, planning and programming process for Rackham Detroit, which is another example of U-M’s commitment to having a positive impact on the people of Detroit,” Chatas said.

Regents approved plans to renovate the Rackham building in December 2021 along with committing $40 million to see it through.

The University of Michigan’s endowment climbed $529 million to a market value of $17.9 billion during the last fiscal year, with distributions at a record $470 million.

The portfolio’s performance was among the highest for the 25 largest college and university endowments, Chief Investment Officer Erik Lundberg said.

The university’s long-term investment portfolio has a 20-year annualized return of 9.9%. That performance is in the top quartile for endowments at higher education institutions and compares to the median 20-year annualized return of 7.6% among such institutions.

The 5.2% return during FY ’23, which ended June 30, comes two years after university endowments across the country experienced explosive growth, with gains at U-M topping 40%. The university’s long-term investment portfolio grew 2.2% in FY ’22.

The FY ’23 growth comes as the university continues to ramp up its investments in energy transition strategies, which includes $590 million in investments over the last three years.

“These investments continue to be a major contributor to the positive investment performance,” said Lundberg, who will share a detailed endowment presentation at the Board of Regents meeting Dec. 7.

“U-M has become an established leader in energy transition investments in higher education and is well on its way to transition the investment portfolio to net zero much sooner than the 2050 goal.”

U-M officials estimate the university could offset 25% of the endowment’s carbon footprint by the end of the current fiscal year and 50% by the end of FY ’25 from already identified investments, although methods for measuring the offset are still in development.

The endowment is a collection of more than 12,600 separate endowment funds, which provide support that is restricted in most cases for specific purposes, such as educational programs, research and professorships.

Endowment distributions of $470 million for FY ’23 supported a variety of university functions, from student scholarships to clinical care. The annual distributions — funds available for university units to spend — have increased each year since 2000 and totaled about $6.3 billion over that period.

On a per-student basis, U-M’s endowment is ranked 79th among all U.S. universities, according to a recent report from the National Association of College and University Business Officers. Unlike several private peer institutions that have similarly sized or larger endowments, U-M supports a much larger student body and campus community.

“Our healthy investment returns contribute hundreds of millions of dollars annually to support the university’s critical mission as a public research institution and health care provider,” said Geoffrey Chatas, executive vice president and chief financial officer.

“Our students, our patients, our employees and the taxpayers of Michigan reap the benefits of the continued strong performance.”

The University of Michigan reported a record $1.86 billion in research volume during fiscal year 2023, which led to critical advancements in diverse areas ranging from artificial intelligence and global infectious disease to microelectronics and social justice.

Total research expenditures, which increased by 8.1% when compared with FY ’22, are an important metric used by peer institutions to measure research and creative practice activity. For more than a decade, U-M has ranked among the nation’s leading public universities in terms of research volume.

“We are, first and foremost, a public research university, and so we have a unique responsibility to apply our experience and expertise to find solutions to the toughest challenges facing communities across Michigan and beyond,” said Rebecca Cunningham, vice president for research and innovation.

“Our university community has exhibited tremendous resiliency time and time again, and their commitment to consistently push the boundaries of research and creative practice, while embracing rapid transformation, will allow us to collectively solve the problems of tomorrow.”

The federal government remains the largest sponsor of U-M research activity, and during FY ’23, the university reported more than $1 billion in federally sponsored research expenditures. This accounts for 56% of the university’s total research volume.

Research expenditures sponsored by the National Institutes of Health totaled $683 million last year, and that support allows U-M faculty to advance projects designed to enhance health, lengthen life, and reduce illness and disability. U-M faculty are leading more than 2,700 active research projects sponsored by NIH, and funding from the federal agency supports more than 4,100 faculty members, postdoctoral fellows and graduate students.

Increased internal investments also played a key role in accelerating U-M research activity during FY ’23. The university reported a record $603 million in internally sponsored research expenditures — a 9.1% increase when compared with FY ’22 — which helped fund enhancements to research-related infrastructure and equipment.

Internal investments also aided in the development of several multidisciplinary research initiatives and institutes, including a new program designed to enhance inclusion and equity across the biomedical and health sciences community.

The Office of the Vice President for Research awarded a series of block grants during FY ’23 to support arts and humanities activity, including three fieldwork projects that explore the intersections of music and politics in Uganda, Kenya and Ghana.

President Santa J. Ono also launched a universitywide strategy to amplify research and scholarship, which has bolstered resources and personnel to support faculty so they can pursue innovative projects and enhance equitable outcomes.

“The University of Michigan was envisioned as America’s first true research university, and I could not be more excited to see us strengthening and expanding our efforts, joining together with our funding partners and world-class students, staff and faculty to have a profound impact on the great challenges of our time,” Ono said.

The U-M research enterprise continues to play a critical role in driving statewide economic growth, enhancing workforce development by supporting employment across large and small businesses. Innovation Partnerships, a unit based in OVPR that serves as the university’s central hub for research commercialization activity, helped launch 25 new startup companies during FY ’23.

Many of these companies are now based in southeast Michigan, and they range in scope from developing innovative therapies for the treatment of fibrosis to designing technologies that aid in substance abuse monitoring.

U-M research also generated a record 580 new inventions and 145 new U.S. patents last year, which reflects the university’s commitment to translating research for broad societal impact.

Enrollment at the University of Michigan’s Ann Arbor campus grew again this fall, making the university the largest and most sought-after public research institution in the state.

Total enrollment reached 52,065 students — passing Michigan State University’s 51,000 total enrollment — and includes a record number of incoming students with 7,466 first-year students and 1,414 transfer students.

With total enrollment up 2% from 2022, undergraduate enrollment increased by 3% from 32,695 undergraduate students last year to 33,730 students this year.

Ph.D. student enrollment rose 5% this fall from 5,477 last year to 5,742 this year, with the university welcoming 32% more first-year Ph.D. students than last year. Overall graduate and professional school enrollment declined slightly from 18,530 to 18,335.

“Our record enrollment demonstrates that students from all backgrounds are continuing to see the value in a University of Michigan education,” said Adele C. Brumfield, vice provost for enrollment management.

“U-M is a place of educational excellence that features a vibrant community with rewarding student life experiences, access to innovative facilities and research and a caring and engaged faculty and staff.”

With a record 93,745 applications, interest in the university from first-year and transfer students continues to grow. The university received 87,632 first-year applications, a 4% increase over last year and 6,113 transfer applications, a 9% increase. This mirrors U-M’s significant five-year application growth trend, with a 35% increase for first-year students and 43% for transfers from 2019-23.

The university is a top choice for in-state students, with 78% of first-year and transfer students who are admitted to the university choosing to enroll.

Erica Sanders, assistant vice provost of enrollment management and executive director of undergraduate admissions, said there are many reasons for that number.

“Throughout the recruitment process, we work to ensure that students and families recognize that U-M is a place where students will learn and grow as they pursue their passions,” Sanders said.

“We also strive to make the university accessible to students from all backgrounds, providing in-person and virtual experiences, travel stipends and fee waivers to ensure that all are able to truly experience the university, either in-person or in their home.”

Fall 2023 incoming undergraduate students

The 8,880 students in U-M ‘s incoming class are helping to diversify the campus community. The class consists of more first-generation students and students from low-income backgrounds, as well as a greater number of students of color, which comprise 44% of this year’s incoming class.

Students of color include those who identify as Asian, Black or African American, Hispanic or Latino/a, American Indian/Alaska Native, Native Hawaiian/Other Pacific Islander, multiethnic, and those who indicated two or more race/ethnicities.

“During challenging times, the university has shown progress in attracting and enrolling students of color,” Brumfield said. “While we still have strides to make, the increased diversity of the incoming class shows that our race-neutral admissions efforts show promise.”

Compared to last year, first-generation students increased by 9%, students from low-income backgrounds increased by 1%. The number of students of color increased by 16%, which includes a 25% increase in Black or African American students — from 381 to 475 — and a 29% increase in Hispanic or Latino/a students — from 927 to 1,196.

With more than 50% of incoming students hailing from the state of Michigan, nearly every county is represented in the student body. The global reach of the university also is demonstrated with students from all 50 U.S. states, the District of Columbia and 65 countries.

U-M’s commitment to financial aid continues

The university continues to demonstrate a strong commitment to financial aid, recognizing the importance of making the university accessible and affordable to students.

This fall, preliminary data shows that more than $351 million in financial aid — including federal, state, institutional and private funds — was disbursed to more than 24,000 undergraduate students. This is an increase of $18 million over last year. Additional aid will be disbursed to students throughout the year.

The Go Blue Guarantee, the university’s campaign to support in-state students from low- and moderate-income backgrounds, was recently expanded to include students from families with assets and incomes of $75,000 or less. Because of initiatives like this, U-M was recognized as a High-Flier, a national leader in college access and success, earlier this year by the American Talent Initiative.

“The university’s commitment to providing generous financial resources, allows more students to choose U-M and thrive once they arrive here,” said Tammie L. Durham Luis, assistant vice provost of enrollment management and executive director of financial aid. “We work to educate students on that commitment so that they can make an informed decision.”

U-M’s final enrollment data is based on data from the Sept. 18 fall census date.

“We’ve enjoyed welcoming the incoming undergraduate class to the university and having returning students back this fall, and can’t wait to see what they all accomplish,” Brumfield said.

The University of Michigan took another step toward developing a new $631 million Central Campus residential complex, as the Board of Regents approved the project and updated construction timeline Sept. 21.

The new housing and dining project, located between East Hoover Avenue and Hill Street, will meet the demand among undergraduate students for affordable, on-campus housing on Central Campus.

Construction on the 2,300-bed and 900-seat dining hall facility, which was previously expected to roll out as a phased approach beginning in fall 2025, is now expected to be completed by summer 2026 due to complexities with the site.

The facility, which received schematic design approval in February, will include five residence halls, ranging between five and seven stories, and a series of green courtyard spaces and quadrangles along a broad pedestrian walkway.

During the meeting, Martino Harmon, vice president of student life, said that during phase two of the project, a space within the development will be named to honor Raoul Wallenberg in the area where he lived as a student in 1931.    

Wallenberg, a 1935 graduate of U-M who served as a Swedish diplomat during World War II, is considered a great humanitarian whose actions saved thousands of lives during the Holocaust.  

In order to keep the project on schedule, regents voted in May to continue critical site work, including drilling of geothermal wells, during the summer months and developed an agreement that expenditures would not exceed $30 million, in order to maintain the project’s expedited timeline. Expenses from the early sitework were rolled into the final project budget.

The university also entered into a development agreement with American Campus Communities to manage the project and meet the proposed project schedule. In December 2022, the Board of Regents approved Robert A.M. Stern Architects, an architectural firm, to design the facility.

The housing plan will be developed to align with the university’s stated carbon neutrality goals. The dining hall, for example, will use geothermal exchange systems for heating and cooling, as well as an innovative all-electric design for both the housing and dining facilities.

It also incorporates new energy-efficient building standards and solar panels on the roof. The complex is designed to earn LEED Platinum certification.

Funding will be provided by reserves and bond proceeds, with debt service paid from Housing resources.

A groundbreaking ceremony is scheduled for noon-1:30 p.m. Oct. 13 at the project site.

Elbel Field

To proceed with the Central Campus housing and dining project, plans also included relocating and designing a new Elbel Field one block north of the current field.

The new field will provide a new $15.4 million practice and teaching facility — among the best in the nation — for the Michigan Marching Band.

Due to some unexpected technical challenges with the site related to stormwater management, the project timeline for the new Elbel Field has been extended. University officials expect the new Elbel Field to be ready for the 2024 football season.

The band will continue to use the existing Elbel Field, then relocate to Ferry Field once the residential construction begins.

The new practice area will be 2.7 acres, as opposed to 1.5 acres at the existing Elbel Field. The main field will be sized and oriented in a north-south position to match the game field at Michigan Stadium.

The University of Michigan remains the No. 3 public university in the country for undergraduate education, according to the 2024 U.S. News & World Report Best Colleges list.

U-M also moved up four spots from last year to place 21st overall among both public and private institutions on the rankings that were released Sept. 18. It has held the No. 3 public university title every year since 2019.

The other public institutions in the U.S. that made the top 25 were the University of California, Los Angeles, at No. 12, the University of California, Berkeley, at No. 16 and the University of Virginia and the University of North Carolina at Chapel Hill, which both ranked No. 22.  

The annual Best Colleges list includes data for nearly 1,500 institutions.  

U-M officials said they are pleased that the university continues to be recognized as a leader in higher education. They also noted that rankings don’t consider all the factors that contribute to the quality of an institution, and that it’s important to focus on a university’s commitment to academic excellence and societal impact.

U.S. News & World Report officials said they refined the methodology used for this year’s rankings to place a greater focus on outcome measurements and data that are universally reported by schools or obtainable from third-party sources.

For institutions categorized as national universities, including U-M’s Ann Arbor campus, the rankings were based on 19 measurements of academic quality:

• Peer assessment (20%)
• Graduation rates (16%)
• Graduation rate performance (10%)
• Financial resources per student (8%)
• Faculty salaries (6%)
• Standardized tests (5%)
• First-year retention rates (5%)
• Borrower debt (5%)
• College grads earning more than a high school grad (5%)
• Pell graduation rates (3%)
• Pell graduation performance (3%)
• Student-faculty ratio (3%)
• First-generation graduation rates (2.5%)
• First-year graduation rate performance (2.5%)
• Full-time faculty (2%)
• Citations per publication (1.25%)
• Field weighted citation impact (1.25%)
• Publications cited in the top 5% of journals (1%)
• Publications cited in the top 25% of journals (0.5%)

For regional universities such as UM-Dearborn, the rankings were based on 13 factors:

• Peer assessment (20%)
• Graduation rates (16%)
• Graduation rate performance (10%)
• Faculty salaries (8%)
• Financial resources (8%)
• Pell graduation rates (5.5%)
• Pell graduation performance (5.5%)
• First-year retention rates (5%)
• Borrower debt (5%)
• College grads earning more than a high school grad (5%)
• Standardized tests (5%)
• Student-faculty ratio (4%)
• Full-time faculty (3%)  

Five factors that were previously part of the ranking formula — alumni giving, class size, high school class standing, the proportion of instructional faculty with terminal degrees, and the proportion of graduates who borrowed federal loans — were removed. Some other factors saw increases or decreases in weight.  

In the regional university category, UM-Dearborn was ranked the No. 3 public regional university in the Midwest, moving up two spots from last year. It jumped from No. 30 to No. 17 on the overall list of the best Midwest regional universities.  

The 2024 Best Colleges List also includes data about specific fields of study.

The Stephen M. Ross School of Business kept its No. 4 ranking on the overall list of undergraduate business programs. It maintained or improved its ratings on 11 of 12 specialties, with accounting, entrepreneurship, finance, marketing and production operations/management all ranked within the top five.  

The College of Engineering moved up one spot — from No. 6 to No. 5 — on the list of top engineering programs. Four of 10 engineering specialties either placed the same as last year or moved up in the rankings, with environmental, industrial/manufacturing and materials listed in the top five.  

The School of Nursing was ranked No. 7, down from its No. 3 ranking last year. 

New this year to the Best Colleges list were rankings of undergraduate economics and psychology degree programs. U-M ranked No. 15 in economics and No. 3 in psychology.

The university received high marks in other areas as well. It was ranked:

• No. 11 in computer science education.
• No. 16 for undergraduate teaching.
• No. 20 for first-year experience.
• No. 3 in learning communities.
• No. 11 in most innovative schools.
• No. 18 for co-ops/internships.
• No. 20 for study abroad.
• No. 5 for undergraduate research/creative projects.
• No. 24 for senior capstone.
• No. 207 in social mobility.
• No. 68 in the best value schools category.
• No. 7 best college for veterans.

(CORRECTION: This article has been updated from its original version to reflect a change in the rankings for UM-Dearborn.)

University of Michigan Health has been recognized as the top hospital in Michigan, according to U.S. News and World Report’s Best Hospitals Rankings for 2023-24.

U-M Health, the clinical division of Michigan Medicine, also was the only hospital in the state named to the nation’s Honor Roll of hospitals, recognizing the institution for strong overall performance.

“It’s an honor for U-M Health to receive continued recognition for our exceptional level of patient care,” said David Miller, president of the U-M Health System and executive vice dean for clinical affairs for the Medical School.

“We are grateful for the hard work and commitment of our team members who make our patients a priority every single day.”

U.S. News generates its rankings by evaluating data from 4,500 hospitals on four different categories: patient experience, outcomes, care-related factors and expert opinions from physician surveys.

“These rankings are one measure of U-M Health’s dedication to delivering high-quality care to every patient who comes through our doors,” said Marschall S. Runge, dean of the Medical School, CEO of Michigan Medicine and executive vice president of medical affairs.

“We are proud of our teams whose commitment to innovation and exemplary care helps earn this honor.” 

U-M Health is ranked No. 8 in the country for ophthalmology, and received national rankings in the following specialties:

• Cancer (34)
• Cardiology and heart surgery (22)
• Diabetes and endocrinology (42)
• Ear, nose and throat (12)
• Gastronintestinal and GI surgery (28)
• Geriatrics (21)
• Neurology and neurosurgery (37)
• Orthopedics (24)
• Pulmonology (19)
• Rehabilitation (27)
• Rheumatology (11)
• Urology (19)

U.S. News & World Report also awards “high performing” designation to hospitals for a number of specific procedures and conditions. U-M Health, as well as Sparrow Health System and UM Health-West, are named as high performing in a range of specialties.  

Additionally, U-M Health was also recently ranked No.9 in Expertscape’s All-Around Expert Medical Centers for high rankings in 21 different medical and surgical specialties. U-M Health is among just 29 hospitals in the country rated as expert in all 21 specialties tracked by Expertscape.

Another 450 in-state students will be able to attend the University of Michigan tuition-free as part of a 2023-24 budget that expands the Go Blue Guarantee and prioritizes affordability and key investments in student, faculty and staff success.

The Board of Regents approved a spending plan June 15 that increases the family income and asset thresholds to up to $75,000 each for U-M’s signature free-tuition program. 

The $2.79 billion general fund budget for the Ann Arbor campus covers the fiscal year that begins July 1. It is part of an approved, universitywide consolidated budget package that also includes spending plans for Michigan Medicine, UM-Dearborn, UM-Flint, Athletics, Michigan Housing and student fees.

“The proposed fiscal year ’24 budget advances our highest priorities, builds on our strengths and sets the stage for a bold era of change,” Laurie McCauley, provost and executive vice president for academic affairs, said at the regents meeting.

“The proposed budget supports both our current position as an exemplary public university and our ambition — in the best sense of that word — to do more. It does so while maintaining the fiscal discipline that is a hallmark of responsible stewardship of our resources.”

The regents unanimously approved the budget measure, with Regent Paul Brown absent.

The budget includes a 2.9% increase in the rate for in-state undergraduate tuition and fees at the Ann Arbor campus, which is below the projected rate of inflation.

The change will be offset by a 7.8% increase in undergraduate financial aid that will cover the tuition increase for most in-state students with financial need — making this the 14th consecutive year that additional financial aid resources will cover the full tuition increase for most resident undergraduates receiving financial aid.

Graduate students and out-of-state undergraduate students will see a 4.9% increase in tuition and fees.

The in-state “sticker price” tuition rate for undergraduates, along with fees, will increase by $492, for an annual rate of $17,228. Tuition and fees will increase by $2,738 for nonresident undergraduate students, for an annual rate of $58,072. Tuition and fees are based on full-time enrollment, which is defined as 12-18 credit hours.

Regent Sarah Hubbard said keeping U-M affordable is a top priority.

“The ability to maintain very low, below-the-rate-of-inflation increases in Ann Arbor — very modest increases in Flint and Dearborn, as well — I think has been a very positive result of the oversight the board is providing to the university,” she said.

During the past decade, spending on undergraduate financial aid has increased by an average of 10% annually. As a result, 60% of in-state and 41% of out-of-state undergraduate students pay less than the published cost of attendance.

University officials said for most resident undergraduate students who receive need-based financial aid, the net cost of attending U-M is actually less than it was 10 years ago. And nearly 3,000 fewer students are taking out loans compared with a decade ago.    

The expansion on the Ann Arbor campus of the Go Blue Guarantee, a free tuition program for qualifying Michigan residents, is another piece of U-M’s continuing efforts to ensure a world-class education remains accessible regardless of a student’s financial means.

Officials said increasing current eligibility thresholds — family incomes of up to $65,000 and assets of up to $50,000 — to up to $75,000 for each part will expand participation by approximately 450 students every year.

“This program, the Go Blue Guarantee, is really life-changing for a lot of our students,” Regent Jordan Acker said. He noted that the “revolutionary” program has inspired similar initiatives at other universities.

“So, as we lead the way again by increasing (the eligibility thresholds) to $75,000, I’m just hopeful that we will continue to lead the way in making sure that middle-class and working-class Michiganders, especially, are able to attend this university and to graduate without student debt.”

Today, nearly 3,400 in-state undergraduate students, including about 1,300 students who participate in the Go Blue Guarantee, pay no tuition because of financial aid.

The budget for the upcoming fiscal year focuses on enhancing student success and well-being, with investments in mental health and wellness services, student organizations, sustainability programs, leadership and student-facing technologies.

McCauley highlighted the launch of a program to help students pursue global study and the creation of an LSA Bridge Scholars Plus program that will provide a full-year, living-learning community experience.

There will be no increase in the University Health Service, Central Student Government or Student Legal Services fees, which will remain at $209.74, $11.19 and $8.50, respectively, per semester.

Additionally, the budget reflects investments in initiatives designed to promote faculty and staff success. It has funding for several faculty recruitment and retention programs, support for staff professional development, investment in research administration, resources for improving talent acquisition and human resource functions, and a 4% merit pay program. 

“We recognize the importance of climate and culture to our workforce, and continue to work with stakeholders across campus to articulate workplace values and create a community where ethics and integrity are central and all feel valued,” McCauley said.

The FY ’24 budget also provides for:

• Additional investment in key research areas, including electric vehicle technology, neuroscience, firearms injury prevention, biointerfaces and digital studies, as well as investment in research infrastructure.
• A landmark investment in doctoral students that provides approximately $12.5 million to support summer funding.
• Hiring key leadership and funding collaborative student programs related to sustainability, such as Planet Blue Ambassadors.
• Additional investment in campus safety training, prevention and protection, including enhancements to the Division of Public Safety and Security mobile app that will improve the university’s emergency alert and reporting systems.
• Support for U-M’s new and ongoing engagements in Detroit.
• The expansion of a collaboration between the College of Engineering and the Institute for Social Research on rural-life research and the unique challenges facing rural areas.

McCauley highlighted cost-containment measures that will lead to roughly $31 million in ongoing savings, including efforts by units, schools and colleges to restructure staff following attritions and retirements and the movement of more recruitment activities online to save on travel expenses.

“This work substantially reduces the pressure on tuition, which would be significantly higher without this ongoing crucial scrutiny on containing costs,” McCauley said.

The budget plan estimates a 5.1% increase in state appropriations, which is approximately the mid-point of current budget proposals put forth by the governor, state Senate and state House of Representatives. The state, which operates on a different fiscal calendar, must approve its budget by the end of September.

Housing, dining rates rise to cover increased costs

Regents also approved a 5.2% increase in residence hall room and board rates for the upcoming fiscal year. The increase reflects continuing inflationary pressures that have led to higher costs for utilities, labor, food and maintenance needs.

The cost per student for a double room with a basic meal plan will total $13,856 for the fall and winter terms, an increase of $85 per month. Need-based grant aid will mitigate this increase for students with financial need.

Michigan Housing and Michigan Dining are self-funded auxiliary units of Student Life within the university.

The university has undertaken several strategies that advance its commitment to achieving carbon neutrality across the Dearborn, Flint and Ann Arbor campuses, including Athletics and Michigan Medicine.

They include a report on the use of $300 million in “green bonds,” updated sustainability dashboards and building guidelines, and becoming the first university to join the First Movers Coalition, which aims to advance sustainable industrial technologies.

“Meaningful climate action — especially at a place the size of the University of Michigan — involves a number of complementary efforts,” President Santa J. Ono said. “As we reduce our greenhouse gas emissions, enact new sustainable building standards and join leading partnerships, we’re sharing our progress to spur our campus community toward further action.”

Green bond report

Last month, the U-M Treasurer’s Office published an inaugural report detailing how an initial series of green bonds — funding issued for sustainable capital projects — is advancing university sustainability and carbon neutrality efforts.

“Our first issuance of green bonds is about more than getting projects in the ground — it’s about living our ideals and continuing forward on a path we have been walking for over a century,” wrote Geoffrey Chatas, executive vice president and chief financial officer.

“The $300 million in green bonds issued in March 2022 will allow us to build on our longstanding legacy of sustainability — from our first forestry class in 1881, to the launch of the U-M Biological Station in 1909, to our role in the inaugural Earth Day in 1970.”

U-M plans to allocate 91% of the bonds to sustainable construction and renovation projects, as well as 7% to renewable energy infrastructure and 2% to clean transportation.

As of March 31, nearly $8 million in green bond proceeds had been expended. Noteworthy allocations include the Hayward Street geothermal exchange installation, the Central Campus Recreation Building, electric bus procurement, a new building for the College of Pharmacy, and the recently announced new Central Campus residence hall.

The report notes that green bonds are funding efforts that advance environmental justice, with a focus on people who may be disproportionately and adversely affected by a transition to a low-carbon economy.

The Treasurer’s Office also unveiled a new interactive project map that allows users to explore sustainable projects financed by green bonds. It can be found in the university’s updated sustainability dashboards.

Dashboard 2.0

As sustainable investing efforts and disclosures move ahead, U-M launched an update to its greenhouse gas emissions-reduction dashboard, which tracks universitywide progress toward carbon neutrality.

Version 2.0 includes a new trendline covering the square footage of U-M buildings over time. Total university emissions have declined by more than 25% since 2010, despite a 15% increase in building space.

U-M is on pace to reduce Scope 1 and 2 greenhouse gas emissions — those that come from direct sources and purchased electricity — by 50% by 2025, exceeding United Nations Intergovernmental Panel on Climate Change guidance to reduce emissions by 45% by 2030.

U-M also unveiled a parallel dashboard — managed by the Office of the Vice President for Communications, the Office of Campus Sustainability, and Information & Technology Services — that tracks Ann Arbor campus sustainability metrics. The tool allows users to gain a quick glimpse of campus performance across an array of sustainability subtopics, including energy, greenhouse gas emissions, transportation, waste, and land and water use.

U-M community members played a key role in helping the dashboards take shape. Students taking part in an undergraduate course on “Sustainability and the Campus” recommended strategies to better visualize carbon neutrality and sustainability metrics that will inform future versions.

“Climate action requires thoughtful engagement,” said Drew Horning, interim assistant vice president for campus sustainability. “We will continually improve our progress tracking tools with community feedback, and we’re grateful for the ideas that students have recently brought to the fore.”

Cross-sector collaboration

U-M recently became the first university to join the First Movers Coalition, a global partnership led by the U.S. State Department and the World Economic Forum, in collaboration with the U.S. departments of Commerce and Energy.

FMC includes 80 member companies, which aim collectively to send a market signal to spur sustainable technologies across seven industrial sectors that together account for 30% of global greenhouse gas emissions: aluminum, aviation, chemicals, concrete, shipping, steel and trucking.

Members endeavor to collectively build the clean and profitable supply chains of the future.

In aviation, FMC members commit to procuring sustainable aviation fuel, a biofuel made from renewable feedstocks such as used cooking oil, tallow or agricultural residues. Sustainable aviation fuel is a less-carbon-intensive alternative to conventional jet fuel, with current potential to reduce lifecycle emissions by more than 75%.

U-M previously announced a partnership with Delta Air Lines to spur the widespread adoption of sustainable aviation fuel and reduce lifecycle emissions resulting from university-sponsored travel. The university also is working within the Delta partnership to foster research collaborations involving U-M sustainable aviation experts.

Sustainable construction standards

In collaboration with faculty at the A. Alfred Taubman College of Architecture and Urban Planning, Facilities & Operations recently updated standards for building construction and renovation to reflect university carbon neutrality goals.

In addition to adopting maximum emissions targets, U-M design guidelines now:

• Codify procedures for project teams to track and verify project-specific carbon targets.
• Require embodied carbon analyses to inform design decisions.
• Require new construction projects to exceed energy code standards by 20%; and major renovation projects to exceed standards by 15%.
• Require that carbon reduction, energy savings and water conservation goals are established early and evaluated throughout the design process.
• Require hot water used for heating systems to be compatible with low/medium-temperature hot water, in preparation for future heating technologies.
• Have new plumbing specifications that include lower-flow fixtures to reduce potable water use.

With new standards in place, Facilities & Operations is implementing pilot programs centered around building air leakage testing, building envelope sealants, ongoing verification of building system performance and refined maintenance practices.

The University of Michigan is authorized to establish up to $1 billion in additional standby lines of credit as a flexible alternative funding source for contingency purposes during a period of economic uncertainty and financial market volatility. 

The Board of Regents approved the measure July 21. It doubles an existing authorization for lines of credit available for general operating purposes the board granted in March 2020.

“These lines of credit will be used primarily for contingent liquidity support for general corporate purposes,” wrote Geoff Chatas, executive vice president and chief financial officer, in a recommendation to the board.

“We believe this expansion to be a prudent and proactive course of action, at relatively inexpensive pricing, in light of significant uncertainty during an unprecedented period of inflation, supply chain disruption, geopolitical tensions and lingering COVID impact.”

The authorization extends through 2032, and no credit agreement entered into under this resolution could extend beyond that period without additional authorization.

The new lines of credit, like the existing lines of credit and the university’s outstanding bonds and commercial paper notes, will be supported by a pledge of the university’s general revenues.

The University of Michigan has successfully issued $2 billion in bonds to finance planned future construction and renovation projects, including $1.2 billion as a century bond, the largest of its kind ever issued in the higher education sector. 

The deal marks the university’s first issuance of a century bond, which is structured to be repaid in 100 years instead of the more traditional 30 years.

Barclays was the lead underwriter for the university, and Loop Capital Markets, a minority-owned investment bank, acted as co-lead.

The university priced the bonds this week at a rate of 4.45 percent for the century bonds and 3.5 percent for the 30-year bonds, or a blended rate of 3.98 percent for the entire $2 billion issuance. 

“Strong demand from investors, both in the U.S. and abroad, allowed the university to upsize the transaction beyond what was originally expected,” said Geoff Chatas, executive vice president and chief financial officer.

The Board of Regents approved a resolution in February granting authorization for the issuance of up to $2 billion in general revenue bonds. Given volatility in the markets, the university initially went to market with a $1.5 billion offering.

“Due to the confidence in the reputation, strength and stability of the university and an effective marketing campaign that successfully targeted a significant audience of international investors, we were able to generate more orders for bonds than were originally available,” Chatas said.

“This oversubscription allowed us to place the full $2 billion in bonds, with $1.2 billion of that coming as a century bond. This is a fantastic outcome for the university considering the volatility in bond markets.” 

The deal provides the university a great opportunity to prefund planned debt needs for capital projects at historically low interest rates for years to come, Chatas added.

Some of those projects include the construction of three new undergraduate residence halls on North Campus, continued work on the new Michigan Medicine Clinical Inpatient Tower and replacing the Central Campus Recreation Building.

“Regardless of where market rates go from here, this committed funding will provide long-term rate stability for the university,” he said.

In addition to the century bond, $300 million of the transaction was issued as a series of green bonds, another first for U-M. Green bonds can only be sold and used to fund “green” capital projects that support climate-related or environmental goals.

At U-M, that includes a number of projects aligned with recommendations made by the President’s Commission on Carbon Neutrality, such as plans to build a geothermal heating and cooling system for the Leinweber Computer Science and Information Building.

“We believe that the size of and detail provided with this series of green bonds made clear to the market what we all already know —the University of Michigan is committed to taking serious action related to reducing its carbon footprint,” Chatas said.