More than 15 years ago, it was rumored that the University of Michigan was going to go private. Reasons cited mainly related to state budget pressures. Mary Sue Coleman denied these rumors and reiterated the university’s commitment to its public mission. Today, UM remains a public institution primarily serving the Michigan community but attracting students from all across America and abroad.
Public Status: No Change, No Plans to Privatize
Despite ongoing challenges in state funding, the University of Michigan remains a public research university. There have been no moves or serious discussions toward privatization. The university’s governance structure by the Board of Regents, a body elected by Michigan, ensures accountability to the public and the state’s constitutional framework. This structure, which has existed since the 19th century, makes privatization both unlikely and legally complex.
State Funding: Still Important, But a Smaller Share
State appropriations, once the primary funding source for U-M, have gradually become a smaller portion of the university’s overall budget. For the 2025 fiscal year, U-M’s Ann Arbor campus anticipates a state operating appropriation of $365.5 million, a modest 2.5% increase over the previous year. However, when adjusted for inflation, this figure is equivalent to the level of support received in 1963. If state funding had kept pace with inflation since 2003, U-M would have received over $234 million more in 2025.
Financial Health and Continued Growth
U-M’s financial management remains strong. The university’s endowment reached $19.2 billion in 2024, and its annual budget is $13.1 billion. Careful fiscal stewardship has allowed U-M to invest in research, student opportunities, and campus infrastructure, even as state support has stagnated.
Mission and Impact
U-M’s mission continues to focus on serving Michigan and the world through research, teaching, and community engagement. The university is classified as an “R1: Doctoral Universities – Very high research activity,” and it remains a founding member of the Association of American Universities.
Conclusion
Well it is obvious the rumors were not true, and The University of Michigan is not going private. UM will remain a public institution well in the future.