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HOUGHTON -- The Michigan Tech Board of Control met early on Thursday to report a 1.5 percent deficit for the 2011 to 2012 fiscal year.

Michigan Tech officials said their expenses were over budget from $250 million to $248 million. Tech's president, Glenn Mroz, said the deficit was mainly caused by the increase of financial aid that the school gave out due to cuts at the federal level.

"And also because of the increases in health care costs this past year and the increase in the MPSer's payment that goes right back to the state," added Mroz. "We get roughly $40 million from the state and we have to turn around and we've got to give like $5.6 million back to the state, so it's a pretty big cost."

During the meeting the board also announced that MTU met all of their accreditation requirements.

Michigan Tech announced a tuition increase back in June, equal to $538 for Michigan residents. The board of control passed a six percent increase for graduate students and 3.9 percent for undergraduates.

"There are some pretty big drivers that, I think, everybody is struggling with in both the private sector and the public sector, and that's the cost of health care and that's a pretty big item," Mroz said during an interview back in June. "The other thing is that there has been a fair amount of financial aid, both at the state and federal level, that's been cut."

MTU officials also mentioned that the state funding for the college has increased by $1.7 million this year. They added that this is the lowest increase Tech has seen in eight years.