The tuition increases for in-state students were less than last year’s projected increase of 4.9 percent to benefit the greatest number of students, MSU President Lou Anna K. Simon said. The remaining 2.4 percent of the 4.9 percent total increase is suspended until summer 2011.

The budget for the 2010-11 is more than $1.018 billion, and also includes a 13 percent increase in student financial aid.

“(The increase) affects 80 percent of our students,” Simon said. “We wanted to give the greater group of students the higher benefit.”

The tuition increase might be affected by state appropriations. With that amount uncertain, a stipulation was included in MSU’s budget that allows Simon to increase tuition mid-year should state appropriations fall below projections.

The budget passed Friday projects an appropriation of slightly more than $282 million. MSU’s year-to-date appropriation from the state is about $291.8 million.

The board also passed a preliminary budget for 2011-12, which predicts an even sharper drop in state appropriations to slightly more than $240 million. The preliminary budget caps any tuition increases for 2011-12 at 7.2 percent.

Simon said the university was able to increase tuition by a lower percentage by using government stimulus funding last year. She also said last year’s plan helped the university be transparent about the cost of tuition.

“Knowing is better than not knowing,” Simon said. “Everyone who applied thought they would have a 5 percent (increase), and they’re returning and staying because of that. This will help families who were planning for (5 percent) and now have to spend less.”

Faculty, academic staff and various campus labor groups have agreed to forego one year’s pay raise, saving the school approximately $12 million, said Dave Byelich, director of MSU’s Office of Planning and Budgets.

“People understand the university and what we’re going through,” Simon said.

The board also approved several campus construction projects, including remodeling the Shaw Hall dining hall, combining two West Circle dining halls into one, refurnished location, and a new addition to Wells Hall.

Approved with the addition to Wells is the demolition of the more than 100-year-old Morrill Hall, which currently houses the English and history departments.