The University of Montevallo is raising tuition, laying off staff and removing some academic programs as it works to address a multimillion dollar budget shortfall.

The small public college, founded in 1896, has been running a deficit for at least four years. It is currently in the red by about $8 million, AL.com confirmed with Wesley Hallman, communications director. The school’s deficit was as high as $12 million in 2021-22, according to university finance reports.

Faculty and staff salaries make up the biggest chunk of the school’s regular expenses, about $24 million, according to university expenditure reports from October 2024.

For the first time in seven years, there will be a tuition increase for incoming students in August 2025. Rates will go up 3.5% from $403 per credit hour to $417 per credit hour for undergraduates.

The board of trustees recently also approved increases to parking and streaming fees to boost revenue.

The university also is looking to cut and streamline some academic programs. It terminated its bachelor’s program for Deaf and hard of hearing education in May. This was the only program of its kind in Alabama. It enrolled 15 students.

“The decision to discontinue an academic program is one of the hardest choices a university can make,” Courtney Bentley, provost and senior vice president of academic affairs told AL.com in a statement. “We will continue to fully support every student currently enrolled in the program and those students will graduate with a bachelor’s degree in education of the Deaf and hard of hearing from UM.”

The school enrolled about 3,000 students last year.

Montevallo receives a majority of its revenue, about 37%, from state appropriations.