MSU-M is trying to ease a projected deficit of nearly $5 million for fiscal year 2015.
The plan is to offer dozens of faculty members early retirement.
University President Edna Szymanksi says the university will be offering about 45 faculty members and staff early retirement incentives.
The deficit stems from two main sources.
The first is that there are now less high school students to enroll.
Second, four years ago MSU-M made its admission standards tighter, which meant an 11% drop in enrollment.
If not enough early retirement offers are accepted, the university will have to start laying off adjunct or temporary professors.