Michigan Technological University's board has approved a 3.9 percent tuition increase for in-state undergraduates.

The Houghton school's Board of Control on Thursday approved a general fund budget of $165.5 million for fiscal year 2013.

Michigan Tech says the tuition hike comes in at less than the 4 percent cap set by the state for universities to receive tuition restraint funding.

The university says an increase in state funding enabled Michigan Tech to pass its lowest tuition increase in eight years.