Updated at 4:17 p.m. Facing a $10 million budget deficit, University of Vermont trustees will consider raising in-state tuition for the first time in five years. Boosting tuition for out-of-staters — which went up 3.5 percent this year — will also be on the table at the trustees’ meeting on Friday, said Ron Lumbra, chair of UVM’s Board of Trustees. “With the budget pressures we have, it’s inconceivable to me that we’ll be able to maintain flat tuition as we’ve been able to do in the past,” Lumbra said in an interview on Tuesday. “There will have to be increases in tuition, no question about it.” The university is also raising an additional $4 million this year by adding $1,000 in fees for students enrolled in the College of Nursing and Health Sciences, Grossman School of Business, and College of Engineering and Mathematical Sciences. Climbing health insurance costs are to blame for the shortfall, according to  Richard Cate, UVM’s interim vice president for finance and administration. The school spends about $100 million annually on employee health insurance, a figure that rose 15 percent last year and is expected to go up another 19 percent in the coming year. “The biggest challenge we’re being confronted with is the significant increase in the cost of health care,” Cate said in an interview on Monday. “It’s those types of things that no organization can sustain for too many years.” [content-2] UVM has made no secret of its struggle to stay financially strong in the rapidly evolving higher education market. The school is a relatively large state institution for a place as small as Vermont, which doesn’t have a large enough pool of high school students to sustain UVM’s 12,000-person undergraduate population. Administrators have been saying for several years that it must attract more out-of-state students if it’s to continue providing the same level of services. Out-of-state undergrads pay about 75 percent more in tuition and fees than in-state undergrads do. That amounts to about $63,544 per year for out-of-state students who live on campus, compared to $36,802 for a student from Vermont. Two years ago, Vermont lawmakers sharply increased UVM’s annual appropriation to more than $55 million. And former UVM president Suresh Garimella made research a priority, bringing in millions more in grant funding. While first-year undergraduate enrollment came in slightly below projections of 2,850, that isn’t playing a significant role in UVM’s budget…