Regents may hike tuition even more after low funding
May 16, 2005
A mid-year tuition increase has been proposed by the Board of Regents in response to funding levels from the legislature that fall well below the board’s $40 million request.
The proposed 3 percent mid-year tuition increase is scheduled to be voted on during the Board of Regent’s meeting in June in Davenport, and the final decision is slated to be made July 14 during the Board of Regent’s meeting at Iowa State. The 3 percent increase would be on top of the already approved 4 percent increase starting fall 2005.
“It is still under discussion at this point,” said Barb Boose, communications officer for the Board of Regents. “It is a concept that was put out there in response to the regent’s concern for adequate funding for the universities.”
Mid-year tuition increases are not common for universities, but uncertainties in funding from the legislature would warrant the decision as needed, she said. Regents want to keep education affordable, but provide up-to-date curriculum.
Roberta Johnson, director of ISU financial aid, said for the 22 years she has worked in finance, this is the first mid-year tuition increase proposed.
“There hasn’t been [a mid-year tuition increase] in recent years. For the pre-1960s period, I can’t really comment,” said Warren Madden, ISU vice president for business and finance. “But for the last 45 or 50 years, there hasn’t been, to the best of my knowledge.”
Johnson said her office is prepared to do everything it can to work with students if the financial burden increases for the spring semester.
“Some students will absorb the increase themselves because they have enough financial aid. They might not spend as much on personal expenses,” she said. “Some students will pay through resources such as their parents, but others will have primarily loan sources.”
Grants, Federal Pell grants, scholarships and work-study programs are non-loan forms of aid and are still available for students who want help meeting the increased tuition.
“Federal Pell grants are not increasing, and it remains to be seen if other resources will increase,” she said. “Even though the university’s commitment has gone up, so have student’s financial needs.”
For ISU students, if a 3 percent increase was adopted, tuition would increase $73 that semester for Iowa residents and $225 for non-residents. That would mean residents would pay $5,707 for a year of tuition and fees, up from $5,634. Non-residents would pay $15,949, up from $15,724.
The 3 percent tuition increase could also pose problems for the university’s budget, said Mark Chidister, assistant to the president for budget planning and analysis.
The original plan was to appropriate $40 million collectively to the three universities from state funds, with Iowa State receiving $16 million. But if the current $22 million funding bill passes, Iowa State would only get approximately $8.8 million. The 3 percent tuition increase would help make up the gap between fundings, Chidister said.
“Any changes will affect plans for the budget,” Chidister said. “We will have to put a plan together, taking into accordance revenue coming at two different times. We will just have to work out the details.”
May 25 is the budget deadline for the Board of Regents, and the budget will become public the week of June 6. Chidister said there is a possibility the deadlines will change once funding is decided.