Proposed partnership with Legislature could guarantee $40 million to universities

Tom Barton

A proposed four-year partnership between the Legislature and the three regent universities could make tuition rates the most predictable they’ve been since 1999.

For the first time in six years, tuition rates could no longer increase to adjust for decreased state funding.

In its long struggle to keep tuition rates steady, the Board of Regents has drafted recommendations for an agreement with the Iowa Legislature to secure a guaranteed increase of $40 million dollars to university operating budgets annually during the next four years.

At its board meeting at 9 a.m. Wednesday in Iowa City, the regents will consider the state appropriations increase, which would begin in the 2006 fiscal year and end in fiscal year 2009.

Although the partnership requires a significant commitment from the state, the universities would, in turn, match funds by reallocating $1 for every $2 spent by the state to areas of pressing needs and strategic initiatives — for a $20 million annual reallocation.

If the program is adopted and appropriations are funded at the regents’ requested level, there would be no need to adopt supplemental tuition requests beyond base inflationary increases set by the Higher Education Price Index for resident undergraduates, regents said.

“This partnership will help show that future increases aren’t arbitrary,” said Regent Amir Arbisser, Davenport. “This will give more structure to something that in the past has been mysterious.”

According to university administrators, $40 million is the needed amount for the three regent universities to operate fully funded, as well as to allow Iowa State and the other universities to reach nationally competitive salaries to recruit and retain faculty members. The money would also establish new faculty positions, increase class offerings and develop new research programs.

Iowa State is expected to receive $15.4 million of the $40 million.

Iowa taxpayers will pay an additional $14 per year to fund the four annual increases of $40 million.

“It’s a great step in the right direction,” said Mark Chidister, assistant to ISU President Gregory Geoffroy. “If the Legislature does indeed increase the universities’ appropriation level, it will signal that they are willing to invest in higher education in the state of Iowa.”

Arbisser said the board has been working with legislators to gather feedback on the partnership, yet discussion is in the early stages.

“We want the Legislature’s endorsement of what we’re talking about,” Arbisser said. “Based on individual responses from legislators, it seems that they are very interested and appropriately cautious because economic times are so unpredictable.”

If the appropriation plan is not approved, the board will consider changing tuition policy to allow universities to request differential tuition rates.

“Supplemental tuition could be used as a contingency plan if appropriations don’t meet requests; however, it’s preferred that appropriation increases will accomplish meeting the university’s needs,” Geoffroy said. “The policy increases flexibility in a system right now that is very rigid. It simply gives the university flexibility to request different tuition levels to meet the unique needs of Iowa State.”