In the 2012-13 academic year, students will pay an additional $210 per semester, and an in-state undergraduate student taking 15 credit hours will pay about $6,311 per semester.

Total in-state tuition for the 2012-13 academic year is expected to be $12,622.

The board approved a $14 increase per credit hour for resident undergraduates, a $47.75 increase per credit hour for non-resident undergraduates, and approximately a 5 percent increase for all other students.

Budget breakdown

MSU’s budget is $1.27 billion for the 2012-13 academic year, up 3 percent from last year.

President Lou Anna K. Simon said the trustees worked to keep the budget increase low.

Before announcing the increased tuition rates at the board meeting, Simon broke down MSU’s funding and how revenue is dispersed throughout the university.

In the 2011-12 budget, about 23 percent of MSU’s funding was made up of state appropriations, while 69.1 percent was made up of tuition and fees, and 7.9 percent was supported by other university funds, such as investment income and other revenues.

Of that budget, about 64.4 percent went toward salaries, and 76 percent of MSU’s expenses went toward areas that benefited students, such as instruction, academic support, scholarships and fellowships, student services, research and public service.

Human development and family studies senior Cyreshia McKether said she was disappointed to hear that tuition has increased again, and she thinks it is ridiculous that college has become so expensive. Although she thinks college should be free, she finds MSU’s programs to be worth the cost when considering her future, she said.

“I knew MSU was expensive, but I just came anyway based on faith,” she said. “It is worth the cost in the end because it will make my lifestyle better.”

State and financial aid

To lessen the strains tuition increases might place on students, Simon said, the financial aid budget is up an additional 6.5 percent for the 2012-13 academic year.

In the past five years, financial aid budgets have increased 68 percent, with over $103 million currently allocated to that category.

At the meeting, Simon addressed the growing amount of high-need students attending MSU, showing there are 25 percent more high-need students compared to the average number in the past five years.

“There are people who are affected by the decisions we make as individuals,” Simon said. “I know those are real because I talk to their families.”

Simon said it’s important to continue to grow as a university, despite funding setbacks from the state.

Prior to a meeting at Brody Square attended by trustees earlier this week, the state congress released its higher education budget, which determined MSU would receive the same amount in general higher education funds compared to the 2011-12 academic year.

Between 2010-11 and 2011-12, the state cut funding 15 percent, so Trustee Melanie Foster said the lack of further cuts was an improvement.

The state promised additional performance funding to universities that follow guidelines. MSU is set to receive about 1.4 percent of the state’s $36.2 million in allocated higher education funds based on a scale measuring MSU’s performance in degree completion, critical skills, Pell Grant recipients and tuition rates.

One of the requirements is that MSU gets rid of its current mandatory health insurance plan, and university spokesperson Kent Cassella said the university is continuing to work with the governor’s administration on the final details of how the student health insurance policy will be implemented.

Given MSU follows all of the guidelines, including a 4 percent cap on tuition that MSU was under by .5 percent, MSU will receive $3.4 million.

However, President Lou Anna K. Simon said MSU has not been given as much as some other universities in the state.

She also said, on average, Big Ten universities have about 35 percent of their student bodies made up of out-of-state students, while the average at MSU is 25 percent.

“We have the largest number of Michigan undergraduate students in the state, and in this case, one of the smallest appropriating increases in the state,” Simon said during the meeting.

Trustees conflicted

Although the budget did include some financial aid increases, tuition rates were difficult for many trustees to pass, and even put Woodard off from approving the 2012-13 budget.

“In my heart I can’t vote for another increase,” Woodard said. “My concern is you’re just continuing to push the cost onto kids.”

Woodard said more time and money needs to be allocated toward finding other ways to get revenue for the university instead of increasing tuition each year, but could not comment on what
other means could be used to take the financial burden off of students.

Foster said she was surprised that Woodard voted against the plan, and added that Woodard was not at the trustee’s Brody Square meeting earlier this week.

Foster speculated that Woodard might have voted differently if she had attended the discussions at Brody Square.

Although Trustee Brian Breslin approved the budget, he also expressed concern for lack of funding from the state.

“Higher education has to become a priority (of the state),” Breslin said. “This trend has to be stopped and restoration of public funding has to be given to the universities here.”

Trustee Dianne Byrum, who also supported the budget, said she is extremely frustrated by lack of support from the state that has made it difficult to develop a budget for MSU.

“We have taken a long view and have done everything humanly possible to manage our resources in a thoughtful and confident way,” Byrum said. “All of that seems to go totally unnoticed and unrecognized and chastised; I’d like to give (legislators) ‘Economics 101.”’