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Tuition guarantee remains in limbo

May 16, 2001

The tuition guarantee is anything but a sure thing for incoming students.

In fact, nothing about the higher education budget for 2001-02 is guaranteed.

The Senate’s Higher Education Appropriations Subcommittee recommended Tuesday to increase funding for each of Michigan’s three major research universities - MSU, the University of Michigan and Wayne State University - by 6.3 percent.

The Full Appropriations Committee will consider the recommendation next week.

Although a 6.3 percent funding increase may help MSU continue to keep the cost of tuition down, Trustee Dave Porteous said the funding gap between the research schools is still something he and other trustees would like to see addressed.

“I think everyone is very aware of the tight state budget,” he said. “If all three universities receive a 6.3 increase, that just expands the gap.

“I think (increases are) incumbent upon any institution to be able to make the case that they have been good stewards historically of taxpayer dollars, increasing productivity in faculty and running the university with efficiency.

“I don’t think any institution has been as successful in that as Michigan State.”

As board members work to keep the cost of tuition down, representatives from ASMSU, the university’s undergraduate student government, believe MSU must find the money to maintain a high-quality education - even if that requires tuition increases.

“It’s about balancing cost and quality. ASMSU feels very strongly that this institution has to maintain the highest quality of education they can deliver,” said political economy senior Jeff Ziarko, ASMSU’s director of university, governmental and budgetary affairs. “If that means that the guarantee is in trouble, the guarantee is in trouble.”

Tuition increases have remained at an average of 2.8 percent a year since 1994 when President M. Peter McPherson implemented the university’s tuition guarantee - a policy guaranteeing tuition will not rise above the projected rate of inflation, provided the state appropriation is at least that high.

MSU has lost nearly $28 million in revenue when compared to other Big Ten universities’ tuition increases because of the guarantee. Meanwhile, its tuition increases have been among the lowest among Michigan universities and Big Ten schools.

The Senate committee’s proposed 6.3 percent increase falls between Gov. John Engler’s recommendation not to boost higher education funds and the state House’s recommended 7 percent hike.

“This is the first step in the process in the Senate and therefore is a long way from being done,” McPherson said, shying away from saying whether the guarantee will continue. “I continue to be worried about the state’s economy. The statewide revenues - because they’ve been down the last few months, I’m continually concerned.”

The House and Senate fiscal agencies and the state Treasury have predicted a $1 billion shortfall in the state’s budget during the next two years.

Glenn Stevens, the executive director of the Presidents Council for the State Universities of Michigan, said restraint on tuition increases is a direct result of large and consistent appropriations from the state for higher education.

“I think (the proposed increase) is positive, but nobody should be deluded that there are hard economic issues to be dealt with by the state,” Stevens said. “A strong Michigan economy means future students are beneficiaries of that. It’s so tempting to look at this as a snapshot - I prefer to take a longer view.”

But state Sen. John Schwarz, higher education subcommittee chairman, said the Senate makes its recommendation on a year-by-year basis, rather than a long-term plan.

“We’ll have to revisit the revenues in the way it’s possible at that time,” the Battle Creek Republican said. “In general, people reacted well to this.”

While the recommendation does not address the funding gap between the three research universities, Schwarz said it’s not a good time to argue against the increase.

“If we’re not able to move what the committee moved to do, the alternative is probably going to be no increase at all,” he said.

But even if the tuition guarantee is done away with, it won’t likely affect English sophomore Erin Burke’s decision to attend MSU.

She would be willing to pay for a tuition hike - even one of 10 percent or more.

“My first thought is cheaper education would be better, but in the long run, I’d rather pay more to get more opportunities,” she said. “I’d rather learn now. This is the only time I’m going to be in college.”

Jamie Gumbrecht can be reached at gumbrec1@msu.edu.

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