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Posthumus seeks tuition hike review

July 25, 2001

Students aren’t the only ones worried about increased tuition costs.

With three college-age daughters, Lt. Gov. Dick Posthumus has felt the pain in his wallet, too.

And in a recent letter to state university presidents, he asked the officials to reconsider the level of increases - like MSU’s 8.9 percent hike - and bring it down to a range most family budgets can forgive.

“I firmly believe that it is critical for schools throughout Michigan to offer a quality education,” Posthumus wrote. “I do not understand, however, why such extreme tuition increases are viewed as the only way to accomplish this goal.

“I am calling on you, as a president, to go back and reconsider these increases.”

Like MSU, the state’s other universities also have raised tuition above the norm.

The University of Michigan’s tuition hike hit 6.5 percent last week. Wayne State University’s Board of Governors will meet today to decide on an increase.

The largest increase in the state to date comes from Michigan Technological University, which raised tuition 18.8 percent.

But some university officials contend they’ve already explained reasons for the increase.

A 19 percent increase in health care costs, a 12 percent increase in utility costs and a state appropriation of 1.5 percent all contributed to the increase that broke MSU’s tuition guarantee.

“Health care costs are the single biggest threat to the university,” MSU President M. Peter McPherson said last week. “I would dearly love to roll that increase back to 6 percent. I plan to continue the vigorous fight for that.

“I think everyone is feeling financial cost pressures.”

For the first time since the guarantee was created in 1994, the Board of Trustees increased tuition higher than the projected rate of inflation.

MSU is banking on the state Legislature only allocating a 1.5 percent increase for next year. If the allocation - which will be officially determined when the Legislature returns from break in September - reaches a 3 percent increase, MSU will offer slight refunds.

Matt Resch, a spokesman for Posthumus, said universities should be cutting costs like other businesses in the state are being forced to do during this economic downturn.

“We’ve had some tough budget decisions to make,” Resch said. “We’ve had to kind of tighten our belt. Why shouldn’t they tighten their belt when everybody else is?”

But Julie Peterson, a spokesperson for U-M, said universities are seeing an increase in the number of students demanding service, unlike businesses serving fewer and fewer customers.

“When the economy slows or declines, businesses tighten their belt because they have less business,” she said. “University business doesn’t reduce. We can’t start cutting classes or cutting faculty to reduce cost.”

While the lieutenant governor’s request for reconsideration of tuition increases may not be possible for some schools, others are still looking for ways to cut student costs.

Oakland University officials have sent increase proposals back to budget planning at least twice to find ways to reduce the hike. The university’s Board of Trustees is set to vote Aug. 1.

“We’re squeezing the budget as much as we can,” university spokesman Ted Montgomery said. “Nobody likes tuition increases, even us. A 9.9 percent increase was unacceptable. An 8.9 percent increase was sent back. ”

Although MSU tuition bills are already being printed, Trustee Robert Weiss said he hopes the university will find a way to reduce the hike.

The increase was approved by the trustees 6-2, with Weiss and David Porteous dissenting.

If the state’s tuition tax credit is repealed - which some say it might be - then MSU’s increase could go down to 6 percent.

“I think it’s very difficult for a middle-class family to afford their young adults going to a university,” Weiss said. “I agree with Posthumus, but I think there’s things he could have done to get us a higher appropriation. I like his words.

“I wish his actions would have been more helpful.”

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

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