For a second straight year, undergraduates are going to see their tuition bills jump more than they are used to. The MSU Board of Trustees voted 7-1 Friday to raise tuition 8.5 percent for the 2002-2003 fiscal year.
MSU’s increase brings tuition costs to $179.75 per credit hour for in-state freshman and sophomores and $200.50 per credit hour for in-state juniors and seniors.
But those numbers could raise higher if the university doesn’t receive its expected level of state funding.
Last week, lawmakers discovered the state is expected to come up short in its tax revenue predictions. That could lead to less state funding for higher education.
“There is that possibility,” Trustee Don Nugent said. “But I don’t think it’s a very high possibility. I believe the governor will stay behind his deal.”
In February, Gov. John Engler signed a written agreement with the state’s 15 public universities to maintain the state’s higher education funding levels with last year’s amounts despite budgetary shortfalls so long as the universities keep tuition increases at or below a ceiling of 8.5 percent, or $425, whichever amount is greater.
It’s not out of the question that the state may have to back out of its side of the deal.
“The truth of the matter is, I suppose it’s possible,” state Sen. John Schwarz said “If the university appropriation is cut by the state, then the university would have to decide what to do with the cuts.”
The Battle Creek Republican chairs the Senate Higher Education Appropriations Committee.
The MSU Board of Trustees plans to re-evaluate its tuition decision in June after the state finalizes its budget.
“I think if you look at all the indications of where our economy stands, not just only on the national level but on the state level, it isn’t very positive reporting,” Trustee Dorothy Gonzales said.
“We still don’t know what the true revenues are that are coming in.”
Gonzales voted against the guidelines because she felt the decision was made too early.
The advocate for MSU’s Tuition Guarantee said she has spoken with many students about the tuition increase and felt students should have been at the voting to voice their opinions.
Since the adoption of the Tuition Guarantee in 1994, the university has maintained a 2.8 percent average increase.
In 2001, the guarantee was suspended when funding from the state slowed. The increase jumped 8.9 percent for the 2001-02 school year.
But the majority of MSU’s trustees agree the larger increases are needed.
“None of us relish voting for an 8.5 percent increase,” Trustee David Porteous said. “What is being required here is reasonable, and necessary.”
The Tuition Guarantee was designed by President M. Peter McPherson.
“I was very pleased for many years to have tuition be really very low,”McPherson said. “At 2.8 percent average for seven years, we were a national standout.”
“The last two years, including this, has been unfortunate.”
Despite this increase, McPherson said there will also be some large cuts in budget expenditures. If these cuts weren’t made, the percent increased might be several points higher.
Still, MSU leaders plan to provide a 5-percent salary increase for faculty, an increase in financial aid for students and a base budget expenditure cut of about $7 million with the school’s 2002-2003 budget.
The Board of Trustees also approved its Policy of Mutual Responsibility at its Friday meeting. This document urges the Legislature to keep funding toward higher education as a priority in the future, while the university pledges to keep the quality of education high and tuition increases low.
Amy Bartner can be reached at bartnera@msu.edu.
