The MSU Board of Trustees unanimously approved the university's $710.6 million budget at Friday's meeting, which included an undergraduate tuition increase of 2.4 percent for in-state students and 5 percent for those from out of state.
A 15-credit semester for an in-state freshman or sophomore costs about $3,022.50 and $3,367.50 for a junior or senior in the 2003-04 academic year, according to the Controller's Office. A 2.4 percent tuition increase translates to paying $72.54 more for an underclassman or $80.82 for an upperclassmen.
The tuition increase, combined with a recent 4.4 percent increase in the basic residence hall room and board rates - totaling $228 - means on-campus MSU students will see an increase in their overall costs by 3.5 percent for the 2004-05 academic year. For an out-of-state freshman or sophomore, a 15-credit semester costs $8,100 and $8,388.75 for a junior or senior in the 2003-04 academic year. Freshmen and sophomores will pay $416.25 more in the fall, while upperclassmen will pay $431.25.
"MSU's budget is based on the assumption that there would be no further reductions in appropriations and that the state would refund three percentage points of the original 5 percent executive order cuts that was imposed last year," said David Byelich, director of the Office of Planning and Budgets.
Gov. Jennifer Granholm assured Michigan's 15 public universities their state appropriations wouldn't be cut if they kept their tuition rate increases at or below the rate of inflation, which is 2.8 percent. In addition, universities that complied would also receive a 3 percent refund of their 5 percent cut.
While tuition rates and the amount of financial aid will increase next year - the latter by $1.8 million - Trustee David Porteous said with the state's anticipated 2 percent reduction in appropriations, administrators will once again be forced to make cuts.
"With increased costs at the university, whether utility or health care costs, we will still be required to make some very tough and gut-wrenching cuts," Porteous said.
Meanwhile, students are split on their feelings of the increase.
Supply chain management senior Meggan Memmott said she didn't think a 2.4 percent tuition increase for in-state students, such as herself, was too much, but it could still affect some students.
In comparison to other schools, however, Memmott, a Michigan resident, said she thought MSU was a good deal.
"Grand Valley (State University) costs pretty much the same, and I think we have a much higher reputation," she said.
Other students, such as Lajoya Johnson, an interdisciplinary studies in social sciences junior and Michigan resident, are frustrated by potential increases.
"I don't know where the money should come from, but it shouldn't come from our pockets," Johnson said.
Staff writer Elizabeth Piet contributed to this report.
