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General fund covers tuition increase

October 26, 2008

After receiving lower than expected appropriations from the state this year, the MSU Board of Trustees voted Friday to increase tuition for spring semester.

Tuition will increase 1.2 percent in the spring, but students won’t notice a difference on their bills until the summer semester. MSU will cover the tuition increase in the spring with money from its general fund.

“Given the economic difficulties and uncertainties, even though our own financial circumstances have worsened since June 2008, we believe in a good faith gesture for families and our students,” MSU President Lou Anna K. Simon said. “There will be an offset in the spring tuition bill to cover that increase for both graduates and undergraduate students.”

In June, tuition increased 6.8 percent for the current semester. The 2008-09 MSU budget assumed a 3 percent increase in state appropriations from the previous year. However, the state only increased funding by 1 percent, resulting in a $5.8 million discrepancy between the expected funds and the actual appropriations. Of that deficit, $2.9 million will be covered by the tuition increase.

Simon said board action in July allowed tuition changes for the spring semester if state appropriations were more or less than expected. Since funding was lower than planned, the board approved the tuition increase.

“Unfortunately, it was something we had to do,” MSU Trustee Don Nugent said.

Right now, an in-state freshman taking 15 credits pays $10,264 in tuition and fees for two semesters. With the increase, tuition will cost $10,387.17 or about $61.59 more per semester.

Although the university will provide an offset for spring tuition increases, parks and recreation junior Jessica Vandevelde said any tuition increase isn’t good.

“I think they have already increased (tuition) enough,” she said. “I think they might be able to slow down spending on new buildings they don’t really need.”

Simon said the university will have to tighten its financial belt in order to cover the tuition offset in the spring. However, higher-than-expected enrollment numbers have provided the university with additional revenue.

“(Enrollments) produced some revenue,” Simon said. “Rather than use that as a cushion against the next storm, or to use it for deferred maintenance or other things, we applied it so that the students benefited this year from that increase in students.”

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