MSU students could see as much as a 10.1 percent tuition increase during the next two years, the MSU Board of Trustees decided Friday when it approved the 2009-10 university budget guidelines.
The increase comes in response to the struggling economy and an anticipated 3.1 percent — or about $9.1 million — cut in state appropriations for MSU in the 2009-10 year.
The budget guidelines include the approval of the university’s $981.8 million general fund, up $41 million from 2008-09.
Cutting back
The tuition hike would be 5.2 percent for 2009-10 and 4.9 percent for 2010-11 for in-state undergraduates, according to the universities budget guidelines. This would raise tuition for an in-state undergraduate taking 15 credits about $540, or $10,800 a year in 2009-10.
President Lou Anna K. Simon said the hike and the budget reductions will be painful.
“Michigan State University has been here for a very long time,” she said. “Its goal was to be good enough for the proudest and open to the poorest and provide opportunities for folk from ordinary background with an extraordinary education and also to meet the land grant commitment.”
However, if MSU receives federal stimulus money, the increase could be reduced to about 2.5 to 3 percent for in-state undergraduates.
Simon said the university expects budget pressures to continue through fiscal year 2015.
Studio art senior Spencer Corbett said the raise in tuition will hurt students.
“I feel like it’s going to put us that much more in debt because most people aren’t paying out-of-pocket,” Corbett said.
MSU receives the least amount of state appropriations and tuition and fees per student in the Big Ten, out of the nine with available data, with $14,585. The University of Michigan receives the most at $22,743 per student, according to data from the Office of Planning and Budgets.
MSU also will cut about 10 percent of operating costs — or about $50 million — during the next two years. Personnel cuts will be about 87 percent of the reduction, and will affect about 590 positions. Of the 87 percent, 45 percent of empty positions will be held open, 36 percent will be cut by not reappointing people with end dates on their appointments and about 19 percent will be through layoffs.
Giving Back
In order to combat the loss in state funding and the potential loss of state-funded financial aid money such as the $140 million Michigan Promise Scholarship, MSU plans to increase financial aid by 30 percent during the next two years. The raise will be administered through a 17 percent increase in 2009-10. This would increase the amount of financial aid available to about $82.6 million. The second part of the increase would be 13 percent in 2010-11, according to the guidelines.
Despite the increase, which is the largest financial aid hike in MSU history, Simon said it won’t make up for the potential dollars lost from the state cuts.
She said it is important for MSU to maintain its programs and reputation despite the cuts to the budget.
“If we look at the demand for MSU education this year, we know families are making a decision about value — they want value in a way that propels their students — their child — into a future that is as bright as possible,” Simon said. “The definition may have changed a bit, but the reality is still there.”
Provost Kim Wilcox said it’s important to continue expanding the university’s presence despite the economic times.
Administration officials, faculty and staff also are taking cuts to give back to students. Wilcox said he spoke to the deans and vice presidents and they unanimously decided to give their salary increases back to students through university scholarship funds.
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Wilcox spoke to the deans Tuesday. By the Board of Trustees meeting Friday, about 113 administrators, faculty and staff agreed to donate their raise.
“Faculty and staff at Michigan State have been very generous over the years,” Wilcox said. “I’m a little surprised at how quickly it spread. … We’re getting people responding from all over the world, from several countries people are e-mailing back and saying ‘Count me too.’”
Wilcox said he won’t know how much is being donated until raises are decided in the fall. The merit-based raises are on the average of 1 percent and occur in October and April.
Finance senior Hunter Bearse said giving back sends a positive message to students.
“That they’re helping out, that’s obviously good,” Bearse said. “It’s setting a good impression.”
Despite the cuts made to the budget, Trustee Colleen McNamara said she is hopeful for MSU’s future.
“I feel like we have a handle on this. … Considering what we’re facing, we’re going to be OK,” she said.
