During the next two years, tuition for in-state undergraduates could increase by a total of 10.1 percent, the MSU Board of Trustees decided at its meeting Friday.
For 2009-10 the increase could be 5.2 percent, or about $540, and 4.9 percent for 2010-11, according to the budget development overview, which was approved at the meeting.
However, if MSU receives federal stimulus money, it will offset the 2009-2010 increase so it is between 2.5 and 3 percent for in-state undergraduate students.
The tuition hike is based on an anticipated 3.1 percent reduction in state support for the 2009-10 year. According to the Senate Higher Education Subcommittee recommendation. MSU is set to get an estimated $283.9 million, a $9.1 million decrease.
The State of Michigan has until Oct. 1 to finalize its budget.
“We also know the support is simply not there,” MSU President Lou Anna K. Simon said during the meeting. “The budget guidelines also impose a good deal of pressure on the institution to make reductions — the reductions that aren’t simply budget cutting but also give us a platform to be more independent in the future.”
To combat the loss of state funding and the potential loss of state-funded student financial aid such as the Michigan Promise Scholarship, the guidelines have an financial aid increase of 30 percent during the next two year built-in.
This amounts to a 17 percent increase in 2009-10 and a 13 percent increase in 2010-11, according to the guidelines.
In addition to a tuition increase, MSU is cutting operating budgets 4 percent in 2009-10 and 6 percent in 2010-11. About 87 percent of the cuts will be personnel, Simon said during the meeting.
The majority of those cuts will be through leaving open positions vacant and by not reappointing personnel with end dates on their appointments. Some layoffs might still be necessary, she said.
Despite the tough economic times, MSU’s general fund budget increased about $39.9 million from last year to about $980.7 million, according to a statement from MSU.
In order to help students, Provost Kim Wilcox said MSU deans and vice presidents decided to give their annual salary increase back to students by donating them to scholarships. In addition to administrators, many faculty and staff have pledged to give their raises back as well.
Wilcox said he spoke to the deans and vice presidents Tuesday about the idea. At the time of the meeting Friday, about 113 MSU administrators, faculty and staff had agreed to donating their raises to the scholarship of their choosing.
For more information, see Monday’s edition of The State News.
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