Regents face dilemma in setting tuition rates

Mar 7, 2010 — East Valley Tribune

Michelle Reese

Mar. 7, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- The Arizona Board of Regents is scheduled to set tuition rates -- with possible increases that could be more than 25 percent -- for students at the state's three universities during a meeting Thursday in Tucson.

And while the proposed rates by the universities' presidents have raised the ire of many students, some say they're targeting their concerns at state lawmakers.

"We're not pleased with the increases, but given the way the state has continually refused to fund the higher learning institutions, we're left with no choice," said Justin Boren, president of the Graduate and Professional Student Association at Arizona State University. "As I said (during tuition hearings), students are left with an impossible situation and decision: Do we support the tuition increase and tax ourselves or do we not and say the quality of our education will decline?"

The proposals by the presidents came out last month. They vary by school and department. In some cases, students already at the universities will see no tuition increase: NAU's "pledge" program freezes student tuition for four years upon entering.

But many of them could see fees passed last year continue or increase. This school year, students at UA and NAU saw "surcharge" fees on their bills.

Board of Regents President Ernest Calderon said he thought the fees would last just one year. But ASU's proposal is to charge students a $1,025 "surcharge" next school year. This year, the surcharge was $510.

NAU's proposal includes a number of fees for health and wellness and sustainability projects -- but no "surcharge." Students seeking an MBA, however, could see a $3,500 fee increase.

The UA is asking that the surcharge approved last spring -- $766 for Arizona residents and $966 for nonresidents -- become permanent.

"It was my understanding it would be a one-year-only surcharge," Calderon said Thursday. "It's come back this year. That's the focus of my inquiry."

Students planning to enter Arizona State University as undergraduates in the fall would see a 19 percent jump from this year's tuition and fees under President Michael Crow's recommendation.

Current undergraduates would see about a 5 percent increase in tuition, depending on their course of study.

In an online presentation, Crow said the tuition increase is necessary to fill the gap between what the state has proposed funding and federal stimulus dollars.

"Our present situation is we're coming off of, and still are in, the middle of dramatic reductions in state investment," he said.

Brendan O'Kelly, president of ASU's Undergraduate Student Government, said he's concerned about whether or not students will be able to keep up with the costs and why it's reached this point.

"What we are really focused on here at ASU is keeping the emphasis on the state lawmakers. All of that surcharge money is going to make up for the funding cut by the state Legislature to the universities," O'Kelly said.

In his online presentation, Crow said the universities are fighting a "policy decision" regarding higher education funding in Arizona.

"Over the last 30 years, the amount of funding that comes from a taxpayer per $1,000 of income specifically for higher education has gone from roughly $18 to slightly more than $8," he said. "This is a public policy decision that says higher education is only worth about 50 percent of the tax level it was worth 30 years ago."

State lawmakers have cut more than $250 million from higher education budgets over the past two years. Another $130 million could be cut if voters don't approve a 1-cent temporary sales tax on May's ballot, Calderon said.

The state is in a financial crisis, lawmakers said, with more than a $4 billion shortfall being felt this year and more than a $3 billion shortfall expected next fiscal year, which starts July 1.

"Everyone is having to take some cuts," said Rep. Rich Crandall, R-Mesa, who sits on the House appropriations committee.

"The university presidents are caught in that never-ending balance of quality versus cost. You can have the lowest tuition, but you can't be the lowest cost provider and have the highest quality. ... We want to make sure when someone graduates from ASU, NAU and UA, it has to mean something."

Tuition and fees for a resident undergraduate student make up about 14.6 percent of median household income in Arizona, making the state one of the most expensive in the Western region, according to the Western Interstate Commission for Higher Education.

Calderon said the state universities are in danger of being unattractive to middle-class families because of the tuition and fees.

"Those people are going to be scared of going to a university, because they know their parents or whoever is supporting them cannot make that sacrifice to pay the higher tuition and there is not financial aid protection for the middle class," he said.

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The proposals

--To see the tuition proposals for the state universities, see www.abor.asu. edu

Newstex ID: KRTB-0132-42652730