Friday, July 1, 2011

Extreme Tuition Hikes ahead in USA

Attention college students: Get ready for one heck of a fatter tuition bill.

As state governments face one of their toughest fiscal years yet, higher education is on the chopping block, and public colleges are being forced to pass on more of their costs to students.

Earlier this year, 25 governors proposed slashing college funding, marking $5 billion in potential cuts nationwide, according to the National Association of State Budget Officers.

While many of those cuts have since been tweaked through budget negotiations, most of these tough decisions have to be finalized this week as the fiscal year comes to an end.

Already, staggering reductions in funding are leading colleges in some states to boost tuition as much as 22%.

Just four years ago, incoming freshmen at the University of Arizona paid $5,037 in tuition and fees. Starting this fall, they'll pay nearly double that -- $10,035.

The tuition spike will be felt by all three of Arizona's public universities, as the state's economy still reels in the aftermath of the housing boom and bust.

Arizona's Republican-controlled legislature recently cut higher education funding by $198 million, or 22.3% in fiscal 2012.

Since 2008, the state has cut $428 million -- a whopping 50% reduction. Over that same period, enrollment in Arizona universities has grown 15%.

To make up for the funding gap, universities are trying to cut spending, but have also decided to hike student fees.

This year alone, tuition will jump 22% at the University of Arizona, 19.5% at Arizona State University, and 15% at Northern Arizona University.

As part of California's budget agreement, the state's two massive college systems would face cuts of $650 million, or more than 20% each.

California's public education system is by far the largest in the country with the University of California and California State University colleges accounting for more than 600,000 students at 33 campuses.

And while neither system has identified exactly how extensive tuition increases will be, steep hikes are definitely on the table.

"The latest state budget plan is deeply disappointing," UC President Mark Yudof said in a statement Tuesday morning. "Because cuts of this magnitude inevitably will drive up tuition for public university students and their families, we cannot stand silent."

Tuition at both university systems has already risen 40% since the 2008-2009 school year. Fees at the UC schools averaged around $11,000 last year, while at the CSU schools, fees averaged $5,400.

When Pennsylvania's new Republican governor Tom Corbett proposed slashing higher education funding by 54% earlier this year, he was immediately met with protests from students, parents and faculty.

The 54% cut -- which would have been the largest ever by a state -- has since been scaled back to a still-staggering 19% cut to Penn State, Temple, Pitt and Lincoln universities.

Another 14 state-owned colleges will see their funding cut 18%.

"It clearly means the burden of college costs are continually shifting from the state to the student," said Steve Hicks, president of a union representing professors at Pennsylvania public colleges.

Earlier this year, Penn State President Graham Spanier indicated that steep funding cuts could mean layoffs, salary freezes and shutdowns at some of its campuses.

For two years, federal stimulus helped public colleges buffer the blow of the recession. But now that funding source has dried up, and many state governments are faced with tougher decisions on how they'll pay for public education.

Florida is a perfect example.

The state is cutting its higher education budget by 4% in fiscal 2012, and while that may not sound as extreme as some other states, that is almost entirely due to the loss of federal stimulus funds.

Florida's state universities received $140 million in stimulus funds last year, which won't be renewed.

To make up for some of the budget gap, Florida's state universities are hiking tuition 15% -- the third year in a row.

Annual fees at the University of Florida will rise to $5,700 this year, from about $3800 in the 2008-2009 academic year.

For two years, federal stimulus helped public colleges buffer the blow of the recession. But now that funding source has dried up, and many state governments are faced with tougher decisions on how they'll pay for public education.

Florida is a perfect example.

The state is cutting its higher education budget by 4% in fiscal 2012, and while that may not sound as extreme as some other states, that is almost entirely due to the loss of federal stimulus funds.

Florida's state universities received $140 million in stimulus funds last year, which won't be renewed.

To make up for some of the budget gap, Florida's state universities are hiking tuition 15% -- the third year in a row.

Annual fees at the University of Florida will rise to $5,700 this year, from about $3800 in the 2008-2009 academic year.

Education was a top issue for Washington's Gov. Chris Gregoire, a Democrat, but local critics often point out that she allowed tuition to double at the University of Washington since she took office in 2005.

Now, facing continued economic turmoil, Gregoire has recently signed off on a state budget that will cut $535 million, or 24%, from Washington's higher education budget over the next two years.

In an effort to help universities deal with that blow, she also signed a law earlier this month that will give the state's public universities the flexibility to each set their own tuition.

Previously, the legislature and governor could put a cap on the level public universities could raise their student fees.

The state budget estimates public colleges will increase their tuition by at least 16% in the fall semester. The University of Washington is already considering 20% hikes though.

Nevada's Board of Regents voted earlier this month to raise tuition 13% at the state's public colleges, while cutting its employee's paychecks by nearly 5%.

Overall, the state's colleges face a cut of $85.5 million in state funding in fiscal 2012.

The University of Las Vegas alone will cut 215 positions and eliminate nine academic departments and 18 degree programs.

Hosting a town hall meeting earlier this month, UNLV President Neal Smatresk asked students and faculty to "join in with me next year as we cinch our belts."

A Republican-crafted state budget has been a sore point for New Hampshire's Democratic Gov. John Lynch, who opposes the steep cuts to higher education in the bill.

But in order to prevent the state from shutting down on July 1, Lynch announced last week that he will allow the budget to become law without his signature.

The budget slashes funding to the state's public universities nearly in half, from $100 million last year to $51.2 million in fiscal 2012.

As a result, the university system is cutting 200 jobs and increasing tuition for in-state students by nearly 10%. Tuition will rise 8.7% at the University of New Hampshire and 9.7% at Plymouth State University and Keene State College.

"This will be the most challenging year in the history of the University System in light of the State's fiscal situation and resulting cuts in funding for public higher education," Ed Dupont, chairman of the University System of New Hampshire Board of Trustees said in a statement.

A loss of stimulus funding is hitting Tennessee's two higher education systems particularly hard.

In the University of Tennessee system, revenue from tuition fees will exceed state appropriations for the first time ever.

State funding to UT schools was cut 25% for fiscal 2012, spurring tuition hikes between 6% and 15% this fall, depending on the college.

Meanwhile, the Tennessee Board of Regents, which overseas six universities, is increasing tuition 8.8% at Tennessee State University and 11% at the University of Memphis, after its colleges lost more than $170 million in Federal Recovery Act funding.

"It pains us to raise tuition on our campuses," John Morgan, Chancellor of the Tennessee Board of Regents said in a statement. "Unfortunately, as the state's capacity to fund higher education continually erodes, students are forced to pick up more of the cost to provide a quality education."