Last year, the regents made the lowest tuition increase in 10 years. A significant state appropriation aided that decision. This year, the state again increased the University's appropriation by a large margin. The state attorney general's office also ruled that a policy that financially penalized the University for granting health benefits to same-sex partners of employees violated the University's autonomy from the state - preventing additional University funds from being lost and augmenting the University's general fund.
The University also has significant funding income from the Campaign for Michigan started by former University President James Duderstadt. The funding drive surpassed its $1 billion goal last year and still garners significant contributions. The additional funding from alumni and the private sector adds to the University's good financial situation - freeing up more funding to help offset the tuition increase.
University President Lee Bollinger announced in April that he would work to keep this year's tuition increase to a reasonable level. While the regents make the actual tuition adjustment, he could use his influence on the administration to help quell the tuition bite. Doing so would help maintain his commitment to students. Provost J. Bernard Machen, who proposed last year's tuition increase, should again devise a budget that keeps students' pocketbooks in mind.
Many students rely on federal loan programs to help subsidize the costs of their University education. However, many federal loan programs face serious cutbacks under next year's proposed national budget, threatening students' ability to finance their education. The University should work to offset the effects of a potential drop in loan funds by capping tuition at a reasonable level, preventing the program cutbacks from having significant negative consequences on the student population.
The University's underlying goal must be to create a diverse and strong academic community. It must ensure that all qualified students see the University as a viable option, regardless of their financial situation. In keeping with its commitment to education, the administration should do everything in its power to prevent economic constraints from being a deciding factor in students' higher education options.
The stage is set for the regents to make a minimal tuition increase. Augmenting students tuition in line with the rate of inflation would prevent students' financial burden from increasing disproportionately to normal income increases. The regents should increase tuition at a rate no greater than inflation to ensure that the cost of learning does not exceed the cost of living.