When University President Lee Bollinger pledged in May to propose a tuition increase that would be significantly lower than in past years, many people were skeptical.
But following a $315-million state appropriation granted to the University, the Board of Regents were able to approve a 2.9-percent tuition hike, the lowest increase in eight years.
"What enables such a low increase was a willingness to live with less, to continue the process of tightening in certain areas and a generous level of appropriations from the state," Bollinger said.
Tuition for the 1997-98 school year for an in-state, LSA first-year student will be $2,847. As compared to the current price of $2,766, the difference amounts to only $81.
In the past seven years, tuition increases have ranged from 4.9 percent to 13.5 percent. Last year, students faced a 5-percent tuition increase.
Former Provost J. Bernard Machen said the amicable tuition increase can be attributed to the state's appropriation and a conservative budgeting attitude within the University's departments and schools.
Bollinger attempted to shift and reduce administrative costs within the University.
"I think it's a pleasant, significant shift," said Regent Philip Power (R-Ann Arbor).
Regent Laurence Deitch (D-Bloomfield Hills) said the restructuring of administrative costs is commendable.
"This budget feels good because it's in the right direction," Deitch said. "This is really a very important budget and will be looked at as a watershed, historically."
Machen said the University's educational and research quality will not be compromised by the relatively slim increase. The 2.9-percent increase is sufficient to fund the University in accordance with its high standards, Machen said.
"We're doing a better job of valuing (cost efficiency) and we're really sensitive to students' needs," Machen said.
Power said he attributes the modest hike to the slimming of costs in the central administration.
"It is a great pleasure to see this budget coming forward with the significant shift," Power said. "We want to keep tuition as low as we can."
Michigan Student Assembly President Michael Nagrant said the 1997 tuition increase represents Bollinger's goals to make higher education affordable to students.
"I think it definitely shows the president's interest with students' needs," Nagrant said. "It will put us in there to get the tuition tax credit."
The Michigan tuition tax credit - which was previously unavailable to University students because of tuition increases above the rate of inflation - will now be applicable to University students who are in-state residents.
In-state students should be able to receive $250 in state funding by filling out the necessary information on their annual tax forms, Nagrant said.
Regent Olivia Maynard (D-Flint) said the low tuition increase will be appreciated and respected by University officials, as well as by students and their families.