Board approves 3.9% tuition increase

After months of discussion, debate and speculation about the financial state of the University, the University Board of Regents approved a 3.9 percent tuition increase as part of the $890 million budget for the 1998-99 academic year.

The tuition decision comes after the state legislature has zeroed in on the final appropriation the University will receive, a key factor in deciding the tuition increase. The Senate passed a three percent increase in March, while the House raised it to four percent in June, both considerably higher than the 1.5 percent increase Gov. John Engler proposed in his February budget.

Former Vice President for University Relations Walter Harrison, speaking during Senate budget consideration, said the appropriation does have a direct bearing on the tuition increase.

"Clearly, the higher the appropriation, the lower we can keep tuition," Harrison said.

Consideration on the appropriation now moves to a conference committee and then to the governor.

The board cited a need to compete with both Ivy League and other private institutions as the main reason behind the tuition increase. Several regents also expressed a hope that the University could stay on the cutting edge of technology and academics with the increase.

University President Lee Bollinger said the current state of higher education mandated the increase, adding that this will help the public institution compete with other schools in all areas, from faculty retention to technology.

"We live in a very competitive environment in higher education," Bollinger said. "In order to have the resources, we really need a 3.9 percent increase."

In addition to the across the board raise, student in the College of Literature, Science and the Arts will have to pay a $30 technology fee.

Although most of the board voted for the increase as part of the budget, Regent Andrea Fischer Newman (R-Ann Arbor) voted against the raise. She said the University needs to explore other avenues for increasing revenue, not just continue to burden students.

"Michigan is a great institution and I want it to remain that way," Newman said. "I want it to be affordable. Therefore, I agree with the mission, I do not agree with the way it's being funded."

Regent Lawrence Deitch (D-Bloomfield Hills), said the University must face the fact that it has to compete on a very large field, and the increase will best help them to do so.

"We live in a real world," Deitch said. "We are competing with private institutions. I think it's our responsibility to ensure our continued excellence."

The discussion of a tuition raise began in February after Gov. Engler's proposed budget included only a 1.5 percent increase for state public institutions. Under that proposal, the University would have received $319 million. Administration officials said the increase would be fair based upon the high funding schools have received in the recent past.

This budget immediately drew fire from University officials and legislators alike.

Rep. Morris Hood (D-Detroit), who chairs the House Appropriations committee, called the proposal "totally inadequate" after the budget was presented.

Chair of the Senate Colleges and Universities committee John Schwarz (R-Battle Creek) said the initial recommendation could cause a 5.5 to eight percent tuition increase after the proposal was unveiled.

"'This won't work', I thought," Schwarz later said.

It was the Senate that had the first opportunity to change the budget, and they did. After meetings were held in various locations, including Ann Arbor, the committee recommended a three percent increase in funding. That was later passed by both the full appropriations committee and the full Senate. Only one member voted against the proposal in any of the three votes.

But Engler spokesperson John Truscott warned that any money above the governor's proposal would have to be pulled directly out of a different program.

"We have always said that if they're going to add money in one place, they have to tell us where they're going to cut," Truscott said.

But the House did not heed this warning, raising even the Senate's recommendation by passing a 4 percent increase.

"This increase is a much better deal for all state universities, including the University of Michigan," said Rep. Lingg Brewer (D-Holt).

Associate Vice President for Government Affairs Cynthia Wilbanks said "many of the House members reacted similarly to the Senate members when the budget was proposed. They were similarly concerned with the 1.5 percent."

Even though the final appropriation has not yet been finalized, the Board of Regents believes that this tuition increase will best help the University maintain its standing among prominent universities.

But some students question the process. Michigan Student Assembly President Trent Thompson said he "strongly believes students should be involved in the budget process." Others students concur, saying they do not believe the administration allows enough time for student involvement.

The $41 million increase in the budget will also help fund a four to five percent increase in faculty salaries, something that University Provost Nancy Cantor said she believes is very necessary. University professors earn $10,000 less than teachers at other schools, but this increase will help, Cantor said.

"I am absolutely delighted by the University's support," Cantor said.

- Daily Staff Reporters Erin Holmes and Susan T. Port contributed to this report.

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