Curators discuss tuition
Published Feb. 1, 2008
Navigating a new higher education law, student fees and state funding consumed a large portion of the agenda at the UM system Board of Curators meeting Thursday.
Board members met in committee meetings before today’s full board meeting in St. Louis.
During the Finance and Audit Committee meeting, Nikki Krawitz, vice president for finance and administration, presented a report on the system’s operating budget. She presented three scenarios for state funding increases, but each one sustains a gap created by inadequate state funding increases for inflation.
The most optimistic model predicts an increase of 4.2 percent in fiscal years 2009 and 2010, a 6.4 percent in fiscal year 2011 and 6.2 percent in fiscal year 2012.
This model results in a loss of $12.1 million in net assets given revenue predictions.
The most conservative model predicts a 4.2 percent increase in state funding for fiscal year 2009 and then only a 2 percent increase in fiscal years 2010 through 2012.
“Even that may be optimistic given the current economic forecast,” Krawitz said.
The report states that the model projects a $63.1 million decrease in fiscal year 2012.
The UM system can manage a shortfalls between $8 million and $11 million by cutting expenditures and increasing revenue, Krawitz said.
The board also heard recommendations for student fees. Much of the discussion centered on a new higher education law about tuition increases.
The law, which took effect last year, limits tuition increases — including student fees — to the rate of inflation as measured by the Consumer Price Index. The CPI is based on the average price changes for a fixed list of household goods and services.
“Obviously it’s a new piece of legislation, and the university is learning how to navigate it,” said Tony Luetkemeyer, student representative to the board. “The university is going to have to take a while to figure it out.”
Krawitz said that though the board has the option to request a waiver from the state commissioner of higher education to raise tuition by more than the CPI percent increase, the university would not do so for fiscal year 2009.
Krawitz presented a report on tuition that recommended a 4.1 percent increase, the current projected CPI increase. That would raise tuition for Missouri resident undergraduate students from $235.90 per credit hour to $245.60. For nonresident undergraduates, tuition would increase from $591.10 per credit hour to $615.30.
The MU College of Veterinary Medicine requested a tuition increase of 5.1 percent. The MU School of Law requested to make the tuition for its Master of Law program equal to that of a traditional law degree. Both programs will charge $480.10 per credit hour for Missouri residents and $947.90 per credit hour for nonresidents.
Professional and graduate schools are exempt from the tuition increase restrictions.
Other enrollment fees would increase 4.1 percent rounded to the nearest 10 cents.
The board will make its final decision on tuition at its April meeting in Rolla.