MU officials consider effects of possible tuition hike

Vice Provost for Undergraduate Studies Jim Spain said tuition could rise by as much as nine percent.

By Jimmy Hibsch

Published Dec. 15, 2010

After the UM system Board of Curators hinted at an impending tuition increase for the 2011-12 academic year at meetings Thursday and Friday, members of MU's administration are preparing for the potential effects of such a move.

At the Dec. 9 and 10 meetings, officials said state budget cuts and heightening enrollment rates might cause a raise in tuition across the UM system's four campuses to be a necessity.

“When we have examined the background circumstances that might lead to our consideration of an increase in tuition, one of the factors is whether or not there is a reduction in state support for higher education,” Board of Curators Vice Chairman Warren Erdman said. “That will be a significant factor.” 

Erdman said the board is keeping a close tab on the state budget situation, and will act accordingly when decisions have been made. Budget Director Tim Rooney said MU is watching the state’s moves as well.

“We’re kind of guessing what the governor might cut from higher education,” Rooney said. “We’ll know more in January, and if it’s radically different then what we are thinking it might be, we might ask to change our tuition request at the last minute.”

Senate Bill 389 was enacted in 2007 to prevent Missouri public four-year institutions from raising tuition more than the Consumer Price Index of the previous calendar year. Rooney said he believes this year’s CPI will be extremely low — from 1.3 to 1.4 percent.

Because of this, Rooney said the system will likely appeal to a provision in the bill that allows universities to request permission to raise their tuition higher than the CPI. This has never been attempted since the bill’s inception.

“Nobody for sure knows how it all will work out,” Rooney said. “We’re in a little bit of uncharted waters.”

Rooney said he expects the state will respond to the appeal in March, which would allow the tuition process to continue on schedule.

“Assuming that it is approved, we will then establish our rate on a formal basis and begin to do financial aid packages,” Rooney said.

Vice Provost for Undergraduate Studies Jim Spain is a co-chairman of the newly established Commission on Student Success, which was formed this year to address student retention rates. He said heightened tuition could undoubtedly hinder a student’s potential to attend MU.

“That has been one of our ongoing concerns related to the downturn in the economy,” Spain said. “We already know this has a direct effect on students who are here already whose parents were affected by changes in employment and family income.”

He said a working group within the commission is focusing on financial issues, citing this as a significant part of a student’s ability to stay at MU. At most, Spain said, tuition could rise 9 percent, increasing in-state tuition for 15 credit hours by about $350 per semester.

“For some students though, that’s a deal breaker,” Spain said.

Rooney is aware of this as well.

“If we raise the tuition too much, then our enrollment will go down,” Rooney said. “We have to be wary of that.”

Ultimately, the decision will lie with the board. Chancellor Brady Deaton and Provost Brian Foster will be analyzing the data with Rooney and other campus administrators to develop a recommendation for the campus, as the board will likely decouple the tuition fees across the four system campuses.

“Each of those campuses offers a little different product and is in a different marketplace,” Erdman said. “Each campus is different, and has a different cost structure. What we’ve talked about is allowing the campuses to set tuition separate from one another.”

Nonetheless, Spain said he ensures student finances will be taken into account as decisions are being made.

“I will say that the chancellor and provost are committed to controlling the tuition increase,” Spain said. “They understand the implications it has on our students being able to afford MU.”

Erdman said the state budget will be released sometime in January, and after, the system will act accordingly.

“These are things that will become more clear in the New Year,” Erdman said.

The issue will be discussed more in-depth at the curators’ Jan. 27 meeting at MU.