Utah State's Position on Tuition

Utah State University’s proposed tuition increase

Updated:  September 23, 2004

 

 

 

During the past six years, Utah State University has worked diligently to keep students and the community informed of funding challenges facing the university and proposed tuition increases. Throughout this time, we have fostered open discussions toward appropriate solutions.

 

Utah State University has also worked in tandem with the state of Utah Board of Regents, as well as Utah’s other public universities, to determine the best use of scarce state resources. The Board of Regents formulates “Tier I” of proposed tuition increases, which are sent to the legislature for approval. Tier I funds go into a common fund supporting higher education throughout Utah. All Tier II funds, raised through tuition increases, stay at the institutions.

 

The Board of Regents supports each university in determining their own “Tier II” tuition increases, recognizing that each institution is unique and needs the opportunity to craft its own solutions.

 

Dr. Richard E. Kendell, Utah Commissioner of Higher Education, expressed his full support to President Hall and his “efforts to engage in a constructive dialogue with students at Utah State University and the larger community regarding tuition levels.”

 

 While recognizing that the Legislature faces many other high priority funding needs, Commissioner Kendell continues to aggressively advocate that the legislature prioritize Higher Education to increase funding to colleges and universities presently strapped for funds to meet even basic requirements, such as paying fuel and power. There is a link between the level of state funding and the amount of tuition increases. Lack of state funding will be made up in part by tuition increases, as well as continued efficiencies by colleges and universities.

 

Utah State University has chosen to prepare three-year plans for tuition increases, to allow students and prospective students time to study the plans, assess the university’s financial situation, make their own judgments about the proposed plans and offer input, and make personal plans and financial preparations for their educational futures.

 

Utah State has completed and implemented the first three-year plan and has presented its proposal for the next three years. Through this process, the university seeks to present a predictable process of planning to meet unavoidable challenges Utah citizens must face in maintaining a system for those seeking an accessible, high quality college education.

 

 

Within the next two years, Utah’s population of high school graduates will rapidly grow. The number of Utah residents seeking admission to the state’s colleges and universities will increase significantly in the next five to 10 years.

 

Utah ranks 45th in the nation in public education expenditure per student. Higher education’s share of the state budget has declined from 17.3 percent in 1993-94 to 15.4 percent in 2004-05

 

Legislative appropriations for Utah State’s departmental operating budgets have not been increased for more than 15 years. Equipment replacement and repair is being deferred, and funds from vacant salary positions are being used to pay operating expenses.

 

The university faces rising fuel and power costs and, despite aggressive efforts to become more efficient in energy use, Utah State still faces a significant fuel and power deficit.

 

Utah State University employees received no salary increases from 2001 to 2003. They received a modest 1 percent increase in 2004.

 

Current faculty salaries are 16 percent below peer institutions, professional employee salaries are 7 percent below the national average for comparable positions nationwide and classified employee salaries are 25 percent below the Utah private sector average.

 

Like many workers in Utah and across the nation, Utah State employees have seen their health insurance premiums rise dramatically which, in effect, has reduced their net wages.

 

Utah State University lost 35 faculty members and top administrators last year. Salaries were cited as one of the reasons for their departure.

 

Among the university’s top goals are recruitment and retention of well-prepared students and professors, along with a reduction in the student-teacher ratio. Faculty wages are directly tied to the achievement of these goals.

 

While struggling to provide the basics, Utah State cannot expand and enhance academic opportunities. For example, as the university looks forward to a new library, journal subscriptions are being cancelled and new acquisitions are limited. State support for ongoing library operations is inadequate.

 

A number of people have questioned how the university has funds for large building projects (new library, student housing/learning center, etc.) yet needs money for salaries and other operating expenses. The new building projects are not funded by tuition. New buildings are funded by a combination of legislative appropriations, bonding, and private funding. Tier II tuition dollars are not used for campus construction projects. 

 

 

 

Utah State can no longer depend solely upon the state for operating expenses. State appropriations currently account for about 31 percent of the university’s total budget.

 

Contracts and grants, as well as private contributions, are becoming an increasingly significant source of revenue for Utah State. However, these dollars tend to be highly restricted in their use. In most cases, they cannot be used for operating expenses.

 

A tuition increase is a sound and logical source of increased revenue. Despite increases in the past three years, Utah State’s tuition is still 84 percent of the western states average and 67 percent of the national average for comparable four-year peer universities.

 

Under the current proposal, an undergraduate student with resident status taking 15 credits per semester would face the following tuition increases:

 

2004-05

Annual Tuition: $2,850

 

2005-06

Annual Tuition: $3,206 (12.5% cumulative tuition increase)

Cumulative Increase: $356

 

2006-07

Annual Tuition: $3,623 (27.13% cumulative tuition increase)

Cumulative Increase: $773

 

 

Utah State University recognizes that federal and state sources of financial aid for students have declined in recent years. Our Financial Aid office is ready to assist all students in investigating all sources of public and private financial aid, including Pell Grants and other forms of financial assistance. The university also offers payment plans to assist students who cannot pay all tuition up front. Further, the university encourages parents to take advantage of savings opportunities, such as the Utah Educational Savings Plan, that allow for tax-deferred saving for future college costs.

 

 

 

 

 

Under the university’s proposal, the tuition increase would raise faculty salaries 4 percent each year over the next three years.

 

The university proposes increasing departmental operating budgets by $400,000 each year for the next three years.

 

Under the proposal, funding for the new library, including journal subscriptions and acquisitions, would increase $200,000 each year for the next three years.

 

The proposal also includes, as directed by the legislature last year, using funds to decrease the university’s fuel and power deficit, and to increase funding for operations and maintenance.