Board of Regents pass 4-percent tuition increase

Tuition discussions dominated Friday's meeting of the University of Nebraska Board of Regents, where the board approved a 4 percent tuition increase for all NU campuses as part of the 2009-2010 budget.

The increase will raise tuition at the University of Nebraska-Lincoln from $179.75 to $187 per credit hour, an increase of $7.25.

The $737.6 million budget and 4 percent tuition increase received unanimous approval from the board. Regent Randy Ferlic said he usually votes against tuition increases, but in the current economic climate an increase was needed for NU to stay competitive with other universities.

"This particular budget with this environment is necessary to keep the dream alive," Ferlic said.  "I don't think we could have fashioned it better."

The 4 percent increase is NU's smallest tuition raise in more than a decade and about average for increases at campuses at NU's peer institutions this year.  Among UNL's peer institutions, the University of Kansas is projecting a 4 percent to 6 percent increase, while Colorado State University could see a 9 percent raise in tuition.

Around $8 million in revenue will be generated by the tuition increase and will cover expenses such as smaller raises to faculty salaries that help NU attract top professors, said NU President J.B. Milliken.

Several regents stressed that although the budget was passed quickly and without much debate, a significant amount of time and discussion went into planning it beforehand to ensure the best outcome for NU in the rough economy.

"Other than maybe 2001, there is more uncertainty with the budget process now than I've ever seen before," Regent Kent Schroeder said.

While the budget did increase tuition for next year, it also set aside more money for financial aid programs to help students offset the new costs.

Another $1.2 million in state funding will go toward a new student assistance fund as a one-time expenditure to help families with unexpected financial difficulties.

All things considered, though, the approved budget still leaves NU with an $8.5 million budget shortfall. A 1.5 percent funding increase from the Nebraska Legislature for next year wasn't enough to meet NU's increasing expenses in areas such as salaries and financial aid, and Milliken said further cuts are needed.

Faculty salary increases have already been reduced from 2.9 percent to 1.5 percent to help with the deficit, but Milliken said positions and entire programs could be cut to lower costs.

The board also approved separate tuition increases for the University of Nebraska Medical Center's Colleges of Dentistry and Nursing. These colleges were specifically chosen for additional increases because of the high salaries students have after graduating, making it easier for them to pay back tuition increases that benefit the entire NU system.

"These were precisely crafted increases as opposed to across the board increases," Regent Chuck Hassebrook said.

Milliken said the approved smaller tuition increases will help NU maintain its recent momentum and success during the country's economic troubles, while staying affordable compared to its peer institutions.

"In this difficult year, I think this is a responsible budget," he said.

The next Board of Regents meeting will be Sept. 4 at 1 p.m. at Varner Hall.

adamziegler@dailynebraskan.com