| For more information about tuition and the U of M FY 2001-02 budget, go to www.umn.edu/budgetinfo. |
U of M to Raise Tuition, Increase Financial Aid and Grants for 2001-2002
At its monthly meeting on July 12, the University of Minnesota Board of Regents approved a $1.75 billion operating budget for fiscal year (FY) 2001-02 that includes $101.8 million in new spending. The budget includes an average 13.3 percent increase in tuition and fees for the upcoming year, as well as internal budget cuts and reallocations.
"The decision to raise tuition this much wasn't made lightly," said Maureen Reed, chair of the board. "The board is deeply committed to the university's tradition of access, but it is also unthinkable to let the quality of this great institution decline. This budget effectively balances these interests."
To mitigate the tuition and fee increases, especially on the lowest income students, the university will more than double its financial aid and grants from $2.3 million this year (FY 2000-01) to $7.4 million over the next two years. That commitment, combined with new changes in federal tax law, and increased federal and state grants, will substantially offset the impact of tuition and fee increases for most students with family incomes up to $50,000.
The $101.8 million in new spending is funded approximately equally by new state appropriations, increased tuition and student fees, and cost savings, scaling back on new investments and other resources.
The budget approved by the regents includes an increase in tuition and fees averaging 13.3 percent in FY 2001-02. In conjunction with approving this budget, the board also reviewed a preliminary and FY 2002-03 budget that included a 13.6 percent tuition and fee increase. A new university fee of $75 per semester will be charged to all students beginning in FY 2001-02 (fall semester 2001), and that will rise to $150 per semester in FY 2002-03. The fee will be prorated up to 10 credits and flat thereafter.
New investments are to be made in five areas within the U of M system: services to students, academic investments, compensation, facilities and debt service, and other needs. "If we're asking students to pay more, we have an obligation to improve student services," said University of Minnesota President Mark Yudof, explaining the $10.2 million in new investments in freshman seminars, financial aid, the registrar's office, and the like.
What does this mean for UMC?
According to UMC Chancellor Don Sargeant, UMC's FY 2002 budget will be approximately $13.4 million. Last year's budget was approximately $12 million. Nearly $850,000 of the revenue increase in the budget this year is from student tuition. In addition to providing faculty and staff compensation increases, the new budget will aid UMC in sustaining its present operation.
It replaces some of the non-recurring funds received last year with recurring monies. In particular, it provides for three faculty and staff positions presently funded with non-recurring funds to be in this year's base budget. It adds two new faculty positions and provides additional dollars for student financial aid, the First Year Experience program, utility inflation, and technology.
It is expected that UMC's enrollment this academic year will be similar to last year's. However, additional funds have been designated to maintain and improve the campus' teaching and service programs.
To help cover the cost of central student services, all students will be charged a new University-wide fee of $75 per semester in FY 2002 and $150 in FY 2003. At UMC, the tuition, technology, and student fees for 2001-02 have been set as follows: tuition increases from $126.60 per credit to $139.58 per credit; technology access fee remains $500 per semester; student service fee increases from $133.98 to $147.48 per semester. When campus room and board are added to the above expenses, the estimated cost per semester for a UMC student increases 9% to roughly $5000 per semester.
For more information about tuition and the U of M FY 2001-02 budget, go to www.umn.edu/budgetinfo.
The U of M system is not alone in looking at increases in tuition. All other public colleges in Minnesota are also planning substantial tuition increases. On July 3 the Minnesota State Colleges and Universities (MnSCU) system, which includes all technical and community colleges and state universities, announced a proposal that finds tuition increasing by an average of 10.9 percent in FY 2001-2002. (see www.mnscu.edu/NewsReleases/Fy01/0703-tuition.html). Some MnSCU institutions are looking at 14-17 percent tuition increases.
The tuition increases are mainly attributed to legislative funding allocations that fell short of those requested by both the U of M and MnSCU systems.
Note: this posting includes information taken from a U of M system-wide news release dated 07/12/2001.
Posted 07/17/2001
Contact: Andrew Svec,
218-281-8435