In the difficult economic times we face, the UI must confront our budget challenges as we always have — as a community. All members of the university community — faculty, staff, and students — are sharing the pain of today’s budget reductions. We are making sure that students bear the smallest share of these cuts, however. Protecting the affordability and quality of a UI education must remain our top priority.
We completely protected our students from the direct impact of this fiscal year’s initial $34 million state appropriation reduction, thanks largely to good management and stimulus funds from the federal government. With the current $23.5 million reversion required by the governor’s 10 percent across-the-board mid-year cut, however, we must ask our students to be part of the solution.
The state Board of Regents is contemplating a one-time tuition surcharge of $100 for the spring 2010 semester only. This amount equals 1.5 percent of current tuition and fees for undergraduate residents. This one-time surcharge would generate almost $2.2 million, which is just about 9 percent of the $23.5 budget cut. We absolutely pledge to support additional financial aid this spring so that all Iowa students who are Pell grant recipients will receive an additional $100 in support. In other words, our most financially needy students would be not be harmed. All other parts of the university would absorb more than 90 percent of the reversion, with our faculty and staff directly making a 14 percent contribution.
Fiscal 2011 presents us with further challenges. We normally use tuition increases to keep up with inflation and to pay for instructors and educational programs. At least 17 percent of tuition goes back to students in the form of financial aid. For fiscal 2011, the regents are contemplating a 6 percent tuition increase, which would generate $17.7 million, before the 17 percent for financial aid is removed. With the past year’s total cuts of more than $65 million from the General Education Fund, this $17.7 million would be used primarily to forestall even deeper programmatic or workforce cuts, rather than to cover inflationary increases next year.
We must, however, continue our commitment to financial aid and educational quality. Especially in tough economic times, keeping college affordable for Iowans remains one of our top priorities.
Therefore, the tuition increase will continue to fund financial aid. In fact, we will commit significant additional money for need-based aid for resident undergraduates. All admitted, dependent, resident students will continue to be offered a financial aid package that enables them to attend UI.
We also cannot stop improving the quality of undergraduate education at the UI. We will therefore begin a multiyear investment in a student success initiative, starting with approximately $900,000 from the 6 percent tuition increase.
This year’s one-time tuition surcharge and next year’s 6 percent tuition increase are truly measures of last resort in the current economic climate. We have reached the decision to propose these increases through our tradition of shared governance, including the leadership and support of our student government officers.
It is always difficult to raise tuition and ask our students to pay more. But without these increases, the cost to our students would be measured not in dollars and cents, but in lower quality and value of their UI education and degrees.
Sally Mason is the UI president.