Regents: Reasonable tuition increase connected to state funding

Student leaders at Iowa's public universities and several state regents today said they are generally supportive of a proposed 3.75 percent increase to base tuition for resident undergraduates next year, but they emphasized the state must hold up its end with the necessary levels of state funding for the three universities.

The regents heard presentations from the student government leaders at the University of Iowa, Iowa State University and the University of Northern Iowa before discussing the tuition increase proposal during a meeting at UNI today. The board did not vote on the proposal; final action on 2012-13 tuition rates is expected in December.

Regent David Miles of Dallas Center said he likes that the proposed tuition increase is lower than in the past several years, and that it's closer to the rate of inflation. Even though state funding has been reduced by $144 million to the three universities since 2009, the board has worked to keep tuition increases reasonable, Miles said. Still, a $240 increase is "real money," especially at a time when students and their families have a harder time affording it, he said.

Regents must remember "the importance of we as Iowa citizens through our elected leaders making the same kind of commitment to Iowa's public universities that we're asking our students to," Miles said. "(The increase) really needs to go hand-in-hand with a renewed commitment from our state."

Regent Bob Downer of Iowa City said it's his concern that student debt levels will keep graduates from staying in Iowa or settling in rural communities in the state.

"I am extremely concerned over these higher costs that students and their families are facing and the level of student debt in terms of its impact on the Iowa workforce going forward," Downer said.

Regent Ruth Harkin of Cumming said at some point, the board has to look at the business model of the universities as tuition continues to increase every year.

"The simple fact is our students in the state of Iowa and their families' ability to pay is decreasing and at the same time we're increasing tuition," Harkin said. "One of the things we hear students say every year and we say to ourselves is we really have to find a better way to do this, and then we keep increasing tuition. I am at some point thinking we honestly need to start thinking about a better business model."

The regents must articulate the importance of higher education to the Legislature in seeking renewed levels of state funding, Regents President Pro Tem Bruce Rastetter said.

"We're committed to doing that and committing to making sure that going forward we try to have a level that is a lower level" for tuition, he said.

In-state undergraduate students at the UI, ISU and UNI would pay 3.75 percent more next year in base tuition, or about $240 more, under a proposal. The proposed increased would result in base tuition of $6,678 at the UI and $6,648 at ISU and UNI. Mandatory fees also would increase at the UI and UNI, by 3.75 percent and 4.78 percent, respectively.

Under the plan, out-of-state undergraduates would pay 4.75 percent more in base tuition at the UI, 2.63 percent more at ISU and 3.75 percent more at UNI under the plan.

Expected higher education inflation, based on the Higher Education Price Index, for 2012-13 is forecast for 2.6 percent to 4.2 percent.

The board last spring approved a 5 percent base tuition increase for the current academic year. With mandatory fees included, the increases this year were 4.7 percent at the UI, 7 percent at ISU and 4.9 percent at UNI.