California College Regents Raise Tuition 32 Percent

Funding for colleges and universities in the United States is drying up as states face smaller budgets. According to the University of California, the Board of Regents voted on Thursday, November 19, 2009 to increase student fees to help "restore program cuts, pay for unfunded enrollment growth, end employee furloughs and contribute to the UC Retirement Plan." The increases will be implemented in two phases, the first during the winter/spring terms of 2010. Undergraduate and graduate professional students will see the largest increases, 15 percent in each phase. Graduate academic students will see increases of 2.6 percent and 15 percent. It is estimated that $505 million will be raised from this tax on students. Students from households with incomes below $70,000 will not pay fees.

California is not alone with university financial concerns. The state's northern neighbor is also feeling the pain of the recession. This past summer, the Oregon State University Barometer reported that tuition and fees would increase at rates of 7.5 percent and 6.9 percent, respectively. Oregon Governor, Ted Kulongoski later signed a line-item veto on house bill 5054 and senate bill 554, which would have taken money from higher education, causing further increases, according to Oregon.gov.

Students in Middle America will also see tuition hikes. The Lincoln Journal Star, reported earlier this month that the University of Nebraska has already made nearly $8.5 million in cuts this year by cutting more than 100 positions, limiting travel and postponing some purchases. There will be no mid-year tuition increases; however increases are going to be considered for the 2010-11 school year. It is still unknown if, or how much tuition will increase. There is a historical correlation between decreased budget and increased tuition in the state. Earlier this decade, tuition was increased by double digit percentages for four consecutive years.

Private schools also have to make adjustments because of the economy. According to the Office of Public Affairs at Dartmouth College, an Ivy League school located in Hanover, New Hampshire, tuition increased 4.8 percent for the 2009-10 school year. Administrative expenses were also cut to help the college's financial situation.

At Dartmouth, and all of these universities, some of the funds will be used for financial aid. This will help students from low and middle income families to attend. At Dartmouth, 48 percent of the class of 2012 needs some financial aid.

References:

The Daily Barometer, "Tuition increases for Oregon universities announced", Oregon State University

Donna Hemmila, "Regents approve fee increases", UC Newsroom

Melissa Lee, "NU president: Affordability critical amid budget cuts", Lincoln Journal Star

Office of Public Affairs, "Dartmouth announces 4.8% tuition increase for 2009-2010 while budgeting 13% increase in financial aid", Dartmouth College

Oregon.gov, "Governor Kulongoski issues line-item vetoes on house bill 5054 and veto on senate bill 545", State of Oregon