Officials: Tuition increase possible under governor’s proposed budget

With less money from the state available to Montana universities, students could face increased tuition costs by next fall to make up for the shortfalls, university officials said.

Montana Gov. Brian Schweitzer’s budget proposal, which was released over the weekend, calls for a $35 million increase in funding for higher education over the next two years, according to the governor’s Web site.

However, it is necessary to clarify how much of the increase is simply a continuation of the current level of funding adjusted for inflation as opposed to an injection of additional money into the Montana University System, said Commissioner of Higher Education Sheila Stearns.“It looks as if the amount pledged for higher education is lower than we hoped,” Sterns said, although she acknowledged that this is understandable given the current state of the economy.

The money state universities receive comes from two places – state funds and student tuition, said Stephen Barrett, chair of the Montana Board of Regents. The board has authority over the state university system.

Though the governor has submitted his requests, the amount of funding the MUS ultimately receives will be decided by the state legislature, which begins its 90-day session on Jan. 5.

Republican Sen. Bob Story Jr., senate president for the upcoming legislative session, said reductions to Schweitzer’s requested budget might be necessary because state revenue has already fallen by $500 million and could continue to slide.

The MUS is at high risk for funding cuts because it can turn to student tuition rates for revenue, he said.
Republicans will control the state Senate with a 27-23 majority in the 2009 legislative session. The House of Representatives will be evenly divided between the two parties.

Mick Robinson, the deputy commissioner for fiscal affairs, said he doesn’t think the party makeup of the state legislature will effect negotiations about funding for higher education.

“The Montana University System has generally had bipartisan support,” he said.

Though Stearns, Barrett and Robinson acknowledge that a tuition increase may be necessary, no one is prepared to say how much rates would increase.
President George Dennison said last week that tuition could increase between 2 and 5 percent in the future. On Monday, he said that estimate was still viable after the release of the governor’s budget.

The Board of Regents will likely decide tuition rates in the spring, closer to the 2010 fiscal year, which starts July 1.

Increased salaries for faculty and staff to match inflation rates will be one of the main factors in deciding how much tuition will need to increase, Robinson said.
If tuition rates are increased, they will be put in place by the fall 2009 semester at the latest, Stearns said.

In addition to higher tuition costs, less funding for the university could hurt “quality initiatives,” such as advising and tutoring programs or other learning programs, Stearns said.

The Board of Regents sets the MUS’ top priorities for the upcoming legislative session.

Currently, these include an increase in funding for financial aid and for recruiting and retaining faculty and staff, Stearns said.

Barrett said the Board of Regents has always tried to find a balance between what the universities need and what the state can afford.

Clayton Christian, vice chair of the Board of Regents, said the board hopes to balance quality with access and affordability. This includes improving advising, as well as increasing completion and retention rates in the MUS.

The Board of Regents will discuss Schweitzer’s budget at their meeting on Thursday and Friday in Missoula.

allison.maier@umontana.edu