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State Budget Cuts Drive Up Tuition At Public Universities: New York Federal Reserve Report

New Reports Reveal Cause For Soaring Tuition
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Senior Editor/Reporter, The Huffington Post

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More students are going to college than ever before, but states have continued to cut back on funding for public colleges, and that's leading to some real consequences.

A new study from the New York Federal Reserve shows declining state and local financial support for public higher education is causing tuition to skyrocket, increasing much faster than at private colleges.

Rajashri Chakrabarti, Maricar Mabutas and Basit Zafar write in the report:

As a share of total revenues for America’s public institutions of higher education, state and local appropriations have fallen every year over the past decade, dropping from 70.7 percent in 2000 to 57.1 percent in 2011. At the same time, college enrollment numbers have swelled across the country—public institutions’ rolls grew from 8.6 million full-time students in 2000 to 11.8 million in 2011.

State and local support for public higher education per student has fallen by 21 percent from 2000 to 2010, according to data from the State Higher Education Executive Officers. During that same period, real net average tuition at public universities rose by 33.1 percent. Yet, at private colleges, tuition grew by a much slower rate -- by 21.2 percent.

Tuition also grew especially in states with the largest funding cuts, they observed in the report.

"In the public discourse, federal funding is often blamed for driving up tuition," the authors write. "However, our analysis suggests that public schools are increasing tuition as a way to make up for decreasing state and local appropriations for higher education, and that deeper cuts in public funding may be associated with correspondingly greater tuition hikes."

The report noted state schools "may be inclined to accept a greater proportion of out-of-state students" who pay more in tuition, although they were unable to find a significant amount of data to show that had occurred nationwide from 2000 to 2010.

However, administrators are openly declaring their goals to increase out-of-state students to fill budget gaps, as a way to avoid unpopular tuition hikes. Since this is a relatively new phenomenon, there wouldn't be much conclusive data yet.

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Before You Go

Tuition Hikes Around The Country In 2012
Alabama - 8.7 Percent(01 of25)
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The Auburn University Board of Trustees approved an 8 percent tuition increase for undergrads and a 9 percent hike for graduate students. In-state medical students at the University of Alabama will see a 4 percent tuition increase, while dental students get a 6 percent hike and 8 percent for optometry students. For other UA students, ABC3340 reports a 7 percent jump for students attending the main campus in Tuscaloosa, 8.6 jump for students at UAB and 8.7 percent at the Huntsville campus.After increasing tuition by almost 13 percent last year, Jacksonville State University promised they will hold tuition level if the state doesn't cut their funding.Alabama's public colleges and universities are facing a 5 percent cut from state appropriations.Photo Credit: Carol M. Highsmith (credit:Library of Congress)
Arizona - No Increase(02 of25)
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After double digit tuition hikes in each of the past four years at the University of Arizona and Arizona State University, college students have some good news for the fall of 2012; a freeze on tuition for the first time in 20 years. Actually, the state will be pouring $21 million in their public higher education institutions.Photo Credit: Jscarreiro (credit:Wikimedia Commons)
California - 9 Percent(03 of25)
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The University of California approved a 9 percent fee increase for next year. If a ballot proposition to raise taxes in November isn't approved, they may increase by another 6 percent. UC got a 20 percent cutfrom the state this year.California State University was cut by 27 percent. (credit:AP)
Florida - 8 To 15 Percent(04 of25)
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The University of Central Florida has lost $150 million the last five years, leading to job losses and the end of certain majors. Now they're going to implement a 15 percent tuition increase.The University of Florida is looking at a 9 percent tuition hike. Florida A&M University voted to raise tuition by 8 percent.Florida State University approved increasing tuition by 15 percent across the board, but the actual cost is going up only 11.3 percent because fees aren't increasing at the same rate.Gov. Rick Scott said he is against tuition increases was, according to a spokesman, "confident [universities] can find a way to ... avoid tuition hikes that will put a greater financial strain on students and their families." He vetoed a bill that would've allowed the state's major universities to raise tuition without limits. (credit:AP)
Hawaii - 35 to 46 Percent(05 of25)
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When it comes to tuition increases, many states have scaled back this year. However, Hawaii is an exception:
[A]nnual tuition at UH-Manoa will rise by 35 percent over the next five years for a resident undergraduate student -- to $11,376 a year in 2016, from the current $8,400 a year. Tuition next year will rise by $264, to $8,664.Resident tuition at UH-West Oahu will go up 49 percent over five years, to $7,656 in 2016-2017, from $5,136 this year, equal to what UH-Hilo students would pay.
Photo Credit: Travis.Thurston (credit:Wikimedia Commons)
Illinois - 4.5 Percent(06 of25)
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The state legislature in Illinois slashed $152 million from the higher education budget, or about 6 percent.Western Illinois University approved a 4.5 percent increase on tuition for next year. The University of Illinois approved a 4.8 percent increase and Illinois State University sought a 4.4 increase. Photo Credit: Daniel Schwen (credit:Wikimedia Commons)
Iowa - 3.75 Percent(07 of25)
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The Board of Regents approved a 3.75 percent tuition increase this fall for the state's public universities. After having their funding from the state legislature slashed by 25 percent over the past three years. But this year, they're getting a $23 million increase from the state legislature. (credit:YouTube | HeartThrobs96)
Louisiana (08 of25)
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Thanks to continued budget cuts, Louisiana students can expect to get some significant tuition increases and watch out for mid-year cuts.According to the Times-Picayune, since 2008, Gov. Bobby Jindal and state lawmakers have stripped nearly $427 million in state general funds from higher education. Nicholls State University lost $4.4 million, a 7.6 percent drop in funding from the state. They're hinting at tuition increases. The University of Louisiana System is got a cut this year of $55 million, and will likely implement tuition increases to avoid any layoffs.Community colleges will feel a pinch too. The Advocate reports:
The Board of Supervisors at Louisiana Community and Technical Colleges ... approved an across-the-board 10 percent tuition increase at their 16 campuses, including the five technical college campuses in the Baton Rouge area.
Photo Credit: Stuart Adams (credit:Stuart Adams)
Maine - No Increase(09 of25)
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The University of Maine system lost $2.3 million in state appropriations this year, but they decided against implementing tuition hikes.Photo Credit: NightThree (credit:Wikimedia Commons)
Massachusetts - 4 Percent(10 of25)
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The University of Massachusetts Board of Trustees plans to impose a 4.9 percent tuition hike, but Gov. Deval Patrick objected the night before they were to vote on it:
"Like the rest of state government, UMass must demonstrate that it is doing more with less before asking more from students. And I am not convinced that UMass has yet done enough to find efficiencies and reduce costs so that any new revenue is dedicated to teaching and learning," Patrick wrote in his letter that was hand-delivered on the day of the vote.
The Board passed it 10-2.Photo Credit: Lion Hirth (credit:Wikimedia Commons)
Michigan - 3.95 Percent(11 of25)
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Eastern Michigan University are getting a 3.95 percent tuition increase. The Free Pressreported on June 19:
University of Michigan and Michigan Technological University will set tuition rates on Thursday. Michigan State University is expected to do so on Friday. Wayne State University is expected to set its rates June 27.
Photo Credit: AndrewHorne (credit:Wikimedia Commons)
Nebraska - 3.75 Percent(12 of25)
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The University of Nebraska is considering a 3.75 percent tuition hike for next year. During the past four years, UNL students have seen their tuition increase by 15 percent -- more than double the rate of inflation:
Looking back further, to 2000, tuition and fees have grown by 115 percent, or about three times the rate of inflation. During that time frame, the consumer price index rose 34 percent.
Photo Credit: Bkell (credit:Wikimedia Commons)
New Jersey(13 of25)
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When Gov. Chris Christie took office he imposed a 4 percent tuition increase cap. Then he decided he didn't like that idea a year later. Currently, New Jersey's public colleges have been in a bit of chaos as the state considers a major overhaul and merger. (credit:AP)
New York - 31 Percent Over 5 Years(14 of25)
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City University of New York is currently raising tuition by 31 percent over five years. Undergrads will pay $6,330 in 2015-16, with about $500 a year in additional fees. Despite being much lower than nearby public universities in the Northeast, students still took to the streets to protest.State University of New York is undergoing a similar five-year plan.Photo Credit: CUNY on Facebook (credit:CUNY)
Ohio - 3.5 Percent(15 of25)
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Ohio State University, the University of Toledo and Cleveland State University are all planning a 3.5 percent tuition hike -- the maximum they are allowed under state law. Photo Credit: Xurxo (credit:Wikimedia Commons)
Oregon - 6.1 Percent(16 of25)
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The University of Oregon will have a 6.1 percent tuition increase. However, with decreased fees, it will amount to a 5.9 percent increase.Students weren't happy about that and held protests on campus. Dozens of students made their way into the UO president's office to voice their opposition to the tuition increase. (credit:KMTR)
Pennsylvania - 3.9 to 10 Percent(17 of25)
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Gov. Tom Corbett (R) put forward a budget proposal that would cut the state's 14 public universities by 20 percent in 2012-13, with a 34 percent reduction over two years. It's been met with multiple protests.The state spends nearly twice as much on corrections as it does on higher ed.When asked about the cuts to higher education in mid-March, Corbett had this to say:
"We are reducing the funding to education because we do not have the money -- it is that simple. And I ask anybody who talks about [the fact that] we're reducing education, from the education side, to tell me where would you have me take it from? Would you have me take from the social services? Would you have me take it from law enforcement?"
Penn State's appropriation is now equal to the amount it received in 1995, and Corbett wants to cut their budget further by taking away 50 percent of what it received in their 2011-12 appropriation.Penn State students can expect to pay 7.5 percent more in tuition next year. It's the highest increase since 2002.The Morning Call reports:
This year, in the face of record budget cuts, state-owned universities such as Kutztown and East Stroudsburg ratcheted up tuition by 7.5 percent while Temple University's tuition spiked 10 percent.
The University of Pennsylvania will increase tuition by 3.9 percent.Photo Credit: Pollinator (credit:Wikimedia Commons)
South Carolina - 1 to 3.15 Percent(18 of25)
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The University of South Carolina is planning its smallest tuition hike in recent years for in-state students, with a 3.15 percent increase. Out-of-state students will see a 4.9 percent increase, which is the largest tuition increase in the state this year.Despite the smaller increase this year, the price of tuition has more than doubled since 2002. The Charlotte Observer reports state support of USC Columbia has fallen to $90 million from $230 million since 2008.South Carolina State will have no change this year. Other South Carolina public colleges will increase tuition by 1 to 3 percent for next year.Coastal Carolina is actually reducing its tuition by 1 percent.Photo Credit: Florencebballer (credit:Wikimedia Commons)
South Dakota - 5.8 Percent(19 of25)
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The average tuition increase this year will be 5.8 percent, the highest in the northern Midwestern Great Plains states.Photo Credit: USD's Facebook (credit:Facebook)
Tennessee - 3.4 to 8 Percent(20 of25)
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The University of Tennessee proposed tuition hikes of 8 percent at the Knoxville campus, 6 percent at Chattanooga and Martin, and 4 percent at the Health Science Center. The Tennessee Board of Regents recommended tuition increases across the state. The AP reports East Tennessee State University would get the highest increase at 7.2 percent. Austin Peay was the lowest at 3.4 percent.Photo Credit: Zereshk (credit:Wikimedia Commons)
Texas - 2.5 to 3.8 Percent(21 of25)
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Students at the University of Texas could be facing tuition increases of between 2.5 percent to 3.8 percent in the coming years. The Houston Chronicle reports "that would mean an increase from the current $4,896 per semester to $5,154 by fall 2013. Non-resident students would see tuition jump from $16,190 per semester to $17,377 by fall 2013."But the UT Board of Regents voted not to implement tuition hikes, leading a faceoff between UT president Bill Powers and the board.The Texas Legislature deregulated tuition in 2003. (credit:AP)
Virginia - 3.7 to 4.7 Percent(22 of25)
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The University of Virginia's Board of Visitors approved the smallest increase in a decade for in-state tuition and mandatory fees with a 3.7 percent hike. The high from the past decade was in 2004 when they implemented a 19 percent increase. Virginia Tech increased tuition by 3.9 percent. Virginia State University decided in a special meeting to lowered the increase in tuition and all mandatory fees from 6.6 percent to 4.7 percent for in state Virginia undergraduates. Gov. Bob McDonnell urged the state's universities to keep increases at or below the Consumer Price Index (2.7 Percent) which is lower than the Higher Education Price Index. (credit:AP)
Washington(23 of25)
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Washington State University is raising tuition by 16 percent for the second year in a row. The University of Washington plans a 16 percent increase after raising tuition 20 percent last year. The AP reports Western, Eastern and Central Washington universities, and The Evergreen State College, all made two-year tuition decisions last summer after the Legislature decided to put tuition increases of up to 16 percent into the state's two-year budget. (credit:AP)
West Virginia - 5 Percent(24 of25)
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West Virginia University students are looking at a 5 percent tuition bump. However, the total cost per semester for in-state residents will only be $3,045 after the increase:
The increases are slightly smaller at Potomac State College in Keyser and the WVU Institute of Technology in Montgomery.Both resident and nonresident undergraduates at Potomac State will pay $72 more per semester. At WVU Tech, residents will pay $107 more per semester, while nonresidents will pay $268 more.The board also approved a one-time fee of $63 per semester to replace all the individual course fees that students were once charged.
Photo Credit: Swimmerguy269 (credit:Wikimedia Commons)
Wisconsin - 5.5 Percent(25 of25)
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If the Board of Regents approves a 5.5 percent increase, the University of Wisconsin-Madison tuition and fees may top $10,000 for in-state students, and UW-Milwaukee would be close behind. It would be the 6th consecutive year UW System President Kevin Reilly has recommended a 5.5 percent increase for all UW campuses:
Higher tuition has helped offset less than a third of state funding cuts, according to UW System officials. Universities gained savings from state budget provisions that imposed higher costs on state employees for benefits. They also gained savings through flexibilitities from state rules regarding purchasing, contracts and other areas.
Photo Credit: Vonbloompasha (credit:Wikimedia Commons)
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