Nickels & Dimes

With tuition increasing steadily throughout the Big Ten, many students are left wondering where their money's going. \nAnd this year, after the IU Board of Trustees' approval of an unprecedented 7.5 percent increase, those students' concerns have escalated. \nYet IU administrators want students to know the impetus behind the increase. They want students to know how their tuition is being spent. \nIn addition to tuition costs, set at $2,097.75 per semester for in-state and $6,965 per semester for out-of-state students, IU students pay a student activity fee of $59.87, a student health fee of $82.91, a technology fee of $100 and a transportation fee of $27.66 per semester. \nThe Board of Trustees, which deliberates and decides on the level of tuition increases, has attempted to maintain consistently low increases each year, said IU trustee John Walda.\nIn 1995, the Board voted to maintain a increase of 4 percent. Walda attributed the low hike to IU's commitment to accessibility for all Hoosiers "while offering one of the nation's best values in higher education. Moreover, our efforts to become more effective, efficient and accountable are producing internal cost savings that have helped to prevent big tuition jumps."\nBloomington's 1995-96 undergraduate in-state rate of $3,162 compared admirably with IU's Big Ten peers. In-state students at Penn State paid $5,188, while the University of Michigan cost $5,094, Michigan State cost $4,208 and Ohio State cost $3,039.\nThe following year, the Trustees requested the lowest increase in 16 years. The flat-fee undergraduate tuition for 1996-97 was $3,320, an increase of $158 from the previous year. The Board also discussed strategies for reallocation that year, including freezing vacant positions and deferring funding of new faculty and staff positions in growth areas.\nIn 1998, President Brand lobbied with the Indiana Commission for Higher Education, requesting additional allocations to help keep tuition costs low. That year, the increase remained consistent at 4 percent. \nThe Board of Trustees continued to raise tuition at a relatively steady rate each year -- until this year's 7.5 increase, which sparked innumerable dialogues among both in-and out-of-state students, concerned with how their money would be spent. \n"I have to admit that the tuition increase affects me much less than my out-of-state colleagues, but the constantly rising cost of higher education very much frustrates me anyway," said senior Josh Huff. "I understand that perhaps IU needs more money; in fact, I'm glad that they are trying to make this University better for us and more appealing to prospective students. However, I don't know that I would come here if I were from out of state."\nAccording to the "Rules Determining Resident and Nonresident Status for University Fee Purposes," non-resident students who are 21 years of age or emancipated from their parents may apply for in-state residence. They must have been physically present in Indiana for 12 months prior to applying without the "predominant purpose of education.\nIf the student is under 21 with parents living out-of-state, he or she must provide a notarized statement from the parents indicating the date they last claimed the student as a dependent on their federal income tax returns. \nThe student must also submit a statement indicating the amount of income sufficient for self-support and must have been physically present in Indiana for at least 12 months. \nThis year's increase affects both in-state and out-of-state students, however. Much of the increase can be credited to a tighter state budget in which higher education receives a mere fraction of allocations. Since 1975, higher education's share of the state's general operating funds has slipped from 17.7 percent to 13.9 percent, said IU President Myles Brand.\n"The current economic downturn has resulted in tighter state budgets for all purposes, including higher education," Brand said. "While Indiana state leaders did their best to fund education adequately at all levels in the face of a difficult economic situation, the budgeted increases for existing programs at IU and Purdue will fall well short of the inflation rate. Meanwhile, the costs of energy and health care benefits -- significant expenses for universities -- are rising much faster than inflation."\nPurdue University has also been substantially affected by the state budget, according to Purdue president Martin Jischke. \nHe claims faculty compensation is a key issue in determining budget allocations. The budget for the upcoming year includes no increases for supplies and expenses and mandates reallocations internally within every academic and administrative unit. \n"Purdue understands the state's financial dilemma, and we appreciate the limited funding the Legislature was able to give us," Jischke said. "However, we also have an obligation to our students and their future employers to protect the academic quality of the Purdue degree."\nWhile Purdue's plan floats theoretically, the tightening budget affects instructional units on the IU campus somewhat differently, according to the Budgetary Affairs Committee of the Bloomington Faculty Council. Total operating state appropriation has declined significantly throughout the past decade. Inflation increased an average of 3.0 percent per year, while state appropriation has grown at an average of 2.2 percent per year. This discrepancy results in 7.9 percent less inflation-adjusted funding for the Bloomington campus, despite the need for increased funding necessitated by a rapid influx of students.\nAssessments for instructional units often find themselves in deficit before enrolling a single student at the beginning of an academic year, the committee said. \nThe committee urges the campus and the President's Office to "work diligently with the Indiana General Assembly to reverse the decline in real state appropriation, and to lobby effectively for a fair formula distributing the state appropriation to the various IU campuses."\nBrand also indicated increased competition among large research institutions for top-notch faculty has contributed to tighter budget concerns. Private research universities pay full professors, on average, $22,100 more than public universities, according to research conducted by the American Association of University Professors. The gap continues to additionally widen within the realm of public education as some larger institutions are able to offer significantly greater pay to full-time faculty. \nTo respond to those issues, Brand said, IU must continue to attract and retain faculty he deems "the foundation of the University's academic reputation." The 2001-02 increase will include merit-based raises between 3 and 4 percent on all its campuses. Individual departments will also be permitted to raise some faculty salaries by up to 6 percent. Additional revenue from the tuition increase will create mentoring, counseling and remediation programs for underclassmen, and more full-time faculty posts will emerge as well. \n"It's an issue concerning many major research universities jockeying for positions as dominant forces," IU Director of Media Relations Sue Dillman said. "There's a desire and need on behalf of the campus to attract and retain the top faculty."\nIncreasing salaries for assistant professors has been especially targeted in considering budget allocations as well. IU's professors are the lowest-paid in the Big Ten, Brand said.\n"Faculty are the single-most important aspect of a quality institution," Brand said. "Unless we have competitive faculty salaries, we will find ourselves in a situation the people of Indiana will find unacceptable." \nBrand claims IU realizes its responsibility to students to control costs and maintains efforts are underway to achieve that goal. In February 2000, the University enacted an administrative services review overseen by Arthur Anderson Higher Education Practice in an effort to control costs. \nBut IU's tuition hike pales in comparison to other Big Ten universities. Purdue also enacted a 7.5 percent increase for 2001-2002. Ohio State has raised tuition by 9 percent and has also unveiled a long-range plan which will enact similar hikes each year for the next four to five years. \nThe University of Iowa, Iowa State University and the University of Northern Iowa will all experience hikes of 9.9 percent, according to the Iowa Board of Regents. The University of Illinois has enacted a 5 percent increase, as well as a $500 surcharge for incoming freshman. That charge will increase to $1,000 for the 2002-03 school year. \nThe average out-of-state tuition for Big Ten schools is $13,990. IU's rates fall in the middle of the spectrum, while the University of Iowa boasts the lowest out-of-state rates. University of Michigan nonresidents pay the highest tuition, at $21,037 for the 2000-01 academic year. \nBut Purdue offers the second-lowest resident fees among Big Ten universities. In-state tuition for Purdue students is waived, whereas out-of-state residents paid $9,032 in tuition fees last year. However, both in- and out-of-state residents paid $3,872 in "university fees". \nPurdue's operating budget last year was $1,110,929,557. State appropriations accounted for 28 percent of the budget, and student fees comprised 21 percent, according to Jischke. \nIU's recent hike is not at all indicative of future similar increases, University officials agree. Many, including Dillman, laud IU as the best value in the Big Ten. \nStudents concerned with this year's increase can take advantage of the 8 percent increase in financial aid this year, $3.6 million more than last year. About $400 million in combined state, federal and IU financial aid will be available to IU students as well. \n"It is a delicate balance to continue funding the outstanding education provided by IU," trustee Sue Talbot said. "I am certain that I join the entire Board of Trustees in working to keep tuition increases to the minimum while not sacrificing quality"