Students will see a 27.9-percent tuition increase in fall 2002.

The Board of Trustees conducted a special meeting Tuesday to discuss CMU’s dismal budgetary outlook for the next fiscal year. It approved the hike – the second in two years – in a 6-2 vote.

University President Michael Rao said the hike will hopefully alleviate Central’s teetering financial state.

“In just one and a half years of service as president of Central Michigan University, I have watched CMU rollercoaster from what some thought would be the university’s financial peak – to the threat of returning to a poor financial position and a step backward from the university’s achievements toward quality,” Rao said.

The rate increase amounts to $498 per semester, based on a full-time enrollment of 15 credit hours. Under the new rate, CMU undergraduate students from Michigan next fall will pay $152.10 per credit hour, compared to the current $118.90 rate. Annual combined tuition and fees for in-state undergraduates who enroll for 30 credit hours during the 2002-03 academic year will be $5,318.

The hike came in the anticipation of decreased state appropriations for next year, increases in utility costs and health benefits, while trying to maintain a high standard in educational quality.

“The state of Michigan and our nation have come upon difficult financial times, made dramatically worse since the tragic events of Sept. 11,” Rao said. “As I watch economic conditions and state revenues, I continue to be concerned about CMU’s budget.”

The tuition increase will not necessarily cover budget shortfalls, but rather it would protect CMU’s student-faculty ratio, encourage faculty research and continue to provide students with a competitive education standard.

“Students are concerned about issues such as course availability, being taught by professors, national accreditations, and, something that should come as no surprise – parking,” Rao said.

During his presentation, Rao recommended the addition of 50 full-time faculty positions, an increase in course sections in high-demand areas and the expansion of the teacher education program in areas where Michigan faces serious teacher shortages.

“I recognize that the Board, president and administration will receive criticism for taking such a bold step with tuition to implement these initiatives, but when such criticism is weighed against the alternative of being criticized down the road for allowing CMU to suffer in quality and fail our students, faculty and alumni, the choice becomes clear,” Rao said.

Rao said if the university focuses on moving forward with its doctoral-research status, the state might be willing to allocate more dollars.

“I am convinced that the governor and state legislators support CMU’s contributions as a doctoral/research-intensive university, and if funds were available, they would continue to increase CMU’s funding level to that of other doctoral/research-intensive universities,” he said.

“However, the state recently had to cut its general fund spending by almost $750 million, and most analysts are talking about even larger reductions for the next fiscal year.”

Board Chairman William Johnson agreed with Rao’s assessment, concurring that raising tuition now gives students time to plan.

“Determining tuition and fees now gives students and families ample time to prepare for next fall,” Johnson said. “CMU is committed to academic quality and support services that are competitive with other institutions. Raising tuition is always a difficult choice for trustees and administration – and one that is never taken lightly. But we are convinced that our strategic priorities and the quality of the educational experience at CMU are in jeopardy if we don’t address a very serious budget challenge.”

Rao said the time for CMU to take a bold step forward is now.

“If I keep talking and don’t do something, people will wonder if we have the courage to do some of these things,” he said.

Regardless of the Board’s decision, CMU will still need to cut from its budget, Rao said.

“The majority (of the extra tuition dollars) will go where we have the demand and where we have the highest reputation,” he said. “If we are to focus first to fund these strategic priorities, we would still be looking at $3 million in reductions.”

The Board was presented with three options: increase tuition by $498 per semester effective fall 2002; increase tuition $229 per semester effective spring 2002 and an additional increase of $269 per semester effective fall 2002; and increase tuition $229 per semester effective spring 2002.

Alternatively, the Board could have deferred the decision until spring or summer – when Michigan’s other universities typically announce tuition increases.

Although six of the trustees supported option one, Trustees Jerry Campbell and Roger Kesseler backed option two.

“I think we’ve got to step up to the plate,” Kesseler said. “I think we’re better off to get it in place now.”

Campbell agreed.

“There’s great momentum and an awful lot of uncertainty in Lansing,” he said.

However, the remaining trustees said the extra time afforded to parents and families was more beneficial to students.

“We need to give them as much time as possible to prepare for this increase,” said Trustee Lee Fabiano.

Trustee Nancy McKeague agreed.

“We need students and parents with us and the sooner we give them the information to prioritize the better off we are, because $498 a semester is important to people,” she said.

Once the meeting was adjourned, Chairman Johnson said it was easier to put the situation into perspective without having other universities as a basis of comparison.

“Last year, we waited and it became complicated and you get caught in a variety of circumstances,” he said. “We’re able to do what we should do here without these other outside influences.”

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