Board of Trustees raise undergraduate tuition to $395 per credit hour
President George Ross speaks to the Central Michigan University Board of Trustees April 30 in the President's Conference Room.
On-campus undergraduate tuition for the 2015-16 academic year will increase 2.6 percent after a 6-1 vote at the April 30 Board of Trustees meeting.
Newly-appointed trustee Rich Studley was the lone dissenting vote against the motion, which raises the price of tuition to $395 per credit hour, though he supported increases in graduate and College of Medicine tuition.
"After listening to the discussion today and studying all of the information that has been provided, I have reluctantly concluded that I am not able to support an increase in undergraduate tuition," Studley told the board. "I think our value of being a lower cost-effective, but high quality, university is a difficult, winning strategy.
My concern is that the increase is well above the rate of inflation, so the burden falls on our youngest customers."
CMU ranked fourth among Michigan's 15 public universities in credit hour rates last year, behind Michigan State University which charges $440 per credit hour.
University President George Ross said pricing out of reach for some students is a constant worry of his.
"The pressure on students and families has to be weighed against a quality education," he said. "There are cost pressures on (CMU) that we don't control."
Global Campus tuition rates were set at $395 per credit hour. Master's and specialist tuition was set at $527 per credit hour and doctoral tuition was set at $605 per credit hour. The annual program tuition rate for CMED was set at $39,532 for residents and $73,522 for out-of-state students.
Room and board rates were set at $9,088, a 3.5 percent increase from last year.
Vice President of Finance and Administrative Services Barrie Wilkes, said when setting tuition, the university considers the access of education to Michigan students as a priority. Wilkes said CMU ranks 11th of the 15 state public universities in total cost of attendance.
CMU's 11.2 percent cumulative five-year tuition increase is the lowest among Michigan public universities. Wayne State is the highest, increasing tuition 26.9 percent since 2011.
Diminished state funding for universities has placed the burden on CMU to find alternative ways to balance their budget, Ross said. Tuition comprised 56 percent of the operating budget in 2014-15, while state appropriations was responsible for 17 percent of the budget.
CMU ranks 10th in the amount of state funding it receives — about $3,647 per student. Wilkes said the most CMU has ever received in state appropriations was slightly over $90 million in 2001-02. If that amount was increased for inflation, Wilkes said the tuition proposal would have been $100 per credit hour less.
This year, CMU received $79 million in state appropriations.
Under Gov. Rick Snyder's proposed budget, which may not be adopted for some time, public universities would see an additional $28 million for general operations. This includes a 3 percent, $2.3 million, restoration of funds cut from CMU since Snyder's first budget. Increases during the past three years have not fully make up for the cuts.
Ross said he was "frustrated" by the reduction in state appropriations.
"We're playing catch up. Whatever action you take today, the pressure will come to the university for raising tuition," Ross said. "I wish there was more pressure on the legislators in Lansing."
Trustee Robert Wardrop also called on the board to become more politically active in Michigan and Washington D.C.
"We need to be aware of the debt level students are getting into and we need to try to help that as best we can and we're doing that by holding tuition down," Wardrop said. "(Student debt) is a huge problem waiting to explode on our past, current and future students."
Looking ahead to next year's expenses, Wilkes called for a $6.1 million investment in financial aid, which Ross said was an indicator of CMU's commitment to students. Another $5.9 million will be allocated to compensation increases for faculty and staff and $2.3 million will be allocated to the Athletics Department.
Other board members stressed the importance of fiscal responsibility.
"I think affordability is one of the key issues we face as a board and an institution," said Trustee Tricia Keith. "The sensitivity around our budgeting and our tuition setting is key. Taking about financial aid strategies in tandem with the history we have in having lowest change over five years is something we always need to be thinking about."
Board Chair William Kanine said CMU is being diligent in keeping costs down but there has to be increases to deal with expenditures.
Trustee John Hurd was not present at the meeting.
