U students will pay higher tuition next year, more than some regents wanted

The University of Minnesota Board of Regents has signed off on a tuition increase for many undergraduate students beginning in the fall.

Even though they pushed President Eric Kaler to reduce his initial proposal, tuition will rise higher than some on the board wanted.

The approved budget includes a 2 percent tuition hike for students who are residents of the state of Minnesota and attending the University on the Twin Cities campus. Students enrolled in the university's Duluth, Rochester, Crookston and Morris campuses will see a 1 percent rate increase.

Former House Speaker and now Regent Steve Sviggum wanted to decrease tuition by 1 percent — funded through staff cuts and and a reduction in wage increases. That motion failed. Sviggum says it would have sent a great message.

"I'd love to be able to go back to the Legislature and say that," Sviggum said. "You're going to have a tough time at the Legislature next year if you don't do something."

In the last legislative session the University asked for $147 million dollars in extra funding. State lawmakers granted approximately one third of that. At the same time some state legislators recommended the University freeze tuition rates.

The increase in out-of-state tuition is expected to generate approximately $600,000 in added revenue for the University of Minnesota system. The 2 percent increase for state students will generate $6.7 million, according to university estimates.

Regent Michael Hsu tried but failed persuading other regents to freeze tuition for in-state residents. He said that action would help convince the Legislature the university's leadership was serious about controlling costs.

"I think if we control our costs we will eventually be rewarded with more funding in the future — but that's a strategy we haven't adopted yet," he said.

The board approved a tuition hike for non-resident students in the Twin Cities by 12.5 percent. Some on the board resisted that. Regent Linda Cohen strongly preferred a smaller, 10 percent increase to keep non resident students flowing to the U.

"I think they bring great diversity to our institution," Cohen said. "Many of those students stay in Minnesota and help Minnesota."

Regent Abdul Omari worried about the message the rate hike would send to prospective students.

"We're essentially sending the signal that those who can pay for it will come, and those who can pay for it are who we will take," Omari said.

But Hsu, the same regent who called for a tuition freeze for in-state residents, actually applauded Kaler for the 12.5 percent rate hike for out-of-state students. He compares it to selling luxury cars.

"I've always been concerned that people view us as inferior to our peers because we charge less. I think we're finally understanding that raising the sticker price is not going to hurt us. So I think the quicker we can get up to the midpoint of the Big Ten which we all agree is where we want to be, the better off we'll be."

Currently the University of Minnesota ranks near the bottom among Big Ten schools when it comes to tuition.

The tuition goes up for out of state students on other campuses outside the Twin Cities, but not by as much. Those students attending in Duluth will see a 5.5% rate hike. Morris students will see just a 1 percent rate hike.

The regents also approved a salary freeze for Kaler and 14 other senior leaders, meant to help balance the budget.

Faculty and staff will get a 2 percent raise.