Officials Discuss Merit of Linking Tuition, Growth

Eighty percent of the funds from the tuition increase -- a total of about $32 million -- would fund enrollment growth at the 16 UNC-system institutions. The remaining funding -- about $8 million -- would fund need-based financial aid.

Under the proposal, individual campuses also will be allowed to bring tuition increase requests of limited amounts before the UNC-system Board of Governors.

The BOG is expected to vote on the proposal March 6.

Funding from the tuition increase would meet about half of the UNC system's stated need of $70 million to contend with increased enrollment. Previously, board members had hoped to secure all $70 million in funding from state appropriations.

Jeff Davies, UNC-system vice president for finance, said tuition increases are the system's way of dealing with an unusual state budget situation that has left the system without proper funding.

"We are searching for a serious approach for funding enrollment growth in the light of the soft economy," he said.

Davies said the dire economic circumstances facing the state have forced UNC-system officials to consider an atypical approach.

"The university can't sustain increases (in tuition) at this level," he said. "You partner with the state during the lean times, and they support the university in good times. Last year the (N.C.) General Assembly funded the entire university enrollment growth and also appropriated $1.8 billion dollars."

North Carolina is facing a projected budget shortfall of more than $1 billion for the 2002-03 fiscal year. Gov. Mike Easley declared a state of fiscal emergency Feb. 5 and slashed funding from many agencies, including the UNC system.

But some BOG members said they do not think students should be punished for the state's budget crisis.

"It is a policy question: Should students be funding the growth when it is the legislature's deal?" said BOG member Ray Farris. "With a 10 percent increase one year, why not next year?"

Farris also said the BOG's proposal sets a poor precedent for future boards when faced with a difficult financial situations.

"From 1972 to 1995 there was not one tuition increase levied by the BOG, despite an (increase of) 88,000 students," he said. "It sets a bad policy that will last forever. With virtually no tuition increases from 1930 to 1995, this became a great university."

Sen. Walter Dalton, D-Cleveland, chairman of Senate Appropriations on Education Committee, said he is uncertain how the General Assembly would receive the board's action.

Dalton said there is a possibility that the N.C. Senate Appropriations Committee will reconvene early to examine the BOG's proposal and its implications.

"We want to be able to maintain access (to the universities), as well as the faculties and reputation," Dalton said. "There are two things you can do in a budget crisis, raise revenue or cut services, or a combination of the two.

"We know the importance of our university system, but we won't see sufficient economic growth for a while."

The State & National Editor can be reached at stntdesk@unc.edu.