The plan passed by the BOG also increases out-of-state undergraduate tuition at UNC-CH and N.C. State by $1,778.
For more than three hours Wednesday, the BOG discussed the merits of both a systemwide tuition increase and campus-initiated tuition increase requests from individual boards of trustees.
When the dust settled, the board had approved tuition increases of varying amounts at all 16 UNC-system schools and student fee increases at all campuses, including a $62.10 increase at UNC-CH.
The board first approved a systemwide 8 percent tuition increase for in-state students, a total of $186 at UNC-CH and N.C. State, and a 12 percent out-of-state student tuition increase, a total of $1,478 at the two schools. All tuition increases must be approved by the N.C. General Assembly.
The across-the-board increase was prompted by the UNC system's need for $80 million to fund enrollment growth and need-based financial aid. Previously, board members had hoped to secure the funding from the General Assembly, but as the state's fiscal outlook continued to dim, that prospect became less and less likely.
State officials have estimated that the budget shortfall for the next fiscal year could grow to well over a $1 billion.
The systemwide increase will generate $40 million -- about $33 million of those funds will go toward enrollment growth while the rest will fund need-based financial aid. "Without this money (new) students can't come; we can't serve them; we can't provide them with the quality (education) they deserve," said BOG member Robert Warwick. "This is the only way we can provide for those 7,500 students -- there is no other way."
"What we said to the people of this state -- 'we're going to have a place for you and your sons and daughters to go to college,'" Phillips said. "For us to turn around and say 'no, our doors are closed' -- to me that is not an option."
BOG members said they hoped the legislature would provide at least the remaining $40 million, if not more.
The systemwide tuition increase includes a provision that if the legislature funds more than the $40 million, tuition will be scaled back proportionately.
But UNC-system President Molly Broad said it would be difficult for the General Assembly to fund the remaining $40 million this summer.
"I think at the moment it doesn't look hopeful," she said. "(But) I've been around state legislators long enough to know that things don't look the same in August as in March. We'll continue making our case."
BOG member Craig Souza also proposed an amendment to the systemwide increase -- which was accepted by the board -- that the systemwide tuition increase will be completely repealed if and when the General Assembly fully funds the UNC system's enrollment growth. "Every one has said that this is a one-time deal; we're only going to do this this one time -- let's keep us at our word," he said.
Several BOG members argued that the board should not resort to tuition increases to fund enrollment growth. "Funding enrollment growth by tuition increases is the General Assembly's responsibility," said BOG member Ray Farris.
Despite voices of opposition and an hour-long discussion on the proposal, the board approved the systemwide increase 21-6. The board also approved $300 campus-initiated tuition increases at UNC-CH and N.C. State.
BOTs at both schools had requested a $400 increase. But the BOG's Budget and Finance Committee voted Tuesday night to knock both proposals down to $300.
On Wednesday, several BOG members pushed for the board to raise the campus-initiated tuition increase requests at both schools back to $400.
"We have delegated to the campuses to study their needs for months and months," said BOG member Anne Cates, former chairwoman of UNC-CH's BOT. "They came forth with what they knew was best for their campus."
The proposal for the $400 increase appeared to pass at first by a 13-12 vote, but after a recount, it was discovered that the vote was actually 13-13, meaning that the proposal failed. The board then voted on the $300 increase, which passed 22-4.
The State & National Editor can be reached at stntdesk@unc.edu.
