Studies to shape face of tuition

Two documents made public today will dictate the course for future tuition increases one year after the University's governing board approved a landmark hike.

Today, members of the UNC Board of Trustees will receive the results of a tuition price sensitivity study that determines the impact that increases such as the one passed last year have on enrollment.

These statistics, in conjunction with the University's long-term financial plan - set to be discussed at this afternoon's Tuition Task Force Meeting - will set the guidelines for campus-based tuition increases.

"Our focus when we established the current philosophy was to be mindful of the impact," said Richard "Stick" Williams, chairman of the Board of Trustees. "These results will get a great deal of discussion; it is going to clearly impact our thinking with regards to tuition."

The board adopted a market-based tuition philosophy last winter when it passed hikes of $300 for in-state students - later reduced to $250 by the UNC-system Board of Governors - and $1,500 for out-of-state students.

The philosophy calls for tuition at UNC-CH to remain affordable and accessible for in-state students by keeping their tuition in the lowest quartile of a range determined by evaluating rates at public peer institutions.

Trustees also agreed that tuition for out-of-state students should be value- and market-driven and should reach, but not exceed, the top quartile of the University's public peers.

The price sensitivity study to be discussed today has been conducted by the Art & Science Group LLC, a higher education consulting firm, and will show how this market-based tuition philosophy impacts enrollment.

The philosophy maintains that hikes are necessary in order for the University to compete with peer institutions and retain faculty. This tenet falls in line with the long-term financial plan - which calls for tuition increases in yearly increments of about 5 percent - that will be presented to the Tuition Task Force this afternoon.

"It is designed to be a model that shows us generally what models we need to follow," said Nancy Suttenfield, vice chancellor for finance and administration.

Suttenfield explained that the financial plan concentrates on funding 10 of the campus's top priorities, including academic programs, building maintenance and information technology growth.

"I think it is one of the significant pieces really to determine how we can appropriately address the most significant challenges on this campus," Williams said.

Trustee John Ellison, who also serves on the Tuition Task Force, said that, thus far, the advisory committee has concentrated on how tuition increases affect student debt and faculty retention.

But he emphasized the need for the task force to consider how tuition increases can benefit the entire University, not just students and faculty.

"There are some needs on this campus that won't be met if we don't raise tuition," Ellison said. "We haven't communicated what these priorities are, and I think we need to do that."

Trustees have underscored that the task force is an advisory committee and that the BOT still holds the authority to determine tuition increases. The implementation of any tuition increases also hinges upon the approval of the UNC-system Board of Governors.

Ellison said he spoke with a member of the BOG earlier this week and that the system's governing board is considering tabling all tuition increases this year.

Contact the University Editor at udesk@unc.edu.