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Increase in tuition coming

Memo: students to pay additional $700 next year/ Decline in state funding precipitates need for hike

By Kiyoshi Martinez

Posted: 3/14/06 Section: News
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Hardy said the tuition recommendation could have been held because of a possible need to wait for the outcome of the state legislative process to approve Gov. Rod Blagojevich's budget proposal, which has yet to be passed.

"The Board of Trustees is taking a look at the tuition year in and year out," Hardy said. "There are a whole variety of factors the University has to consider. Among those are increasing costs. When utility costs go up, or when health care costs go up, or just the cost of providing incremental salary adjustments go up, you need to cover that somehow."

In the University's Strategic Plan, released in January, one assumption of the plan includes increased funding through an expectation of "tuition to grow at close to 10 percent annually" and for "state funding to grow modestly" at not more than one percent annually.

Although the numbers obtained in the document are not final, the document said the guaranteed increase in tuition rates for incoming, in-state freshmen would be 9.9 percent at the Urbana campus, 21.9 percent at the Springfield campus and 9.7 percent at the Chicago campus.

If the proposed budget is approved by the state legislature, the University will receive an increase of 1.48 percent in state appropriations from last year.

Funding for the University goes through a multi-step process. The University first submits a request to the Illinois Board of Higher Education for the upcoming fiscal year. The IBHE then makes a recommendation to the governor who submits a proposed budget for the legislature to approve. Once approved, money is appropriated to the University.

For the 2007 fiscal year, the University submitted a request to the IBHE for $781.6 million. The IBHE recommended to the governor that the University receive $706.1 million. Blagojevich's recommended budget, which is pending approval from the state legislature, appropriates $708.2 million for the University.

If the state budget is approved, the University would receive about $10 million more in the 2007 fiscal year from the state than the prior year. However, the increase in state appropriations will still be less than the funding received at 2003 fiscal year levels.
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