Tuition hike may come next fall

Fears that in-state tuition could increase next spring have been largely put on hold, but next year is a different story.

Cuts so far have been less drastic than expected, totaling $94 million from the University System of Maryland's budget, and will likely eliminate the need for a tuition hike between semesters, administrators said. In addition, a mid-year increase would be hard for some families to afford and could harm the school's image.

"A mid-year tuition increase is considered by students to be pretty unfriendly," university President Dan Mote said. "It seems to unglue people quite a lot. Our budget problems are so much bigger anyway. A tuition adjustment in the spring is not enough to get close to closing the gap."

Holding in-state tuition at $3,300 a semester for the past four years has maintained college affordability and been touted as one of Gov. Martin O'Malley's signature achievements. But tuition freezes also deprive the university of needed revenue, particularly when direct aid from the state isn't increasing.

The university has lost a total of $86.2 million in state-supported funds since last year, and 10 percent of its state-supported budget this year. Further cuts are still a possibility.

Some cautioned the university's academic quality wouldn't be able to withstand wave after wave of budget cuts.

"If not in the spring, definitely next year in the fall tuition should go up," Provost Nariman Farvardin said. "This is a disservice to the students. We made a commitment to provide outstanding education to students and we don't want to renege on that agreement."

If tuition were raised next year, administrators said it would likely be under $500 per semester, but a final number would hinge on next year's economic situation.

Student Government Association President Steve Glickman said administrators may be "premature" in thinking the budget situation is dire enough for a tuition increase.

"They haven't made any cuts yet," he said. "Until it affects the quality of education at this university, I will stand by a tuition freeze. It really benefits a lot of families that have a lot of trouble paying for higher education."

Slashing the budget became necessary shortly after the beginning of the fiscal year earlier this summer, when the state opened up a $700 million deficit because tax revenues were less than anticipated. Raising taxes is politically impossible, leaving budget reductions as the only option.

Two-thirds of the most recent $30 million budget cut was from the university system's fund balance, which is used to finance bonds, system Chancellor Brit Kirwan said. The remaining $10 million came from the system's operating budget, which covers most of the university's expenses.

The university system includes 13 of the state's public universities, and this university usually gets about 40 percent of its funding. The university lost $11.2 million from the base budget in the two rounds of cuts, along with $16.4 million from its reserves.

But while this budget cut is a small percentage of the system's total budget, there's the possibility that the state could cut the system's budget even further this year, administrators fear.

The budget cuts will force colleges and service departments to lay off staff and non-tenured faculty. All university employees will be furloughed. Academic programs may disappear. Class sizes will be larger. Elective classes with small enrollments will be canceled or have their frequency reduced.

And then there's next year.

State fiscal analysts are projecting a deficit of up to $1.5 billion — more than double this fiscal year's deficit. Farvardin also said he is worried the one-time fund balance cut could turn into a base budget cut next year.

The tuition freeze is losing popularity statewide as well as within this university's administration. Warren Deschenaux, the state's top fiscal analyst, suggested removing the freeze last winter. Both Comptroller Peter Franchot and Treasurer Nancy Kopp, who with O'Malley make up the Board of Public Works, said Wednesday it was time to end the tuition freeze.

Ultimately, the final call on tuition is made by the Board of Regents — a panel of 17 gubernatorial appointees who oversee university system policy. Though they are independent, the regents are unlikely to buck the wishes of both Kirwan and O'Malley to keep the freeze.

cwells@umdbk.com