Trustees approve new fee structure for 2002-03

COLUMBUS - The Ohio State University’s Board of Trustees today approved a proposed tuition plan announced earlier this week that allows the university to progress toward its goal of academic excellence and reposition its overall fee structure, and recognizes its role as the state’s flagship university.

The plan, which derives from principles established after discussions between the office of Gov. Bob Taft and presidents of Ohio’s 13 public universities, includes a 9 percent increase for current students and an additional fee of $474 for new students beginning summer quarter. Current students will pay $5,217, while new students – freshmen and transfers – will pay $5,691, or a total increase of 18.9 percent.

With this agreement, the university will continue assessing differential fees for new students over the next two to three years to permit the full implementation of the university’s tuition proposal announced at its Feb. 1 Board of Trustees meeting. That plan had called for new students to pay an additional $1,200. The agreement also assumes no further state budget cuts.

“Implementing our tuition strategy over two or three years rather than in one year as we originally proposed will allow us to make continued progress toward academic excellence, although not as quickly as we would like and not without additional and painful budget trimming,” said Ohio State President William E. Kirwan.

He said the new proposal reflects recognition by state officials that the university deserves special consideration regarding its tuition level. Other universities were limited to additional fees of $300 for entering students. Kirwan noted that the key reason behind the two-tiered approach is to reposition Ohio State’s tuition to be more consistent with its role as the state’s flagship university – key to the state’s economic development – and its aspiration to become one of the nation’s finest public teaching and research universities.

“I want to thank Governor Taft and legislative leaders for granting Ohio State additional flexibility beyond that extended to other IUC (Inter-University Council) institutions,” Kirwan said.

Despite the increases, Ohio State will remain affordable when compared to other public universities in Ohio and the Big Ten. For example, if Ohio schools increase tuition by amounts already announced, or by 6 percent for those still undecided, Ohio State will rank eighth out of 13 for current students and sixth for new students. If Big Ten tuitions go up by percentages already announced, Ohio State’s fees will rank sixth overall.

Kirwan also reiterated the university’s commitment to preserving access and affordability by increasing grants and scholarships to assure that no admitted student is turned away from Ohio State for financial reasons.

The revised tuition formula is not without challenges, however. The university must fill a new $6 million gap without compromising education for students at the university, said Executive Vice President and Provost Edward J. Ray. Ray and Senior Vice President for Business and Finance William J. Shkurti outlined their revised budget recommendations for trustees at Friday’s meeting.

Ray said that, in keeping with the principles of the Academic Plan, resources will be committed to providing above market-level average compensation increases to faculty and staff and to continuing to make improvements in student life both inside and outside the classroom.

“Ohio State will maintain its unique standing as a comprehensive public institution that offers both academic excellence and affordability,” Ray said.

The lower new-student differential fee resulted in a corresponding reduction of $2 million needed for financial aid next fiscal year, meaning Ohio State needs $71 million in resources next year for the Columbus campus – compared to the $73 million identified in a funding proposal presented to trustees in February. The university has identified $65 million to meet that $71 million need: a total of $36 million in cuts and reallocations by the central administration and all colleges and vice presidential units; $24 million from current student undergraduate tuition and a planned 5 percent increase in tuition for graduate and professional students; and $5 million from the new-student differential tuition increase.

Shkurti said that, of the remaining $6 million, officials recommend the following modifications: an additional $1 million available from increased winter quarter enrollments; $700,000 made available by implementing tuition increases in summer quarter rather than autumn; $500,000 from an additional increase in the surcharge paid by out-of-state students; $400,000 in charges to regional campuses for courses taught to their students on the Columbus campus; and $1 million by redirecting unrestricted gift money to general funds scholarships. That still leaves a need for $2.4 million; those additional revenues have not been identified.

“Additional programmatic cuts to academic programs are not recommended,” Shkurti said. Under the $36 million in cuts and reallocations planned across the Columbus campus, 426 employment positions will be eliminated, including 51 currently filled full-time posts, he said. Of the total, 85 are faculty positions, 214 are staff, and 127 are graduate assistantships and temporary/seasonal positions.

Shkurti noted that revenue projections are preliminary, and that a balanced budget for fiscal year 2003 will be presented to the board before June 30.

Presidents of three student organizations told the trustees of student reactions to the university’s tuition proposal and state budget reductions. Undergraduate Student Government President Eddie Pauline told the trustees many undergraduate students understand the need for the tuition increase.

“We also understand if we can’t get the additional funding from the state then students have to ante up,” Pauline said.

Among the concerns undergraduate students have about Ohio State’s financial situation are: increases in class sizes and decreases in class availability; further reductions in funding for popular student programs and organizations; limitations of honors courses offered at Ohio State; professors and teaching assistants who are overworked and underpaid; student morale declining on campus; and students taking longer to graduate.