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Colleges, universities cut spending, raise tuitions
Journal Graphic by Nicholas Weir
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Published: January 19, 2009
RALEIGH - Even the ivory tower is not immune to the economic slump.
Across the nation and in North Carolina, cash-strapped colleges and universities are cutting spending and raising tuition.
But at least at the UNC system, the proposed tuition increases for next year are smaller than they have been in past recessions.
"Students are paying more and arguably getting less," said Jane Wellman, the executive director of the Delta Project, a nonprofit group studying college costs nationwide.
The group released a report Thursday showing that tuition rose 29.8 percent at public research universities from 2002 to 2006, but that education and general spending per student rose just 8.4 percent.
At public institutions, most of the extra money being paid by families is just replacing vanishing state money, rather than buying a better education, according to the report.
This year, the problem is heightened as states grapple with budget shortfalls caused by the recession. Some states are taking drastic steps with their public-university systems, including cutting enrollment or having midyear tuition increases.
The UNC system is faring better than some other state systems, but it, too, is hurting.
Before he left office this month, outgoing Gov. Mike Easley required all state agencies, including the university system, to withhold money that they had been allocated in 2008. And last week, Easley's successor, Gov. Bev Perdue, ordered a new round of cuts.
At UNC campuses, the cuts have meant less money for travel, fewer purchases and -- most significant -- faculty positions being left vacant.
When schools can't hire enough instructors, students may not be able to take the classes they need, and they will face larger class sizes in classes that are available.
"Certainly, the state's economy is having an impact on all of our campuses," said Joni Worthington, a spokeswoman for the UNC system. "It's certainly getting to a point where it's very, very difficult to protect the classroom and academic instruction."
During previous recessions, average tuition at UNC schools increased by 20 percent or more. That won't happen this time.
As part of a four-year plan to avoid large tuition swings, UNC officials capped the annual tuition increase at 6.5 percent.
Some UNC schools, including UNC Chapel Hill, are requesting the maximum tuition increase for the 2009-10 school year. Others are requesting more modest increases, and a few -- including Winston-Salem State University -- are requesting no tuition increase at all.
Gerald Hunter, the vice chancellor for finance and administration at WSSU, said the reality is that costs are rising at the university.
At WSSU, administrators are proposing an increase in the athletics fee, to help cover an athletics-department deficit related to WSSU's step up to Division I sports. Though not part of tuition, the higher fee will result in a cost increase to students.
One reason that WSSU has had some success in limiting its tuition and fee increases, Hunter said, is that its enrollment has been growing, which means it gets more money from the state.
The UNC Board of Governors is reviewing each school's tuition proposal and is expected to set tuition rates at a meeting next month. After that, the state legislature could adjust the rates, although it seldom does.
Some legislators have indicated that they do not want to see large tuition increases this year, because students and their families are being battered by the recession just like the schools.
Private universities, although not dependent on the health of the state budget, are in a similar situation. Wake Forest University has enacted a 5 percent budget cut and frozen staff hiring -- although not for faculty.
Wake Forest officials also said they have anecdotal evidence that more students are having trouble affording tuition and staying enrolled.
Some students could get help from an economic stimulus package being devised by President-elect Obama. It may include steps to make college more affordable, such as increasing the amount of Pell grants.
In the current academic year, the average price for tuition and fees at four-year public colleges nationwide rose 6.4 percent to $6,585, according to the College Board. Public colleges and universities in the South had the lowest average, at $5,412.
At private colleges, prices rose 5.9 percent, to $25,143, though financial aid can reduce net costs substantially -- to about $14,900 on average.
■ James Romoser can be reached at 919-210-6794 or at jromoser@wsjournal.com.
■ This story includes a report from The Associated Press.
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