Tuition increases, like tax hikes, should be last resort

Vindicator Editorial: July 16, 2009 at 12:00a.m.

Over the years, whenever Vindicator editors questioned spending, employee contracts or tuition increases at Youngstown State University, it was common practice for YSU defenders to cite Ohio State University as the prime example of profligate spending. At OSU, we were told, the tuition was higher, the professors were better paid, the state subsidies the university received were more generous — all of which was true, of course. OSU is a nationally recognized research institution and Ohio’s flagship university, and YSU isn’t.

Given YSU’s historical aspirations to be more like its big brother in Columbus, we were encouraged to see Tuesday morning that the Ohio State University had issued a statement saying that it does not plan to raise tuition for resident undergraduate students for the 2009-2010 academic year.

Alas, word apparently did not move fast enough, because when Youngstown State’s trustees met Tuesday evening, they did not follow OSU’s example. YSU’s trustees, by a 7-1 vote, approved a 3.5 percent tuition increase that will bring full-time tuition to $6,721 a year, costing each student an additional $235.

We certainly don’t believe YSU’s trustees — who are all honorable men and women — took any joy in raising tuition, or that they did so without recognizing the seriousness of their action. But we have to join the dissenting trustee, Harry Meshel, in questioning whether more could have been done to avoid a tuition hike.

To be sure, YSU has pursued certain economies — including not hiring to fill nonfaculty job openings — with savings tallied in the millions.

Some isn’t always the sum

But because the university administration managed to save some money doesn’t mean that it wouldn’t have been possible to trim more money from a $150 million general fund budget.

The university suggests that the tuition increase was more of a reaction to the anticipated decrease in state funding of $4.9 million next year, than the $1.2 million cut for this year that was part of the state budget hammered out in Columbus.

YSU actually has contingency funds in hand to cover this year’s loss of state revenue. It’s looking to bank the extra tuition so that it can cover next year’s decrease.

Wouldn’t it have been just as prudent to use the year to look for more ways of saving money? The worst that could have happened would have been that tuition would have had to be raised next year. Perhaps if everyone, including the students, knew that a tuition increase was inevitable unless savings were realized, the administration, faculty, service employees and students would have been looking harder for ways of saving.

Perhaps, even, the administration and university employees would have looked at what is happening in other public sectors, where some unions are agreeing to concessions that affect everyone rather than see some of their members lose their jobs.

At the very least, trustees and the administration should announce now that there will be no tuition increase next year, and that time bought by this year’s increase will be spent making whatever cuts are necessary to assure a tuition freeze.

Undergraduate students at Youngstown State University will be paying an additional $235 per year for tuition, effective this fall.

The YSU board of trustees had frozen undergraduate tuition at $6,721 annually when they approved a $150.1 million general-fund budget for fiscal 2010 in June.

However, the university found out this week that it will be getting $1.2 million less than it had anticipated in state support for the year, and the situation will be worse in fiscal 2011 when state aid drops an additional $4.9 million, said Thomas Maraffa, special assistant to YSU President David C. Sweet.

The funding reductions are a result of negotiations in Columbus over the $3.2 billion revenue shortfall in the state’s new biennial budget, which resulted in an overall cut of $170 million for higher education.

newarly 13,000 students .... dramatic increas in recent years.

YSU’s news release:

In response to state budget cuts amounting to more than $5 million over the next two years, Youngstown State University today approved a $117–per–semester increase in tuition for full–time, in–state students.

It is YSU’s first tuition increase in three years. Tuition will increase to $3,478 per semester, or 3.5 percent, for full–time, in–state students. Even with the increase, YSU’s tuition is expected to remain the lowest among public comprehensive universities in Ohio.

“I want to commend Gov. Strickland and the General Assembly for working together to resolve the state budget stalemate in an extremely difficult fiscal climate,” YSU President David C. Sweet said.Ôæ “However, the state budget, as approved, will result in significant reductions in state funding for YSU, particularly in fiscal year 2011. Therefore, it is prudent for the university to move forward with this modest increase in tuition at this time.”

Under the two–year state budget approved earlier this week, YSU’s state share of instruction funding is expected to decrease by 1 percent or nearly $500,000 in fiscal year 2010 and by 10 percent or $4.9 million in fiscal year 2011.

YSU Board of Trustees approved a fiscal year 2010 university budget late last month, anticipating a 1–percent reduction in state share of instruction funding. What was not anticipated, however, was the much larger reduction projected for fiscal year 2011. Sweet said a portion of the 3.5–percent tuition increase for this year will be placed in reserve to help address the reductions in state support in 2011.

“The governor and Chancellor Eric Fingerhut modeled the budget so that universities have a full year to plan for the larger budget cuts in fiscal year 2011,” Sweet said. “It is imperative that YSU takes this action this year to help address the anticipated financial challenges we will be facing next year.”

Sweet also noted that YSU, with the support of the YSU Foundation, offers among the most attractive scholarship and financial aid packages in the state. In fact, traditionally the average out–of–pocket cost for YSU students — after financial aid and scholarships — is less than half of the stated tuition.

“YSU remains committed to providing the best value in higher education in the region,” Sweet said. “As we transition to a major urban research university, YSU will continue to ensure that any increases in student expenses are minimal.”

Governor Applauds OSU, Cuyahoga Community College Decisions to Freeze Tuition for a Third Consecutive Year

Columbus, Ohio – Governor Ted Strickland today issued the following statement in response to the decision by the Ohio State University and Cuyahoga Community College to freeze tuition for a third consecutive year.

“I applaud the Ohio State University and Cuyahoga Community College for the decision to hold undergraduate tuition steady for the third year in a row. President Gee and President Thornton truly understand that an educated workforce is critical to our ability to revitalize Ohio’s economy and to attract and retain talented young people. At a time when state resources are scarce and many Ohio families are struggling to make ends meet, these institutions are ensuring that higher education is affordable and accessible for all students, regardless of their financial situation.”

The state’s biennial operating budget, passed by the legislature Monday, caps tuition increases at universities, regional campuses, and community colleges within the University System of Ohio to no more than 3.5 percent for the 2009-10 and 2010-11 school years.

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Ohio State reaffirms tuition freeze

University keeps tuition at same level for third year

The Ohio State University today announced that it does not plan to raise tuition for resident undergraduate students for the 2009-2010 academic year despite recent state budget revisions.

“Now more than ever, we must assure that young people are able to pursue their dreams, earn a degree, and use their talents to catalyze long-term economic vitality for our state and our nation,” said Ohio State President E. Gordon Gee. Gee credits cost- cutting measures undertaken by the university, increased state support and enrollment growth as factors behind the decision to freeze tuition at $8,406 for the third straight year.

“I am deeply grateful for the strategic vision and leadership demonstrated by Governor Strickland and leaders of both parties in the Ohio House and Senate. For our part, all of us at the University are redoubling efforts to serve as the engine of prosperity and to extend educational access to talented young people, regardless of their families’ resources.”

Last December, Ohio State unveiled Students First, a series of steps designed to help enrolled students who face economic hardship tap into the financial assistance necessary to enable them to complete their degree programs. This included a renewed commitment of additional financial aid, emergency loans and tuition assurances.

Ohio State expects to welcome its biggest class of the decade this fall, when approximately 6,550 new freshmen will enroll on the Columbus campus. Admissions officials also believe that this will be the best-prepared class in the school’s history.

Tuition at Ohio State remains one of the lowest among selective admissions institutions in the state. Three-fourths of students enrolled in 2007-2008 received financial aid, with an average award of more than $2,300.

Ohio State has achieved $94 million in cost savings over the past year, including savings in health care and energy costs.

YOUNGSTOWN — Undergraduate students at Youngstown State University will be paying an additional $235 per year for tuition, effective this fall.

The YSU board of trustees had frozen undergraduate tuition at $6,721 annually when they approved a $150.1 million general-fund budget for fiscal 2010 in June.

To offset the revenue drop for this year and 2011, the YSU trustees approved a 3.5 percent increase in undergraduate tuition Tuesday.

All of the state universities had frozen tuition for the last two years in exchange for increases in state funding, and that freeze was to remain in effect again this year with a tuition jump to be limited to 3.5 percent in fiscal 2011.

But the drop in state funding for higher education in the biennial budget breaks that deal, and Ohio’s Chancellor of Higher Education announced Tuesday that the state schools were free to raise tuition as much as 3.5 percent both this year and in 2011.

Maraffa told the trustees that the tuition increase should generate $2.7 million in new revenue, and the bulk of that money will be put into a contingency fund to help offset the larger drop in state support in 2011.

He said the immediate $1.2 million shortfall will be covered out of a $2.1 million contingency fund already set up in YSU’s 2010 budget.

“We’re put in an unfortunate situation,” said Scott Schulick, chairman of the board of trustees, explaining that the state’s action made a tuition increase “inevitable.”

YSU had raised tuition for nine consecutive years before the freeze deal with the state was implemented.

Trustee Harry Meshel cast the lone dissenting vote on the increase, suggesting the university should have taken more steps to reduce spending on its own before going to the students for more money.

Both Maraffa and Provost Ikram Khawaja said the university has put various efficiencies and savings into place over the past year in preparation for tough economic times, including saving $1.1 million by not filling a number of nonfaculty job vacancies and cutting summer-session programs by 10 percent.

In other business, the trustees ratified a new three-year contract with its Association of Professional/Administrative Staff. Meshel was also the lone vote against that contract, saying he thinks the university “went overboard” on the terms of the pact.

The APAS union, which represents various employees such as academic advisers, program coordinators and assistant program directors, has yet to approve the agreement. Members were voting Tuesday night and today.

gwin@vindy.com