CHAPEL HILL - Citing "the worst economic environment of our lives - the worst since the Great Depression," UNC system President Erskine Bowles is asking the system's Board of Governors to scale back previously proposed in-state undergraduate tuition increases by 33 percent.
Bowles made his recommendation in a letter addressed to the Board of Governors after consulting with chancellors from each campus as well as other stakeholders. The change would cut the average proposed tuition increase in 2009-10 from 3.8 percent to 2.8 percent.
He also recommends capping the maximum allowable tuition increase for an individual campus at 4.5 percent in 2009-10. A Board of Governors policy currently caps tuition increases at 6.5 percent.
Officials at UNCG and N.C. A&T expressed agreement with Bowles' plan.
UNCG Chancellor Linda Brady addressed the plan in a statement to students Tuesday.
"We believe the economic circumstances have changed dramatically since we initiated discussion of proposed tuition and fee increases on our campuses last fall," Brady said in the statement.
"For UNCG resident undergraduates, this proposal would reduce the proposed increase in tuition for 2009-10 to $83. The proposed increase in fees would remain at $19. Fifty-five percent of the tuition revenue under this revised proposal would be invested in need-based financial aid and 45 percent of the tuition revenue would be invested in other critical needs."
A&T decided against a tuition increase for the coming year, but school officials said they're behind Bowles' plan.
"We are in full support of any measure that will decrease the financial burden that our students and their families will face during this economically uncertain time," said Akua Matherson, chairman of the school's tuition and fee committee. "We will continue to explore ways that we can add value while pledging to keep costs low and provide a quality education."
Bowles' letter makes it clear that tuition discussions have been exceptionally difficult in the context of the economic recession.
"Put plainly, most North Carolina families cannot afford a 6.5 percent increase in undergraduate tuition and fees," Bowles wrote. "At the same time, we need additional resources and the flexibility to use those resources wisely in order to lessen the impact of this recession and related budget cuts on our university."
The president outlines nearly a dozen critical needs that may be neglected under looming budget cuts. Bowles is concerned about increases in class size, a decline in available financial aid and reductions in counseling, tutoring and advising. He asks the Board of Governors to grant chancellors greater flexibility in applying the new tuition revenues.
During tuition discussions earlier this month, members of the Board of Governors weighed the impact of tuition increases on families, the quality of higher education and concerns that the cash-strapped N.C. General Assembly would respond to tuition increases with a cut in appropriations.
Bowles wrote that the university system can absorb nonpermanent cuts on the order of 6 percent during the current fiscal year and 5 percent in 2009-10, but he strikes an ominous tone regarding the impact of permanent cuts.
"I feel it is my responsibility as president of this university to make it as clear as possible to the governor and the legislature that imposing permanent cuts would be equivalent to sacrificing the future of North Carolina," he wrote.
The Board of Governors Committee on Budget and Finance will meet via video conference Friday to further discuss tuition. Bowles requested that as many chancellors as possible be available to answer questions.
A final decision on tuition won't be made until the full board meets Feb. 13.
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