January 21, 2009

Public universities to receive consistent funding for FY 2010; Pledge not to raise tuition, academic fees during challenging economic times

Gov. Nixon, higher education leaders announce historic agreement to protect students from tuition increases

Columbia, Mo. -- Gov. Jay Nixon today is visiting three public universities to announce a historic budget agreement for fiscal year 2010 that will protect Missouri students from tuition increases and ensure that the state’s higher education institutions receive the stable funding they need. While students in many other states likely will see double-digit tuition increases next year because of the national economic crisis, this agreement ensures that Missourians will have access to affordable educational and training programs necessary to succeed in the jobs of the future.

Under the agreement reached by Gov. Nixon and leaders of Missouri’s public four-year colleges and universities, in fiscal year 2010, the institutions will receive the same state appropriation they received in fiscal year 2009. In return, the institutions have pledged not to raise tuition or academic fees during the 2009-2010 school year.

“To turn this economy around, we must ensure that Missouri’s workforce is trained and prepared for the jobs of the future, and Missouri students must have access to an affordable four-year degree,” Gov. Nixon said. “While students in many other states are likely to face double-digit tuition increases next year, Missouri students can rest assured that their tuition rates will stay the same. It will take more of these innovative, collaborative agreements to get our economy moving in the right direction.”

“This is a bold step by Gov. Nixon that goes against the national trend of increasing tuition and decreasing support for higher education,” University of Missouri System President Gary Forsee said. “I appreciate Gov. Nixon’s leadership and pledge our accountability to be great stewards of this institution in these extremely difficult economic times. We remain committed to emphasizing access and affordability for students and their families.”

“As we look for ways to fix our broken economy, we must ensure that Missouri students have access to higher education and job training, and that our institutions have the funding they need to operate,” said Dr. Michael T. Nietzel, president of Missouri State University in Springfield. “This agreement is a real investment in Missouri’s economy and our future. I commend Gov. Nixon for bringing everyone to the table to develop a solution that puts Missouri’s students first.”

The current national economic crisis is causing other states to look at significant tuition increases heading into the next budget cycle. In California, Gov. Arnold Schwarzenegger is calling for tuition increases of up to 13 percent at some institutions, and Washington Governor Christine Gregoire is proposing a 7 percent tuition increase in her 2009-2011 biennial budget – the highest increase allowed by that state’s statutes. [Center on Budget and Policy Priorities, 12/18/2008, revised 01/14/2009; The Daily of the University of Washington, 01/12/2009]

According to a Jan. 15, 2009, article by The Associated Press, national budget experts are forecasting tuition increases across the nation in excess of 8 to 10 percent because of the economic crisis. [The Associated Press, 01/15/2009]

Over the past 10 years, tuition at Missouri’s public, four-year institutions has increased by an average of 7.5 percent a year. The facts below illustrate how significant the tuition increases have been at one Missouri institution – and how substantial the tuition hikes could have been next year:

• During the 1999-2000 school year, tuition at the University of Missouri-Columbia was about $4,600 a year for a Missouri resident.
• Because of steady tuition increases over the past 10 years, Missouri residents attending the University of Missouri-Columbia are paying almost $8,500 in tuition during the 2008-2009 school year.
• An increase of just 7.5 percent next year, which would be lower than the projected national increase of 8 to 10 percent, would mean that a Missouri resident attending the University of Missouri-Columbia would pay more than $9,100 a year.
• During the last significant economic downturn, in the 2002-2003 school year, appropriations for Missouri’s colleges and universities faced major budget reductions. Because of those cuts, all but one of Missouri’s public colleges and universities increased tuition by double-digit figures in that year alone – several by more than 25 percent.
• During the downturn of the 2002-2003 school year, the University of Missouri-Columbia increased tuition by 13.6 percent. An increase of that magnitude next year would raise tuition at that institution to more than $9,600. That would be an $1,100 increase over current tuition.

“While other states must resort to budget cuts and tuition hikes to keep their colleges and universities afloat, we have avoided those drastic measures here in Missouri,” Gov. Nixon said. “Training Missourians for the jobs of the future is a top priority of my administration, and our budget will reflect that priority.”

Annual Percentage Increase in Tuition for Four-Year, State Institutions:
1999 to Present

School	99-00	00-01	01-02	02-03	03-04	04-05	05-06	06-07	07-08	08-09	09-10
UM-St. Louis	6.47	3.02	3.56	13.62	18.12	7.46	3.24	4.59	3.72	4.01	0.00
Missouri S&T	0.62	3.00	3.54	11.78	22.99	6.72	3.24	4.70	3.59	3.87	0.00
UM-Columbia	3.20	3.18	3.40	13.61	18.12	8.26	4.44	4.97	4.04	4.55	0.00
UM-Kansas City	3.20	4.20	5.94	10.66	20.68	6.93	4.10	2.31	3.74	4.11	0.00
Northwest Missouri State	9.05	8.58	8.11	14.17	17.88	9.91	3.94	3.47	12.41	7.36	0.00
Truman State	3.97	4.21	3.23	12.21	10.60	15.26	6.93	3.92	5.58	4.04	0.00
Central Missouri	8.79	8.08	9.35	17.09	21.17	7.23	3.93	5.14	6.68	5.79	0.00
Missouri State	5.79	4.82	5.16	14.03	8.47	10.61	6.36	5.21	4.36	4.58	0.00
Southeast Missouri State	3.86	5.12	3.98	14.47	13.38	5.90	6.19	5.17	9.50	5.62	0.00
Lincoln University	27.05	8.87	9.78	9.07	14.97	8.55	-7.06	9.35	19.12	3.00	0.00
Missouri Western	4.29	9.08	6.54	26.05	9.84	7.03	0.00	8.16	3.13	4.32	0.00
Harris-Stowe	3.61	4.65	5.56	31.93	7.98	4.80	9.28	5.59	3.67	4.52	0.00
Missouri Southern	3.02	4.39	14.82	35.59	2.32	0.00	-1.51	4.60	4.39	12.63	0.00