Repository: UIHistories Project: Board of Trustees Minutes - 1974 [PAGE 408]

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398

BOARD OF TRUSTEES

[November 21

tuition income. As reluctant as we are to consider increasing tuition charges on the basis of our theory and philosophy of public higher education, that reluctance must give way to reality. The budget requests for the University for 1974-75 envisioned the need for $7 million to continue the health professions expansion program and $11.7 million (6 per cent of the 1973-74 base of $196 million) to meet current salary and price increase needs. In addition, budgetary deficiencies accumulated over the past several years in the amount of $30.9 million were detailed and the need for some funds to begin dealing with those deficiencies was stressed. It was hoped that the restoration of $4.3 million reduced from our 1973-74 appropriation would provide funds to begin reducing deficiencies, but that hope was not realized. It now seems clear that realistic expectations for increased State tax support in 1974-75 should include a 6 per cent increase in the tax portion of our appropriations ($171 million) plus the $7 million for health professions expansion. In order to realize a 6 per cent increase over our total appropriations (lax or general revenue plus income fund or tuition), we shall have to impose a 6 per cent increase in tuition or $30 per year for all except tuition for Medicine and Etemistry students to which a 6 per cent increase will also be applied. No tax sources seem available to even begin to deal with our accumulated budget deficiencies — deficiencies with which we must begin to deal. As you know, to restore the $4.1 million to our base would require an additional tuition increase of $90 per year. Many believe that this restoration is so essential that that additional tuition should be levied. I find this argument persuasive. Based upon our budget requests for 1974-75, average undergraduate instructional costs, exclusive of the health professions for 1974-75, will be $2,048.16. If tuition for 1974-75 were to be assessed at the suggested level of one-third of undergraduate instructional costs, the charge would be $682 or an increase of $186 over current tuition. In spite of the fact that current BHE policy would support such an increase, an increase of that magnitude seems inappropriale. It is difficult to determine what increase is appropriate, but a rationale can be developed in support of adding $60 per year to the $30 per year mentioned above. Our costs have been increasing due to inflation by at least 6 per cent per year. The "price" we charge students through tuition has remained the same last year and this year in the hope that the State would provide sufficient additional tax support to meet the inflationary pressures upon both salary and other costs. The State has not done so with resulting budgetary deficiencies for the University. It seems clear that the State is operating on a "tuition as price" concept and that tuition in the future will need to reflect inflationary pressures. These pressures during the last two years would have resulted in annual increases in tuition of about $30 per year and one can argue that we must now at least restore our tuition level for 1974-75 to the 1972-73 level by adding the cost of inflation which has occurred during this year and last. This decision would provide approximately $2,75 million in 1974-75 to begin to deal with budgetary deficiencies. Obviously some continuing reallocation to attempt to provide another $1.35 million for this purpose would be necessary. It is clear, however, that five years of reallocation have left us with little room to create major sources of funds through this method. This total increase of $90 per year in tuition would still leave the level of tuition about $100 below the "onethird" standard in 1974-75. After reviewing all alternatives, I find myseJf in support of an increase in the amount of $90 per year and it is this increase which I recommend. It is further recommended that the same percentage increases be applied to tuition in Dentistry and Medicine which would result in increases of $47 per quarter in Dentistry and $53 per quarter in Medicine. Nonresident tuition would also be increased proportionately to $1,752 per academic year except for Dentistry ($697 per quarter) and Medicine ($736 per quarter). The proposed tuition charges are well within the award ceiling of the Illinois State Scholarship Commission and students eligible for awards would not be penalized by these increases. However, a special problem exists at the Chicago Circle campus in which entering students have not appeared to avail themselves of ISSC aid for which they are eligible. The_ Planning Committee recommends that tuition levels for freshmen students at Chicago Circle remain at the 1973-74