Higher education to hold tuition hikes to less than 10 percent

NASHVILLE — With Gov. Phil Bredesen recommending few new state dollars for operating expenses, Tennessee higher education leaders said they intend to hold student tuition hikes to single digits at state universities and two-year colleges.

“We’re developing information within our campuses to determine the exact impact on tuition, and based on funding outlined in the governor’s budget, we’re committed to holding increases to single digits,” University of Tennessee President John Petersen told House Finance Committee members last week.

But he said doing so “reflects a hard look at reductions, reallocations, postponements and other steps to cut our costs.” Some areas such as UT’s College of Medicine could be hit harder, he said.

Tennessee Board of Regents Chancellor Charles Manning also promised to keep tuition hikes to less than 10 percent in light of the slowing economy and lower-than-expected state revenue growth.

Gov. Bredesen’s proposed fiscal 2008-09 budget provides $22.9 million for 2 percent higher education salary increases but no additional funds for operating expenses. Last year, state lawmakers provided about $70 million in new operating funds for higher education, which included funding for salary increases.

House Finance Committee Chairman Craig Fitzhugh, D-Ripley, said that Tennessee in the last two to three years had done well in terms of providing higher education with new operating funds.

“(Now) we’re cutting the spigot off in terms of capital expenditures and operating expenditures,” Rep. Fitzhugh said.

Dr. Richard Rhoda, executive director of the Tennessee Higher Education Commission, which coordinates higher education initiatives, said there is “no substitution for predictable, sustained support.”

On Monday, Sen. Tim Burchett, R-Knoxville, a Senate Finance Committee member, questioned Gov. Bredesen’s budget proposal to provide $25 million in new funds to expand pre-kindergarten programs beyond lower-income children.

“I’m for prioritizing, and higher education and K-12 are my priorities,” Sen. Burchett said. “I don’t think there’s any sentiment on the Republican Senate side about moving it ($25 million) to pre-k.”

Republicans said they expected the governor to recommend $100 million to continue reforms of the state’s Basic Education Program funding formula. Gov. Bredesen recommended $86.5 million.

In November, THEC factored in a $103 million increase in state appropriations when it recommended 7 percent to 9 percent tuition increases at UT and the University of Memphis.

THEC proposed ranges of 5 percent to 7 percent tuition hikes at institutions such as the University of Tennessee at Chattanooga, and no increases at all at two-year community colleges and technology centers.