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MARTIN, Tenn. -- If the University of Tennessee board approves a plan to increase tuition for in-demand majors on its Knoxville campus, UTC may soon follow in its footsteps, officials say.
"We want to watch the experience at UT," said UTC Chancellor Roger Brown. "If we deem it is successful, we will give it a year."
On Thursday, a UT financial committee gave UT administrators the go ahead to dramatically increase student fees in engineering, business and nursing programs. The decision came while committee members were still digesting the Tennessee General Assembly's overhaul of higher education in January and recent news of yet another round of cuts to state college funding.
The full board will vote on the measure today, and, if approved, the fees will go into affect this fall.
Under the plan -- known as differential tuition -- UT business students will pay an additional $700 their sophomore year and $1,200 in both the junior and seniors years, documents show. Engineering students will pay an additional $680 per year, and juniors and seniors in the UT nursing program will pay an extra $2,700 and $2790 each year.
"UT graduates in business, engineering and nursing are among the most employable college graduates in the state. These areas are where there are jobs -- well-paying jobs," UT Chancellor Jimmy Cheek said. "Student demand for these areas of study are outpacing our ability to accommodate students. Without this differential tuition, we would have to limit enrollment in these areas."
The new fees will be used to hire faculty and update technology and will increase each year as campus tuition climbs, officials said. Last year, UT upped its tuition by 9 percent, UTC by 7 percent.
Popular academic programs such as business and nursing have been crippled by falling state support, officials said, and, in many cases, these programs can't keep up with demand.
"I think each campus should pitch a program for differential tuition," said Doug Horne, a UT trustee from Knoxville. "Faculty are so stretched. It's a supply-and-demand issue."
Differential tuition at UTNursingTuition increase -- $2,700 junior year, $2,790 senior yearEstimated additional revenue in 2010 -- $548,640EngineeringTuition increase -- $680 per yearEstimated additional revenue in 2010 -- $1.1 millionBusinessTuition increase -- $700 sophomore year, $1,200 junior and senior yearsEstimated additional revenue in 2010 -- $4.6 millionSource: UT board documents
Overall, the UT system faces a $110 million budgetary cliff when federal stimulus funding runs out in 2012. Academic programs, faculty positions, student services and community outreach programs are all at risk as campuses try to meet more needs with fewer state dollars.
For the most part, UT board members and officials with the Tennessee Higher Education Commission are supportive of campuses charging more tuition for their top academic programs.
The money generated from tuition increases in engineering, business and nursing at UT will stay within those specific programs, said Rich Rhoda, executive director of THEC.
UT also promised to use some of the additional revenue for need-based scholarships in programs selected for differential tuition, helping students that may not be able to cover the added costs, he said.
Dr. Brown said the UTC majors selected for differential tuition would likely be the same as Knoxville's. The College of Business, for example, is being forced to increase its enrollment standards because so many students want to pursue a business degree.
With UTC currently serving a more-diverse and less-wealthy student population, the school could face tough scrutiny from board members if it tries to mimic UT, a much more competitive institution.
"The trustees are not going to approve it unless we make a strong case," he said.