KNOXVILLE - UTC officials argued Wednesday for the third year in a row to keep the school's regional tuition discount for North Georgia and Alabama residents.
And, while they convinced trustees to give them the go-ahead for another year, the debate showed big questions looming about the future of the program, which has kept hundreds of regional students exempt from high out-of-state costs.
"Can we afford as a state to basically continue to use our limited resources to benefit people in surrounding states?" asked UT board Vice Chairman Jim Murphy. "We are giving these people a benefit. ... Someone is paying for it. They aren't being educated for free."
UT board members debated the regional discount Wednesday during a day full of committee gatherings leading up the full UT board meeting today when trustees will finalize this year's budget and an 8.5 percent tuition increase for system campuses.
The regional tuition discount, approved first in 2007, gives a 75 percent discount on out-of-state tuition to students from seven counties in North Georgia and Alabama who have at least 60 hours of college credits. The discount decreases the cost from $8,477 to $4,240.
UTC regional tuition discount program* 122: Number of students from North Georgia and Alabama who used the discount in spring 2010* 2.98: Average grade-point average of the students* 37: Number of students requesting student housing on campus* 7: Counties open for discount - Fannin,Whitfield, Murray, Jackson, Dade, Walker, CatoosaSource: UTCCounties open for discountFanninWhitfieldMurrayJacksonDadeWalkerCatoosaSource: UTC
The regional discount always has been controversial, and UT officials have been reluctant to give the program permanent status, renewing it only on a temporary basis. Some trustees argue that it is subsidizing out-of-state students, and they worry that, over time, Tennessee students could be knocked out of classroom spots.
With the system facing millions in cuts when federal stimulus funding runs out in 2012, fewer resources are available to offer perks such as regional tuition discounts, some board members say.
On the other hand, trustees from Chattanooga say the discount has the potential to stimulate economic development in the region by increasing the education and earnings of neighbors across the state line who will spend their money in Chattanooga.
"It is in the state interest and it is in the best interest of the college," UT board member Jim Hall said during the committee discussion. "Chattanooga doesn't stop at the border. They have to pull an educated work force from that region. ... It is a different situation when you live in Chattanooga."
The discount also brings in additional revenue for the university, documents show. In both the spring semester of 2009 and the spring semester of 2010, UTC gained an extra $200,000 from additional students who took advantage of the discount.
UTC Provost Phil Oldham said he hopes to open the discount to freshman and sophomore students.
With pressures to improve graduation rates coming down from the Tennessee Higher Education Commission, UTC will be forced to raise academic standards, he said. As it increases requirements, there could be more openings for high-achieving Georgia and Alabama students.
"We don't want to limit opportunities for Tennessee students," he said, "but I am a more of a free market kind of guy."
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