UMS raises tuition 7.8% for Mainers

FORT KENT – Maine students will pay an average of nearly 8 percent more for tuition and fees at state universities next fall after a vote Monday by the trustees charged with overseeing the University of Maine System.

The tuition hike is part of an overall $432.1 million system budget for the fiscal year that starts July 1 that was approved by the trustees during their meeting on the Fort Kent campus.

The budget, however, includes a 2.2 percent increase in state appropriations the Legislature has earmarked for the university system that could be jeopardized by ongoing state budget negotiations. If state policy-makers move forward with a proposed 5 percent reduction in previously approved funding, the state’s anticipated $184 million annual appropriation would be reduced by $9.2 million in 2005-2006.

UMS Chief Financial Officer Joanne Yestramski told trustees Monday that to cover such a loss in state appropriations, UMS may have to take any one of a number of steps, including raising tuition by an additional 9 percent; reducing student financial aid; laying off as many as 155 employees; reducing research and development; increasing employees’ share of health costs; forgoing employee salary increases; deferring maintenance; and dramatically reorganizing the system.

“We are working with legislators to explain the enormous impact of a 5 percent cut in the cost and quality of higher education,” UMS Chancellor Joseph Westphal said. “It’s important that they fully understand the consequences of such a cut on the university system’s ability to keep tuition levels affordable, to maintain high-quality programs and services, and to continue our involvement in economic development and outreach.”

As it stands, because of rising costs the university system still required raising tuition and fees for in-state undergraduate students by an average 7.8 percent effective July 1 and for out-of-state undergrads by an average 9.3 percent.

Even with the increase, the University of Maine still would have the lowest annual in-state tuition – $5,616 – among the New England land grant universities. UMS officials have said that the raise is necessary to protect academic quality and pay for unavoidable cost increases at the seven campuses. Fixed expenses have increased considerably because of spikes in health insurance, officials said.

Since 2002, the cost of providing employee health insurance has risen 87.3 percent, or $25.4 million, trustee James Mullen noted during the meeting. “That’s more than the combined budgets of the University of Maine at Presque Isle, the University of Maine at Machias and the University of Maine at Fort Kent,” he pointed out. Within that same time period, UMS has lost a total of $16 million that initially was appropriated by the Legislature and then taken away because of budget cuts, he said.

Mullen also noted that the budget contains close to one-third of a billion dollars of deferred maintenance projects. “So it’s important to continually push forward with the Strategic Plan” and its measures aimed at controlling spending and avoiding duplication, Mullen said.

Contained in the 2005-2006 UMS budget, as well as in pending bills, are strategic plan initiatives such as developing a graduate school of biomedical sciences; increasing financial aid, faculty salaries and graduate student stipends; and promoting math and science education.

Chancellor Westphal said the university system has fallen further and further behind in maintaining its 9 million square feet of space. In some cases, dormitories and classrooms aren’t air-conditioned or wired for technology. Other buildings are falling into disrepair.

“It’s a huge problem for us,” he said. “It makes us less competitive in attracting and retaining students.”

This is the first time in the state’s history that students in the public university system would be expected to pay more than the state. Over the years, the proportion of UMS budget from tuition and fees has increased steadily while the state appropriation has represented a dwindling percentage of the budget.

Based on the new budget, tuition and fees would account for 40.4 percent of the total $432.1 million budget, while the state appropriations would account for 39.9 percent. The rest comes from revenue from goods and services, books and food, and research grants and contracts.

UMS also raised fees for room and board by an average of 5.5 percent, which makes the University of Maine second-lowest in the region behind the University of Massachusetts at Amherst. In the 2004-05 school year, room and board at UM cost $6,402.