10% hike in tuition likely at UMS sites Personnel cuts also among committee recommendations

PRESQUE ISLE – Students in the University of Maine System are expected to see, on average, about a 10 percent increase in their tuition rate effective with the July 1 budget.

The UMS board of trustees is expected to act today on the proposal approved Sunday by the trustees’ Finance and Facilities Committee that recommends an average increase of 10.1 percent, which represents an average increase of $720 per year for a full-time student, system spokesman John Diamond said Sunday.

The average tuition for the seven system campuses currently is $7,102, which would increase to $7,822 if the board approves the committee’s recommendation.

In an effort to offset the tuition increase, committee members also approved an 11.4 percent increase in student financial aid, according to Diamond.

State funding constitutes roughly half of the UMS general operating budget, with student tuition and fees making up the other half. Excluding targeted appropriations for university-based research, the state budget for the new fiscal year funds the system at essentially the same dollar amount as for the current year.

The current state appropriation is $185.7 million, and has been approved by the Legislature to increase about $300,000 in the upcoming fiscal year.

“Basically, it’s flat-funded,” Diamond said.

The committee is recommending a 2.6 percent increase in the system’s budget for the next fiscal year, which would bring the total to $520.7 million, not including restricted funds such as grants and contracts.

The system budget recommendation that will be considered today by the board also includes a $15.7 million cut in personnel and operating costs.

“[The system’s Chief Financial Officer] told the board that it looks like at least 139 positions would be eliminated in the new year,” Diamond said. “Of those positions, some currently are vacant, some involve people who are looking to retire, and others would be layoffs.”

UMS board Chairwoman Meg Weston and Chancellor Richard Pattenaude cited five primary reasons that influenced the budget cuts and increase in tuition rates:

. Enormous increases in the cost of heating oil and other utilities.

. Increased health care costs.

. Turbulent global financial markets, which negatively affect the system’s endowment funds and other investments.

. The implementation of new national accounting standards for post-retirement benefits that require a higher level of funds be set aside than in past years.

. No increase in the state appropriation, with the exception of research and development funds.

The full UMS board is expected to vote on the committee’s recommendations when it meets this afternoon. Based on past history and the nature of Sunday’s discussion, the full board likely will adopt the committee’s recommendations, Diamond said.