Bill could affect cost of a UW education

The current economy has plenty of students wondering how they'll pay next year's tuition, but a recent Washington State Senate bill has posed a new question: How much is education worth- and how much should students pay? Senate Bill 6562 would give the governing boards of four year institutions tuition setting authority for resident undergraduates. In the past the boards had partial authority, with the state legislature setting a percentage of the previous year's tuition that increases could not exceed. If passed, SB 6562 would give the UW Board of Regents almost total control over tuition, subject to a few conditions. The average annual rate of increase could not exceed 10 percent over 15 years or 14 percent in any one year. Additionally, tuition could not exceed the 75th percentile of resident undergraduate tuition in global challenge states (a group of eight states similar to Washington). In recent years tuition increases had been capped at 7 percent a year. Last year the cap was raised to 14 percent. However, the bill has raised concern among student groups in spite of these safeguards. "It takes tuition setting authority out of the hands of the people [and puts it into the hands of the corporations]," ASUWT Senator and Legislative Affairs Committee co-chair John Wheeler III said. The regents are appointed by the governor, not elected, and usually come from successful positions in the private sector. Some student leaders are concerned that their focus is on the university's bottom line, and not affordability. "Their mentality is what is best for the university is best for the students, and that's not always the case," student Legislative Affairs Liaison Tommy Bauer said, and pointed out that a Maserati might be the best car you can buy, but that doesn't mean a lot if nobody can afford one. The major concern is that, without the state capping tuition increases, the cost of education will skyrocket and financial aid will not rise at the same rate-though the bill does stipulate that schools must continue to contribute at least 3.5 percent of their operating budgets to an institutional financial aid fund. In spite of this, state financial aid programs will likely experience heavy cuts next year. The fear is that this would price many students out of higher education entirely and raise the number of those depending on loans to finance their education, increasing debt and ultimately damaging the economy even more. Additionally, the 75th percentile rule would not necessarily curb steep rises in tuition if schools in the global challenge states also raise their fees. That condition keeps tuition at a reasonable rate only when compared to similar institutions, but if all those institutions get more expensive UW could rise to meet them. Wheeler and Bauer feel that, rather than use students as an unofficial rainy day fund and raise tuition to make up for the deficit, the state should focus on finding new sources of revenue. This would increase funding for programs and, just as important, keep elected officials in control of tuition. In the past, the Board of Regents has consistently raised tuition to the maximum allowed by the state-and those funds haven't been used entirely for the benefit of the students. "We don't really think you're spending your money wisely now, so if we give you more money what would happen?" Bauer said, referencing UW President Mark Emmert's $906,500 annual compensation. Emmert is the second highest paid President of a public university in the country, and receives an additional $340,000 each year in cash and stock from other corporate boards. However, in many cases the university had to raise tuition the full amount in order to maintain its operating budget. When the Legislature creates the budget, it often factors in tuition hikes before funding universities. If the Regents hadn't raised tuition the maximum amount, the university would essentially take a cut. This example reflects a larger trend of shrinking state subsidies for higher education. In fact, this is the first year students are paying more for their education than the state. Furthermore, funding is an essential component of university growth. "It could be years before we see funding for new enrollment," UWT Director of External Relations Mike Wark said. Higher enrollment opens the door for UWT to expand in all sorts of ways, including developing more degree programs. If nothing else, it will allow the UW system to maintain its current funding, and prevent all the negative impacts of a cut budget. "The only upside is avoiding the downside," Wark said, noting that reduced funding would lead to fewer students being admitted, fewer classes being offered and larger class sizes. Wark also pointed out that UW has relatively low tuition when compared to similar institutions. That being said, Wark and Chancellor Pat Spakes have expressed their concern about the impact on students. Plans are in the works for a forum to assess student, faculty, and staff views on the subject of tuition. Ultimately, everyone involved has been forced to consider the true value of higher education. "People will go to college," Bauer said. "They will go to college. But at what cost?"