20% tuition increase at Georgia colleges

10% in January and another 10% in the fall - only out-of-state
students w/o Hope scholarship to pay....


Tuition may jump 10% in January

By KELLY SIMMONS, JAMES SALZER
The Atlanta Journal-Constitution
Published on: 09/08/04

Students at Georgia's public colleges and universities could see a 10
percent tuition hike in January and a bigger jump in coming years as
the state Board of Regents grapples with growing enrollments and
budget cuts.

In a move that drew outrage from state lawmakers, University System
Chancellor Thomas Meredith said Wednesday he would recommend a midyear
tuition increase at the regents' October meeting. While he did not
specify an amount, university presidents have indicated they would
need at least 10 percent, perhaps more.

"It's got to be 10 percent in the spring and 10 percent for next
fall," Georgia State University President Carl Patton said.

A 10 percent increase would mean an additional $337 a year in tuition
for students at the state's research universities, $232 a year for
students at most other four-year schools and $147 a year for students
at two-year colleges.

The Board of Regents has the authority to increase tuition at its
discretion.

State legislators accused the regents of raising prices to avoid
tightening their belts.

"They are sending a poor message to the citizens of this state and the
Legislature when they turn around and raise tuition in the middle of
the year like this," said Sen. George Hooks (D-Americus).

Lawmakers also expressed fear that an increase would weaken the HOPE
scholarship program, which would have to absorb some of the cost.
Lawmakers tinkered with the scholarship program during the 2004
session to make sure it doesn't run out of money down the line.

A 10 percent midyear tuition increase would cost the HOPE program
about $10 million, said Shelley Nickel, director of the Georgia
Student Finance Commission, which oversees HOPE.

"They are going to gut the HOPE scholarship eventually," said Rep. Ben
Harbin (R-Evans).

But Meredith says the governor's office has left the system no choice.
At Gov. Sonny Perdue's request, regents held a fall 2004 tuition hike
to 5 percent, even though university presidents had asked for more.

At Perdue's direction, the state cut $68 million from the system's
current year budget, and the governor has warned Meredith of more
possible cuts in the coming year.

At their meeting Wednesday, the regents asked for the full funding
they say they need to maintain services in fiscal year 2006, $1.76
billion, even though Perdue has told them to expect no more than $1.69
billion in state funds. Complying with a request from the governor,
they also forwarded alternative budgets based on lower figures.

Since 2002, the state has reduced its per student funding from $8,128
to $6,437, the system says.

"We must increase tuition faster than in current years to make up a
part of the shortfall or reduce academic quality," Meredith told the
regents Wednesday.

He said the increase was not a political ploy, but a necessary move to
maintain the quality of the University System.

Lawmakers have grown tired of the regents complaining about budget
cuts because most agencies have taken deeper hits during the state's
fiscal crisis. They were irate last month when the regents gave
Medical College of Georgia President Daniel Rahn a $180,000 raise, to
$527,000, while griping about spending reductions.

"I think they need to continue to find cost savings within the system
before they raise tuition," said Bill Hamrick (R-Carrollton), chairman
of the Senate Higher Education Committee.

Lt. Gov. Mark Taylor, president of the Senate, called the tuition
increase proposal "an awful idea."

"Where in state government are people looking after the customers, the
students and parents?" he asked.

Lawmakers say that, unlike other agencies, the regents haven't been
forced to be as tough on spending because they have a way to raise
revenue through tuition.

The regents' power to do what they want derives from a 63-year-old
political fight.

In 1941, Gov. Eugene Talmadge tried to engineer the firing of college
educators he claimed favored school integration. The board resisted,
but two regents resigned. Through new appointments, Talmadge got his
way, but University System schools lost their accreditation.

The embarrassment helped elect Ellis Arnall governor. He strengthened
the board by defining its authority over the system in a
constitutional amendment, and accreditation was restored.

Perdue has taken a largely hands-off approach to the board, although
members are appointed by the governor. After the regents' meeting
Wednesday, Perdue would say only that his staff will "study" the
board's proposal.

Some angry legislators were ready to take action against the regents.

"If they keep doing what they are doing, I think the people of Georgia
will beg us to pass a constitutional amendment to get ahold of these
guys," Harbin said.

Tuition lowest in South

Georgia's tuition is among the lowest of the 16 states of the Southern
Regional Education Board. Georgia's higher education institutions also
rank among the nation's lowest-priced public universities, said Mark
Musick, the agency's president.

While tuition has risen an average of 44 percent in other Southern
states over the past five years, Georgia's tuition has increased by
only 22 percent, Musick said.

The regents did not discuss the proposed tuition increase at
Wednesday's meeting but have indicated they support charging students
more.

"We should base tuition more on cost, value of the programs and what
the state is able to give us," regent Hugh Carter said last month.

As part of the tuition restructuring, Meredith said his office also
would explore more creative ways to charge for education. For example,
it could cost less to attend evening or weekend classes or to attend
less popular schools. Meredith said he also would pursue a legislative
change that would allow the state to use tuition money to offer
need-based scholarships.

Needy students now must depend on the HOPE scholarship, available only
to students with a B average, and the federal Pell Grant, available
only to the poorest students, to cover their education costs.

University of Georgia President Michael Adams said he was concerned
that increasing tuition would make college unaffordable for some and
encouraged the regents to pursue need-based aid.

"With the size of the minority population in this state, to consider
that is a smart idea," Adams said.

UGA senior Ben Brown said he's not too worried about an increase. The
honors student from Douglas County has a HOPE scholarship.

"As long as the HOPE scholarship increases, it will have very little
effect on me," he said.

— Staff writer Andrea Jones contributed to this article.