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September 14. 2012 12:44AM
Tuition freeze promised in exchange for state aid
CONCORD — The University System of New Hampshire Board of Trustees wants to make a deal with lawmakers.
If legislators and the next governor will restore the $50 million a year in state aid to the university system cut in the current biennial budget, the trustees will freeze tuition for in-state students.
The cuts made in the state operating budget in June 2011 essentially halved the amount of state aid. At the time, lawmakers said the cuts were needed to balance the two-year budget and to force the university system to trim its bloated budget.
The reduction in state aid resulted in hundreds of layoffs across the four colleges and substantial tuition increases.
The trustees agreed unanimously to approve the offer to legislators at their meeting Tuesday in Portsmouth.
“If the state restores our operating funding, we would freeze in-state tuition for two years and increase financial aid to the neediest New Hampshire residents” said USNH Chancellor Ed McKay. “An educated workforce drives our economy and we want to do what we can to provide access to our programs. Higher education works for New Hampshire.”
McKay said the university system covered 80 percent of the state aid reduction through one-time savings, continuing savings and a collection of initiatives to minimize impact on in-state students.
Tuition increases covered the remaining 20 percent, he said.
“Our focus is on stabilizing the growth in price so New Hampshire families can make plans and have affordable access to our programs,” McKay said.
Lawmakers need to understand that colleges have to maintain the quality of their programs, he said.
“In a competitive marketplace you need the products and the services you provide to attract the same level of students over the years,” McKay said.
There was no mention of tuition decreases at the meeting, and while McKay reiterated the need to maintain quality programs, he did not say what the university system would do in the future if the state does not restore the funding to 2011 fiscal year levels.
Current tuition at the University of New Hampshire for an in-state student is $16,422.
The tuition freeze agreement would not apply to room and board costs, which are about 40 percent of a student's yearly cost.
New Hampshire ranks last in the nation in per-capita support for higher education and held that ranking before the cuts in the current two-year budget.
The tuition freeze proposal is contained in the system's two-year operating budget the trustees approved Tuesday. The budget goes to the governor, who by law, has to make the request public by Oct. 1.
Lawmakers do not have line-item control over the University System of New Hampshire budget, but do decide the amount of state aid the system receives.
An attempt was made in the last legislative session to close the Chancellor's Office and move its functions to the individual campuses and use the savings to reduce tuition.
The bill passed the House, but ran into a roadblock in the Senate.
The prime sponsor of the bill, Rep. Robbie Parsons, R-Milton, said he intends to introduce a similar bill next year.
The board of trustees has begun a program to reorganize the system to give greater autonomy to the four colleges and reduce the responsibilities of the Chancellor's Office.
Garry Rayno may be reached at grayno@unionleader.com.
If legislators and the next governor will restore the $50 million a year in state aid to the university system cut in the current biennial budget, the trustees will freeze tuition for in-state students.
The cuts made in the state operating budget in June 2011 essentially halved the amount of state aid. At the time, lawmakers said the cuts were needed to balance the two-year budget and to force the university system to trim its bloated budget.
The reduction in state aid resulted in hundreds of layoffs across the four colleges and substantial tuition increases.
The trustees agreed unanimously to approve the offer to legislators at their meeting Tuesday in Portsmouth.
“If the state restores our operating funding, we would freeze in-state tuition for two years and increase financial aid to the neediest New Hampshire residents” said USNH Chancellor Ed McKay. “An educated workforce drives our economy and we want to do what we can to provide access to our programs. Higher education works for New Hampshire.”
McKay said the university system covered 80 percent of the state aid reduction through one-time savings, continuing savings and a collection of initiatives to minimize impact on in-state students.
Tuition increases covered the remaining 20 percent, he said.
“Our focus is on stabilizing the growth in price so New Hampshire families can make plans and have affordable access to our programs,” McKay said.
Lawmakers need to understand that colleges have to maintain the quality of their programs, he said.
“In a competitive marketplace you need the products and the services you provide to attract the same level of students over the years,” McKay said.
There was no mention of tuition decreases at the meeting, and while McKay reiterated the need to maintain quality programs, he did not say what the university system would do in the future if the state does not restore the funding to 2011 fiscal year levels.
Current tuition at the University of New Hampshire for an in-state student is $16,422.
The tuition freeze agreement would not apply to room and board costs, which are about 40 percent of a student's yearly cost.
New Hampshire ranks last in the nation in per-capita support for higher education and held that ranking before the cuts in the current two-year budget.
The tuition freeze proposal is contained in the system's two-year operating budget the trustees approved Tuesday. The budget goes to the governor, who by law, has to make the request public by Oct. 1.
Lawmakers do not have line-item control over the University System of New Hampshire budget, but do decide the amount of state aid the system receives.
An attempt was made in the last legislative session to close the Chancellor's Office and move its functions to the individual campuses and use the savings to reduce tuition.
The bill passed the House, but ran into a roadblock in the Senate.
The prime sponsor of the bill, Rep. Robbie Parsons, R-Milton, said he intends to introduce a similar bill next year.
The board of trustees has begun a program to reorganize the system to give greater autonomy to the four colleges and reduce the responsibilities of the Chancellor's Office.
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Garry Rayno may be reached at grayno@unionleader.com.
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