2 - The Michigan Daily - Wednesday, July 19, 1995

TUITION
Continued from page 1
cent rate of inflation, out-of-state stu-
dents are facing a 6.8-percent increase.
For the first time in five years, the non-
resident tuition increase is higher than
the hike for in-state students.
Regent Andrea Fischer Newman (R-
Ann Arbor) said that the noticeable raise
in out-of-state tuition strengthens the
University's ties to the Michigan com-
munity.
"(The out-of-state increase) shows
tremendous commitment to in-state stu-
dents. I agree with doing it this way. It's
important to continue to show a commit-

ment to the residents of Michigan,"
Newman said.
University President James J.
Duderstadt said that part of this commit-
ment to residents and non-residents is the
financial aid program. In the new budget
about $6.7 million will be committed to
financial aid and other forms of student
support.
"We guarantee that we have enough
financial aid to meet the financial need of
any Michigan resident," Duderstadt said.
Provost and Executive Vice Presi-
dent for Academic Affairs Gilbert R.
Whitaker Jr., who will propose the bud-
get tomorrow, said that tuition increases
are dependent largely on state funding.
"We were able to (keen tuition in-

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creases) down this year, but it's still
higher than we would have liked,"
Whitaker said. "If we'd had the average
amount of support that all the institutions
got from the state we would have kept
our tuition increase lower."
The University received a 3-percent
increase in funding from the state, as
well as an allocation of $8 million in one-
time funds from a likely budget surplus.
The surplus funds were not included in
this year's budget.
The resident tuition increase at the
University, however, is higher than nine
of the 12 other public universities in the
state. Michigan State University is only
experiencing a 2.5-percent increase, after
receiving an $8 million addition to their
general fund.
Baker said that it was this difference
in state support that drove the
University's tuition up.
"U-M did not receive the additional
$8 million in their base that Michigan
State did. If they had received it, they
would only have to raise tuition by the
rate of inflation," Baker said. "The in-
crease was due to an inequality between
Michigan State's and U-M's support."
Michigan Student Assembly President
Flint Wainess said that the new low tuition
increases resulted from Lansing politics.
"The University of Michigan got out-
politicked by Michigan State, and the
University needed to show to the state its
commitment to in-state students,"
Wainess said.
Duderstadt also acknowledged the
impact of politics on the decisions of
public universities.
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Stacking up
Tuition for first-year undergraduates will rise to $5,500 next
year, but the state-subsidized tuition is still much more
affordable than that at other top U.S. universities.
25000
20000
15000
10000
0 a E 'it a - i
o -
ac .5 % a am
Source: UM scOr wOOs e
"If politics were not a factor we HOW te VUr 0co1
would base our tuition cost on the per-
ceived value of the education," Here are the 1995-96 increases in
Duderstadt said. "There is not another resident undergraduate tuition and
university in the country that can offer fees for a first-year student at othe
the quality education we provide at the Michigan public universities.
price we charge."
Economics Prof. Richard Porter said Saginaw Valley State 6.1%
he expects the tuition increases to be Michigan Tech. University. 5.7%
higher than the Consumer Price Index. Oakland University 5.5%
"It's not a surprise to see something University of Michigan 4.9%
that's labor-based go up faster than the Northern Michigan 4.8%
rate of inflation," he said. Eastern Michigan University 3.9
Porter also said that the tuition in- Wayne State 3.9%
crease, which was high relative to other Central Michigan 3.5%
Michigan universities, would impact the Ferr n sStaUniversity .6%
composition of the student body. Grand Valley State 2.6%
"It sends out warning signals to U-M MichigantState 2.5%
faculty and staff that we'll get less good Lake Superior State 2.5%
students," Porter said. "If people are go-
ing to stop going to.Michigan and start 25 of the U.S. News and World Rep
going to other universities because rankings with the fourth lowest tuition
they're cheaper, we lose good students." that group."
Whitaker, however, said the Univer- Whitaker also said that while o
sity should be considered comparable to state tuition would increase 6.8 perce
many private institutions, like Cornell or the University is not sacrificing its co
Stanford. mitment to the Michigan Mandate,
"You have to look at the dollar dif- other pledges to diversity.
ference between our institution and other "If I thought the increase won
private institutions that students choose," (threaten diversity) then I wouldn't re
Whitaker said. "We'll still be in the top ommend it," Whitaker said.
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