A FEW WEEKS ago, the University of Virginia was awarded the top spot for public schools in the “Best Value Colleges for 2009” rankings compiled by The Princeton Review and USA Today. Given the current state of the economy, value is something that will be very important to most families in the near future. One consequence is that students at the University — and their parents probably more so — will look at the school’s annual tuition increases with more scrutiny than in years past. Although the average family’s college savings account may be drying up, the University should raise tuition and fees if it is necessary to cover increased operating costs and maintain the quality of the institution.
It is easy to blame the University and its Board of Visitors when one sees a big hike in higher education costs. Although they do have the final say on the matter, the decision is mainly determined by the ups and downs of the Commonwealth’s economy. Bad times mean less revenue for the state, which translates into budget cuts for the University. Since the institution still must pay the bills — including salaries for faculty and staff, maintenance costs for buildings, and funding for programs like financial aid — tuition increases generally accompany an economic bust. According to “2008-09 Tuition and Fees at Virginia’s State-Supported Colleges and Universities,” a report by the State Council of Higher Education for Virginia (SCHEV), “Over the past 10 years, tuition charges to in-state undergraduate students in Virginia have largely been influenced by the state’s economic condition. The Commonwealth restricted tuition increases during a period of strong economic growth, and allowed institutions to assess double-digit tuition increases to offset general fund reductions when growth in the economy was in decline.” Colette Sheehy, the Vice President for Management and Budget, explained that the State’s general fund reductions have left the University with “two choices: either raise tuition or reduce the expenditure budget even further.” The latter would ultimately result in larger classes, less distinguished faculty, and an overall decline in quality.
How can we expect the University to freeze the rate of tuition increases when there is no incentive for it to do so? Dan Hix, the Finance Policy Director at SCHEV, pointed out “generally higher education is still viewed as something that is positive, will lead to a lifelong increase in income, and will generate more revenue for the State.” A modest tuition hike will not deter students from wanting to attend college. Purchasing an education from the University is still a phenomenal deal for in-state students, and is cheaper than most competing (usually private) universities for non-Virginians. Recessions also cause laid-off or worried employees to retrain, and in turn boost higher education enrollment. (This may be more relevant to community colleges, but some of the effects will still be felt at the University, particularly in its pre-professional programs.) Reduced college savings across the board may encourage more talented out-of-state students to stay home for school (or go to an institution that offers more merit scholarships), but will also encourage more of Virginia’s elite to attend the state’s highly ranked public schools. For those that cannot afford higher education, AccessUVA still pledges to meet 100 percent of demonstrated need. Despite the budget cuts, funding for financial aid has actually increased, which is important because more families will qualify for assistance next year.
There are some things, however, that the University can do to serve its students better. To compensate for the inconsistencies of the economy, the process could feature more transparency, more explanation, and gradual tuition increases. In-state students should shoulder the responsibility of compensating for the Commonwealth’s budget cuts, since they are the ones who benefit from the commonwealth’s public school funding; non-Virginians already pay the full cost of their education. It will be difficult to bring current projects like the renovation of the Alderman Road Residence Area to a standstill, but the cost to benefit ratio of new investments should be looked at carefully. The financial aid process should be more comprehensive and rely more on individual circumstances than government standards. By looking at all sources of income and including more factors in the equation, AccessUVA funding will go to the students who truly need it. The school’s Six Year Plan should be made more accessible to the public and, in addition to the two existing scenarios (the University gets additional general funds from the State or does not), should include planning for general fund reductions from the state.
Other institutions will certainly be increasing their tuition this coming year, and how the schools balance affordability with the quality of education will do a lot to determine their value. The University should use the same mechanisms that made it the country’s best value public college to accomplish this task.
Mitch Ross’s column appears Thursdays in The Cavalier Daily. He can be reached at m.ross@cavalierdaily.com.
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