Tuition to climb by at least 5.3%

by Katy Knapp

Daily Lobo

Tuition and fees will increase by at least 5.3 percent next year, said Curt Porter, associate vice president for Planning, Budget and Analysis at UNM.

That would bring tuition and fees from $4,109 per full-time resident student to $4,323.

UNM's budget for fiscal year 2005-06 was about $234 million. In 2006-07, they are looking at a budget of about $246 million. Of the $12 million difference, the tuition increase will make up $3.5 million not funded by the Legislature this year.

The items in the budget making up $3.5 million include an increase in utility costs, an increase in the cost of state health insurance premiums and money set aside for faculty promotions.

For the next fiscal year, UNM is projecting about $1.6 million for utility costs on campus. This includes electricity and gas, which are usually covered by the Legislature, but UNM received no funding this year.

Porter said the projected cost of utilities is expected to go down before the Budget Summit on Friday, but not by much.

"Natural gas prices have gone way up in the last year - way up," he said. "We got some relief from that special session back in October that gave us a little more money. That was about half a million dollars."

The University also needs to fund $649,500 in workers' compensation insurance, and $900,000 for an estimated 10 percent increase in health insurance premiums.

UNM needs $175,000 to pay for faculty promotions, or the increase in salary a faculty member will receive when he or she is promoted to a higher pay tier.

That money is separate from the 4.5 compensation increase mandated by the Legislature.

UNM received about $20 million from the state earlier this month.

Porter said he doesn't expect tuition to be raised much more than 5.3 percent, but it is possible for a tuition increase of about 7 percent.

The Associated Students of UNM, the Graduate and Professional Students Association, Faculty Senate, Staff Council and the Dean's Council submitted budget priorities to the president's office before the Budget Summit.

The Dean's Council's priorities were not available Friday, but every group except ASUNM is asking for money that could mean higher tuition.

Sabra Basler, president of Staff Council, said Staff Council is asking for a 1 percent tuition increase for University Libraries and a 2 percent increase to make up for the rising cost of utilities and the increase in workers' compensation premiums.

"We wanted to keep tuition lower because the students have already given so much, but it's just such a hard reality to look at the cost of everything going up," she said.

UNM is looking for a way to give University Libraries the $750,000 it is requesting to pay for the rising costs of books and literary journals.

Porter said that amount was not included in the budget this year, because it was never an issue before. But, he said, it's a problem that needs to be addressed.

Getting that money might mean another increase in tuition on top of the 5.3 percent, he said.

"Maybe we can get that money from other revenue sources," he said. "But before all is said and done, I think something is going to have to go in here (the budget) for the library."

Last year the regents approved a 9.9 percent tuition increase.

Porter said he doesn't expect the regents to approve another high increase.

Jamie Koch, president of the Board of Regents, said he could not comment on a tuition increase because the regents have not seen the budget yet.

"It would be premature to comment on anything because we could see the budget and there could be some emergency things that need funding," he said, referring to a possible increase in tuition above 5.3 percent.

A hike in tuition is also due to a 3 percent tuition credit mandated by the state. That comes out to $2.5 million that UNM has to make up. The tuition credit is a tax the University must factor in to fully fund its budget.

Student fees are also increasing by $214. In 2005-06, fees were $748 per student. Next year, each student will pay $860 in fees.

Those fees are going to pay off the bond debt, the Banner system implementation and an increase in funding for student athlete scholarships.

At the Budget Summit, groups that submitted budget priorities, along with the UNM community, will discuss the budget. Afterward, the president's office will come up with a proposed tuition increase to submit to the Board of Regents in April for approval. The regents approve the University's budget at their June meeting.

The Budget Summit will be held Friday in the SUB Ballroom from 1-5 p.m.