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Provost James Holloway.

Proposed budget raises fees, tuition, reduces block discount

Next semester is looking pricey.

University of New Mexico students will pay more in tuition and fees while many would lose a major discount in the upcoming fall semester if administrators approve new budget recommendations in March.

The Budget Leadership Team (BLT) proposed cuts and tuition increases, as well as a 4% faculty and staff raise ahead of the 2020 Budget Summit, according to BLT members.

The BLT is made up of college deans, administrators, student and faculty government. The team submits their recommended budget to UNM President Garnett Stokes, who sends the budget to the Board of Regents for approval. The annual budget-building process culminates in the yearly Budget Summit. The last three summits have produced tuition and fee increases.

Tuition and fee increases supplement declining enrollment. In the past five years, the undergraduate headcount has plummeted nearly 23%. Provost James Holloway said the constriction put the University in a precarious financial position.

"Even with the proposed tuition changes, UNM main campus will still have to make over $10 million in cuts to our core budgets for next year, impacting our ability to offer academic programs and retain the amazing faculty and staff who serve our students," Holloway said.

Recommendation: Reduce discount for taking 15-18 hours to $400

In previous years, the block rate put a ceiling on the per-credit cost of tuition, meaning students paid more for taking 12 credit hours than 15.

The BLT's recommendation would decrease one of UNM's recruitment incentives by more than half, from $841 to $400, according to Holloway.

"The discount is less important as a student success strategy," Holloway said. "The discount we retain at UNM is still considerably larger than that offered by other schools in New Mexico."

Holloway said financial aids, like the Lottery Scholarship and the Aim to Achieve scholarship, are sufficient for recruiting.

The block discount previously applied only to students taking 15 to 18 credit hours. Outside the block discount, students taking 19 to 22 hours paid a lower price per credit hour.

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If the Regents approved the recommendation, that lower rate for 19 to 22 credit hours would be eliminated. Those students would instead receive the $400 discount.

The average load in spring 2020 for undergraduates is 13 credit hours, according to the most recent Official Enrollment Report.

Recommendation: Raise tuition by 2.6%, or $6.82 per credit hour

In addition to the block rate reduction, the BLT recommended a tuition increase for students.

All graduate students and undergraduate residents would see an increase of 2.6%, or $6.82 per credit hour. Non-resident undergraduates would see a 5% increase, or $45.21 per credit hour.

The 2.6% increase aligns with inflation adjustments in an annual report from the Commonfund Higher Education Price Index (HEPI), an organization that tracks inflation in higher education.

"Inflation for colleges and universities was 2.5% for fiscal year 2019," a HEPI report for 2019 said.

Recommendation: Increase faculty and staff pay by 4%

For faculty and staff, the BLT recommended a 4% increase in salary and compensation. 

However, Faculty Senate President Finnie Coleman said the state might short UNM the money to fulfill the recommendation.

"We won't know anything until the governor signs (the budget bill)," Coleman said.

The BLT estimated the state would cover 89% of UNM's salary costs. Coleman said the state may only cover 70% of salary costs.

Recommendation: Student fees increase by 5.4% plus $25

Under the BLT's recommendation, undergraduates would see their fees increase by 5.4%  — plus $25 to fund undergraduate student government.

That brings undergraduate student fees to $69.21 from $65.66 per credit hour. For undergraduates taking 15 credit hours, that's a total of $1,038.08 per semester.

The 5.4% increase hinges on a student referendum for a $25 fee increase. If the March 11 vote fails, that fee raise could increase to 7.7% for undergraduates, according to student body President Adam Biederwolf.

It took them two tries, but the Associated Students of UNM pushed through a fee increase in February. Senators said the $5 upcharge provides undergraduate student government with an additional $200,000 for ASUNM and student organizations.

The fee increase will be on the ballot from March 9-11. The fee increase needs two-thirds of voters' approval to pass, according to ASUNM Vice President Madelyn Lucas.

As a result of the enrollment drop, ASUNM lost around $181,000 in fees. During that same period, the amount of student organizations doubled, according to the Student Activities Center.

The Board of Regents Finance and Facilities Committee will review the recommendations on March 2. From there, the full Board of Regents reviews the proposed budget during the March 9 Budget Summit.

Justin Garcia is the Editor-in-Chief of the Daily Lobo. He can be contacted at editorinchief@dailylobo.com or on Twitter @Just516garc

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