Trustees approve 7.5 percent tuition hike

IU's board of trustees approved a 7.5 percent tuition hike Tuesday, the University's largest in six years. In-state students will see their tuition rise $320 next year while out-of-state tuition and fees will go up by about $1,000. \nAfter three hours of debate and following an alternate proposal put forward by Trustee Steven Ferguson that would have saved in-state students about $40, the trustees approved the University's proposed fee rates and operating expenses by a vote of 7-0-2.\nThe 7.5 percent hike will apply to the Bloomington and Indianapolis campuses. Regional campuses will see a hike of 6.5 percent.\nTrustee Stephen Backer said the increase will help IU-Bloomington retain top faculty and continue as a world-class research institution.\n"From the Bloomington standpoint, this tuition increase helps us considerably to maintain the stature of the institution," Backer said.\nTwo trustees -- Ferguson and Peter Obremsky -- abstained from the vote, saying the 7.5 percent hike was excessive.\n"I fundamentally believe we could get by with a 6.5 percent increase," Obremsky said. "I think the University should do the same belt tightening the state had to do."\nIU President Myles Brand said the University has cut costs and that the hike was worth it to preserve the reputation and excellence of the institution.\n"The percentages may sound high," Brand said. "The dollar amounts are not."\nSeveral trustees expressed concern that the tuition hike will expecially hurt enrollment of out-of-state students, who pay about three times the in-state rate. Brand echoed those concerns: "We may not be over the edge, but we're pushing it," he said.\nBrand said he hopes financial aid incentives and the University itself continue to attract out-of-state students. According to Brand, students with family income less than $40,000 would be shielded from the tuition hike by new financial aid incentives.\nOf the tuition increase, 4.5 percent will fund a variety of maintenance costs, while 3 percent will fund academic and faculty retention initiatives.\nAt Bloomington, faculty will get an average raise of 3 to 4 percent, with an additional 2 percent allocated for selected faculty and assistant professors. A $650,000 fund Chief Financial Officer Judy\nPalmer called "a departure from the usual salary policy" will allow the campus to give additional raises to the highest performing faculty.\nBesides tuition, the fee increase for Bloomington includes a $6 increase in the transportation and health center fees, and a $5 increase in the student activity fee. In-state tuition will now be $4,195, and out-of-state tuition will be $13,930.\nBrand said it was no coincidence that IU approved a 7.5 percent tuition hike, after Purdue approved the same percentage hike in May. He said the universities share some of the same challenges.