Fixed tuition program halts
The move came as a result of state college budget cuts, beginning this year with a $238 million reduction in available dollars. The state is also cutting $275 million next year. These totals amount to a 10 percent reduction for Georgia colleges and universities.
The president of GCSU, Dr. Dorothy Leland, believes the plan was conceived with good intentions.
“The ‘Fixed for Four’ plan (had) some definite virtues,” Leland said. “It (provided) four years of tuition predictability for incoming freshmen and their parents and also (sent) a message that it will cost less to complete a college degree in four years.”
USG introduced the plan in fall 2006, and students who enrolled in fall 2006 or fall 2007 saw no change in tuition rates. However, USG approved new tuition rates for incoming freshmen prior to fall 2008, an overall state increase of 7.7 percent from the previous rates.
At GCSU, and other state colleges, the increase was slightly lower, at six percent. These new rates were supposed to cover increased costs associated with attending Georgia schools, and students currently under the program will not have their tuition affected. The Board also changed the definition of a “full-time” undergraduate, increasing the hours from 12 to 15. Thus, incoming 2009 freshmen and students who enrolled in USG schools prior to 2006 will be charged $190 per credit hour up to 15 hours but nothing extra for any hours beyond 15. The two exceptions are the University of Georgia and the Georgia Institute of Technology, who will begin new “flat-rate” plans.
Leland recognized the flaws in the system.
“The ‘Fixed for Four’ plan (presented) some fiscal challenges for institutions,” Leland said. “Because tuition funds a significant portion of the basic operating budgets of universities, the initial tuition rate for freshmen must be set higher than otherwise to reflect projected increases in operating costs over a four-year period. If actual operating costs significantly exceed predicted costs, institutions are left with budget shortfalls.”
Leland is not the only college president who felt the plan was hurting schools more than it was helping. University of Georgia president Michael Adams and Georgia State University’s then-president Carl Patton both gave poor reviews of the plan in 2008 to the Associated Press, with Patton calling it “not economically viable.”
Leland explained why the long-term fixed tuition rate hindered school budget plans.
“Institutions must be able to carry forward a portion of tuition received by incoming freshmen in order to have funds to pay for increases in subsequent years,” Leland said. “When institutions are unable to carry forward an appropriate percentage of tuition received, they also experience budget shortfalls.”
With the current economic recession in mind, the plan made less sense, particularly regarding incoming freshmen and their parents.
“This year, as a result of the economic downturn, budget cuts have left institutions without tuition ‘carry-forward’ and this will present significant challenges to their ability to continue programs and services for students at the current level,” Leland said. “A very substantial tuition increase for incoming freshmen would help to cover the shortfall, but some would argue that this places a disproportionate share of the burden on new freshmen.”
With the “Fixed for Four” plan now defunct, future USG students and their parents will not pay preset rates for the first four years of college; however, they are also less likely to face dramatic tuition hikes from year to year to account for poor budget planning.
Posted by Colonnade Archives
on Apr 17 2009. Filed under News.
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