EAST LANSING, Mich. — Due to the gap between the 3 percent state appropriations increase anticipated when the Michigan State University Board of Trustees established the 2008-09 general fund budget, and the actual 1 percent increase provided by the state, a 1.2 percent tuition and fee increase will be necessary to offset the loss of funding – approximately $5.8 million.
The tuition and fee increase, effective spring semester, will generate $2.9 million over the remainder of the fiscal year. The remaining $2.9 million needed to close the gap would be funded from the 2007-08 general fund balance.
However, in recognition of the far-reaching impact of the current national and international economic turmoil, and to provide our students with sufficient time to plan, MSU will provide a 1.2 percent tuition offset on spring tuition and fee bills with a net result of no additional cost to students. Tuition bills for summer will reflect the 1.2 percent increase.
Based upon higher-than-anticipated enrollments, projected 2008-09 tuition-and-fee revenue will be sufficient to cover the $2.9 million in revenue that would have been collected in spring semester through increased fees.
This action was authorized for spring semester under the authority provided by the Board of Trustees’ budget guidelines, which provided authority to the president, with prior board notification, to reduce tuition and fees if the appropriation exceeded anticipated levels, or to increase tuition and fees if the appropriation fell short of anticipated levels.
This fee adjustment is being implemented to protect the quality of MSU’s academic programs and to maintain the same level of financial aid support that ensures student access.
For the last decade, Michigan higher-education appropriation increases have ranked last among the 50 states. During that time, MSU has cut more than $70 million, eliminated some academic programs, re-engineered support activities, and restrained tuition increases compared to peer institutions.
###