State-wide budget cuts may lead to tuition increase

By Mariella Roque/Staff Writer

The Florida legislature recently released its State University System budget for the 2012-2013 school year. The $70 billion budget included a $300 million cut to the 11 state universities.

“FIU ended up with approximately $24.3 million in reductions which we have been told are nonrecurring,” said Kenneth Jessell, chief financial officer at the University. “The hope would be that next year the legislature would restore the $300 million to the SUS budget.”

This potential restoration will “be dependent upon the level of revenue that the state has for the next school year.

The model that was used to decide by how much each university would be cut individually was divided into three parts.

Half of the cuts were based on carry-forward fund balances that go into critical investments such as classroom upgrades, one-third were based on the base budget of each university and the last one-sixth “on the level of tuition that each institution would generate under the House and Senate-approved tuition plan.”

The legislature also authorized a 15 percent tuition increase for undergraduate students and an 8 percent tuition increase for graduate and out-of-state components, although FIU “will [not] exercise the full eight percent for graduate and out-of-state [students],” according to Jessell.

“We’ve really out-priced ourselves relative to other states in respect to out-of-state tuition,” Jessell said. “We’re probably going to be looking at a tuition increase that would approximate a couple hundred dollars a semester for undergraduate students.”

“As a result of the budget cuts, there are going to be tuition hikes,” said Anthony Maneiro, a junior in political science. “That’s the unfortunate truth.”

Of the 15 percent, 30 percent will go to financial aid, as the full 15 percent is considered to be differential tuition, the practice of charging some students more than others based on their financial status.

Jessell explained that the net increase in tuition would be about 10 percent.

“We’re going to be looking at the plan over the next several weeks, we anticipate that about $12 million will come in for tuition based upon our estimates,” Jessell said.

This, however, leaves the University with a remaining $12 million deficit that it must make up for.

In order to account for this, certain strategic investments will be cut back on and the University may have to use its statutory reserves.

Although the Florida legislature has announced the cuts to be nonrecurring, it is unsure as to what the state budget will be for the 2013-2014 school year.

“I know that as a student you worry about being able to make your tuition payments and we don’t lose sight of that,” Jessell said. “The tuition increase is relatively minor in terms of the cost of going to school.”

The areas of the University that will be cut, reduced or left alone will be decided upon this upcoming June at a Board of Trustees meeting.

“FIU is very lucky, but I can’t say anyone is lucky at this point,” said Patrick O’Keefe, Student Government Council president at the Modesto Maidique Campus.

Among the hardest hit by the cuts was Florida State University, receiving a $65.8 million cut.

FSU, along with the University of Florida, recently received the approval of the Florida House regarding a bill allowing the two universities to raise tuition above the 15 percent cap.

There is a possibility that the bill will be vetoed by Governor Scott.

O’Keefe explained student activities and organizations would not be impacted because the Activity and Services Office is separate from tuition and state cuts. The A&S fee committee voted for a 3.5 percent fee increase.

“[The budget cuts are] not going to affect any student programming, in fact [the programming is] going to increase,” O’Keefe said.

“There will be increased programming, you will probably see better and better programming because the increase… is sheltered,” O’Keefe said. “[The budget cuts are] not going to affect any student programming, in fact [the programming is] going to increase.”