Tuition rises every year. It’s a known fact that pressures such as inflation and rising operating costs force the University to raise tuition a little each year in order to maintain a level of quality. This year tuition increases might be steeper than in recent years due to Governor Baldacci’s spartan budget proposal for the next two years. In the proposal the University of Maine system budget would only increase by $1 million, far short of the approximately $29 million sought by University of Maine System Chancellor Joseph Westphal.
“We will do all we can to keep tuition increases low, but it is a real challenge,” said USM President Richard Pattenaude. Pattenaude guessed that the average student’s tuition will rise by about a few hundred dollars next year, but couldn’t say anything definite until the state budget has been finalized.
John Diamond, the University of Maine System’s executive director of external affairs said, “every year the Board of Trustees and the Chancellor look at tuition increases as the last resort.” According to Diamond, the amount of tuition charged is related to the amount of support provided by the state. He said that about 15 years ago there was a two to one proportion between state dollars and tuition dollars in the system budget. Now that relationship is almost one to one. “Tuition has gone up to make-up for the flat amount of state money,” said Diamond.
If the Governor’s budget proposal goes through the state legislature unchanged, USM will be facing a budget shortfall somewhere between $800,000 and $1.3 million next year. Shortfalls for the entire University system are expected to be around $20 million according to Diamond.
According to Pattenaude the $1 million increase in state funding isn’t enough to cover the cost of inflation.
“Under current conditions it will be a tough year,” he said.
In addition he said he expects health care costs for the University to rise by about 10 percent in the next year; translating into several million dollars cost for the University of Maine System.
Furthermore, the proposed bond package for this year falls short of expectations as well. The Chancellor requested $44 million in the bond package for renovating classroom and laboratory facilities throughout the system. The proposal offers $24 million for the University system.
Because of the shortfalls in the proposed budget and the bond package, it is likely that much of the modernizing planned for the system will be slowed or halted. Bailey Hall, which is slated as the University system’s building in the most urgent need of renovation, will suffer setbacks in it’s planned upgrades. Pattenaude said the “general bond is quite small, which will limit our ability to work on Bailey hall, but we’ll get some of it done.”
While tuition increases will be a likely part of the solution, Pattenaude said there are other solutions for meeting budget needs. The first is Westphal’s lobbying the state legislature for more funding in the final approved budget. Other options include holding vacant staff positions open and trying to improve efficiency in the University. Pattenaude said there will also be an increased emphasis on finding external funding and grants. Pattenaude went to Washington D.C. Thursday to lobby Congress for $7 million in funds.
Donald Anspach, co-president of USM’s chapter of Associated Faculties of the University of Maine (AFUM) and chair of the union’s statewide negotiating team, said the best way for the University system to save money would be to “cut the administrative fat of employees who do not generate students or research.” According to Anspach, 26 percent of the University system budget goes to faculty members, including the cost of their benefits.
Anspach expressed anger over statements Westphal made in the February 4 edition of the Portland Press Herald. Among other potential solutions to balancing the budget, Westphal said the system might need to cut positions, and freeze employee wages and benefits. He also said the system can no longer afford the “Cadillac” insurance plan it offers to employees.
“The faculty aren’t going to be nickel and dimed,” said Anspach. “Our health care plan isn’t a Cadillac; it compares to other universities nationwide.” While the union contract expires on June 30, Anspach said that should no agreement be reached on a new contract, the old one will be defaulted to.
Anspach said this is the first time in the 30 years he has worked at the University that a chancellor has publicly suggested cutting faculty and staff positions.
Diamond said the remarks made by Westphal were not meant as a threat to the faculty. He said the Chancellor realizes “maintaining faculty and staff requires that we invest in them.”
Despite facing a looming deficit, Pattenaude said he and the Chancellor’s “primary goal will be protecting academic quality.” He also said that he would protect financial aid, particularly if there is a tuition increase. “That’s a budget we would not cut.”
Pattenaude said the budget proposal has highlighted the need for implementing the strategic plan in order to meet future budget shortfalls.