Tennessee Board of Regents approves Increased Fee/Tuition Rates for State Universities, community Colleges and Technology Centers

July 1, 2012 |

Memphis, TN – The Tennessee Board of Regents voted to increase tuition and fee rates for the six universities, 13 community colleges and 27 technology centers it governs. The rates of increase are lower this year than in previous years.

The new mandatory and maintenance fee/tuition rates will result in price increases ranging from 3.4 percent at Austin Peay State University to 7.2 percent at East Tennessee State University. Students at the University of Memphis will see a 7 percent increase in price and at Southwest Tennessee Community College will pay 4.8 percent more.

“It is never easy to ask a student to pay more year after year,” said TBR Chancellor John Morgan. “Today’s actions reflect an unfortunate but expected continued shift of funding responsibility from the state to our students.

“At the same time we see state support in base funding continuing to erode, most of our enrollments continue to climb, and the money needed to operate continues to rise. Our campuses will use much of the revenue generated from these increases to offset funding shortfalls, but they are also committed to placing increased attention on helping students stay in school and earn credentials more efficiently,” Morgan added.

Calculating the Total Price Students Pay

Students at each campus pay mandatory fees to support student activities, athletics, cultural opportunities, and other unique projects and programs. Those fees vary from institution to institution and are paid by all students regardless of the number of hours they take. Maintenance fees are the charges based on credit hours for in-state students. For example, a student pays a flat rate for the first 12 hours of class credits and a discounted rate for any additional hours. Most academic programs require students to complete at least 15 hours a semester to finish on time. Out-of-state students are required to pay tuition in addition to maintenance fees. The combined cost of these fees or tuition result in the total price a student must pay.

Last year was the first year universities other than the University of Memphis could request differential maintenance fee/tuition rates based on the unique needs and programs at each campus. This year several campuses required additional funds to provide student support programs to increase learning outcomes and student retention.

“The price increases will not cover all of our funding needs. On a per student basis, the amount of money our institutions have available to spend is lower than in 2009,” Morgan said. “Even with the base proposed fee increases, the change in recurring revenue available at our institutions (adjusted for inflation) will be an average of 9.7 percent lower at our community colleges than in 2009, 5.1 percent lower on average at our universities, and 6.7 percent lower at the technology centers. So it’s important to note that while the price is increasing, the cost – the amount we spend per student – remains lower than it was three years ago.”

Over the past several years, state funding for higher education has declined by about 30 percent, including a more than 2 percent base budget reduction this year. Despite that, campuses are facing additional inflationary costs, including increased utilities, benefits, supplies, etc. that require funding to operate.

The proposed fee/tuition increases will cover that reduced state funding, only 80 percent of inflationary increases (utilities, etc.), the portion of the 2.5 percent salary increase for state employees that was not funded in the state budget, student success programs proposed by the campus, and a business intelligence program to help the system and institutions become more data driven.

Other business of the Board

In other business, the Board re-elected Tennessee Governor Bill Haslam as its chairman and Regent Greg Duckett as vice chairman for the 2012-13 term.

The Tennessee Board of Regents is the nation’s sixth largest higher education system, governing 46 post-secondary educational institutions.  The TBR system includes six universities, 13 two-year colleges and 27 technology centers, providing programs in 90 of Tennessee’s 95 counties to more than 200,000 students.

2012-13 Fee and Tuition Rate Increases at Tennessee Board of Regents Institutions

(Total mandatory AND maintenance fee/tuition increase rates for students taking 15 hours per semester.)

Historical Fee and Tuition Rate Increases at Tennessee Board of Regents Institutions

(Total mandatory AND maintenance fee/tuition increase rates for students taking 15 hours per semester.)

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