• Home » 
  • Supplemental Tuition Increase FAQs

Supplemental Tuition Increase FAQs

Posted on Monday, July 26th, 2010 under Budget News

Q) Will there be a tuition increase?

A) Yes. The General Assembly authorized each UNC campus – subject to President Erskine Bowles’ approval – to raise tuition to help offset harm the recently approved state budget would otherwise do to the academic core. UNCG has received approval for a supplemental tuition increase of $485. This is in addition to the $168 undergraduate Campus Initiated Tuition Increase (CITI) – previously approved for the 2010-11 academic year. A full 20% of tuition revenues generated by the supplemental increase will go to need-based financial aid, as will 50% of the CITI.

Q) Why is tuition increasing?

A) In an effort to shield the academic core from the impact of repeated budget cuts, the University System cut administrative expenses last year by 23%, abolished nearly 900 administrative positions, froze faculty and staff salaries while increasing workloads, and redoubled efforts to raise funds from external sources. Our campuses’ ability to absorb administrative cuts has been largely exhausted.

Given the magnitude of the current recession, the General Assembly faced greatly reduced state revenues and had to make difficult budget cuts. Cuts assigned to the university system for 2010- 11 total ANOTHER $142 million (The 2010 session cut $91.5 million, on top of the $50.6 million in cuts for 2010-11 made during the 2009 session.)

Q) When will tuition go up?

A) The increase is effective for the fall 2010 semester.

Q) How much has UNCG’s budget been cut in recent years?

A) In 2009-10 UNCG took a permanent $6.9 million cut and a one time $8.6 million cut.

This year UNCG’s permanent budget cut is $6.4 million with the potential of an additional 1% cut of $1.7 million.

Q) What would happen if we did not have a tuition increase?

A) Without the latest tuition increase, this year’s budget would have damaged the quality and reduced the availability of a UNCG education. We would have lost faculty and offered fewer sections of courses, which would make it more difficult for students to complete their degrees.

In the face of repeated budget reductions, we have increased faculty and staff workloads, and redoubled our efforts to raise external funds. We have substantially cut administrative budgets, but these departments deliver critical services such as law enforcement and medical care for students.

Q) What will the money raised through higher tuition be used for?

A) A full 20% of the proceeds from the supplemental tuition increase must be used for need- based financial aid. After providing for financial aid, the remaining revenues must be used to protect and support the academic core by offsetting the reductions and appropriations UNCG receives from the state.

The maximum amount UNCG can raise is $8 million. Of that total, $1.6 million will be used for financial aid and $6.4 million will protect the academic core.

Q: Why is UNCG increasing tuition at the same time it is constructing a new School of Education building and a new Residence Hall on Spring Garden Street? Could the money spent on these or other building projects be delayed to help address budget cuts instead of raising tuition?

A: The new School of Education building is funded by the state’s taxpayers through borrowed funds that were specifically approved by the legislature for this facility. The new Residence Hall is being paid for by UNCG borrowed funds that will be repaid from student rent. Room rents are used to support the Housing and Residence Life program, including repaying our lenders for loans to construct and renovate residence halls. It is impossible for Housing or Dining to cover expenses that do not directly support these programs without significantly raising room or dining rates. This is not possible as UNCG’s Housing and Dining rates must remain competitive with off campus alternatives. The upcoming Quad and Dining Hall renovations will also be paid from room rents and dining revenues.

Q) How does UNCG’s tuition now compare to other universities?

A) Even with this increase, UNCG’s tuition remains well below our national peers and very competitive with our peer institutions within the UNC system. In fact, only one of UNCG’s 17 national peers has lower tuition. Within the UNC system, in 2001-02 UNCG’s tuition was the third most expensive (behind UNC-Chapel Hill and NC State) and in 2009-10 was the ninth most expensive in the system.

Q) Did the Board of Trustees approve this increase?

A) While the legislation does not require Board of Trustees approval for these supplemental tuition increases, Chancellor Linda P. Brady has shared UNCG’s recommended tuition increase with trustees and the UNCG Budget Sounding Board – an ad hoc committee of faculty, staff, students, alumni and community leaders.

Posted in Budget News.