Budget for next year includes more student fees
The Senate Committee on Budget Review met last semester with members of the administration and student leaders and approved a new budget. The second budget for the 2005-2006 school year includes a standard tuition increase of approximately five percent and an increase in the academic support fee.
The most notable change in next year’s budget is the increase in the academic support fee. All undergraduates now pay a $1,600 fee, but that fee will be increased for all students over the next four years by $600, according to a Senate Committee on Budget Review report.
“The main purpose of the increase in the academic support fee in 2005 is to create a sustainable pool of between $1.5 and $2 million annually which will be used for upkeep of campus buildings and grounds,” Yvette Jones, senior vice president of external affairs, said. “The increase will also be used to fund enhanced freshman orientation and a lifetime transcription service.”
“We’re going to have differential fees,” Tony Lorino, chief financial officer and senior vice president for operations, said. “We’re going to have a different amount for continuing students versus first-year students.”
Next year’s entering first-year students will pay $2,200 all four years, rising sophomores will pay $1,800 next year, $2,000 the following year and the full $2,200 their fourth year. Rising third and fourth-year students will be charged an additional $200 each year, according to the report by the Senate Committee on Budget Review.
“Tuition revenue also supports faculty and staff salaries and covers operating expenses such as increasing the library’s collections,” Jones said. “The benefits to students resulting from increased fees will be improved campus facilities, enhanced library services, the ability of Tulane to attract and retain the best faculty members through competitive salaries, enhanced first-year orientation and the lifetime transcript service.”
Thomas Langston, chair of the Senate Committee on Budget Review, said the academic support fee at Tulane University is high compared to peer institutions, but the tuition is somewhat lower.
“The biggest problem for us, compared to our peer institutions, is the amount of endowment income. By comparison, we are far below our peer institutions,” Lorino said. “When you have institutions like Emory that have endowments in the billions of dollars and we’re still at $700 million, it’s a big difference.”
“The increases are in line with what we’ve been doing over the last several years,” Lorino said. “They’re in line with what we believe other universities will do next year. They’re modest increases. We try to balance the budget; we don’t try to generate huge surpluses.”
Increases in tuition at most universities serve to cover increases in operating expenses and cost-of-living increases, Lorino said.
Jones and Lorino both said that while tuition increases are likely at Tulane and other universities in future years, the decision to raise tuition and fees is made on a year-to-year basis.
Financial goals up to fiscal year 2008 have been set by the University, one of which includes increasing the endowment to $1 billion.
“Budget goals are set according to the University’s needs. A particular goal this year was to establish a mechanism to maintain the university’s physical facilities without having to scramble for a funding source every year or have to wait on long-term financing to provide the resources,” Jones said.