University of Iowa proposes tuition increase of 7 percent annually for 5 years

A proposal unveiled Monday by University of Iowa President Bruce Harreld would raise resident undergraduate tuition by 7 percent each year for the next five years, a plan similar to one laid out last week by Iowa State University.

According to the presentation made by Harreld to the Board of Regents' Tuition Task Force, that increase would mean a bump in base tuition cost from $7,486 for the 2017-18 school year to $10,537 by the fall 2022 semester, an increase of nearly 41 percent.

Monday's was the final presentation given by the presidents of the state's three public universities that lay out their five-year tuition plans aimed at increasing revenue to offset dwindling state support.

The regents' task force is scheduled to report back to the full board in September. Task force vice chair Milt Dakovich said after the meeting the board is expected to give its first reading to proposed tuition rates for the next academic year during its October meeting and vote in December, as it has done in recent years.

Harreld, citing a Cato Institute study done earlier this year, said Iowa is one of only 11 states that, from 1990 to 2015, saw a reduction of state support without a corresponding increase in tuition. That same study showed tuition in 39 states had increased more than state funding declined.

"This lack of resources has resulted in placing the UI at a competitive disadvantage with its national competitors and has also had an impact upon our rankings and placed an unnecessary burden, I believe, on our students, their families and the state's economy," Harreld said during the presentation.

The proposal also included raising nonresident undergraduate tuition by 2.08 percent each year for the next five years. The base cost for nonresident tuition, which sits at $29,130 for the 2017-18 academic year, would be $32,288 by 2022 under the proposal, an increase of nearly 11 percent.

Jacob Simpson, president of UI Student Government, said during a public comment period that while he supports moderate tuition increases over five years, the university should seek other revenue opportunities like cost-cutting efficiencies and lobbying for more state appropriations.

"For our tuition to become as expensive as our peers is mediocrity" and does not fit Harreld's narrative of excellence, he said, later adding that raising tuition by 7 percent for five years "is not the only solution to the problem we face."

Democratic lawmakers who attended the meeting spoke out against the proposed tuition increases and said while they understand the need for the increases, the tuition increase would make a UI education more difficult to afford.

Sen. Tod Bowman, D-Maquoketa, said he would support moderate tuition increases, but the focus should remain on keeping education affordable for all students and prospective students.

"I would ask you to go back to the drawing board, I know it's not going to be easy … but we need to reprioritize our budget," Bowman said.

Regent Larry McKibben, who chairs the task force, was absent from Monday's meeting. But after last week's presentation from ISU, he said he would "absolutely" favor efforts to avoid tuition increases of 7 percent annually for that university and noted he has previously supported tuition freezes.

Harreld told reporters during the meeting that if the proposal is approved as proposed, but state appropriations happen to increase, "every penny" of that difference would be allocated to need- and merit-based student financial aid.

Harreld made headlines earlier this year when he rescinded — and then reinstated — $4.3 million in already-promised legacy scholarships for the 2017-18 academic year. Harreld said the money was needed to help offset the long-term effects of a $9.2 million midyear budget cut to the university. Since then, UI’s budget was slashed another $6.2 million for the current fiscal year.

Previous: What exactly is 'on the table' as Iowa Tuition Task Force kicks off?

Harreld repeatedly has suggested that the regents give UI their blessing to increase base undergraduate tuition so the university can move to the middle, rather than the bottom, of its group of peer institutions in tuition cost. He estimates that bringing UI’s tuition rate to the average of its peer group would provide an additional $91 million for the university.

ISU similarly is at the bottom of its peer group when it comes to in-state tuition and fees. Officials there have not been as vocal as Harreld in calling for double-digit tuition increases, but they have cited the low ranking when explaining why smaller tuition increases are needed. ISU saw a $9 million midyear cut in 2016-17, followed by another $2.5 million cut for 2017-18.

UI's official peer group includes mainly Big Ten schools and other flagship state universities with medical centers. ISU's includes 10 public land-grant universities with high levels of research.

About the Tuition Task Force

The Iowa Board of Regents called for a summertime task force after Iowa's three public universities saw more than $30 million in state cuts during this year's legislative session. The task force held a meeting at UNI on Aug. 7 and at ISU on Aug. 9.

The president of the UNI said last week that if state funding keeps up with inflation for the next five years, his university could get by with tuition increases averaging a little more than 2.5 percent a year during that same period.

If state funding continues to drop, however, “this gets pretty ugly in a hurry,” said Mark Nook, who has been UNI's president since February.

Ben Allen, the interim president of ISU, said last week said the university has "reached a breaking point," and said, without adequate financial resources, the quality of an ISU education, the university's contributions to the state's economy and workforce, and its momentum in offering some of the nation's top-ranked programs all are at risk.

Reach Jeff Charis-Carlson at jcharisc@press-citizen.com or 319-887-5435. Follow him on Twitter: @JeffCharis. Reach Andy Davis at 319-887-5404 or at aldavis@press-citizen.com, and follow him on Twitter as @BylineAndyDavis.