Tough choice? EMU hikes tuition, forfeits $1M in state aid

Here's the choice Eastern Michigan University administrators and board members say they faced as they worked to put together a budget for the upcoming school year – get $1 million in extra state aid by staying within a tuition cap of 3.2%, or hike tuition by 7.8% and get up to $10 million in additional funds.

On Tuesday, the Board of Regents delivered its verdict in an unanimous vote. It will cost 7.8% more to go to Eastern next school year than the year before. That's about $25 a credit hour.

"That might not sound like much, but it can be when you are paying tuition," said board Chairman Mike Morris. The average in-state freshman student will pay $10,417 for the year.

The money is needed for a series of capital investments and other upgrades, Morris said.

President Susan Martin, who steps down next month, said the extra money is needed after years of keeping tuition increases down, including no increase five years ago.

"We have a very tight balance sheet," Martin said. "Our balance sheet is too thin. We need to improve our reserves and use the money to help with needed capital improvements. We never have enough money for what we need to do. We've tried to manage as best as we can, but this step was needed."

EMU student Mary Simmons, 21, a junior, was shocked by the increase.

"That's a huge jump," she said as she walked across the Ypsilanti campus. "I'm going to have to figure out how I'm going to get that money. I'll probably have to take out more loans."

EMU officials said they will also increase the amount of financial aid available by 10.7% for next year.

"Each student needs to carefully look at their individual net price," Martin said.

The state's performance funding system was introduced by Gov. Snyder when he took office. He included a tuition restraint provision that says that if universities go over the annual cap set by the state, they forfeit the performance funding.

The last university to go over a cap was Wayne State University, which in 2013 approved a 8.9% increase. The tuition cap that year was 3.75%. Wayne State received an additional $7 million in tuition revenue from the move, school officials said.

"Although exceeding the state's tuition cap in 2013 was an extremely difficult decision, it was necessary for the university in order to make much needed investments that had been delayed for years because of declining state funding," Wayne State spokesman Matt Lockwood told the Free Press in a statement. "The resulting funds were invested with our students in mind and have paid off with improved retention rates and enhanced educational and research facilities."

Eastern officials kept repeating Tuesday that EMU remains affordable, despite the increase. Eastern's tuition would remain 13th highest out of 15 Michigan public university if the other universities didn't go over the tuition cap.

In the past five years, Eastern has had tuition increases of 3.2%; 3.75%, 3.95%, 3.65% and zero percent.

Eastern's general fund operating budget for next year is approximately $312 million. The Ypsilanti school has about 22,000 students.

EMU was the first of four universities to set tuition increases in the next two weeks. Michigan State University is expected to act Wednesday on tuition, with the University of Michigan's board set to act on tuition on Thursday. Wayne State will consider tuition a week from Friday.

Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter: @reporterdavidj