UT Knoxville proposal would keep tuition flat for first time in 34 years

A proposal aims to hold tuition flat at the University of Tennessee Knoxville for the 2018-19 fiscal year, marking it the first time the university has not increased tuition since 1984, according to materials for a meeting on tuition and fees at the university on Monday.

UT’s Subcommittee on Tuition, Fees and Financial Aid will assemble at 2 p.m. Monday at the Andy Holt Tower to discuss tuition and student fee proposals for the next fiscal year.

The proposals are, in large part, driven by an emphasis on making higher education affordable for students, especially those living in the state, said David Miller, chief financial officer for the UT System.

"The number one thing is we're a public university and, in serving the public, we want to be absolutely sure that we are accessible to Tennessee families," Miller said.

The announcement of the university system's efforts to halt and curb tuition increases is more than a piece of good news in the wake of a controversial leadership change at the Knoxville campus, according to Miller.

The UT Board of Trustees initiated conversations about charging the lowest possible tuition last year when Miller presented the budget to the board last June.

Trustees instructed UT System President Joe DiPietro and university chancellors to come back this year with as low of tuition as they could manage.

This is the fourth consecutive year that UT has had tuition increases at or below 3 percent, said Miller, who noted that that hasn't happened in the last 30 years.

"It's not reactionary at all," he said. "It's been long planned."

The subcommittee will vote to move tuition and student fee proposals forward to the Finance and Administration Committee, which – pending what happens during Monday's meeting – will then vote to move proposals to the Board of Trustees for approval.

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In-state costs would hold at $12,970 annually

While in-state tuition and fees currently add up to $12,970 annually at UT Knoxville, out-of-state tuition and fees total $31,390, according Miller.

Those numbers – which Miller said are sticker prices – do not include housing costs.

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Across the UT System, tuition and fee increases are on track to be the lowest they’ve been in the last 34 years – 1984 was the last year tuition did not increase at UT campuses, according to Miller.

UT Chattanooga will likely mirror UT Knoxville in avoiding an increase in tuition rates, but UT Martin is slated to hike its tuition 3 percent primarily because of a 21 percent drop in enrollment that occurred between 2010 and 2016, Miller said.

The school, which lost significant revenue with that enrollment decline, is rebuilding, he said.

"And to ensure that ongoing students get the best education," he said, "they have to make up some of that lost revenue.”

Other programs that will keep tuition flat – and that received board approval in March – include the UT Health Science Center undergraduate programs and College of Graduate Health Sciences programs, including those facilitated online.

In-state students studying nursing and pharmacy will pay 1 percent more in tuition, and in-state dentistry students and those pursuing health professions will bear a 2 percent increase to tuition. Those tuition increases were also given the green light by the board in March.

Help from the state, increased enrollment

Pushing low tuition rates forward has been made possible by help from the state, which has partnered with the UT System over the last few years to help fund cost increases, mainly personnel salaries, according to Miller.

With a state payment plan in place, "we're able to hold down the other main funding source, which is tuition," Miller said.

Additionally, both UT's Knoxville and Chattanooga sites have done well in a state funding formula through which universities compete for state resources by performance measures, he said.

And as undergraduate enrollment rates are on track to grow 2-2.5 percent at UT Knoxville in the coming year, extra tuition revenue will flow into the campus, reinforcing the school's ability to keep tuition rates flat, according to Miller.

The university is always watching the margin on cost and revenue to ensure the added expenses of more students doesn't outweigh the additional money coming in, he said, explaining "you're always seeking equilibrium."

Some student fees may jump

As UT looks to keep tuition level in Knoxville, it is also considering not raising the maintenance fee for out-of-state tuition for undergraduate, graduate or professional students at the flagship campus.

However, fees charged to students could swell, with the student program fee – helping cover student services, activities and programs led by the chief student affairs officer – potentially increasing by $22 per student.

Additionally, students could pay $14 more for the capital fee, which is applied to acquisition, construction, installation, maintenance or enhancement of campus facilities mainly used for reasons other than instruction. It also assists with funding equipment for student services, activities and programs headed by the chief student affairs officer.

Under current proposals, the university may also add onto existing fees for specific graduate programs to help offset increased operating costs for programs.

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