Public universities are being forced to rely more on tuition than state funding in the wake of the economic recession and declining governmental support, according to a report from the Delta Project on Postsecondary Education Costs, Productivity, and Accountability.
The Delta Project, a nonprofit organization that analyzes data relating to college costs, has indicated that the majority of the nation's public research universities draw more than half their revenue from tuition while other four-year public colleges are approaching the 50 percent mark. Community colleges remain in the minority as mostly state-financed institutions.
In the upcoming fiscal year, more than 30 states in the nation face at least a 10 percent overall budget shortfall, according to data from the Center on Budget and Policy Priorities, a non-partisan institute which provides information on fiscal policy and public programs which affect low- and moderate-income families and individuals. These budgetary challenges provide significant roadblocks to education funding from the state.
"Tuition increases are at one level a necessary evil caused by declining state resources," Jane Wellman, executive director of the Delta Project, said in an e-mail. "[But] we can't expect higher education to absorb funding reductions at the levels proposed in many states without hurting either access or quality."
This trend has several implications for the University. Tuition and fees make up about 31 percent of the overall budget for the academic division. State appropriations now account for only 12.3 percent of the University's funding for operations, according to the annual President's Report for the 2009-10 school year. Endowment spending distribution and private gifts comprise 9.8 and 10.6 percent of the budget, respectively.
The amount of revenue appropriated from the state has decreased by $18 million - a drop of nearly 11 percent compared to last year's numbers. This shift resulted in a net tuition increase of $6.6 million, or 1.9 percent.
Colette Sheehy, vice president for management and budget, said in an e-mail she expects the cost of tuition to continue to rise during the next several years. Legislation could help control the rising costs, however.
"If the state fulfills its intent as outlined in the Higher Education Opportunity Act of 2011 to begin to reinvest in higher education, then the rate of increase should slow down from what we have experienced in recent years," Sheehy said.
She added that the Board of Visitors is committed to AccessUVa, the University's outreach financial aid program.
"Since its inception, we have fully funded the costs of the program ... [and] continue to raise private funds to support the program and draw on state and federal funds as well," Sheehy said.
On its website, AccessUVa explains it intends to keep the costs of higher education reasonable and affordable for all students, regardless of socioeconomic status. The program offers loan-free packages to all low-income students and strives to meet 100 percent of demonstrated need for all other students. During the last several years, AccessUVa has committed $20 million annually to need-based grants for matriculating undergraduates.
Wellman said financial assistance is important for students, but it is often not enough,"Even with aid, the lowest income students are most likely to be turned away by 'sticker shock,' and either forego college altogether, or enroll in a local community college just to save on tuition," Wellman said.
University spokesperson Marian Anderfuren said in an e-mail financial aid resources need to grow in the coming years to counteract rising tuition costs and the lingering impacts of the recession.
"In September 2009, then-President Casteen announced a fundraising initiative to endow AccessUVa as part of the University's $3 billion campaign," Anderfuren said. "The University remains committed to accessibility for all qualified students, regardless of their economic circumstances"
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