Eastern Michigan University students will pay 13.5 percent more in tuition and fees this fall, with 4 percent of that total earmarked for much-needed improvements to classrooms, laboratories and academic facilities.
"We are very determined to improve those key classroom buildings, Pray-Harrold and Mark Jefferson. Those projects came up at the top of our list," said Board of Regents Chairwoman Karen Valvo.
The Regents, at a special meeting Aug. 2, voted 7-0 in favor of a 9.5 percent tuition increase (required to balance the University's non-capital operating budgets) and an additional 4 percent to pay for a bond issue, with the proceeds dedicated to improving classrooms, laboratories and institutional facilities.
The Tuition Tape
Below are the changes in per credit hour tuition rates (based on 30 credit hours) from 2004-05 to 2005-06 for EMU's resident and non-resident students.
| Course level, resident |
2004-05 |
2005-06 |
| 100-400 (undergraduate) |
$156.90 |
$182.10 |
| 500-600 (masters) |
$284.20 |
$326.60 |
| 700-999 (doctoral) |
$327.50 |
$376.00 |
| Course level, non-resident |
2004-05 |
2005-06 |
| 100-400 (undergraduate) |
$490.45 |
$560.60 |
| 500-600 (masters) |
$575.35 |
$657.10 |
| 700-999 (doctoral) |
$648.70 |
$740.60 |
|
The state legislature provided no capital funding for EMU last year. Pray-Harrold has been the University's top capital improvement project since 1999. Regents took it upon themselves to begin handling campus infrastructure needs.
"I think the real issue is that EMU and all universities have to realize the state, whether it's the state of Michigan or the state of New York, will not be funding education as it has in the past," said Regent Joseph Antonini, who chairs the Board's Finance and Audit Committee. "As a result, we need to take the bull by the horns to create the necessary financial wherewithall to do what we can."
Regents agreed to a bond issue because of EMU's highly-rated A2 bond rating. The bond issue is a solid financing tool, Antonini said, because EMU is one of only 163 public universities in the U.S. with an A2 bond rating, according to Moody's. He added only 225 U.S. companies have such a rating.
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Antonini |
"EMU is probably in the top 10 percent of financial trusts of universities based on our balance sheet," Antonini said. "So, EMU is really in elite status with our credit rating and balance sheet."
The 4 percent increase for capital improvements is expected to generate approximately $4.4 million, said Steve Holda, interim director of finance.
"The University can raise $15 million for every $1 million of annual debt service. It's like a home mortage; we'll be paying principle and interest," Holda said. "The bonds will be sold to large institutional investors."
EMU President John A. Fallon, III, said he is thankful for the Board's action.
"This bond issue will allow the University to implement its strategic vision of improving the student learning experience by providing outstanding classroom, laboratories and academic facilities," he said.
With the increase, a typical resident undergraduate student will pay $6,540 for 30 credit hours, or about $778 more than last fall. A resident graduate student will pay $8,717 annually, or about $1,036 more than last fall. Doctoral students will see an increase of $48.50 per credit hour. Mandatory fees remained unchanged except for a previously scheduled 75-cent, per-credit-hour increase for the student center fee.
Even with the increase, Eastern Michigan University will remain affordable in terms of cost, Fallon said.
To help offset the effects of the tuition increase, the University has increased the amount of University-funded financial aid available to its students this fiscal year by $1.7 million.
Since 2002, the University has continuously increased the amount of University-funded aid. In 2002, EMU awarded $11.7 million in institutional financial aid. This fiscal year, Eastern Michigan University will award more than $17.1 million of institutional aid, an increase of more than 46 percent since 2002.
"At EMU, it is always important to provide a quality education at an affordable price. We take great pride in the fact that Kaplan's Guide rates EMU as "a best value for your educational dollar," Valvo said.
Valvo said EMU's administration had originally recommended a 9.9 percent tuition increase to cover core operating expenses and services. After receiving those numbers, Valvo said the Regents looked at what was needed to keep the University effective and viable, and decided to put 9.5 percent toward the University's operating budget and add another 4 percent for capital improvements.
"In this era of economic reality, Eastern Michigan University has taken creative steps to help meet the needs of its students. However, in order to be fully successful, EMU, like all other public institutions, must partner with the state to find long-term solutions to higher education funding issues," Valvo said.
