UNC-system revised tuition policy could allow schools to go above cap

A provision in the revised UNC-system tuition policy could allow universities to increase tuition above the set limits, but administrators are still unsure how those requests for increases will be handled.

The current plan caps tuition increases for resident undergraduate students at 6.5 percent, and the revised policy will continue that limit while giving campuses an opportunity to increase tuition more than the cap in extenuating circumstances.

UNC-system universities are battling budget cuts, and increasing tuition above 6.5 percent may be the only way to maintain the same quality of education.

“With the current funding, I think we can continue, but the state is running into what looks like a $3 billion shortfall,” said John Davis, a member of the UNC-system Board of Governors, the governing body that approved the policy.

“They’re going to have to cut everywhere. We have to leave ourselves an avenue to make a decision in the case of the legislature not being able to fund the university,” he said.

But board members said they don’t have any set criteria for evaluating universities’ requests to increase tuition and Davis expressed his concern at the board’s last meeting by calling the provision “a slippery slope.”

Campuses could make their case for why their circumstances justify an additional increase, and the board would evaluate proposals on a case-by-case basis, said Charles Mercer, chairman of the board’s budget and finance committee.

Board members said they will treat the clause as a last resort.

“I’ve got to see a really good case to justify going beyond the 6.5 percent,” said UNC-system Chief of Staff Jeff Davies.

University officials and board members said it is unlikely schools will take advantage of the clause.

Davies said he wasn’t aware of any campuses wanting to take advantage of the clause.

“It doesn’t mean that that wouldn’t happen in the future,” Davies said. “The vehicle is there.”

University officials also expressed their intention to keep tuition low while still maintaining quality.

“I don’t think many schools are going to be seeking a much higher tuition rate — we are not,” said Bruce Carney, UNC-CH’s executive vice chancellor and provost.

Randy Mills, associate vice chancellor for finance and administration at Winston-Salem State University, said the option to apply to increase tuition above the cap probably won’t impact the school’s tuition policy.

The university’s undergraduate tuition is third-lowest of the 16 universities.

The new tuition plan also includes a clause under which campuses with traditionally lower tuition rates can increase tuition to catch up to tuition rates at similar institutions.

“The budget for next year looks pretty scary, but we’ll certainly not request anything beyond what’s the opportunity given with the 6.5 percent to improve the educational environment,” Mills said.

Contact the State & National Editor at stntdesk@unc.edu.