15 percent tuition hike consequence of funding problem

This fall, students at The University of Memphis and in-state students at all Tennessee universities and colleges were faced with a 15 percent tuition increase. Out-of-state law students faced an even steeper 20 percent increase in their tuition. The tuition raise was decided on by the Tennessee Board of Regents, the governing body of the state?s 46 colleges, universities and technical schools including The U of M. The hikes are due to a lack of revenue allocated to higher education by the state legislature.TBR Chancellor Charles Manning said the cause of the state?s higher education funding problems is the state's reliance on a high sales tax. With Internet purchasing and the proximity of densely populated areas to state borders, many Tennessee residents find ways of avoiding the high sales taxes, Manning said.Another problem in getting adequate funding from the state is that higher education tends to be the largest discretionary expense in the budget, Manning said. "Most states look at the things that they have to do, and then with what's left they look at higher education," Manning said. "What's likely to be left is not a lot of money."Though the higher education budget did see a net growth of approximately 1 percent, the increase was too small to offset increasing operational and salary costs, Manning said. Manning anticipates that at all the state?s higher education institutions, about 50 percent of the tuition revenue will go toward salary and 50 percent toward operational costs. The ideal model for state schools is that 30 to 40 percent of the cost of education is carried by student tuition, depending on the institution, Manning said. Currently, most universities in Tennessee depend upon student tuition fees to carry 60 percent of the cost.Over the next two years, the number of high school graduates will increase by 30 percent in Tennessee -- the highest increase in the Southeastern region, Manning said. "There is a tremendous need and demand that exists, and will build, in higher education," Manning said. Because demand is high and revenue is lacking, Manning says TBR will have to work to find ways to educate an increasing number of students more efficiently.