If you thought The University of Memphis’ 15 percent tuition increase for the 2001-2002 academic year hit hard, brace yourself for another increase next fall. State budget woes and a slumping economy seem to point to the inevitability of even higher tuition next fall.
Tennessee Senate leaders have been removing sales tax exemptions since they killed the state income tax proposals last Thursday, but many say that move will not be enough to combat the $400 million hole in this year’s budget, let alone provide for next year. Recent polls show that Tennessee citizens are willing to consider a lottery to fix the crisis.
David Zettergren, assistant vice president of Finance at The U of M, said that based on the history of the tuition increases — at least 6 percent every fall since 1997 — and the projected state budget deficit, all signs point to an increase.
Mary Morgan, director of communications at the Tennessee Board of Regents, said that the state is looking at an impoundment, or cutting of funds, of at least 6 percent to cover budget shortfalls. Although the Board of Regents won’t vote on the increase until the summer, Morgan said that there is evidence that cutbacks will have to be made.
“If we’re looking at an impoundment, that means either finding more money or cutting back what we have,” Zettergren said.
“We go to great lengths to keep our programs intact,” Zettergren added, but said that he hated to see tuition increase. “I know a lot of people were hesitant to see the 15 percent increase of last fall go through,” Zettergren said.
Zettergren said that he thinks the situation was caused by mistrust in the legislature and unwillingness to give tax money when there is no proof that the money will go to the appropriate programs.
William Akey, assistant vice president for Enrollment Services, said that a tuition increase will probably not affect enrollment.
“Despite the 15 percent increase last fall, we also had an increase in enrollment,” Akey said.
“The Legislature needs to look for more creative ways to fix it,” Akey added. “It takes stable funding, not this roller coaster of sales tax we’re on now.”
“We’re hoping to find some mechanism to get more funding,” Morgan said.
Steve Cohen, the Memphis democrat pushing for a Tennessee lottery, said that a state lottery could generate $180 million to $300 million for scholarships.
Lotteries around the nation brought $2.3 billion in 2000 for lottery retailers, according to Cohen.
In a recent poll conducted by University of Tennessee and commissioned by the Commercial Appeal, 55 percent of those polled said they would vote for a lottery. While a Commercial Appeal poll revealed that 40 percent still oppose any new tax, the lottery’s dissenters might lose to the necessity of funding.
The lottery, if proposed, would need three-fourths vote approval in 2002. According to Zettergren, it’s too early to be sure of an increase.
