Tuition Increase is Going Overboard

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Tuition Increase is Going Overboard

In the current knowledge-based economy, reasonably priced postsecondary schooling is more imperative than ever. Over the preceding two decades, modifications in various support that has to do with money and support, has made going to an increasing predicament. Despite the fact that support from both federal and state for financial bursary has and state support for financial bursary has intensified over the past ten years, states along with colleges have essentially neglected to hold tuition increases in line with inflation. I am representing the Tuition Increase Advocates (TIA). We are a dedicated group concerned with the skyrocketing costs of tuition. The problem is that the state of Arizona and various other states across the US are being affected by the budget cuts. Eileen Klein, as the recently appointed Director of the Governor's Office of Strategic Planning and Budgeting (OSPB), it is your duty to start investing tax money back into college education because it is not only important to students, but to the future of our country.

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During bad economic times tuition often skyrockets for the reason that economy distresses state tax revenue. In order to meet state balance-budget necessities, states slash financial support for secondary education. To make up those cuts public colleges increase tuition (Dannenberg). The president of the American Council on Education, Molly Corbett Broad stated, “I am concerned that we are entering a period--as we did following the recession of the late 1980s and 1990s--when we will see a sharp spike in tuition prices at both public and private institutions.” She also declared, “Presidents and boards of trustees will be reluctant to increase tuition, but they will have little choice” (Hendrix). “The Great Depression helped to teach us that the solution is a massive infusion of government-supplied liquidity. Consumer and government deem and drive supply, which in turn drives jobs” (Dannenberg). There is no reason for history to repeat itself. The states that have balanced-budget laws should change them to allow deficit spending on education during recessions (Dannenberg).

The major trigger for tuition increases in communal establishments has been cuts in state-owned appropriations. Amongst private colleges, the raison d'être of escalating tuition are more circulated, but include the rising cost of maintenance, student financial aid, and information technology. The push for superfluous money is due to ASU, NAU and UofA, Arizona's major universities lost, “$190 million, or nearly 20 percent of their state funding,” in this current school year. Ms. Klein, that doesn't give any right to have tuition not in line with inflation it, seems unjust. “State revenue and the tuition paid by students account for 79 percent of ASU's instructional budget. To make up the loss of state funding, tuition for in-state students would need to be almost doubled to $11,000 a year” (Newberg). “The proposed budget cut would take student funding at ASU back about 20 years, from $8,111 per full-time student (or equivalent) in 2008 to $4,902 for 2010, which is lower than the $5,017 ASU received in 1989. Those numbers are not adjusted for inflation” (Newberg).

While mooching from the government is still considerably more advantageous, students are paying their bills more and more with private loans from loan companies in addition to an assortment of banks. The total cost for in-state students to attend ASU is now averaging about $9000 a year counting food, books, housing, transportation and other living expenses. This can lead to possible debt if the student has more expenses including paying for their dorms, food and transportation. The rate of increase in total private borrowing for education has slowed, but borrowing has increased tenfold over the last decade (Hochuli). Undergraduate private borrowing grew 12 percent to $14.5 billion in 2006-2007. Even the Pell Grant, the leading financial aid program in the country, continues to diminish as the maximum accessible grant quantity has remained unvarying for the precedingfive years. Michael Crow, the sixteenth president of Arizona State University, stated, “Making cuts of this sort now is extremely painful to all of us at ASU but we have no choice. No university no public institution, no corporation, no individual can sustain the drastic budget cuts we have taken without reducing its programs and activities. And I must emphasize that the changes are what we have had to do to cope with state budget cuts this year and would not be sufficient to deal with a possible further reduction in state funding in FY10” (“Fiscal Year 2009 state budget cuts force ASU to cap enrollment, freshman applications close March 1, five months early”).

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Without the surcharge, ASU President Michael Crow said the university will have to “lay off between 1,200 and 2,000 employees during the first week of May and also cut back on 5,000 merit scholarships” (Hochuli). This only adds on to the negative effects that already exist because of the increase in tuition. Ms. Klein, it doesn't seem necessary to stop offering merit scholarships just because the state of Arizona lost money in the previous year. Students shouldn't have to put their future in jeopardy.

The university would additionally have to keep a tight rein on enrollment in more expensive programs that the university offers including programs in the majors of engineering, science, nursing, science, business and honors. These programs are the top paying careers and the schools want to limit the accessibility to join these programs. “ASU is closing about four dozen academic programs, many on the Tempe campus, and scaling down administrative operations at its Polytechnic and West campuses, in response to state budget reductions, which have totaled+ $88 million or 18% of the university's base state budget since June 2008” (“Fiscal Year 2009 state budget cuts force ASU to cap enrollment, freshman applications close March 1, five months early”). Even the cost of printing documents at ASU has doubled since the previous school year. Having an increase in tuition is just like any other event, there are causes and effects, but the effects for this particular event are exceptionally impactful.

Most of the criticism around the tuition increase comes from students and citizens who feel that before the University raises tuition and fees they should cut back as much as possible on expenses. For instance, You said it best in the East Valley Tribune, "Unfortunately, permanent spending commitments based on faulty or temporary revenues and a bleak economic outlook suggest more difficult times ahead for Arizona," (Ms. Eileen Klein).

State should invest their tax money back into college education (Clark).

Despite these pressures, colleges and universities are taking a wide range of steps to reduce costs and ease the upward pressure on tuition, including reducing course offerings, eliminating departments, and adopting pay and hiring freezes.

College graduates, on average, earn $20,000 more than high school graduates.

Higher education results in higher earnings.

Concluding sentence J You've previously stated, "We're never going to stop the economic cycle," but as the Director of the Governor's Office of Strategic Planning and Budgeting (OSPB) you can make the change we need (Ms. Eileen Klein).

Work Cited

Arizona State University. Office of the University Economist.Tuition, Appropriations and Constitutional Mandates in Arizona. By Dennis Hoffman, Ph.D. and Tom R. Rex, MBA. February 2006. 20 November 2009. <http://wpcarey.asu.edu/seidman/reports/tuition.pdf>.

Clark, Kim. "How Much is That College Degree Really Worth."U.S.News30 October 2008: n. pag. Web. 21 Nov 2009.<http://www.usnews.com/articles/education/2008/10/30/how-much-is-that-college-degree-really-worth.html>.

“Fiscal Year 2009 state budget cuts force ASU to cap enrollment, freshman applications close March 1, five months early.”Arizona State University Online. 2009. 20 November 2009. <http://www.asu.edu/budgetcuts>.

Hochuli, Lara. "NAU Tuition Increase." NAZ Today. 12 Apr 2009. Web. 18 Nov 2009. <http://www.naztoday.com/news/local-news/2009/04/nau-tuition-increase/>.

Newberg, Julie. “Officials Offer Budget Facts.” January 23, 2009.ASU News. 20 November 2009. <http://asunews.asu.edu/20090123_budgetfacts>.

"Ms. Eileen Klein." ZoomInfo Find People and Companies. 24 Feb 2009. ZoomInfo Inc., Web. 2 Dec 2009. <http://www.zoominfo.com/people/Klein_Eileen_19779543.aspx>.

Pope, Justin. "Families await sharpest tuition increases in years." FOXNews.com. 15 Jan 2009. Web. 14 Nov 2009. <http://www.foxnews.com/wires/2009Jan15/0,4670,CollegeCosts,00.html>.

Ryman, Anne. "New fees could put tuition at ASU, UA above U.S. average." AZCentral.com. 11 Apr 2009. Web. 14 Nov 2009. <http://www.azcentral.com/news/articles/2009/04/11/20090411tuition0411.html>.