The state higher education commission’s plan to cap tuition increases at 2.5 percent next year is at odds with legislation that would give public colleges the go-ahead to raise tuition revenues by twice that amount.
The conflicting guidance has University of Colorado leaders, who raised tuition for some students by 28 percent last year, wondering how much flexibility they have to boost tuition.
It also hints of a possible tuition tug of war reminiscent of last year’s battle between the governor and CU regents and then-president Elizabeth Hoffman. Gov. Bill Owens tried to limit tuition hikes for in-state students at 12 percent.
If there is a struggle this year, it isn’t likely to compare with last year’s colossal fight; university presidents have vowed to keep tuition increases minimal because of the passage of Referendum C, which freed millions of dollars for higher education.
CU president Hank Brown said Tuesday the university likely would prepare two budgets – one adhering to the governor’s 2.5 percent tuition cap and the other with a 5 percent tuition revenue increase.
“I think you’ll find budget discussions fascinating,” Brown told university regents.
The governor will veto the legislation if it allows a tuition increase beyond 2.6 or 2.7 percent for in-state undergraduate students, higher education commissioner Jenna Langer said.
The boards of trustees of each of the state’s colleges have legal authority to set tuition. But the legislature and governor control “tuition-spending authority,” meaning they determine the overall amount schools can generate from tuition, Langer said.
The vague boundary creates a perpetual tuition conflict. Last year, for example, CU stayed within the overall 12 percent cap on tuition-revenue increases, but raised tuition 28 percent for some students.
Under the bill that includes the 5 percent tuition cap, universities could raise tuition more than that for some students – as long as the total revenue generated was no more than 5 percent higher than last year, said Rep. Tom Plant, D-Nederland.
The governor’s tuition cap applies only to in-state undergraduate students, meaning colleges could raise tuition higher for graduate students or students from other states.
The commission voted in November to cap tuition increases at 2.5 percent, a pre-emptive strike against any surprises.
CU leaders said it’s too early to predict another tuition fight.
“There is a possibility this could all be worked out,” said Robert Moore, vice president for budget and finance.
Brown also announced Tuesday that the university has raised significant money for scholarships that would draw more minority students.
The president’s blue-ribbon commission on diversity found the university does a decent job admitting minority students but has trouble getting those students to enroll. CU is trying to raise $7.5 million, a stipulation of a $1 million gift, for scholarships.
The university has raised more than $1.5 million so far.
“We’re off to a whale of a start,” Brown said.
Staff writer Jennifer Brown can be reached at 303-820-1593 or jenbrown@denverpost.com.
