Tuition costs for four-year public institutions have increased by 10 percent over the past year while private institution costs have increased by only six percent, a recent College Board trends report showed. The increases mark the fourth consecutive year that public tuition has risen sharply.
Nationwide, public universities are scrambling to cover budget deficits after cash-strapped state governments cut spending on higher education.
Sandy Baum, a senior policy analyst for the College Board, said state institutions are dependent on public appropriations for money.
Private colleges, however, set their own tuitions and get funds from endowments and private giving.
"When the state governments cut back, the amount of money given to colleges and universities needs to be made up some way," Baum said.
Often, colleges must raise tuition to counteract declining state funding.
Christopher McCrudden, University treasurer and member of the Priorities Committee, said in an email that when the financial positions of the states began to deteriorate four years ago, most states reduced the amount of funding going to higher education.
"In the public sector in many states, tuition is set by the state legislature or some governing board at the universities," Baum said.
"The budgets have been very tight and the amount of money they have appropriated has declined," he added.
Martin Grogan, executive associate for university budgeting at Rutgers University's New Brunswick campus, said rising costs along with a decline in state appropriations have placed a greater burden on student tuitions.
Tuition for New Jersey residents at the university has risen 36 percent since the 2000-2001 fiscal year to $6,793 in 2004-2005, the Rutgers Daily Targum reported.
"There have been significant problems with the economy that makes things more difficult for the state legislature," Grogan said.
The New Jersey Presidents' Council, composed of the presidents from the state's higher education institutions, puts together a budget request every year. After the governor announces the state budget, the authority to set tuition rests with the Board of Governors at Rutgers.
Grogan added that the state traditionally picks up a large part of the university's costs.
In the past, the state's Commission on Higher Education, which reports to the governor, set its policy so that the state provides two-thirds and the student one-third of the cost of education.
However, over the last 15 years, this policy has gradually changed. In the 1990 fiscal year, the state share of tuition was 67.3 percent and the student share was 32.7 percent.
By 2004, these percentages shifted to 48.4 percent and 51.6 percent, respectively.
Comparing state appropriations and fringe benefit payments with student tuition and fee revenues shows a trend away from the Commission's longstanding funding recommendation, Grogan explained in an email.
Private universities are not affected by budget fluctuations in the same way since they can set their own tuitions, Baum said.
Many costs have been increasing in recent years, however, such as insurance, health care for employees, technology and programs for students, she added.
"Generally, it goes in the direction of adding without subtracting, which is a problem," Baum said.
At Princeton, the Priorities Committee recommends the level of increase for tuition, room and board.
The Priorities Committee, chaired by the provost, meets in the fall and makes recommendations to the Finance Committee of the Board of Trustees.
The board ultimately decides whether to increase tuition after examining the University budget and requests from the various operating offices, McCrudden said.
The single largest expenditure across all University departments is compensation for faculty and staff.
Increases in employee benefits, especially health insurance, are reflected in the rising cost of tuition.
Rising costs of energy, library acquisitions, student health services and campus programs have also contributed to the increase in tuition.
Many private institutions also receive money from endowments, private giving and the stock market, Baum said.
When this form of giving goes down, it generally causes tuition increases.
Important income streams at Princeton include investment earnings and Annual Giving, the yearly appeal for immediate funding from those connected to the University, such as alumni and parents of students.
These sources have kept pace with or exceeded the expenditure growth rate, McCrudden added.
Read More
Joseph ’25 next Young Alumni Trustee in 21 percent turnout election
Vitus LarrieuGil Joseph ’25 won the Young Alumni Trustee election, which saw 21 percent turnout. Joseph, Stephen Padlo ’25 and Ben Wachspress ’25 competed in the final round of elections after advancing from a notably large primary in April.
Gil Joseph ’25 won the Young Alumni Trustee election, which saw 21 percent turnout. Joseph, Stephen Padlo ’25 and Ben Wachspress ’25 competed in the final round of elections after advancing from a notably large primary in April.
‘A brilliant young contemporary writer and a beautiful human being’: Remembering Lauren Blackburn ’26
Victoria Davies and Caitlyn TabladaBlackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”
Blackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”
GSG approves audit, delays budget approval after ‘insufferable’ meeting
Nikki HanThe final Graduate Student Government (GSG) meeting for the semester lasted more than an hour and a half when discussions over the proposed budget for the next year and a proposed Student Life Fee of $100 turned controversial.
The final Graduate Student Government (GSG) meeting for the semester lasted more than an hour and a half when discussions over the proposed budget for the next year and a proposed Student Life Fee of $100 turned controversial.