UVM trustees consider 3.4 percent tuition hike

The University of Vermont Board of Trustees this week will decide a 3.4 percent tuition increase for the 2016 academic year, which if approved would keep the cost of tuition among the most expensive at public schools in the country.

But university officials caution that despite the steep sticker price, increases in financial aid can make tuition more affordable for students and families.

Tuition for in-state students would rise from $14,184 to $14,664. For students from outside Vermont, tuition would increase from $35,832 to $37,056.

Trustees will also evaluate a proposal to increase cost of on-campus housing by an average of 3.7 percent and the cost of a meal plan by 3 percent.

For the first time, UVM projects the total cost of tuition, room and board for out-of-state students to exceed $50,000, almost twice the cost Vermonters will pay.

RELATED: Student leaders offer mixed reaction to tuition hike

To balance out the 3.4 percent tuition increase proposals, trustees this week will evaluate a proposed aid increase of 6.3 percent. According to College Board, 71 percent of UVM students applied for need-based aid this year, and 81 percent of applicants received some form of aid from the university.

Trustees will meet Friday and Saturday to set the university's budget for the coming fiscal year. Board Chair Deborah McAneny said the projected tuition increase is reasonable and in line with cost hikes at institutions similar to UVM.

"Given the current constraints under which we operate I believe the proposed budget appropriately balances the contractual obligations of the University of Vermont and necessary investments for our future," McAneny said, adding that the board balanced costs with expected donor and state support.

But the increase won't help UVM shed a reputation as one of the nation's costliest, compared to other public universities.

A 2014 Department of Education report listed UVM as the fifth most expensive public university for in-state students. A U.S. News and World Report study last year ranked UVM as the fourth most expensive state school for out-of-state students, behind the University of Virginia, University of Michigan and College of William and Mary.

From 1990 to 2015, tuition for in-state students has more than tripled, a total increase of 237 percent. For out-of-state students, that increase was 207 percent.

Increased financial aid

Richard Cate, the university's vice president for finance, characterized the 3.4 percent tuition increase proposal as modest compared to previous years. Trustees approved 6 percent tuition increases between 2008 and 2010.

Cate said while the cost of tuition itself is expensive, the school gives generous financial aid packages that make net cost of attending UVM more comparable with other public universities.

According to UVM figures, Vermont students have received an average financial aid package of $9,465 per year since 2008, while out-of-state students have received $13,991 in aid. Based on tuition for the present academic year, those aid packages would lower the average cost of tuition for Vermonters to $16,665 and out-of-state students to $33,057.

Comparing net cost of attendance at UVM to other universities is difficult, Cate said, because they are less forthcoming with that data. But administrators believe UVM compares favorably to other schools who may have lower sticker prices.

"A lot of public institutions have lower tuitions than we do, but they do not provide as much aid," Cate said.

Cate said administrators are aware that UVM is perceived as an unaffordable school, and said that many prospective students and their parents focus on cost of tuition rather than potential aid packages, which is unfortunate.

"What really matters is what people have to pay," Cate said. "We try hard to get the facts out there."

State appropriation

A key factor in calculating cost of tuition is the annual appropriation by the Legislature to UVM's general fund. By several measures, Montpelier's contribution to the Vermont State College system is paltry compared to other states.

Cate noted that UVM fared better in recent years than other public universities, who saw their state appropriations cut as a result of the Great Recession. But he also said that outcome was less rosy than appearances, because UVM already had a meager allowance from the state.

"It's one of the lowest state appropriations on a per capita basis," Cate said. "That is one of the reasons that tuition is higher."

In 2013, only New Hampshire spent less per capita on public universities, according to a study by a nonprofit group that examines trends in higher education. A separate report found that Vermont's public universities in 2014 depended on tuition for 85 percent of total revenue, more than any other state.

For the next fiscal year, UVM administrators expect the Legislature to kick in $42.5 million towards the $334 million general fund budget, or about 12.7 percent. That is less than last year, when the state appropriation covered 13.8 percent of general fund expenses.

Board chair McAneny said UVM presents a comprehensive funding request to the Legislature each year and would put extra money, in part, toward financial aid for Vermonters. But she said the Board of Trustees recognizes fiscal shortfalls the state faces.

"We … appreciate whatever the legislature can do to support UVM and higher education, which are so important to the economic vitality of the state," McAneny said.

Contact Zach Despart at 651-4826 or zdespart@burlingt.gannett.com. Follow him on Twitter at www.twitter.com/ZachDespart.