Cal State University students may be hit by another round of tuition hikes — ironically, President Barack Obama’s stimulus may play a role.
A Cal State University report recommended a 5 percent increase in tuition for spring 2011. This comes after a 5 percent tuition raise that the CSU Board of Trustees approved for fall 2010.
However, another report also recommended that the CSU raise tuition by 10 percent for the 2011-12 academic year.
“The problem is that because of the federal stimulus program ending next year, there’s going to be no more federal stimulus dollars coming into the state,” said Chris Chavez, president of the California State Student Association.
“The proposed fee increase in 2011-12 is to make up for the anticipated shortfall that will come out of the state budget next year,” said Chavez, referring to the end of federal stimulus dollars coming into the state.
Federal stimulus effect on the CSU
The CSU had lost $625 million in annual state funding since 2007-08, according to the CSU’s “Mid-year Tuition Increase” report. It also had to “absorb” $135 million in mandatory cost increases.
“Absorbing these cost increases has meant reducing spending elsewhere at CSU campuses … these spending reductions fell hard across student services and the broader range of support services at the campuses,” the report said.
As a result, $480 million was needed in addition to the 2009-10 CSU resources to put CSU resources back to the levels of 2007-08. In response, the CSU received $416 million in additional funding for the 2010-11 academic year.
However, $106 million was one-time federal money during the 2009 stimulus legislation. And, the stimulus funding came with an assumption by the governor and state legislature that it would “allow the CSU to serve a sharply increased level of enrollment,” according to the “Tuition Increase – 2011-2012 Academic Year” report.
So, the 2010-11 CSU budget targeted an enrollment of 339,873 full-time equivalent students.
According to the second report, the CSU’s use of the one-time federal stimulus funds introduced “an element of great risk.”
“The funds are ‘one-time,’ but our students are not,” the report said. “When our campuses enroll students this winter and spring, they are making multi-year commitments.
“Specifically, they are making decisions now that will virtually dictate that the CSU will be serving more than 339,873 [full-time equivalent students] in 2011-12.”
Tuition hike to make up for loss of stimulus
The “Tuition Increase – 2011-2012 Academic Year” report recommended that the CSU Board of Trustees raise tuition by 10 percent for the 2011-12 academic year, increasing the CSU’s revenue by $121.5 million.
“This would assure in advance that adequate resources will be available to replace the $106 million of one-time federal funds and at least a minimum portion of mandatory costs,” the report said.
Under the report’s recommendation, tuition for the 2011-12 academic year would be set at $4,884 for full-time undergraduate students.
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