Student impacts
Faced with unprecedented budget shortfalls and declines in state support, UC Regents at their Nov. 17 to 19 meeting approved both a 2009-10 mid-year student fee increase and a 2010-11 fee increase.
The mid-year fee increases are:
Resident undergraduates — $585, increasing the fee from $7,788 to $8,373
Nonresident undergraduates — $633, increasing the fee from $8,436 to $9,069
Resident academic graduates — $111, increasing fees from $8,736 to $8,847
Nonresident academic graduates — $117, increasing fees from $9,078 to $9,195
Resident and nonresident professional schools — $579 - $681, increasing fees from $7,722 - $9,078 to $8,301 -$9,759.
These fee levels represent the value of the increase for half a year. If these increases are approved, the full annual amount of the increase would be used as the starting point for the proposed 2010-11 fee increase. In addition to systemwide fees, nonresident students pay tuition of $22,021 for undergraduates, $14,694 for graduate academics and $12,245 for professional school students. No increases are being proposed for nonresident tuition. Proposed professional degree fee increases range from $280 to $5,696, depending on the field of study.
The 2010-11 fee increases are:
Resident undergraduates — $1,344, increasing the fee from $ $8,958* to 10,302
Nonresident undergraduates — $1,458, increasing the fee from $9,702* to $11,160
Resident academic graduates — $1,344 increasing fees from $8,958* to $10,302
Nonresident graduates — $1,398, increasing fees from $9,312* to $10,710
Resident and nonresident graduate professional — $1332 - $1,566, increasing fees from $8,880 - $10,440* to $10,212 - $12,006
*These fees are based on the full annual amount of the mid-year increase although students would only pay that increase for half the year.
The university recognizes that additional fee increases for students would be painful and is taking steps to minimize the impact on students and families through financial aid. However, without additional revenue, the university’s academic quality will suffer.
The University of California faces a funding gap of more than $1 billion in the current fiscal year. In 2010-11, the funding gap is expected to grow to $1.2 billion without new sources of revenue.
The university has taken a number of actions to cuts costs and to address the funding gap, including implementation of systemwide furloughs, salary reductions, layoffs, downsizing of administrative offices, reductions of travel and other purchases, campus cost reduction programs. Those programs include eliminating courses, increasing class size, and dismantling programs – all of which will eventually erode the value of a UC degree.
The primary reason student fees rise is related to the level of state funding UC receives – or doesn’t receive. In 1990, the state funded 78 percent of the total cost of education per student. Today, the state funds 48 percent. The decline in the state’s funding for per-student education at UC has been partially addressed by student fee increases.
Financial aid
One-third of the revenue generated from any undergraduate fee increase will be set aside for financial aid for needy students. Half of the new revenue from higher graduate academic fees, and one-third of the new revenue from higher professional degree fees, will be set aside to provide additional financial aid to students in those programs.
Increases in UC grants, Cal Grants, federal Pell Grants and expanded federal tuition tax credits are expected to cover the total 2009-10 fee increase for nearly three-quarters of all undergraduates with household incomes below $180,000. The university remains committed to the Blue and Gold Opportunity Plan, which ensures that gift aid will, at a minimum, cover all systemwide fees for eligible resident undergraduates with financial need whose family incomes are $60,000 or below. At their November meeting, the Regents expanded this program to include those with incomes up to $70,000.
In addition, undergraduates with UC grants or Cal Grants can in general expect their awards to increase to cover the proposed fee increases in 2009-10 and 2010-11. These awards, which typically go to students with annual family incomes up to $70,000, are expected to cover the increases in full for about 45 percent of UC undergraduates.
We also plan to continue our special program to assist middle-income students with financial need who are not eligible for UC or Cal Grants. Those with parent income below $100,000 will receive a grant that covers half of any fee increase amount. In 2010-11, the plan is to extend this assistance to students with parent income up to $120,000.
Watch videos of UC President Mark G. Yudof’s discussion of budget crisis and fee increases:
Part 1: “Students have right to be angry.”
Part 2: “We need to continue slashing costs.”
Part 3: “We cannot compromise quality or access.”
UC limits on freshman enrollment
In addition to cutting back on the percentage of the total cost of education per student, the state has stopped funding enrollment growth. That has resulted in UC having more than 14,000 students systemwide for whom it receives no state funding. UC simply could not continue to absorb the cost of enrollment growth and still offer high-quality academic programs. UC Regents agreed to reduce fall 2009 freshman enrollment by 2,300. At the same time, Regents approved increasing the number of California community college transfer students by 500. UC recognizes the need to keep the cost-effective transfer option open during this period of economic downturn.
The Regents are reducing freshman enrollment for fall 2010 by an additional 2,300 and increasing transfer student enrollment by 250.
