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Tuition-Setting Process

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The Flexible Solution

When Brian Haley first learned the Texas Legislature was transferring tuition-setting authority from lawmakers to universities in spring 2003, the senior at The University of Texas at Austin was adamantly opposed. "I was concerned about accountability, specifically because students feel they have little control or input into these processes."

So Haley, and many other students statewide, got involved in the process. Now he's changed his mind. Students are the ones who benefit from the UT System Board of Regents setting tuition rates to meet the individual needs of each institution, he believes. "I am very confident that what we've created is the best tuition-setting model in the country," said Haley, who graduated in spring 2004.

Haley is also confident that UT's competitive edge will grow as a result of the power to set tuition rates based on campus needs.

"UT Austin, specifically, is progressing with hiring 30 more faculty," Haley said. "Students will see vast improvements at campuses in quality of faculty and student-to-teacher ratios."

With consistent cutbacks in state funding, higher education institutions must be able to meet the needs of growing enrollments and varying academic needs at UT campuses statewide. The ability to set tuition rates is key.

"We've left behind the one size fits all approach," UT System Chancellor Mark Yudof told the Board of Regents in January. "The use of tuition flexibility to make smarter decisions about operating our institutions and to help our parents and students make more economical decisions is also a centerpiece of what we're trying to accomplish."

So, how have flexible tuition rates helped on the campuses of the UT System's nine universities and six medical institutions? Slight tuition increases in the School of Nursing at The University of Texas Health Science Center at Houston allows for clinical facility upgrades, new equipment purchases of robotic mannequin "patients," and clinical facility expansions to allow more students into classes.

At UT El Paso, revenue from the tuition increase allowed the addition of 97 more class sections this spring. UTEP will hire 53 new fulltime faculty this fall. And, UTEP students had access this spring to an expanded book loan program, student employment opportunities and this fall will have access to increased scholarship monies to offset tuition increases.

UT Arlington is able to add classes in high demand areas and buy better laboratory equipment and supplies for the College of Engineering and the School of nursing.

UT Southwestern Medical Center at Dallas plans to add new courses in biostatistics and epidemiology for first-year students, expand curriculum in medical humanities and ethics and expand its electronic curriculum.

Tuition revenues also help pay the salaries of faculty, advisers and other staff. By keeping salaries competitive, UT System institutions can attract additional highly qualified, extremely talented faculty to its campuses.

Each campus within the UT System has worked diligently to assist students who have financial needs to handle tuition increases. The new law requires 20% of the new revenues from tuition increases be used for financial aid. UT System institutions are doing more than that. UT Austin sets aside 28% for scholarships and offers significant discounts for families with financial needs. Other campuses are implementing new scholarships, new work-study programs and other expanded financial aid programs.

Even with the increases, the Princeton Review labeled UT Austin as one of the best values in the country "when you consider the wealth of resources available."

None of this comes as a surprise to government major Haley. Even as he embarks on the next journey of his life as a UT law student, Haley still stresses the need for students, university administrators and lawmakers to work with each other on the tuition-setting issue.

"The price may have to go up a bit to ensure quality, and tuition deregulation sets our own destiny to do just that. The ball is in our court now to take advantage of this opportunity that will ensure a UT education is as high a quality as we can get."