Contact: Michael L. Warden or Anthony P. de Bruyn, (512) 499-4363

Date: March 28, 2006

UT System News Release

UT Regents Approve Tuition and Fee Rates for 2006 – 2008

AUSTIN - The Board of Regents of the University of Texas System on Tuesday (March 28) approved tuition and fee rates for the next two years after reviewing campus proposals submitted to the UT System.

The tuition and fee increases approved by the board at Tuesday’s meeting varied at each institution for full-time resident undergraduate students, including statutory tuition, designated tuition, and all mandatory fees. Regents approved rates for two years largely at the request of students who desired more financial predictability. The approved rates for Fall 2006 and Fall 2007 may be found on the UT System website.

“The board has carefully reviewed these tuition and fee proposals before approving them,” said James R. Huffines, chairman of the UT System Board of Regents. “The broad support for the campus proposals was clearly evident in all of the presentations and feedback that we have seen today. I am very grateful to the presidents and to the campus student leaders for their hard work and involvement in developing these proposals. I would argue the UT System has the most inclusive and transparent tuition-setting process in the state, if not the nation.”

According to a national study released by the State Higher Education Executives Organization last week, “Despite an appropriations increase of 3.5% in fiscal year 2005, constant dollar per student state and local funding for public colleges and universities was at the lowest point in 25 years. … Support per student decreased dramatically from 2001 to 2005, because enrollment grew at 14.3% and inflation grew by 14.2%, without corresponding increases in public funding.”

Responding to the study, Mark G. Yudof, chancellor of the University of Texas System said, “Texas finds itself in the same situation as other states – with inflation and rapidly growing student enrollment eroding state support. In Texas, General Revenue funding over the last five years in actual dollars – dollars not adjusted for inflation –is up just over 8%, while enrollment has grown almost 21%. And inflation for educational institutions tends to be higher than the Consumer Price Index because our costs – for example, for laboratories, equipment , library books, and recruiting faculty – have escalated dramatically. So, even though appropriations may increase, they simply do not cover the costs of a quality education.”

Yudof continued, “We believe that the tuition rates set today are fair and represent what is required to maintain the highest quality of education for our students and meet the rising demands of student enrollment growth. UT academic institutions have developed innovative ways to reduce costs for students and their families by encouraging timely graduation. And, as always, we want to emphasize that we work hard to ensure that no qualified student will be denied a UT education for financial reasons.”

The regents approved plans that include setting aside at least 20 percent of new tuition revenues for financial aid programs, as well as a variety of ways that students can take advantage of special discounts in tuition rates. Institutions are committed to providing additional funds to meet students’ needs.

UT institutions will use the additional tuition revenues to enhance student services and academic programs, such as hiring additional faculty and advisers, reducing class sizes, making much needed repairs and renovations to campus buildings, and address the ever-increasing energy costs that affect their operating budgets.

The board instructed campuses to address increased utility costs with an energy fee that will be reviewed annually.

The plans approved also include a variety of incentives to encourage students to graduate on time by taking more semester credit hours in each term they are enrolled.

Increasing the graduation rate - by using such incentives as flat rate tuition - and shortening the time that students take to earn a degree will serve several purposes. It will allow institutions to admit more new students with current facilities and resources because more students will be leaving sooner, freeing classroom space. It will also reduce the total cost of a college education for students and their families by cutting total student living expenses and speeding up the entry of graduates into the professional labor market.

The campus tuition proposal reviewed by the board - along with each proposal’s key features and innovations - are posted on the UT System tuition website and are available for viewing or downloading. The website also includes details about the process that the UT System and its campuses use to set tuition, information about financial aid, and many other features.

The UT System is one of the nation's largest higher education systems with 15 campuses, including nine academic and six health institutions, and an annual operating budget of $9.6 billion (FY 2006). Student enrollment exceeds 184,000 in the 2005 academic year. The UT System confers one-third of the state's undergraduate degrees and educates three-fourths of Texas health care professionals. With more than 76,000 employees, the UT System is one of the largest employers in Texas.

Archived Webcast

>Chancellor Yudof's Presentation

>Executive Vice Chancellor for Academic Affairs, Teresa Sullivan, presentation

>Discussion and Vote

Agenda Book

UT System Tuition website

UT System Academic Institutions: Approved Rates for Fall 2006 and Fall 2007