MI universities tackle tuition costs

LANSING, Mich. (AP) - Federal stimulus cash may help limit the size of tuition increases at Michigan's 15 public universities headed into next fall.

Some universities are expected to start making tuition decisions as early as Thursday. Increases likely would have to be below the average registered over the past few years to avoid raising questions about how universities are using Recovery Act cash to help keep college affordable.

The University of Michigan system and Michigan State University are among the universities that could begin to at least set guidelines for establishing tuition rates this week. Others will follow later in the summer.

"I feel you are going to see moderate tuition increases," said Mike Boulus, director of the Presidents Council, an organization representing the presidents of Michigan's public universities. "We want to keep it accessible and affordable."

Michigan's average in-state, undergraduate tuition at a four-year public university in fall 2008 was $9,079, according to an enrollment-weighted method reported by The College Board. That's up 44 percent since fall 2004.

The national average at public universities is $6,585, up 28 percent since 2004.

Michigan universities don't know how much money they will be getting from the state for general operations, which makes setting tuition rates difficult. Lawmakers and Gov. Jennifer Granholm's administration are working to balance a budget that is projected to have a general fund shortfall of about $1.8 billion in the fiscal year that starts in October.

The House and Senate have passed budget plans that keep general operating money to universities fairly even compared to current levels, with the assistance of Recovery Act cash.

Granholm has proposed a 3 percent cut to university funding for next fiscal year. But that cut would be replaced with Recovery Act cash for universities that work to contain tuition increases or take other steps to offset the effects of tuition increases on students and their families.

Public universities getting Recovery Act cash are expected to demonstrate they will work to contain tuition increases over the next two years. The Granholm administration doesn't expect to set strict tuition mandates but will use inflation and other factors as a guide for determining how well universities are achieving those goals. The amount of financial aid offered by a university, for example, could factor into the equation.

Chuck Wilbur, Granholm's education adviser, says the administration won't shy away from yanking Recovery Act funds from universities that don't comply. But he expects universities will do what they can to limit tuition increases.

Granholm originally had sought to tie some Recovery Act money to university pledges to freeze tuition. But that became an unrealistic expectation with the deterioration of the state's economy and government budgets.