UNC board OKs tuition increases

CHAPEL HILL -- Surrounded by a raucous student protest, the UNC Board of Governors on Friday approved tuition and fee increases averaging 8.8 percent for in-state undergraduates across the university system for next year.

Using the sort of call-and-response chants that have been a hallmark of the Occupy Wall Street movement, about 100 students marched and pushed their way into the lobby outside the UNC Board of Governors meeting before the vote. At least one person was arrested, and a handful of protesters occupied seats in the boardroom that were reserved for UNC chancellors.

"Those seats are our seats!" the students chanted from the lobby.

The board, despite a few dissenting votes, approved the increases, which for in-state undergraduates include a second year of higher tuition rates that average 4.2 percent. Prices for 2013-2014 will be set later for out-of-state and graduate students.

For 2012-2013, in-state, undergraduate tuition and fees will rise by 7.8 percent at UNC Charlotte, 9.9 percent at Western Carolina University, 9.8 percent at N.C. State University, and 9.9 percent at UNC Chapel Hill. Some of the UNC campuses, including NCSU and UNC Chapel Hill, had asked for higher tuition to help cope with state budget cuts.

But UNC system President Tom Ross insisted that increases stay below 10 percent.

Immediately after the vote, one protester yelled "Mic check" and launched into a chant with other protesters, who repeated in unison, "The Board of Governors, inside this tiny, inadequate public meeting, votes to approve extreme tuition increases. This is a sad day for public education and for democracy. We, the students, wish the Board of Governors had acted with courage and upheld the North Carolina constitution."

North Carolina has a provision in its constitution for free higher education "as far as practicable." Students often cite the provision when arguing against price increases.

Ross said the tuition-setting process this year had been wrenching. He said the new tuition revenue will help campuses stabilize after four years of budget turmoil, including a $414 million reduction last year. The state cuts have led to crowded classes and fewer academic offerings, he said, and it's important to act now to prevent a slide in quality in the UNC system.

"We're trying to strike the right balance. ... I don't think anybody likes this. It is hard on all of us," Ross said. "But I'm absolutely convinced this is the right thing for the state of North Carolina and for this university."

'A short bridge'

Chairwoman Hannah Gage said the board had made a difficult but informed decision.

"The tuition increase that we passed today will not, and should not, fill the budget hole," she said. "But it does provide a bridge, a short bridge, over troubled water. The reality now is, we've got to figure out what we do when we get to the other side of that bridge. We don't want to be back in this position next year, and we do not want to be back in this position two years from now."

Gage called on the board to return to its tuition strategy that has capped increases at 6.5 percent in recent years. The increase enacted Friday was an exception that should not become the norm, she said.

Universities also must focus daily on cost containment, Gage said.

"We have to show the taxpayers of North Carolina, and the legislature, that every penny that's invested in the University of North Carolina is wisely spent," she said.

Ross has proposed three main efforts aimed in that direction: achieving operational and academic efficiencies, using technology more effectively in education, and devising a strategy for financial aid.

Financial aid is likely to be a centerpiece of the debate ahead.

Some board members do not agree with campus plans to set aside a large chunk of tuition proceeds for grants for needy students.

The state requires campuses to use a minimum of 25 percent of tuition revenue for financial aid.

Frank Grainger, a board member from Cary, proposed limiting the set aside to 25 percent in the second year of the tuition increase.

"We've got kids at those universities that are having to work two or three jobs to be able to pay their way through school," he said. "It's not fair for them to have to make that money and then turn around and that money to go to some other kid that's not working."

More than half of UNC system students receive need-based financial aid.

Grainger's motion failed, but the board plans to study the various sources of money for financial aid.