LANSING – With all 15 public universities approving their tuition rates for the 2008-09 school year, the House Fiscal Agency has conducted a preliminary analysis showing the average rate of tuition hike was 8 percent, although that does not factor in additional fees assessed for different courses.

Resident undergraduate tuition rates, which are based on the average of the four academic classes, will vary from $6,492 to $11,739, HFA reported. The unweighted average rate for the 15 schools is $8,754, which is $648 more than the average from the current school year.

Percentage-wise, tuition rate hikes ranged from 3.7 percent to 14.3 percent. HFA noted that tuition rates reported to the public are based on different methodologies, and that the agency took information based on the Higher Education Institutional Data Inventory (HEIDI) structure. Schools have their HEIDI information due August 31.

HFA also noted that two schools with increases of 10 percent or more, Central Michigan University and Ferris State University, did so because of unique factors. At Central, the CMU Promise was dissolved, which locked in tuition rates until the upcoming freshman class. And at Ferris, the school has transitioned from a block-rate structure to a per-credit hour structure in determining tuition.

The fiscal agency also stated in its analysis that Michigan State University allowed the school president to adjust rates based state aid, which it estimated to be at 3 percent, however the Legislature and governor only approved a 1 percent hike in state appropriations. So far, President Lou Anna Simon has not announced any further change in MSU tuition rates.

The combined growth of state aid and tuition revenue for schools over the past six years has been 3.2 percent on an annualized basis, which is higher than the U.S. Consumer Price Index, but lower than the Higher Education Price Index of 3.6 percent per year. The latter price index rises more than the consumer one typically because of the costs associated with faculty and staff wages.

HFA finally noted that historically, tuition rate increases have been connected to the corresponding financial support from the state, so as state aid goes down typically tuition rates go up. And schools with blossoming enrollment have been better able to hold the line on tuition increases, HFA stated.

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