Universities may get to set tuition

By Andrew Garber
Seattle Times Olympia bureau

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OLYMPIA — The lingering recession and a growing clamor by business to better fund higher education have lawmakers contemplating letting universities set tuition for in-state undergraduate students.

Advocates say the change is needed to help universities make up for lackluster state funding and maintain quality. Critics say such control would lead to rapid tuition increases and put a college education out of reach for growing numbers of students. Currently, the Legislature sets a cap on tuition for in-state undergraduates.

Giving colleges and universities control over tuition "is definitely gaining momentum," said House Majority Leader Lynn Kessler, D-Hoquiam.

The state Higher Education Coordinating Board recently renewed calls for giving institutions more control over undergraduate tuition, as did the state Competitiveness Council, a panel of business, political and other leaders appointed by Gov. Gary Locke.

Locke plans to introduce legislation in the session that begins Monday that could lead to a couple of universities setting undergraduate tuition in a pilot program beginning in 2005. The University of Washington wants to participate.

The UW and other public universities have sought control over tuition in part to bring in additional revenue to maintain the quality of programs, arguing that the state isn't putting enough money into higher education.

If the state were adequately funding the UW, it would be not be seeking control over tuition to increase revenue, said Dick Thompson, the UW's director of government relations.

The Legislature last year gave state institutions the ability to set tuition for graduate students and out-of-state undergraduates. But lawmakers, concerned about keeping college affordable, kept control over tuition for in-state undergraduates. They set a 7 percent cap on increases this school year, and all universities increased tuition that amount.

The UW, the state's flagship institution, has increased undergraduate tuition by 21.6 percent in the past two school years. Tuition at the UW is $4,458 a year, not including fees.

During the 2002-03 school year, Washington ranked 21st nationally, out of the 50 states, in tuition and fees charged at research universities. The UW and Washington State University had the highest in-state tuition and fees among public institutions in 15 Western states, with the exception of the Colorado School of Mines.

There have been several attempts in the Legislature to give Washington public universities control over resident undergraduate tuition. Locke repeatedly promoted the idea. But lawmakers resisted, citing the need to keep college affordable and to retain state control. Students also have been a potent lobbying force in opposition.

Still, the recession may be softening attitudes in the Legislature.

"In this economic climate, just about anything is possible," said Kessler, the House majority leader. "I think there is a window. If we go through that window, it will be with a great deal of reluctance."

Kessler and other lawmakers said that if the Legislature allows colleges and universities to set undergraduate tuition, the state should increase financial aid to ensure low-income families have access to college. There's also concern about keeping college affordable for the middle class. "Even in difficult economic times, we can't let tuition increases create a situation where qualified students in Washington state aren't able to get an education," said Senate Majority Leader Bill Finkbeiner, R-Kirkland.

The state spends about $112 million annually on State Need Grants, the state's largest program to help low-income students go to college. The maximum grant for attending the UW or WSU is $4,081.

The concern is that universities could increase tuition so rapidly the state would not be able to keep pace with financial aid, said Patrick Callan, president of the National Center for Public Policy and Higher Education.

"The way to get tuition very high in a short time is to delegate authority to a college or university," he said. "Higher education is a seller's market. There are more students than there are spaces. No college is going to lose enrollment by raising tuition."

If the state gives institutions control over tuition, a pilot project is the likely first step, lawmakers said.

Locke's proposal would let the state negotiate contracts with two universities. The agreements, which would have to be approved by the Legislature, could give institutions more control over things such as tuition in return for meeting certain goals.

For example, the contract could call for the institution to take in a certain number of transfer students from two-year community colleges.

The UW wants in, Thompson said. "Our position has never changed in our belief that the university and the state and students would be better-served with tuition-setting authority linked with a very strong financial-aid program."

One concept being discussed would be a need-based system where students from wealthy families would be charged full tuition. Financial aid would be given to students from middle- and lower-income families based on need.

Currently, a family of four does not qualify for a State Need Grant if it earns more than $36,500 a year. Higher-education officials are talking about broadening the scope of financial aid to include a broader swath of middle-class families.

Thompson said the UW is willing "to be a player" in providing financial aid to students. "We can get donors to give us money for students."

Andrew Garber: 360-943-9882 or agarber@seattletimes.com

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