Board OKs tuition agreement
TALLAHASSEE (AP) – The board overseeing Florida’s 11 public universities approved an agreement Thursday designed to protect the financial stability of the schools as well as the state’s prepaid tuition program in the face of significant tuition increases expected in the next few years.
For prepaid contracts sold from July 1, 2007, through final approval of the agreement by the Legislature, the prepaid program would increase future payments to the universities by at least 6 percent but no more than 6.5 percent annually, even if tuition goes up by more – or less – than those levels. The exact percentages within that range would depend on the level of the program’s reserves.
It’s a way for the universities and prepaid program to share the cost of differential tuition individual schools can charge above the systemwide base rate. The prepaid program already covers anticipated base tuition increases but won’t be required to pay differential tuition for contracts sold before July 1, 2007.
The Board of Governors, meeting by conference call, also heard a challenge to the differential tuition increases from Stanley Tate, former chairman of the Florida Prepaid College Board, who said they would make prepaid contracts too expensive.
“I don’t have a problem with getting the money from another source,” said Tate, a South Florida businessman who headed the prepaid board for 18 years. “My problem is taking it from families that can’t afford it especially in these economic times when the difficulty of these families just to be able to survive is going to be materially affected.”
Board of Governors member Charles B. Edwards said Tate’s comments had nothing to do with the prepaid tuition agreement as he moved to approve it. The vote was unanimous.
“His position has been well known for many, many years – the cheaper the system the better, the heck with quality,” Edwards said.
Florida’s tuition rates are among the nation’s lowest, and budget cuts recently have reduced state support, forcing universities to turn away qualified students, reduce course offerings and lay off staff. The budget crunch also has resulted in a “brain drain” of faculty to other states.
In response, the Legislature over the past two years has agreed to let the five largest universities increase tuition rates by up to 15 percent a year above the base rate set by lawmakers – but no more than 40 percent overall.
This year, Gov. Charlie Crist, university officials and business interests are backing legislation that would extend the 15 percent differential to all 11 schools and allow schools to increase tuition up to the national average, which could more than double the current rate in a matter of years.