BOARD DESIGNATED TUITION

The Board of regents is authorized under Sec. 54.0512 and Sec. 54.0513 of the Education Code to set FY 2002 Board Designated Tuition at an amount not to exceed State Mandated Tuition. At their February meeting, the Board authorized the University to charge $40 per semester credit hour. Subsequent to the February meeting the State Legislature approved an appropriation bill which funded only 50% of a mandated 4% staff pay raise, and provided no direct funding for a faculty pay raise. However, the Legislature also raised State Mandated Tuition to $42, thus raising the ceiling on Board Designated Tuition and providing institutions a means to cover pay raises and other cost increases.

In order to fund the staff pay raise and an equivalent faculty pay raise, as well as fund the significant increase in utility expense and other key initiatives recommended in the 2001-2002 operating budget, the administration is requesting that Board Designated Tuition be raised from $40 to $42 beginning with the Spring 2002 semester.

State Board

Mandated Designated Total

Currently Authorized Rate FY 2002 $42.00 $40.00 $82.00

Recommended Rate Beginning Spring 2002 $42.00 $42.00 $84.00

The attached schedule shows comparative rates at other institutions.

The President, with the concurrence of the Chancellor, recommends that the Board of Regents approve the increase in Board Designated Tuition beginning with the Spring 2002 semester subject to a public hearing on the increase by the Administration.