It wasn't a matter of whether to raise tuition, but by how much – and whether a proposed increase that exceeded a state panel's recommendation was enough to see Ball State University through another cutback in state support.
The Board of Trustees approved tuition increases of 3.9 percent next year and 4.9 percent in 2012-13, but not before a serious discussion about whether that was enough.
"I'm wondering, are we doing just enough to keep afloat?" Trustee Frank Hancock of Indianapolis said during Thursday's monthly meeting of the board.
"The next big thing that comes up, I'm concerned about keeping water out of the boat."
President Jo Ann Gora said it's the first time in her seven years at Ball State that the board has advocated for a higher increase.
"I was holding my breath, frankly, to hear that we hadn't provided enough support for the initiatives that we want to move forward with aggressively," she said after the meeting.
The university is constrained, she explained, because funding comes mostly from tuition and state appropriations, which has been steadily declining. The 2012 state operating appropriation was equivalent to the amount of state support from 2002. In the last 5 years, state funding has decreased by 11 percent.
On the other side of the ledger, Ball State just concluded its biggest capital campaign, which raised $207 million.
"We can't start another campaign on the heels of this one," Gora said. "But we will always be trying to aggressively reallocate funds within the university structure so that we have adequate resources for our highest priorities."
The tuition recommendations call for a 3.9 percent increase, or $342 for in-state students, in undergraduate tuition next year and a 4.9 percent increase, or $422, the following year.
It includes raising graduate level tuition to 122 percent of undergraduate tuition, reflected in a 9.1 percent tuition increase for in-state students next year and a 10 percent increase for out-of-state students.
Board President Hollis Hughes said it might be worth considering a higher increase to maintain academic quality.
"We've done about everything we can for cost savings and cost avoidance," he said during the meeting. "What we're proposing, again, would be lean and mean."
The Indiana Commission for Higher Education suggested in May that Ball State raise tuition by 3 percent, but Gora said that's not enough. Other Indiana public universities have also raised tuition higher than ICHE recommended. Indiana approved a 5.5 percent increase though 3.5 percent was recommended. Purdue and Indiana State raised tuition by 3.5 percent but 2.5 was recommended.
"We as an administration try to walk a fine line," Gora said during the meeting. "We're under a lot of pressure from legislators and the commission to keep our increase low and find additional savings. We have tried to strike a balance."
During the discussion, Hughes said he wondered if there would be any repercussions for going beyond ICHE's recommendation. Board members said they were frustrated that a concrete funding formula isn't available from the state.
Howard said the commission, which only makes recommendations and does not order the universities what to charge, considers things like inflation, income and each institutions' goals and mission.
Hughes said he understands the delicacy of the situation, and he ultimately approved the tuition plan along with all the other eight trustees.
"I think we've met our state obligation," he said. "I defy anyone who says they can do it cheaper."
Even though students will pay more for tuition the next two years, it looks like professors will catch a break.
The board approved a salary and wage increase that puts 2.7 percent more into the salary pool of each unit around campus, meaning each vice president has more money collectively to give to faculty and staff.
It will be allocated as merit-based pay, which now accounts for at least 15 percent of salaries. The board voted to increase the minimum percentage, which would have the effect of raising the proportion of merit pay in the salaries of faculty and staff. It did not set a new minimum amount, however, instead requesting a study by December to make a recommendation.
Four percent was added to the student wage pool. Most student employees will continue to be paid at minimum wage, with pay being capped at $9 an hour. This increase in the wage pool allows the university to employ more student workers.
The board approved a request to keep financial aid and fee remission in line with the new tuition structure while maintaining the same amount of financial aid for students.
It also approved a general fund budget, which calls for a new Web designer for the Ball State website, and a retention and graduate specialist. The budget also calls for a recruiting initiative to bring in more international, East Coast and graduate-level students. Howard said the university is starting a new East Coast recruiting strategy to target students from that region of the country.
Howard said he's happy with the board's decision, after working for two years on a new tuition structure and more recently on an increase that could match students' needs with what they can afford.
"I know [the trustees'] concern is that the university [has] enough money to get the job done," he said. "I think it strikes the right balance."
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