EVAN CARAVELLI/Arizona Daily Wildcat President Peter Likins' proposal to raise tuition was passed yesterday during the Arizona Board of Regents' meeting. "I do believe we're doing the right thing," Likins said.

Nonresident tuition increased by $700

Arizona residents will pay another $490 in tuition next year, and nonresidents will see their bills rise by $700.

The Arizona Board of Regents approved those increases, which were proposed by President Peter Likins, by an 8-1 vote yesterday. In doing so, they rejected a student lobbyist proposal asking for a $400 increase for residents.

The regents also approved a $25 fee for all resident undergraduate applicants, a move that should raise a little more than $250,000 to assist in student recruitment.

The tuition hike marked the second year in a row that the cost of a UA education has been raised at unprecedented rates, and will propel tuition to 35th in the country among comparable public universities, based on rates for this school year.

"I do believe we're doing the right thing," Likins said. "We've repositioned the university ... and I think frankly, we're long overdue."

This year's increase and last year's $1,000 hike wouldn't have been necessary, he said, had tuition been raised more gradually over the years and had state funding not shrunk to levels that forced the university to cut classes and lay off workers.

The revenue from the tuition hike will likely be used to cover costs like faculty salaries and class availability, in addition to financial aid.

The pool of money set aside for financial aid will grow, and resident undergraduate Pell Grant recipients, who are federally defined as the university's neediest students, won't pay a penny more next year than $1,800 - the maximum they pay this year.

Last year, regents mandated that 14 percent of tuition revenue be set aside for financial aid, but Likins promised yesterday to increase that number to 15 percent.

That means $600 of the roughly $4,000 paid by each resident undergraduate will go toward financial aid, $110 more than this year.

Regents lauded Likins' move for protecting university affordability because it provides money for the most needy.

"I used to believe that a low tuition was the best form of financial aid. But over the last seven years, I have learned that doesn't work," said Student Regent Danelle Kelling, an Arizona State University law student who earned her undergraduate degree in Arizona as well.

Student lobbyists, who saw their proposal for a $400 increase lose out to Likins' plan, said they're still satisfied with the meetings' outcome because Likins and regents re-emphasized a commitment to improving financial aid.

"Despite our interests to convince the regents that a $400 increase was in the best interest of students, we realized this would be the likely outcome," said lobbyist Alexis Coury.

Students had also proposed a $700 increase for out-of-state students, the same as Likins' plan.

The $25 admissions fee, which will be implemented next year as well, will inject more money into the Undergraduate Admissions Office to help in student recruitment, a key part of the UA's plan to increase the academic caliber and diversity of its student body.

All applicants will pay the fee, which most public universities already charge.

For the first time ever, the regents also approved different increases for the UA, ASU and Northern Arizona University.

ASU resident undergraduate tuition will increase by $465, $130 more than President Michael Crow had recommended. Regents approved that amount because two student fees that would have cost students $130 were not included in the university's tuition request.

Regents also approved a $475 resident undergraduate increase for NAU students.

Proposed increases in residence hall rates and college of medicine tuition were also passed yesterday, both unanimously.