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Rising tuition can't stop the brain drain

The University of Arizona has been falling behind for years - and will continue down that path without major sources of new revenue.

Aside from a possible loss of control in the UA's own marketplace, major changes may also be coming from a lack of legislative funding and a greater reliance on tuition increases.

"If we continue to only raise (tuition) $100 a year then we'll simply continue to fall behind, maybe that's our final destiny," Likins said.

Associated Students officials have lined up against the increase, lobbying instead for a raise of Consumer Price Index plus 1 percent, which would result in a $75 tuition hike.

"It's against the Constitution," said Cisco Aguilar, ASUA president. "The best policy for financial aid is low tuition."

Likins said he is not surprised and understands why ASUA is fighting the raise.

"Every year there's going to be tension (over tuition increases)," Likins said.

The Arizona Constitution states that college tuition will remain free or as close to free as possible. The UA has the 48th lowest public university tuition in the country.

"Free tuition is not in the cards here," Likins said.

Likins said he estimates that the university's budget totals about $900 million annually.

In-state tuition supplies the UA with about $30 million a year, 3 percent of the funds required to run the school.

"The students are getting a hell of a deal," said Hank Amos, president of the Arizona Board of Regents.

The state legislature covers about $300 million, a third of the total cost.

Likins is quick to comment on the difference between price and cost. The price is what the students pay for the service, Likins said.

The cost is the amount that the UA pays to keep the service functioning and those two numbers often don't match up, he added.

"Is the cost growing at CPI-plus-1 percent?" Likins asked.

He added the answer is no.

The proposed tuition increase will go before the regents at the next meeting in April at Northern Arizona University.

While hoping the regents decide that the CPI-plus-1 increase is more appropriate, Aguilar said he's not sure which way it will go.

"It's always scary, you never know where the regents are coming from," Aguilar said.

Amos said this is an issue of the legislature not funding the state university system adequately.

"We have to be sensitive to what the students can afford," Amos said. "The legislature needs to step up to the plate and start funding this program. We need an equitable balance."

Faculty salaries have also remained on the forefront of student and university issues.

Often referred to as the "brain drain," the UA is losing its professors at a startling rate. The problem is so large that it was the focus of Likins' last State of the University address.

At that time, Likins said salaries need to increase by 40 percent to remain competitive with other institutions that have greater sources of revenue.

The proposed tuition increase would raise bout $3 million, Likins said, of which about half would be used to keep faculty at the UA.

"(ASUA) is very impressed, (increased faculty salaries) is one of the things we were going to fight for with the tuition increase," Aguilar said.

The tuition increase would not be come close to covering the cost of running the university.

"When students can offer that kind of a war chest it's very helpful, but it's a small piece of what we need," Likins said.

The other half of the tuition increase funds would go to financial aid and other programs.

Last week, Arizona Gov. Jane Hull proposed a 0.6 percent sales tax increase that could raise $440 million dollars to be used to boost the state's educational system.

Of that, the UA could get about $22 million, almost equaling the amount provided by in-state student tuition, Likins said.

"What the legislature is being asked to do is approve a referendum of the people," Likins added.

Members of Hull's office and Likins have expressed concern of a possible attack on the tax increase from the legislature. The proposal is expected to go before a popular vote in November.

Likins and the UA Foundation are in the process of establishing Campaign Arizona - the UA's fundraising effort - as a reliable source of revenue.

The UA already raises about $75 million each year from donations, an amount Likins hopes to increase to ease the strain on the university's tight budget.

Tuition increases and a steady flow of donations may be able to keep the university from falling behind, Likins said, but funds from the state legislature must come in for the UA to remain competitive.

"I just have to believe that we will get through to them (the state legislature), the consequences are too severe," Likins said. "You get rational behavior in the long term."

Amos - while concurring that the state universities need state funds desperately - said he does not agree with Likins that the legislature will increase funding.

"You can't keep running these institutions like this," Amos said. "The prevailing view is that it's going to get worse before it gets better."

One major variable - of which the effect cannot yet be measured - is the actions of the Governor's Task Force on Higher Education, which was established in October.

"Very aggressive ideas are being floated (by the task force)," Likins said. "The task force is trying to develop strategies."

One idea being discussed by the task force is the creation of the Arizona Regents University - a completely online university that would combine Arizona State University, Northern Arizona University and the UA.

Another idea is the possibility of eliminating tuition for community colleges.

The task force may completely reshape the university system and possibly the Board of Regents, which is already facing being turned into an elected body by the legislature.

Senate Concurrent Resolution 1008 would cut a regent's term in half - from eight to four years - and make the position elected. They are now appointed by the governor.

"Regents understand that (the task force) presents us with an opportunity and we have so few opportunities," Likins said.