For Release October 11

Regents Discuss FY 98' Tuition Rates

Board defers rate recommendation until March

ABERDEEN-The Board of Regents, wrapping up three days of meetings today in Aberdeen, decided to defer a recommendation on tuition rates for the 1997-98 academic year until March 1997.

Regents discussed a recommendation for a 3% "rate of inflation" tuition increase for both resident and non-resident students for the coming year. Such a move would follow a policy adopted by the Board in FY94 stating that increases in resident tuition and fees should not normally exceed the rate of inflation, as measured by the Higher Education Price Index (HEPI)-3% for 1996. The Board ultimately decided, however, that it would be premature to make such a recommendation until more is known about likely state funding for the state's six universities.

A final decision by the Regents will come after the university system's state appropriation for FY98 is approved by the Legislature.

Recent national reports show the average rate of increase for tuition and fees at public four-year institutions nationwide to be approximately five percent. South Dakota's average tuition and fee rate for resident undergraduates has consistently ranked below the national average (see following table).

"The Board is very concerned about maintaining a quality education that is also affordable for South Dakotans," stated Board of Regents President Karl Wegner. "Because we want to keep tuition as low as possible, and because we rely on both state and student funding for our resource base, we felt that it would be prudent to wait on a rate recommendation until the overall funding picture is clearer," he continued.

According to Regents' Executive Director Robert T. Tad Perry, whatever recommendation is ultimately made, it will continue to reflect the Board's overall philosophy on tuition. "Through our tuition policies, we make every effort to maintain both the quality and affordability of higher education. When you consider the fact that South Dakota consistently ranks below national averages in both resident tuition and state appropriations for higher education per student and still provides a quality education, I think that speaks well of how we use our resources," Perry added.

In a related development, Regents heard a report on Thursday from a university system committee appointed to review the system's tuition and fee structure and recommend changes. The panel is currently considering issues such as standardizing definitions and rates for the University Support and General Activity Fees, as well as questions on the timing of tuition and fee setting and the assessment of delivery fees for off-campus courses. The Board provided guidance to the committee on a number of points, and the panel will present its final recommendations in December.

The Board's next meeting will be December 12-13 in Rapid City.

Tuition and Required Fees (Undergraduate Resident)
South Dakota Public Universities vs. National Average
FY93-FY97

SOURCES: Board of Regents Fact Book, Fiscal Year 1996; Chronicle of Higher Education

Higher Education Appropriations per Student
FY91-FY95

SOURCE: "State Profiles: Financing Public Higher Education 1978 to 1995," by Research Associates of Washington

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