University system OKs tuition boost, early retirements

JEFFERSON CITY, Mo. -- Despite fears that students would no longer be able to afford an education and experienced faculty would leave, university administrators on Friday unanimously approved fee increases and an early retirement proposal.

Responding to Gov. Bob Holden's request to trim $41 million from its operating budget, the University of Missouri System Board of Curators passed both measures at a somber meeting in the state capital.

"I wish I did not have to come with you with these proposals," Manuel Pacheco, the system president, told the board. "While they will help us climb out of our current predicament, they have long-term consequences for our ability to do our mission."

Despite his concerns about making education too expensive for many families and losing talented faculty, Pacheco said: "I am convinced that the necessity for these actions outweigh their consequences, and I recommend you approve them."

Beginning this fall and running through next spring, all students will have to pay an additional $9 per credit hour. University officials said they hope that as the economy improves, the surcharge will eventually be eliminated. About $10 million would be generated through the student surcharge.

In March, the nine-member board voted to raise tuition and other fees 8.4 percent.

Meanwhile, more than 2,000 eligible employees within the four campus system can retire early. As much as $19 million in savings could be realized through early retirements, university officials said.

The retirement option represents about 12 percent of the full-time faculty and staff that can receive benefits. Employees would have between Saturday and Sept. 30 to take early retirements, which would be effective Jan. 1.

The University of Missouri system consists of the University of Missouri-Columbia; University of Missouri-St. Louis; University of Missouri-Kansas City and the University of Missouri-Rolla.

'It'll be tough'

In Columbia, student Taryn Hodison of Kansas City was disheartened by the additional fee increase.

"Oh my God, it's getting more expensive!" Hodison said. "I see these stories about MU's finances and I want to bang my head against the wall. It seems like the increases will never stop. It'll be tough to afford to go here."

The university system already has absorbed about $43 million in cuts because of the faltering state budget.

Holden announced May 10 the state would withhold more than $82 million in state money from higher education in order to balance the state budget for the fiscal year that ends June 30.

Those cuts were the largest portion of more than $230 million in cuts announced by Holden that affects government statewide.

Other cuts will come from the University of Missouri-Columbia hospital and clinics and several other programs the legislature has placed under the control of higher education, including a kidney and spinal research program.

The university also hopes to generate about $12 million through a temporary spend-down of reserves. The money would be paid back through early retirement and other actions the system is taking.