UNC-TV: Focus On: University Costs in North Carolina

To increase or not to increase--that is the question facing state university administrators, legislators and the Board of Governors. Article IX of North Carolina's Constitution stipulates that "the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense." But proponents and opponents of higher tuition have been haggling for years over the definition of "as far as practicable." During Reconstruction, some legislators proposed extending a university education to state citizens for free. However, although that idea never became a reality, North Carolina vowed to keep its state university tuition lower than comparable universities in other states. With a fiscally-challenged state budget and increasing difficulties in recruiting and retaining faculty, state chancellors assert that they must either find a way to increase income or decrease the quality of education. Most chancellors have leaned towards increasing tuition and fees to maintain competitiveness with other states.

To allow more flexibility around the tuition issue, the North Carolina General Assembly added an amendment last October to the restructuring of the rules for the UNC Board of Governors. Before October, only the UNC Board of Governors and the NC General Assembly had the power to set tuition at the state universities. The amendment changed that, transferring power over tuition to the individual campuses. To the legislators, the change was a first step toward giving the campuses more independence from the state legislature. University chancellors knew that any decision about tuition would have to be made carefully, because ownership over those decisions would ultimately rest on them.

Ultimately, the question of raising tuition has generated two camps: those who understand the need for higher tuition and those who feel that tuition should never be raised, no matter what the reason. And the supporting arguments:

Taxpayers should not have to pay the majority of cost for college.
With higher tuition, more financial aid for needy students would be available.
Higher tuition would allow universities to hire more faculty and assistants to meet the need of a student body that increases in number every year.
Tuition increases would be used to increase faculty salaries, currently well below those at other state universities, thereby increasing faculty retention.
Increases in tuition necessitated a "hold harmless" policy, meaning that low-income families would be eligible for need-based grants and scholarships. Each university channels one-third of the funds it takes in from recent surcharges into financial aid.
The state's constitution does not specify low tuition, just low costs. The statement could mean high tuition with more financial aid.

Increasing tuition means that higher education becomes increasingly difficult for middle-income families who are just above the level to receive financial aid.
A national report by the Lumina Foundation stated that all but 3 UNC system campuses were unaffordable to low-income students without loans. Another study indicated an inverse relationship between tuition and the number of applications from low-income students; as tuition has increased, the number of applications from poorer areas has decreased.
North Carolina has staked its reputation on offering sound university education at a cost that is lower than any other state. The increases move tuition at UNC-Chapel Hill and North Carolina State University closer to that at state universities in Virginia and California.
In 2001, tenure track professors taught only 48 percent of all undergraduate classes across the UNC system. Part-time instructors, graduate teaching assistants, and non-tenured instructors teach the majority of classes.
The slow economy makes paying for college more difficult for many families who have had significant decreases in income.
Many students are concerned about paying back large loans after they graduate from college.

Senate President Pro Tem Marc Basnight has recommended a sliding scale for tuition, a proposal that the legislature is considering. A sliding scale would base the amount of tuition for each student on each family's income, so students from wealthy families would pay much more than students from low-income families. However, Chancellor James Moeser opposes connecting tuition to income, stating that families will object to a financial means test before they even receive a bill.