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Hikes' Effects on Financial Aid Outlined
By Ruthie Warshenbrot
Staff Writer
University officials say students with finan
cial aid should not be too alarmed by recent
tuition increase proposals.
But they say the proposals passed by the
UNC-system Board of Governors on
Wednesday are unprecedented and might
unfairly redistribute UNC-Chapel Hill stu
dents’ money to other system schools.
The possible tuition plan, passed by the
BOG on Wednesday, raises tuition at all 16
campuses by 8 percent for in-state students
and by 12 percent for out-of-state students.
The BOG also passed a campus-initiated
S3OO increase for UNC-CH. The UNC-CH
Board of Trustees originally had recommend
ed a S4OO increase.
The BOG’s proposals must pass the N.C.
General Assembly before going into effect.
Officials: Hikes Won't
Deter Out-of-Staters
By Daniel Blank
Staff Writer
UNC-Chapel Hill officials say they
are not concerned that tuition increases
will hurt their ability to attract out-of
state applicants - at least not yet.
The UNC-system Board of Governors
approved Wednesday a systemwide 8
percent tuition increase for in state stu
dents and a 12 percent increase for out-of
state students. The BOG also approved
Wednesday a S3OO campus-initiated
tuition increase for all UNC-CH students.
For UNC-CH’s out-of-state students,
the BOG’s actions could result in a total
increase of $1,778.
The tuition increases must be
approved by the N.C. General
Assembly before they are implemented.
Both increases come on top of a 9
percent across-the-board increase that
the legislature approved last summer,
which was an increase of about SI,OOO
for out-of-state students.
In total, out-of-state students could pay
$2,778 more next year than they initial
ly expected to pay for the academic year.
But UNC-CH Chancellor James
Moeser said the University would still be
able to attract quality out-of-state stu
dents if the increases are approved. “It
will impact us less than some of the
smaller campuses in the system,” he said.
Moeser said UNC-CH must offer
financial aid, particularly to applicants
demonstrating need, to continue attract-
Climbing the Mountain of Out-of-State Tuition
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Although tuition for
out-of-state students
continues to rise,
University officials say
the cost is still lower
than many of UNC's
peer universities. In the
past 10 years, tuition
has risen 62%.
SOURCE: UNC DEPARTMENT OF
INSTITUTIONAL RESEARCH
Fee Increase Prompts Review of ASG Budget
By Emma Blrgin
Staff Writer
The UNC-system Association of
Student Governments will examine its
proposed 2002-03 budget and reconsid
er plans to hire full-time professional
staff despite the plan’s initial approval.
The UNC-system Board of
Governors passed a $1 systemwide fee
increase Wednesday to fund the ASG
with the understanding that the organi
zation will review the proposed 2002-03
budget and re-examine the format for
assigning professional staff positions.
The fee increase will cause the ASG’s
operating budget to increase from about
$2,500 to more than $165,000. Of this
With the systemwide tuition increase, the
campus-based increase and a possible increase
of $63.10 in student fees, in-state students could
be paying as much as 18 percent more in tuition
and fees next year, officials said Thursday.
In state undergraduate students could pay a
total of $549.10 more in tuition and fees. These
same proposed increases will raise tuition by 14
percent for out-of-state undergraduates, a total
increase of $1,841.10, said Shirley Ort, director
of scholarships and student aid.
Ort said the proposed tuition increase will
also affect graduate student tuition. In-state
graduate students’ tuition will increase 17 per
cent, translating into a $564 increase. Out-of
state graduate students’ tuition will raise by 14
percent for a total of $1,902 more than before.
Ort said her office will hold harmless all stu
dents qualifying for need-based aid in paying for
the S3OO tuition increase because 40 percent of
the funds will still go to financial aid.“ We’re
ing out-of-state students.
Jerome Lucido, UNC-CH director of
undergraduate admissions, said the
University attracts a high number of appli
cants because it offers a well-rounded
experience at a reasonable price.
“(Students come here) for the quality and
completeness of the college experience,
and it is also perceived as a great value.”
Lucido estimated that 10,000 of the
17,000 applications received this year
came from out-of-state students. He added
that he thinks the University will admit
about 15 percent to 16 percent of students
from the out-of-state pool this fall.
Lucido said that even with the sizable
increases, tuition for out-of-state students
at UNC-CH is still lower than at most
peer institutions. “We haven’t reached a
point in the growth of our tuition where
we are no longer competitive,” he said.
But Lucido added that if trends in
increasing out-of-state tuition continue,
administrative officials will have to re
examine the University’s image in the
eyes of out-of-state students.
Lucido later said that even with out-of
state tuition reaching $15,000, UNC-CH
remains ahead of the field in terms of cost.
“It’s important to understand the
other choices (students have)," he said.
“Unless it’s the (students’) home public
institution, we’ll still have a competitive
advantage.”
The State & National Editor can be
reached atstntdesk@unc.edu.
amount, $95,000 is provided for the hire
of professional staff members, including
a managing director.
Addison Bell, chairman of the BOG
Budget and Finance Committee, said if
the ASG revises its budget, the organi
zation must present it to the BOG in
May for approval. ASG representatives
are not required to revise the budget
because the BOG did not officially
request they do so, he said.
Bell said the BOG was caught off
guard by the money the ASG wants to
spend on full-time staff. “(The plan) came
to us so fast, and we have not had time to
study it,” he said. “We are going to be sure
the structure of the budget is satisfactory.”
Bell said BOG members expressed
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going to cover all of that campus-based tuition
increase, whether it’s at the 300 level or whether
it would have been at the 400 level,” she said.
But Ort said she is less sure that students
would not face increased costs as a result of the
systemwide increase. Like the S3OO campus-ini
tiated increase, money raised from the sys
temwide increase partly will fund financial aid.
But Ort said there is no guarantee that the
systemwide increase revenue will directly
benefit UNC-CH students because that
money is not distributed through UNC’s
Office of Scholarships and Student Aid but by
the N.C. Educational Assistance Authority.
UNC-CH administrators have said the
S3OO campus-based tuition increase will be
used to fund financial aid, increase faculty
salaries, improve faculty-student ratios and
boost graduate student stipends.
Provost Robert Shelton said funding priori
ties outlined in the S4OO campus-initiated tuition
If**
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DTH/JOSHUA GREER
Jennifer Rhem, a sophomore exercise and sports science major, practices on the 1 -meter
board in Koury Natatorium on Thursday afternoon. Jennifer finished 21st
in the 2001 ACC championships in 1-meter board diving.
concern that the ASG’s power will be sub
divided between the students and the pro
fessional staff. “Right now, we don’t want
to spend money on building a bureaucra
cy for the sake of building a bureaucracy.”
Jeff Davies, UNC-system vice presi
dent for finance, said die BOG suggest
ed that the ASG revise its budget
because members want the ASG to be
run by students and it fears a profes
sional staff might have influence over
the student leadership. “The concern of
the board was that (it) did not want pro
fessional people running the organiza
tion,” Davies said. “They want students
to run the organization. They want stu
dent leadership to be present."
ASG President Andrew Payne said he
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Volume 110, Issue 10
request will be given money proportionately.
Only $3.5 million of the $9.1 million raised
by UNC-CH from the systemwide tuition
increase, which will in part fund enrollment
growth at the system’s 16 campuses, will be
allocated back to UNC-CH, Ort said.
Shelton said the state legislature can collect
state tax dollars and distribute them to differ
ent UNC-system schools but that the sys
temwide increase directly takes money stu
dents pay for tuition at one school and uses it
at another school in the system.
Asa result of the board’s actions, UNC-CH
could suffer a $5.8 million net loss if the legisla
ture approves the systemwide increase, he said.
“This is totally unprecedented,” he said.
“Always before, enrollment increase has been
funded by the General Assembly.”
The University Editor can be reached at
udesk@unc.edu.
BOMBS AWAY!
will meet with Davies to finalize plans to
hire full-time employees. “We’re meeting
... to go over the exact details of our staff
and how to hire them,” he said.
Payne said the ASG will benefit from
full-time employees and, in turn, so will
the students from all 16 system campus
es. “In the end, the students will win out.”
Beil said the board granted the ASG’s
fee request, even if no revisions are made
to the budget. “There’s no guarantee that
there will be any change (in the budget),”
he said. “If the plan is beneficial, and
Andrew Payne has said it will be, then it
has already been approved."
The State & National Editor can be
reached at stntdesk@unc.edu.
• ?'v
Senator Supports
Altering Tuition
Money Dispersal
Chancellor James Moeser will attempt this
summer to prevent legislative cuts to the
UNC-CH budget, namely to overhead receipts.
By Lucas Fenske
Assistant State & National Editor
One of the state’s most influential legislators says he supports
altering a tuition plan that would transfer about $5.6 million in
tuition revenue from UNC-Chapel Hill to other system schools.
The plan, which the UNC-system
Board of Governors approved
Wednesday, raises tuition systemwide
by 8 percent for in-state students and
12 percent for out-of-state students.
The plan allots the revenue to indi-
vidual campuses for projected enrollment increases and to
fund need-based financial aid.
But the General Assembly, which convenes May 28, has
the power to alter the board’s plan. Last year, the state legis
lature increased tuition systemwide by 9 percent, overruling
the board’s proposed hike of 4 percent.
Senate Majority Leader Tony Rand, D-Cumberland, said
he might offer a proposal this summer changing how the
tuition money is distributed.
“I’ll certainly talk to the other members and see if there’s
sufficient support,” he said.
Rand, chairman of the N.C. Senate Rules and Operations
Committee, is known as a major supporter of UNC-CH in the
state legislature. He said the University likely would lose fund
ing already due to future budget cuts and should not lose addi-
See TUITION, Page 2
Saturday Workshop
To Aid Town Council
With New Ordinance
Town Council members want resident input
in crafting the new development ordinance,
part of Chapel Hill's Comprehensive Plan.
By Adrienne Clark
Staff Writer
The Chapel Hill Town Council is hosting a workshop at 9
a.m. Saturday at the Chapel Hill Town Hall to get input from
residents in writing the new downtown development ordi
nance.
The ordinance was brought to the forefront at a Jan. 28
council meeting when members debated the creation of anew
ordinance. At that meeting, the council decided to halt all
future area development until anew ordinance could be con
structed.
The ordinance, which is set to be finished and approved in
September, will set guidelines for future development in
Chapel Hill.
Town Council members said that, at the workshop, mem
bers of the Chapel Hill planning staff will give a presentation
to the attendees on issues including stormwater controls,
affordable housing and transportation improvements.
After the presentation, residents will be able to ask the offi
cials about concerns they have regarding the ordinance.
“Right now we’re working the kinks out of the second draft
(of the ordinance),” said council member Mark Kleinschmidt.
See ORDINANCE, Page 2
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DTH BRENT CLARK
UNC-system Association of Student Governments President Andrew
Payne supported a student fee increase at Wednesday's BOG meeting.
Weather
Today: Mostly Sunny; H 70, L 47
Saturday: PM Showers; H 73, L 38
Sunday: Sunny; H 62, L 24
Friday, March 8, 2002
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Officials, Students
Devise Lobbying
Strategies
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