Tuition set to increase at Oregon's public universities

PORTLAND, Ore. (AP) - Tuition at Oregon's seven public universities will increase by an average of 6 percent next school year, under rates approved Friday by the State Board of Higher Education.

The increases, ranging from 1.5 percent at Western Oregon University to 9.9 percent at Southern Oregon University, will be partially offset by cuts in fees. Some of the fee cuts are tied to a decision by most campuses to provide optional health insurance coverage instead of making it mandatory.

The state's most expensive school for resident undergraduates remains the University of Oregon, where tuition and fees will come to $9,310 annually — an increase of roughly $3,000 in just four years.

Across the nation, tuition has increased steadily for years at both public and private universities. In explaining this year's rise, Oregon University System officials noted that state support declined by $132 million from 2009-11 to 2011-13, and expenses for labor, health care and the Public Employee Retirement System continue to rise.

The board approved the new tuition rates on a 9-2 vote, with the two student representatives casting the "no" votes. Brianna Coulombe, who attends Eastern Oregon University, said she was OK with the increases at six of the seven universities, but SOU's jump of almost 10 percent was too steep.

SOU President Mary Cullinan said the university must raise tuition to avoid dipping dangerously into reserves or cutting academic programs. Thanks to a cut in fees, she said, the total bill for students would only rise 4.2 percent, and SOU would remain the second-cheapest option behind Eastern Oregon.

"In Oregon, we are still a good deal," she said.

Several board members suggested now might be the time for the university to dip into reserves. But Oregon University System Chancellor George Pernsteiner warned that SOU, even with higher tuition, remains in a "very fragile financial condition" and unable to take risk. Its projected reserves are barely above the minimum threshold recommended by the system.

Board member Jim Francesconi also spoke against such a maneuver, saying the university should only use reserves if it's confident that better financial times are on the horizon.

"And I don't see any sunshine," Francesconi said.

Overall, the average cost of tuition and fees at the seven universities will be $7,841 next fall.

"Needless to say, we are frustrated," said Tiffany Dollar, a student at Portland State University and chair of the Oregon Student Association board. "Yes, the state is disinvesting, but at the end of the day the State Board of Higher Education sets tuition and you are placing these budgetary burdens on the backs of students."

Copyright 2012 The Associated Press.