|
1. Since Texas A&M University and The University of Texas are the state’s largest
schools, are they the wealthiest schools too?
Although they educate over 95,000 students a year, these two publicly supported
state institutions depend on appropriations to fund instruction and infrastructure
obligations. With a national trend of decreasing or static state support for higher
education, yet an ever growing need for an educated workforce, the state’s higher
education system is attempting to provide a quality education to more students with
rising costs. Faculty salaries must still be competitive and an adequate infrastructure
must be in place to attract and retain top faculty. Texas A&M and UT have a state
constitutional mandate to be universities of the "first class." Even though these
universities have strong resource support, the cost for upholding this constitutional
mandate is great. There are basically two sources of funds that support the core
function of a state university: state appropriated funds and tuition.
2. I have heard these two universities are benefactors of the Permanent University
Fund (PUF). Doesn’t the revenue from the PUF provide the additional dollars they
need?
Many people believe UT Austin and Texas A&M are "rich" because they receive funds
from the PUF, which has assets of more than $8.1 billion. A&M and UT are advantaged
by the PUF and are very grateful to receive it, but are not the only benefactors
of the PUF. Today, the PUF supports 18 institutions and 6 agencies from the UT and
A&M Systems, serving more than 215,000 students. PUF dollars can only pay for debt
service on PUF bonds issued to fund capital expenditures. Income from the PUF (the
Available University Fund or AUF) is available to UT, A&M and Prairie View A&M.
A&M and UT have made good use of these enhancement dollars by hiring new faculty,
providing scholarships, purchasing specialized science and engineering equipment,
and making library enhancements. However because state support has not kept pace
with increasing costs, the advantage these schools receive from the AUF is diminished
in the support for excellent academic programs. Unfortunately, the PUF does not
have the same effect it once had in the contribution of excellence on each campus.
3. Last session, the Legislature passed tuition deregulation. Why was an increase
in tuition necessary, and how was the money used?
Tuition rates are increasing nationwide, as state budget cuts are shifting more
of the financial burden to the student. Texas is no exception. The Legislature faced
a funding crisis two years ago, with a $10 billion deficit. While the Legislature
passed a prudent state budget in 2003, it recognized it could not fund higher education
at the level necessary to provide a quality education. As a long term benefit, it
approved tuition deregulation for public universities to offset the loss in general
revenue. With only two primary revenue sources, general revenue and tuition, each
institution had to make the decision on whether to raise tuition or lower quality.
Although students from both institutions would not have preferred a tuition increase,
they recognized the need and offered their support. The new tuition dollars are
earmarked to hire more faculty members, reduce the student-faculty ratio, enhance
the teaching-learning process, and reduce the deferred maintenance of the aging
campus facilities. Also, as required by the state, funds were set aside for student
financial aid based upon need.
4. What process did each institution use to develop the tuition proposals?
Upon the passage of tuition deregulation in 2003, President Larry Faulkner established
a Tuition Policy Advisory Committee composed of four student leaders and five administrators/faculty
members. The committee reviewed the university's educational goals and budgetary
outlook. Its recommendations were broadly communicated with the university community
through open forums and through the Web, as well as through meetings with many campus
groups and governing bodies. President Faulkner used the committee’s report and
reactions to the committee’s proposal to prepare his recommendation to the Chancellor
and the University of Texas System Board of Regents.
President Robert Gates formed a Tuition Policy Advisory Council with the majority
of members being students from a cross section of university leadership positions.
In total the Council consists of seven students, one parent, one former student,
two faculty representatives, four administrators and two advisory members. As an
ongoing council, it has the responsibility of advising the president on all matters
relating to tuition and recommending the structure of tuition in a deregulated environment.
Despite the tuition increases, compared to other public and private universities,
A&M and UT remain a bargain for Texas students.
|