NU Regents approve 5% tuition increase as part of annual budget

Students across University of Nebraska campuses will be paying a higher tuition rate this fall. The move marks the third straight year of tuition increases at the university, following a two-year tuition freeze.

The NU Board of Regents approved a $1.1 billion state-aided annual budget on Thursday that includes a 5% increase in tuition and more than $18 million in cuts. Regents voted 6-2 in its favor.

The tight budget comes following a lower-than-requested appropriation from the Nebraska Legislature.

The university had initially asked the state for a 3.5% annual increase in its budget. However, the budget the Legislature passed last month only included an annual appropriation increase of 0.625%.

“The state appropriation fell short of what was requested,” NU President Jeffrey Gold said. “It does not fully cover the inflationary pressures. It does not cover the rising cost of employee benefits, and it certainly does not cover the strategic investments required to sustain and build upon our momentum.”

Regent Jim Scheer, the former speaker of the Nebraska Legislature, said limiting funds to a public institution in an effort to reduce property taxes is a form of "robbing Peter to pay Paul."

“We've noticed that the Legislature is working very hard to reduce property taxes, and I was there, and I understand the need for that,” he said. “But what we've -- at least, what I've -- noticed substantially in the last several years is that it's come at the cost of other institutions.”

Many of the six regents who voted for the budget expressed their disappointment in raising tuition, but said it was necessary.

“I don't like putting monies on the backs of students, but we also have a fiduciary duty to do what's in the best interest of the of the university, and that duty is to educate and prepare students, provide faculty with research opportunities, and grow our institution for the benefit of the entire state,” said Regent Tim Clare.

Regents Kathy Wilmot and Robert Schafer voted against the tuition increase. They were also the only two who voted against a 3.5% tuition increase last year.

Wilmot said she would prefer the university look at other ways to reduce costs instead of raising tuition.

“There's some cuts that we need to look for that are not really going to impact the quality of our education that much,” she said. “And I know for all the whole room of educators, that's not a popular message, but I do think we're going to have to do something along that line, whether it's – I don't know what, less trips, less whatevers – but I just bleed for these students.”

Schafer highlighted the financial difficulties of ag producers in rural Nebraska and said he couldn’t support increasing the cost of higher education.

“Farm bankruptcies are up 55% last year,” he said. “They expect that to double again this year. The rescission rate on purchase agreements for new homes across the country are up to a point we haven't seen since 2008 and I just cannot support, and will not support, a 5% increase.”

Staff pay increases are also off the table for most university employees around the state.

Last month, University of Nebraska-Lincoln chancellor Rodney Bennett announced that university employees would not be seeing raises this summer.

Faculty at the University of Nebraska Omaha and the University of Nebraska at Kearney will receive raises due to earlier union negotiations, but other staff at those campuses will not see pay increases.

By way of full disclosure, members of the Nebraska Public Media newsroom are University of Nebraska-Lincoln employees.