College tuition at all-time high, what does it mean for SFA?

The cost of college tuition at public universities in the U.S. is at an all-time high this fall, with a tuition increase of 6.5 percent from last year, according to an annual study released by the College Board last week. Here at home, tuition at SFA has seen an increase of 4.66 percent since the last fiscal year, according to Danny Gallant, vice president of finance and administration at SFA.

SFA recieves money from two sources: the Texas Legislature and student tuition. All public universities in Texas receive state revenue from the Texas Legislature in two forms: general revenue and general revenue dedicated. The former is determined by a formula based on semester hours each student takes, while the latter supports the delivery of things educational in nature, including funds collected for the Early Childhood Lab or the beef farm. The Legislature funds universities on base years, which include both summer semesters and the fall semester of every even-numbered year. The Legislature tracks these semesters, and the total credit hours taken by each student is added up. The more students enrolled, the more revenue a university receives. For example, the funding SFA received for the Fall 2009 Semester was based on the summer and fall semesters of 2008.

Although SFA enrollment is at an all-time high this semester, this is not a base year, and the higher enrollment numbers will not have an effect on revenue at first. However, if enrollment keeps climbing over the next few semesters, the University will eventually receive more state funding.

According to Gallant, since 2002 state revenue has declined. "If the revenue goes down, the consumer must pay the difference," he explained. "It is simply in order to deliver (the academic product) to the students."

When SFA administrators decide it will be necessary to raise tuition, they look at what the state appropriates, along with a number of other factors. One of the main factors involved is faculty and staff salaries.

"We have high quality faculty and staff who have come here from all over the country," Gallant said. "We want to keep these good faculty members while also attracting new members, which ultimately benefits the students."

Before raising tuition, administrators hold a student hearing in order to help students understand what the rise in tuition will be used for.

The University also has to consider a large list of initiatives brought to the attention of administrators.

"There are quite a few services that require support," Gallant said. "Whatever we deliver has to be given by the state legislative aid or the students." Career services, counseling services and disability services are all supported by the University, so they require funding as well. According to Gallant, initiatives require funding, and since state revenue is being cut, SFA has had to decide which initiatives will be the best.

In order to keep a tab on costs, the University has recently consolidated some academic departments and reallocated money to specific areas of need. According to Gallant, one of the recent past initiatives was an increase of academic advisers. Also, the University has been working with an energy company to reduce energy consumption. Gallant mentioned a performance contract, which is a contract the University enters into with a firm and adopts the changes the firm requires. The money saved by making the changes the firm required will ultimately have to go toward paying for the contract.

"We are always looking for ways to save money, but we may have to reallocate funds in the short run," Gallant explained.

Financial aid need-based programs are always offered by SFA to help students with the cost of tuition. A $3,000 scholarship called the Top 10 Admissions Program is offered to students who graduated in the top 10 percent of their class, and there is a transfer scholarship program similar to the Top 10 scholarship. The University also directly funds scholarships from different academic departments. The SFA Alumni Association provides students with scholarships from donors who have given to the association over the years.

"We try to be very sensitive to student's financial issues, but we must also assess what student needs are, what faculty salaries are and what supports the academic mission of the University," Gallant said. "Compared to national university tuition fees, SFA is still considered a bargain."

mleonard@thepinelog.com