UA board delays rise in tuition, fee costs

Unused-housing credit approved

In this 2013 file photo, students cross Dickson Street on the University of Arkansas campus in Fayetteville prior to a dedication ceremony for the newly completed Founders Hall.
In this 2013 file photo, students cross Dickson Street on the University of Arkansas campus in Fayetteville prior to a dedication ceremony for the newly completed Founders Hall.

University of Arkansas System trustees have stalled tuition and fee increases and voted to allow system schools to reimburse or credit students for unused room and board, even as the institutions face lower revenue and financial uncertainty.

System campuses won't raise tuition or fees this fall to help students and their families cope with financial uncertainty related to the covid-19 outbreak, trustees decided Wednesday. That doesn't apply to the spring semester.

Current students may also get a reprieve on their room and board cost burdens if their campuses have closed housing during the pandemic.

Trustees approved a resolution authorizing campuses "to provide prorated credits or adjustments to students for room and board costs." For graduating students, the resolution authorizes "prorated distributions for room and board costs."

[CORONAVIRUS: Click here for our complete coverage » arkansasonline.com/coronavirus]

Each campus will decide on the details of the reimbursements. Not every UA System university has closed residence halls.

Other Arkansas colleges and universities have offered refunds or credits for unused room and board.

The reimbursements and flat costs of attendance will limit revenue to schools already losing money because of state funding shortfalls and an already challenging higher education landscape that features lagging enrollment and public funding. No loss in state funding has yet been projected for next year, although most UA System schools expected to lose 1% of their budgeted revenue this year.

"The board obviously has the right to review this decision at any point in time if any financial situation would dictate," UA System President Donald Bobbitt told trustees Wednesday as he presented the flat-cost proposal.

"I would expect that at some point in time the board will want to give campuses guidance for a resolution that would take into account the spring semester," he said.

TUITION AND FEES

Other public universities in Arkansas plan to set tuition and fees for next year later this spring. Tuition and fees are typically set at all schools from late April through early June. On Wednesday, representatives for those campuses said officials were still deliberating tuition and fees for next year and intended to set those at the usual time.

UA trustees moved and approved the proposed tuition and fee freeze. Trustee Kelly Eichler motioned to approve the resolution, and Trustee Sheffield Nelson seconded. Trustees did not discuss the resolution, and no one opposed it.

"Our campuses are under tremendous financial pressure but so are our Arkansas families, and not just Arkansas families but our students," Bobbitt told trustees.

Last month, Bobbitt had brought forth a proposal to cap tuition and fee increases at 3% while allowing schools to propose tuition and fees at a future trustees meeting. Bobbitt asked trustees to pull the proposal so that he could account for recent developments, including financial challenges for the institutions, related to the coronavirus pandemic.

Tuition and fees increased at nearly every UA System and public institution in Arkansas last year. They have increased most years this century as state funding for public institutions has remained stagnant.

REIMBURSEMENTS

Trustees, also without opposition, allowed system schools to reimburse students for room and board that can't be used because of dorm and dining hall closures.

Before voting to approve the resolution, trustees discussed how it would affect campuses differently.

John Goodson, a Texarkana lawyer who serves as the board's chairman, said "it's not left to the campuses to decide whether they're going to make a refund or not if they closed" their campus housing.

"If we approve this resolution, they will do that," Goodson said.

But details on the actual reimbursements will vary for reasons that include the date that housing closed, Goodson said.

Universities that haven't closed their residence halls won't be required to do anything under the resolution, Bobbitt said.

The University of Arkansas, Fayetteville -- which last Friday closed its housing except to those with need -- announced Wednesday that it will provide a credit to returning students.

"Our returning students will receive a credit for room and board costs lost after April 3, the deadline for moving out of university-managed housing," Chancellor Joe Steinmetz said in a campus email.

A UA spokesman, Mark Rushing, clarified in an email that the credit may be used "for any university expenses beginning with the upcoming academic year."

At one time this spring, the campus had about 4,950 students in university-operated housing. All residences closed April 3, but some students received permission to stay based on need. A UA spokesman this week said 184 students remained in residence halls. Final exams end May 7.

The resolution approved by the board of trustees didn't specifically refer to students who may be unable to reenroll. The economic effects of the pandemic have included a sharp rise in unemployment.

Under UA-Fayetteville's plan, students who won't reenroll can appeal to the University Housing department.

Among smaller UA System schools, the University of Arkansas at Little Rock closed its housing Monday. A spokesman said Wednesday the university's administration was "reviewing options" for reimbursements.

University of Arkansas at Fort Smith Chancellor Terisa Riley said Wednesday in a message to the campus that she had formed a Student Room and Board Refund/Credit Task Force to "bring forward recommendations," but she added that because the university has not closed its housing "no refunds or credits will be issued until such time as we announce building closures."

Gina Terry, chief financial officer for the UA System, told trustees that housing is an auxiliary unit in university budgets, with "the goal" to be self-sustaining financially or to have a surplus.

Terry also discussed the federal Coronavirus Aid, Relief and Economic Security Act, which includes funding for higher education and, in particular, emergency aid for students.

She said housing reimbursements "do not fall under the definition of emergency aid for students," at least based on a preliminary review.

photo

Donald Bobbitt

photo

staton breidenthal

John Goodson

A Section on 04/09/2020

Upcoming Events