Not surprising: Big OOS tuition increases result in fewer non-resident students

@kmsbgibb Which UMN college did your student apply to? My son received $10,000 but is not yet in honors college. The latter tends to be a smaller set than the former so I’m surprised that she didn’t get more money. You might call them and ask about additional merit.

She was a BSE major is the College of Liberal Arts…Honors college.

Shoot my son’s in CLA - can we trade? :wink: He’d love to get honors and for him UMN’s really a deal breaker if he doesn’t get it. 1530 SAT, 3.94 uw GPA, five APs this year (8 total). In-state.

UMN regents approve $2k engineering surcharge, $970k renovation for president’s mansion

https://www.twincities.com/2019/02/07/umn-regents-approve-2k-engineering-surcharge-970k-renovation-for-presidents-mansion/

I have to chuckle at the 5 regents who wanted a surcharge to apply to all students. Hello, that’s called a tuition increase. You just have to crank up the increases you’ve been cranking out even more. Then, you can make home renovations for all the regents, too.

More: https://www.mndaily.com/article/2019/02/n-students-stress-about-future-amid-us-tuition-hikes

That’s very funny… But Umn needs to understand that OOS students were going there to get a job good “deal” at college. Once that good deal ends so will the students. Students seems to be flocking to places like Alabama for their almost free tuition plus a bit warmer and a much better football team.

The renovations are timed for the incoming Madam Pres., although she appears to be an unimpressive choice and it makes you wonder who was pushing her cause. Perhaps she will be more receptive to the OOS tuition issue, although I strongly suspect Eastcliff needs the renovations. Will miss the Kalers but heard they might be staying local. Eric Kaler’s CV suggests a full faculty appointment at CSE, and Karen Kaler has been very involved in undergraduate life at the U.

Unwitting OOS students who end up “gutted” by tuition information that’s been old news for awhile are absolutely welcome to try their luck with 'Bama and similar. That might be a better fit for them.

You know, a million to keep paying the last president’s contract, a million for the new president, a million for the mansion, pretty soon it adds up to real money! No wonder they need a CSE surcharge;-) This stuff is pretty typical for Illinois taxpayers, but I guess it’s pretty universal when no one is held accountable for finances.

Perhaps she will be fiscally prudent and do away altogether with a mansion for a public servant already earning a huge salary and likely qualifying for a large public pension, too. Keeping tuition capped with inflation for returning students with proper budget planning would be a bonus!

The president of a state flagship is not technically a public servant in the same sense that an elected governor or head of a public school district would be. They are hired from a national market just like any other top academic. And they command a market salary since other institutions in other states - both public and private - are trying to get them as well. The People have little say in a university president’s salary.

Like any university president she will be primarily responsible for fundraising and marketing. She comes from a business school so that’s a good sign for fiscal prudence. However, that direct responsibility will be more in the realm of the chief financial officer and team.

University of Minnesota employees do not have public pensions LOL. Should not be confused with the stakeholders populating the Jim Thompson Center in Chicago or state offices here in MN.

If it’s taxpayer money, then they are still public servants, even if semantics suggest they be called something else. Governor, mayor, state university president, it doesn’t really matter, waste happens when no one is accountable to the taxpayers funding the lavish salaries and expenses. It’s exactly when the people have little say that it is ripe for financial mismanagement.

Nice to hear state university employees aren’t getting public pensions in Minnesota. Adding to the list of positives for destinations when Illinois becomes too expensive or bankrupt;-) University presidents, physicians, athletic coaches and directors are among the worst offenders in Illinois. The government bureaucrats and elected officials have stupid pensions here, but not as stupid as many in the university system.

Academics we know at U of IL have retired early in order to avoid the risk of getting totally hosed by the state’s insolvency and impact on state pensions. Guessing they just took the lump sum and said “goodbye”. That, of course, contributes to a brain drain. Unfortunately for your hypothesis, university presidents and athletic coaches tend to work in a national market with many bidders, not just the People of IL or MN or any other state. (Would personally love for athletic coaches to be paid less, especially as the primary function of a university is not to subsidize athletes with sub-par academic ability but to train its students in critical thinking. A horrible misappropriation of resources, IMHO).

Couldn’t agree more that lack of accountability to the taxpayers is a genuine problem for ALL state and national agencies. However, the way it works for UMN is that they have to rely on the elected representatives of The People for the subsidy. Whether they are in the hole or not, they can only get what they get. It’s up to the university to do the rest. The main issue for The People here is how much to give them. Sure, they’d love more and they probably ask for more every year - presiding over increased revenue is part of the job of the big brass. The subsidy is one way to increase revenues, and charging OOS kids more is another. When one fails, they resort to other means.

So OOS’ers are “price takers”. They are not tax payers in the state and they basically have no control over the price of a university education in that state. Unfortunately, IL families fleeing their own state system are beholden to the tax payers of MN as much as the university itself is; however, they can also choose not to attend. :wink:

My hypothesis is that a million bucks for updates at an unnecessary mansion is wasting money at the expense of taxpayers, students and faculty. Attracting high calibur executives capable of running a major university without a costly mansion perk seems like it shouldn’t be a problem. Maybe I’m wrong and places like UMNTC and UIUC need such perks to find talent. I still think it’s indicative of waste and lack of financial accountability.

As I’ve said before, I have no issue with OOS students paying significantly more. It’s a very good way to increase revenue from those not contributing to state tax income. Increasing OOS tuition for returning students well above the rate of inflation is quite simply an admission of incompetent budgeting and planning. If you can’t balance a budget by increasing only new, incoming student tuition or with phase-ins, it’s time for smarter and more compassionate people at the top. Don’t worry, the existing regents and others with poor financial understanding and no ability to plan long term while keeping students in mind can still find jobs in Illinois government, where those skills are never sought;)

Hmm. If they raise non-resident returning student tuition and everyone comes back, doesn’t that imply that the budgeting was NOT incompetent? One raises the price up to and including what everyone’s willing to pay. WE pay a fixed subsidy, regardless of what they spend it on. YOU decide to come back and pay the passed-through increased costs of the president’s mansion, then complain about it. CC is cheap therapy, of course. As long as YOU come back, UMN will keep Eastcliff going.

However, you have a point. University Presidents mansions are typically exorbitant. Both Eastcliff and that lovely Georgian colonial down in Urbana-Champaign (likely costing a fortune, as would be expected for an 18th century residence of 14,000 sf) might be converted into historical museums instead. Why can’t the university presidents live in the dorms with the rest of the community and do their entertaining and big-money wheeling and dealing in the student union? Perhaps those latter dwellings would be kept up better if they did so. However it’s also the case that with the “tuition model“ of education, things like dorms and student unions are a lot better than they used to be. Truth is, universities are simply flush with money. It’s a very rich industry because the rewards are exorbitant for investing in a college education at a competitive school and Uncle Sam foots a lot of the bill through student loans. Universities charge what they charge for one reason: because they can. It has very little to do with budgeting, incompetent or otherwise. If UMN was the tightest budget in the big 10, they’d still pass through 5.5% increases on you guys. Simply because they can (see first paragraph of this post).

Also - please correct if I’m mistaken but the 5.5% cap was announced a few years ago right? So this isn’t exactly a nasty surprise either (unless some were hoping they’d be more generous . . . ). The reality is that they could increase 2.5% - 3.5% and still get the pres. house done. The kvetchers need to take a good look at who is driving the increase. The trustees are just responding to demand. Guessing that OOS’er are enrolling at a higher rate than last year.

UIUC had its own expensive mansion renovations a while back. Just silly. As for the rest, already answered numerous times previously, so agree to disagree I guess. If these were private, for-profit universities, the situation would indeed be more like you suggest.

@illinoisx3 - it’s ok to agree to disagree, even to say the same thing many different ways. This is a relevant conversation and hopefully others are reading. Thing is, public universities COMPETE against private not-for-profit (not sure of any research uni’s that are actually “FOR profit” . . ) for OOS students and they keep an eye on each other’s tuition. The OOS market isn’t subject to educational charters or similar the way that the in-state market is. They are different pools and they often have completely different admission standards (interestingly, however, UMN is a notable exception, as they hold all applicants to the same admissions standards. It’s not harder to get in as an OOS’er). There’s a reason why UMich. charges private uni tuition to OOS’ers and it’s NOT due to incompetent budgeting. It’s due to a higher demand for its educational services. UMN and UW-Madison, to name two examples, would charge the same if they could.

Right, but for a state U that isn’t for-profit, while they still have the choice to screw over returning students, there is more freedom not to have to choose that option. With competent budget planning, many schools find other ways to balance the budget.

The happy/sad truth is that my kids are doing so well where they are, it’s extremely unlikely I would tell them they had to switch schools even if costs increased more than projected. If I did, they could opt to incur debt instead, which is what most families are forced to do in that situation. When you are school shopping as an incoming freshman, there’s a lot more leeway to say that a school is too expensive and choose another that has better financial management and oversight by administrators, ones who aren’t out to stick it to students every chance they get, just because they can. Once you’re in, it’s poor management and, frankly, cruel, for a public school to raise costs more than absolutely necessary for returning students.

The Grain Belt is on me in next parent weekend and I’ll tell you how I really feel lol…

"Right, but for a state U that isn’t for-profit . . . "

  • Private universities aren't for-profit either. The difference between a state university and a private one is that the state university has a charter granted by the state to educate the individuals of the state. The private has no such mandate.

" . . . while they still have the choice to screw over returning students, . . . "

  • Did they say that the increases would be tied to cost of living? If not then they are pushing the increase as far as they can, given what they promised. And - given the lack of additional outrage on this site, it would appear that most don't have an issue with it. It is what it is and manufacturing some cost-of-living standard is just that: manufactured, unless they promised differently.

" . . . there is more freedom not to have to choose that option."

  • Freedom to leave money on the table to appease fleeing IL residents is not part of their charter. Sorry. This "freedom" is entirely made up.

“With competent budget planning, many schools find other ways to balance the budget.”

  • Your shopping must be an interesting venture ("too expensive - they obviously haven't balanced their budget properly"). But it bears repeating: If they increase your tuition and you return - they did the right thing. Words on CC are mere words, but actions are genuine. Students have the freedom to walk. If they choose not to, its because they still believe they are getting a good deal for the price.

“The happy/sad truth is that my kids are doing so well where they are, it’s extremely unlikely I would tell them they had to switch schools even if costs increased more than projected. If I did, they could opt to incur debt instead, which is what most families are forced to do in that situation. When you are school shopping as an incoming freshman, there’s a lot more leeway to say that a school is too expensive and choose another that has better financial management and oversight by administrators, ones who aren’t out to stick it to students every chance they get, just because they can. Once you’re in, it’s poor management and, frankly, cruel, for a public school to raise costs more than absolutely necessary for returning students.”

Listen, I hear you and for sure these few years are an “ouchy” for a lot of families. It’s fantastic news that your kids are doing well and if they don’t have to go into debt that’s even better. You are speaking for others, no doubt. IMHO, the U is absolutely extracting every bit that they can by raising tuition 5.5%. I wouldn’t succumb to the bit about the Pres. mansion - they can always raise funds for that and I suspect it’s a red herring. They can also eliminate a whole layer of salaries in admin. w/o families or students noticing. There are things they can do. But even if they accomplish that, tuition for OOS is still probably below market and unfortunately for those who thought they were getting a better deal than they are, it’s gonna hurt a bit as the amounts correct.

We view our MN reciprocity agreement with UW-Madison as a potential chopping block item every year. State uni’s are losing ground compared to private and will grab revenue where they can.

“The Grain Belt is on me in next parent weekend and I’ll tell you how I really feel lol…”

  • Nah - it's on me! Nothing more fun than beer and brawling ;)

A couple more years of OOS tuition increases and I may let you treat! Guinness or bourbon work too, but when in Rome…