<p>^ The difference is that where Minnesota has room to grow—and Wisconsin not so much— is in the percentage of OOS students in the overall student body. Wisconsin’s already taking about as many OOS students as Wisconsin taxpayers and the Wisconsin legislature are likely to tolerate. Minnesota’s still got room to grow there. By dropping OOS tuition Minnesota can attract a lot more OOS applicants—as already appears to be happening judging by their overall 15% increase in apps this year—potentially offsetting any decrease in revenue per student by taking in a larger number of OOS students, each paying more than the in-state or reciprocity student she displaces. for reasons I explained, it can work financially, though it may take a few years to get there. Wisconsin’s already at of very close to its cap on OOS students, so dropping OOS tuition would only mean a net loss of tuition revenue for Wisconsin.</p>
<p>In fact, I think both in-state and OOS tuition are likely to go up next year at Minnesota—and everywhere else, including Wisconsin. The states just don’t have the money; they’ll be cutting aid to higher ed, not expanding it. Minnesota’s a little ahead of the game because the state is already dealing with its FY 2010 budget. The State of Minnesota’s projected 15% budget shortfall is bad—but not as bad as Wisconsin’s project 20% shortfall, which hasn’t yet been translated into a specific dollar figure or percentage cut in aid to the University of Wisconsin. But the point is, Minnesota is committed to keeping its OOS tuition in lockstep at a level $4K above in-state, which will mean that even with a tuition hike it will still be a huge bargain to many OOS applicants. Minnesota saw a market opportunity and seized it. I don’t think Wisconsin’s in a position to counter by cutting its own OOS tuition, unless it wants to see OOS students balloon to 50% of the student body, which I just don’t think is in the cards.</p>