President Robert N. Shelton today released the University of Arizona's recommendations to the Arizona Board of Regents for 2011-12 tuition rates.

The multi-tiered recommendation comes at a time when Arizona Gov. Jan Brewer has proposed $170 million in cuts to the Arizona University System, $67 million of which would affect the UA.

The UA's proposal does not take into consideration additional cuts recommended this week by the Arizona Senate. The Senate's proposal would result in a $92 million reduction to the UA – on top of nearly $100 million in state funding reductions imposed on the UA since 2008.

If additional cuts are levied, tuition projections will be reconsidered.

If Brewer's budget proposal is passed, the UA's state appropriation would fall to levels not seen since 1996. If the Senate's is passed, levels would drop to those in 1990.

"Despite the economic turmoil enveloping our state, the UA has successfully implemented a transformation that will better serve Arizona's students and address the real problems of our time," Shelton said.

"This tuition proposal, combined with our continued commitment to financial aid, will allow us to offer an accessible, affordable, high-quality education that Arizona students will need to successfully take our state to a brighter future."

Prior to issuing the recommendations, Shelton consulted with student and faculty leaders and several advisory groups throughout the UA campus.

For fiscal year 2012, the UA is proposing a $1,500 annual tuition increase for all resident students on the UA's main campus. This will bring in-state tuition for undergraduates to $9,114 before fees, and $9,904 for students in graduate programs.

The proposed annual tuition increase for resident students at UA South is $1,200 – consistent with the UA's practice and the regents' system enterprise philosophy that differentiated, lower-cost options be available to students seeking a UA degree. Tuition there will be $7,443 before fees for undergraduates, and $9,604 for graduates.

After strong student consultation, the UA proposes a $150 increase in the student health, wellness and recreation fee, reflecting the second phase of the planned two-year implementation. This increase has been unanimously endorsed by the Health and Recreation Student Fees student advisory board. Students at UA South and the College of Medicine-Phoenix would not be assessed this fee.

The University also developed a two-year phased approach for increasing the student information technology fee. For fiscal year 2012, the proposed increase of $125 will be directed toward information technology costs that support the student experience.

Tuition and fees on the UA main campus for an Arizona resident undergraduate for fiscal year 2012 will be $10,027, under this proposal. At UA South, it will be $7,989. Out-of-state undergraduates will pay $25,487 on the main campus and $25,120 at UA South.

In-state graduate students in total will pay $10,817; those at UA South will pay $10,150. For out-of-state graduate students on the main campus, tuition and fees will be $25,779; those at UA South will pay $25,412.

The UA will ask the regents to approve differential tuition and program fee proposals for professionally accredited programs and a small number of special class fees. 

The tuition proposal includes a substantial ongoing commitment to financial aid to ensure that a UA degree is available to every qualified student in Arizona. Upon approval of this plan by the regents, the UA will commit to maintaining its financial aid investment at the current level, including the regent set-aside of 17 percent for need-based aid.

The UA's proposal for increases in base tuition will provide a tuition revenue increase of approximately $22 million for fiscal year 2012 – significantly less than the reduction proposed by the governor.

The University will stand by its commitment to meet $39 million of the governor's proposed reduction through additional cuts (not tuition increases) in its fiscal year 2012 operating budget.

Additional funding reductions largely will be offset through innovations, efficiency increases, and unit and program reductions and consolidations. Salary savings are expected through the UA's new early retirement program.

The UA's gains in efficiency and productivity will allow for increased enrollment and accessibility, even in the face of decreasing state support.

The University has taken major steps in response to funding reductions, even as enrollment has continued to increase, including:

• Workforce reduced by 608 state-funded positions 
• 58 programs closed, merged or consolidated
• 33 departments closed, merged or consolidated
• Four colleges consolidated into one
• Four senior-level vice president or associate/assistant vice president positions eliminated
• Centralization of information technology, data analysis and administrative staffing functions
• Re-prioritizing needs related to critically needed new construction, library acquisitions custodial services and buildings and grounds maintenance
  

In the upcoming year, the University again will impose budget reductions across campus units and programs. The University will continue to merge, consolidate or eliminate units in support of its long-term strategic planning.

"The UA is taking an aggressive path to reorganize itself around the critical issues confronting Arizona," Shelton said. "The University has invested in interdisciplinary solutions to provide students with leading-edge learning opportunities that will uniquely qualify them to lead our state and country forward in the decades to come."

The UA continues to strive to selectively differentiate its high-quality undergraduate, graduate and professional degree programs to be among the best in the country, while focusing on issues of importance to Arizona citizens.

This differentiation aligns with the Arizona University System's enterprise plan and ABOR 2020 goals of educational attainment, multiple access options and crucial research advancement that, taken together, spur greater economic development.

The University is moving boldly forward to address Arizona's greatest challenges such as economic development, border issues, rural health, physician availability, agriculture, water use, arid lands management and environmental sustainability.

These and other issues that threaten Arizona's quality of life are the problems the UA is uniquely positioned to solve.