CU eyes creative tuition answer

To fill budget shortfall, majors with higher expected earnings may cost more than others

Anticipating budget gaps in coming years, the University of Colorado is considering ways to make up for those shortfalls, including new approaches to increasing tuition.

During a Board of Regents meeting Thursday, Todd Saliman, current chief financial officer and incoming interim university president, presented proposals to budget for declining revenues because of factors including persistently low state funding for higher education compared with peer institutions, more money going toward financial aid and lower numbers of high school graduates, Saliman said.

The total CU budget for the four-campus system during fiscal year 2021-22 is estimated to be $5.2 billion.

By 2025, CU is anticipating a

$117.4 million budget gap. If the university goes forward with proposed cost-saving measures, the shortfall would decline to an estimated $54.9 million gap. To fully close the gap, Saliman said campus conversations are needed.

What are the cost-saving measures? Different tuition-raising methods?

Regents unanimously voted in favor of raising tuition for students beginning in 2022 who are studying the natural sciences and environmental design, including majors such as chemistry, biology, psychology and physics. The presentation noted natural science programs and environmental design cost more to deliver — about double the price — than arts and sciences programs. Data shows natural science graduates earn more than other majors upon entering the workforce, the university said.

In-state tuition for students studying natural sciences is proposed to change from $11,040 to $14,592. Environmental design programs for the same group are proposed to change from $11,040 to $12,816.

For out-of-state students studying natural sciences, tuition is proposed to change from $37,642 to $40,826. Tuition for out-ofstate students studying environmental design is expected to change from $37,642 to $39,388. For comparison, a degree in arts and humanities would remain at $11,040 for in-state tuition and $37,642 for out-of-state.

Because CU has a guarantee that locks in the tuition cost a student starts at for four years, this change would not impact current students and would affect an estimated 8% of the new student population.

This tuition increase is expected to provide CU with $6.9 million of additional revenue with $1.2 million moved to financial aid for natural science students.

Saliman said the university would use the rest to invest in student financial aid, student services and invest in underserved students. Regents also approved a three-year plan from 2022 to 2025 at CU in which tuition and fees would increase $500 each year. The plan preserves the tuition guarantee by locking in the starting price for four years.

Regents Heidi Ganahl, R-atlarge, and Chance Hill, R-colorado Springs, voted no, citing their opposition to tuition increases.

“What we’re trying to do is provide transparency because we know families are already planning for college and we want to be able to be transparent with them on the cost,” Saliman said.

The changes are contingent on legislative approval.