Spring Break
University officials say revenue options 'scary' with drop in state funding, greater need for financial aid
Tyler Will
Issue date: 2/1/08 Section: News
While state funding is expected to decrease, URI's student demand for financial aid is climbing. The amount of aid the university has given to students increased by $6 million since fiscal year 2007. Student financial aid accounts for 15.5 percent of the university's annual budget.
"That's tough to do," Weygand said. "It's much easier to do when you have large endowments. We've been able to [provide financial aid] very successfully."
In the late 1980s, Weygand said state funding was about even with revenue from tuition and fees. In 2008, however, he noted that tuition fees were about $100 million higher than state funding, which varied little since 1989 when compared with the tuition and fee spike.
That same year, URI state funds were higher than tuition fee revenue. In 1991, tuition fees and state funding were equal. But since 1992, state funding has been less than tuition and fee revenue.
Carothers said educating each student at URI costs an average of $19,000 per semester. In-state students are paying $8,000 in tuition and fees, and out-of-state students are paying $23,000 in tuition and fees.
Multiplied by the number of in-state paying students, Carothers said the cost of the discount is $134 million.
"If the state [funding] goes to $63 million, that will be an even bigger gap," Carothers said.
"The question that has to be raised now is what is the right price for Rhode Islanders to go to the university?" Carothers said.
In-state students pay less tuition because the state government pays URI to subsidize the tuition prices for its taxpayers. However, when state subsidiaries do not match the rising cost of education, the university faces a budget crisis.
In a November meeting with the South Kingstown Town Council, Carothers said, "If we could keep 10 percent of the kids who walk away ... all our financial problems would disappear."
When asked if he still thought this, Carothers said, "It would certainly be a big help."
"That's tough to do," Weygand said. "It's much easier to do when you have large endowments. We've been able to [provide financial aid] very successfully."
In the late 1980s, Weygand said state funding was about even with revenue from tuition and fees. In 2008, however, he noted that tuition fees were about $100 million higher than state funding, which varied little since 1989 when compared with the tuition and fee spike.
That same year, URI state funds were higher than tuition fee revenue. In 1991, tuition fees and state funding were equal. But since 1992, state funding has been less than tuition and fee revenue.
Carothers said educating each student at URI costs an average of $19,000 per semester. In-state students are paying $8,000 in tuition and fees, and out-of-state students are paying $23,000 in tuition and fees.
Multiplied by the number of in-state paying students, Carothers said the cost of the discount is $134 million.
"If the state [funding] goes to $63 million, that will be an even bigger gap," Carothers said.
"The question that has to be raised now is what is the right price for Rhode Islanders to go to the university?" Carothers said.
In-state students pay less tuition because the state government pays URI to subsidize the tuition prices for its taxpayers. However, when state subsidiaries do not match the rising cost of education, the university faces a budget crisis.
In a November meeting with the South Kingstown Town Council, Carothers said, "If we could keep 10 percent of the kids who walk away ... all our financial problems would disappear."
When asked if he still thought this, Carothers said, "It would certainly be a big help."
