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Wednesday, August 3, 2005
College tuition hikes outpacing
tax cuts, study says
by Erika Blake Blade
Staff Writer
Toledo Blade
Ryan Cook had lots to consider when he was
contemplating where to pursue a college degree in mechanical engineering.
Of course, there was the choice of degrees and the cost of tuition. But
Mr. Cook ultimately decided on the University of Toledo because of its
proximity to his home - allowing him to save on boarding costs - and his
ability to keep his job at a company that helps him pay for school.
The cost of higher education and its financial burden on Ohio families is
the focus of a study to be released today by Policy Matters Ohio, a
nonprofit research group based in Cleveland. The study concludes that tax
cuts Ohioans received in the recently approved state budget don't begin to
cover expenses like the rising cost of tuition.
"I think it's wrong," said Mr. Cook, 18, of the growing tuition bill he
faces. "They raise the price every year. But no matter what, it's going to
happen."
In its report, "College Bound: Taxes and Tuition in Ohio," Policy Matters
Ohio states that by 2010, an Ohio family of four with a 2003 median income
of $69,478 and one child in college will have gained about $247 annually
or a total of $1,237 from recently approved state income tax cuts. But the
same family will have paid an additional $1,975 in tuition hikes, the
report said.
Wendy Patton, policy liaison for Policy Matters Ohio, said the point of
the study was to show that when officials plotted the state's priorities,
they should have focused more on how much money families are spending in
other areas - such as higher education - over the meager savings they may
get from the tax cuts that were implemented.
"When state spending goes down, tuition goes up," Ms. Patton said of
public universities. "So the state has a role to play in tuition costs,
and it's not just putting caps on it."
According to Policy Matters Ohio, the state's per capita spending for
higher education has dropped steeply each year and now is lower than at
any point since 1984. In response, public universities have raised tuition
costs.
A separate study released earlier this year by the National Center for
Higher Education Management Systems ranked Ohio's public universities 49th
nationwide in terms of college affordability. Michigan, at 39th, didn't
fare much better.
Locally, both the University of Toledo and Bowling Green State University
raised tuition 6 percent this year, the highest allowed under a
state-imposed cap.
At UT, tuition alone for full-time, in-state undergraduate students is
$7,491 annually. Students at BGSU's main campus pay $8,560 per year.
The amount of Ohio's budget focused on funding higher education peaked in
1978 at 17.7 percent and has fallen each year since, the report said. In
fiscal 2005, higher education was allotted 11.7 percent, or nearly $2.5
billion.
Mark Rickel, spokesman for Gov. Bob Taft, said that tuition costs have
been on the governor's agenda and he has responded with various programs
such as expanding the Ohio College Opportunity Grant program to reach an
additional 11,000 students. The grant helps qualified families pay for
college.
Other state programs include disseminating information about schools and
grants as well as programs that focus on high school students, Mr. Rickel
said.
Jamie Abel, spokesman for the Ohio Board of Regents, which oversees higher
education in the state, said just as the economy is cyclical, so is
financial support from the state for nonmandated entities such as
institutions of higher education. As the state pays less for higher
education, students and their families are forced to pay more.
According to the Policy Matters Ohio study, college students in Ohio now
pay about 49.4 percent of their education costs compared to 39.5 percent
in 1991.
Dawn Rhodes, associate vice president of finance and planning at UT, said
there are different components mixed into a school's decision to raise
tuition. When the state pulls back its funding in support of higher
education, she said, universities have to look at ways of replacing those
dollars.
"If the state would invest more in higher education, we would have more
people with higher paying jobs, which would increase our tax base and
increase the dollars for state priorities," Ms. Rhodes said. "No one likes
to increase tuition and no one does that just for the sake of doing it. We
understand that it places a hardship on our students and our students'
parents."
Contact Erica Blake at:
eblake@theblade.com or 419-724-6076.
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BY THE NUMBERS |
By 2010, an Ohio
family of four
with a 2003 median
income of $69,478
and one child in
college will have
gained about $247
annually or a
total $1,237 as a
result of tax cuts
in the recently
approved state
budget. But the
same family will
have paid an
additional $1,975
in tuition hikes.
Source: Policy
Matters Ohio |
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Toledo Blade 08/03/2005
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