Friday, July 17, 2009

The Math on University of California's Theoretically Required Fee Hikes

We ran fee numbers in the Cuts Report, page 16, which gives the background for the summary below.

We calculated that every $2500 fee increase nets something under $300 million. For UC to make up over $800 million in cuts with fees alone (2008-2010), they would need to raise fees about $7250. Folding in the already-voted 9.3% by using the 2008-09 base fees ($6262 for in-state), plus campus fees (averaging $500 excluding 2 outlier campuses), yielding $6762, we get about $13, 500 in total Ed fees for 2009-10; add in the Reg fee ($900) brings total fees to about $14,400.

Another possible 10% cut in General Funds in 2010-11 would require another $300 million or so, adding $2500, getting UC tuition to around $17,000 in 2010-11.

These dramatic increases would merely sustain flat nominal revenues, meaning they do not cover mandatory cost increases any real program improvements or upgrades, to say nothing of addressing terrible backlogs in deferred maintenance. Keeping up with changes in education and society in general would require larger increases. Actual leadership - which no one is mentioning at all - would cost even more beyond $17,000 in 2010. Educational elites - the top 1% that goes to "Ivy Plus" institutiions - pay twice that in tuition per year, and there is a reason for this: they get hands-on, interactive instruction tailored to their needs. To even get in the game, UC fees would need to be double what they are today. And they would need to increase at four times the rate of inflation that has been the average rate of increase among the privates for decades.


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