The Board of Trustees voted to increase tuition a further $1 for in-state students and $3 for out-of-state students at its Feb. 16 meeting.
The tuition increase will be effective for the 2012-13 academic year. A tuition hike of $2 for in-state and $5 for out-of-state students passed at the Board’s Nov. 17, 2011 meeting, making the total tuition increase $3 for in-state and $8 for out-of-state students.
The additional tuition increase will allow the college to designate $1 of tuition to upgrading classroom equipment and furniture.
“It is only with a great deal of regret that I have voted for these increases, but at the same time, I am thankful that our tuition continues to be considerably less than other 4-year institutions,” said Trustee Bob Drummond. “I find this always to be one of the most troubling recommendations that comes before this body each year.”
College president Terry Calaway said the increase will raise about $450,000 annually.
The motion did not pass without opposition.
“I think it’s very important for us to have the latest technology, and we did increase tuition in 2010 for that purpose…I do believe we should have excellent classroom environment,” said Trustee Jerry Cook. “I just frankly believe that we can find this $400- to $450,000 in our capital budget, or other sources in the budget and not at the expense of student tuition so that’s why I will continue to vote ‘no’ on this issue.”
Trustees Stephanie Sharp and Jerry Cook voted against the motion, but ultimately the motion passed.
Compiled by Rachel Kimbrough.
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A little more digging reveals 2011 capital interest expense was 1.7 million on total debt of around $40 million it appears. The most recent bond interest rate is 3.7%.
So paying off this debt with the wad of cash The College has squirreled away since before 2007 would produce revenue of three times the latest tuition increase.
Treasurer Don Perkins will tell you The College needs to maintain a healthy cash reserve to keep bond interest rates down. But isn’t this argument specious if we owe no interest?
Is anybody paying attention? Anybody at all?
Have you ever seen anything so bogus? The College has a huge wad of cash in the bank; $70 million according to the February Boad Packet, $54 million sitting around unencumbered. About three times the official board approved prudent reserve and has been since 2007.
Excess cash now earning less than one-tenth of one percent interest. Meanwhile they have outstanding revenue bonds probably in the amount of twenty to thirty million and costing three to five percent interest. (It is not so easy to look this bond stuff up on-line.)
So, paying off thirty million of those bonds would produce three to five times as much revenue as the tuition increase and still leave The College with a reserve well above their stated policy.
Can you believe in these people?