The Wayne State University (WSU) Board of Governors approved a 2002 General Fund Budget of $392.6 million at its regular meeting July 25. The budget includes an anticipated increase in the state appropriations of 1.5 percent and a 9 percent increase in undergraduate tuition and fees.

The budget is based in part on an expected increase in state appropriations of $3.7 million -- to a total appropriation of $253.6 million -- which is the amount agreed upon by a House-Senate conference committee prior to the Legislature's summer break. Ratification of the conference committee action is expected when the legislature returns to Lansing in the fall.

WSU total expenditures for 2002 will increase $11.5 million over the current year. A significant portion of the projected increases represents sharply higher utility costs and employee compensation and fringe benefits. Other increases will finance faculty recruitment, academic programs and technology initiatives.

According to Wayne State University Provost Charles Bantz, an increase in tuition and fees is unavoidable. "We are faced with the challenge of meeting increased costs for utilities, medical insurance and salaries for our most important resource - our faculty and staff."

For fiscal year 2001-2002, recommended increases include: 9 percent for undergraduate students, 9.75 percent for graduate students, 9.75 percent for law and medicine and an increase in omnibus and registration fees of 9 percent."

For the academic year, this amounts to an increase of $373.20 for full-time Michigan resident undergraduates and $227 for part-time Michigan undergraduate students taking nine credit hours per semester (an average increase of 9 percent).

Per credit hour rates for freshmen and sophomores will rise from $118.90 to $129.60. For juniors, seniors and post-bachelor's, tuition will increase from $140.30 to $152.90 per credit hour.

The process of recommending a budget for 2002 was the result of an extensive review. The university budget review committee, which includes academic senate representatives, worked for several months. "As we reviewed the budget, we recommended a reduction in administrative cost, reordering priorities, and reallocated resources," Bantz said.

"Wayne State provides a research university education at a very affordable price compared to other Michigan research universities. Our students are also the benefactors of a university-wide goal to increase financial aid in order to provide assistance to our students,"Bantz said.

During the current academic year, WSU full-time lower division students paid $3,970 in tuition and fees, which ranked the university 11th among the 15 public universities. That rate compared to $6,513 at the University of Michigan, $5,210 at Michigan State University and $4,096 at Oakland University.

Wayne State's graduate and professional tuition and fees are traditionally well below rates at many of its peer institutions. In the current fiscal year 2001, for example, WSU graduate school masters program (24 credit hours) rates were $5,074 -- less than half the rate of the University of Michigan $10,821, and below Michigan State, the University of Michigan-Dearborn, Oakland University and Ferris State University.