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May 18, 2007

Trustees pass tuition plan for next two fiscal years

WEST LAFAYETTE, Ind. - The Purdue University board of trustees on Friday (May 18) approved a conceptual general fund operating budget that increases resident tuition and fees by 4.5 percent on all campuses in each of the next two years.

In-state students new to the West Lafayette campus this fall will pay $7,416 for the 2007-08 academic year, an increase of $320. Out-of-state students will pay $22,224 at West Lafayette. Resident students first enrolled at the West Lafayette campus before summer 2006 will pay $7,154.

"This fee increase, combined with efforts to hold the line on costs, will make it possible to maintain the quality of a Purdue education and to continue offering top educational opportunities for our students," said university President Martin C. Jischke.

The conceptual general fund budget - $982.5 million systemwide for the coming academic year - was drafted after the state approved its biennial spending plan. In the state's budget for next fiscal year, operating appropriations for the West Lafayette campus were increased by 3.6 percent and funding for the entire Purdue system is up by 3.4 percent.

"We're appreciative of the support the Legislature is showing higher education," Jischke said. "The legislators and governor have always been supportive, but this is the first time in several years that the money was there to provide a significant increase in funding, and they really stepped up. The state's support will allow us to keep student fee increases to one of the lowest levels during my Purdue career and will help us progress in key areas."

In approving Purdue's general fund budget, which supports educational and base operating expenditures, the trustees endorsed the following spending plans for fiscal year 2008:

* At the West Lafayette campus: A 6 percent spending increase to $795.7 million.

* At Purdue Calumet: A 4.2 percent increase to $71.7 million. Tuition and required fees at Calumet will be $5,711, an increase of $245, for in-state students who are new to campus.

* At Indiana University-Purdue University Fort Wayne: A 6.3 percent spending increase to $89.7 million. Tuition and fees for Indiana residents who are new to campus will be $6,312, a $271 increase.

* At Purdue North Central: A 6.4 percent spending increase to $25.5 million. Fees for in-state new students will be $5,817, a $251 increase.

Jischke said the spending plans will allow the university to continue funding initiatives outlined in the campuses' strategic plans while also providing the necessary funding to offset increased operational costs. For example, staff benefits and unavoidable costs, such as fuel, utilities and the costs of opening new facilities, are expected to increase a total of $12.2 million on the West Lafayette campus in the upcoming fiscal year.

"At the same time that universities throughout the nation are dealing with a variety of increased expenses and inflation, state support as a percentage of the cost of higher education is slipping," Jischke said. "At Purdue today, the student relative share is just over 60 percent, and the state relative share is just under 40 percent. This is more than reversed from what it was 10 years ago. Students today pay a larger share than the state paid 10 years ago.

"Despite these challenges, Purdue continues to offer a high-quality education at a cost that compares favorably to our peers and Big Ten public institutions."

Purdue's undergraduate resident fees this year rank eighth among Big Ten public institutions, and nonresident tuition and fees rank fifth. Among 12 peer institutions across the country, Purdue fees rank seventh for both residents and nonresidents.

The general fund, which supports the academic mission of the university, represents only a portion of the university's total systemwide operating budget. The full operating budget totals more than $1.7 billion for fiscal year 2007 and includes the general fund, sponsored programs, gifts and revenue from residence halls, athletics, other auxiliary income and university-funded financial aid.

The total operating budget fiscal year 2008 is not yet established and will be presented at the trustees' Sept. 28 meeting.

Writer: Jim Bush, (765) 494-2077,

Sources: Martin C. Jischke, (765) 494-9708
Morgan R. Olsen, executive vice president and treasurer, (765) 494-9705,

Purdue News Service: (765) 494-2096;

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