COD approves tuition increase
Citing uncertainties in state funding, increased employee costs, declining enrollment and higher building expenses, College of DuPage board members approved a 3 percent tuition increase, maintaining the Glen Ellyn-based school's status as the region's most expensive community college.
Tuition will go up beginning with the fall semester by $4 a credit hour, making the total cost with fees $136 a credit hour. Fees will remain at the same level next academic year.
Trustees voted 5-1 Tuesday to approve the increase, with Trustee Kim Savage providing the opposition and Trustee Joe Wozniak abstaining. Student Trustee Lydia Whitten cast a “no” advisory vote.
COD board Chairman Dave Carlin said a tuition increase was the only option to consider due to “financial realities” of the state, which provides COD with only 8 percent of its funding.
Carlin suggested that COD, like other community colleges and school districts, might be forced to pick up the cost of pension contributions that the state normally covers — an idea that was proposed by Springfield lawmakers. That would likely mean an annual $17 million contribution from COD to the State Universities Retirement System, officials said.
“No one likes to increase tuition, especially on students who are struggling,” Carlin said. “But to not do so would be reckless.”
Savage said “nobody realistically thinks” the college would have to make a $17 million payment to cover pensions, but if so, the college could use its reserves.
As a result, the board also approved setting aside $17 million from its $101 million reserve fund to be used in case the proposal in the General Assembly is approved.
“That is something that right now is not in our budget that we're going to have to be able to plan,” said Tom Glaser, the college's senior vice president and treasurer.
Savage said when tuition went up last year, the board committed to not raising it again as long as the state made more than four of its monthly payments to the college. To date, the state has made five payments, when it should have made eight.
COD can't raise its property tax levy by more than 3 percent due to the state property tax cap, but Glaser said there are rumors in Springfield that local school districts might get permission to levy a higher amount to cover pension payments.
COD officials also justified the tuition increase based on expected salary increases for all college employees. Last year, the board approved parameters for negotiations with the college's four employee unions that included increased salaries.
Next fiscal year, salaries will go up 3.15 percent, though increased tuition won't even cover that, President Robert Breuder said.
“It's interesting how we all want the salary increases. It's going to cost us $3.2 million. And tuition is going to give us $2 million. It won't even cover the salary increases,” Breuder said.
COD Faculty Association Vice President Bob Hazard spoke in opposition to the tuition increase, saying the college had a $46 million budget surplus last year. And while there may not be as large of a surplus next year, “it's a safe bet it will still be well within the black,” he said.
“Every time we raise tuition, we close the door on the dreams of some of those who can barely afford to come here,” Hazard said.
Glaser said half of that surplus is unspent bond proceeds for the college's construction program. Another portion is from property tax revenues that increased, but college officials expect those to be “severely constrained” in the next few years.
Among other reasons college officials gave for the tuition increase:
Ÿ Health insurance costs are expected to increase 10 percent next year.
Ÿ Utility expenses are projected to go up now that renovations of the Berg Instructional Center east wing is complete, and with the state legislature's approval of the Commonwealth Edison Smart Grid.
Ÿ Enrollment is “softening,” with a decrease of about 17,000 credit hours this year. If trends continue next year, tuition revenue could decline by $5 million.