Proposed Tuition Rates Lowered 2 Percent

Proposed Tuition Rates Lowered 2 Percent

Earlier this year, UK announced a staff hiring freeze, which along with other cost-saving measures, is expected to generate additional non-recurring and recurring savings. Since 2001, UK has generated more than $35 million in savings through restructuring and cost-cutting measures.

Fact Sheet

PowerPoint Presentation

LEXINGTON, Ky. (March 29, 2005) -- Citing the commitment to higher education by Gov. Ernie Fletcher and the General Assembly, the University of Kentucky Board of Trustees today adopted a proposal to decrease a proposed tuition increase for next school year by 2 percent.

The overall tuition increase for the 2005-2006 school year will be 12.5 percent, a 24 percent reduction from the original planned increase in December. This reduction is possible because of additional funding provided by Gov. Fletcher and the General Assembly during the recently completed budget session.

“In December, when we started this process, we anticipated asking for a 16. 4 percent increase in tuition next year,” Todd said. “But the strong commitment to higher education demonstrated by Gov. Fletcher and the General Assembly has allowed us to significantly reduce the impact of that increase, while also providing for badly needed salary increases and funding for scholarships.”

The recently completed budget session resulted in an $81 million increase in general fund dollars for higher education in Kentucky, including more than $13 million of undesignated state funds, which will go to UK. Under the new proposal, an entering freshman will pay about $324 more in the fall semester 2005. (A fact sheet is attached with details about the proposal.)

“This budget represents an important step in our efforts to reach toward top-20 status among the best public research institutions in America,” Todd said. “We still have ground to make up to offset cuts we suffered during tough economic times, but this budget, I hope, demonstrates a commitment to the fact that funding for higher education - particularly UK - is a critical element in the state’s plans to grow our economy and create jobs that will keep our best and brightest in Kentucky.”

Other priorities in the budget that UK will propose in June will likely include:

A faculty and staff merit salary increase pool of 4 percent. Additionally, a “Fighting Fund” will be created to retain the best faculty. The total cost of the personnel initiatives is $14.5 million.
UK also will invest about $11 million in student scholarships next year. And an additional $500,000 will be set aside for need-based scholarships, also a result of the additional dollars for higher education recommended by Gov. Fletcher and the legislature.
UK will increase its contribution to employee health-care coverage by 9.4 percent - about $2.7 million for state-funded positions.

At its special meeting today, the UK Board also approved resolutions honoring the men and women’s UK basketball teams for their outstanding season, including post-season championship play.