Gov. Scott Walker plans to cut in-state undergraduate tuition, which many view as a move that could help ease the burden of college costs and propel Wisconsin students to a dream of receiving a higher education.
The state hasn’t seen a tuition reduction since 1982.
Although Walker didn’t elaborate on the details of the proposed tuition reduction when he announced it during his State of the State address last week, he did explain that the cut would extend to all of the 26 UW System schools.
The tuition cut does not apply to out-of-state students or graduate students. Nonresidents will actually see their tuition increase by $4,000 over the next two years. For students working toward a graduate degree, tuition will cost an extra $5,000 over the next two years.
In 2016 with the tuition freeze in place, in-state students paid $10,488 in tuition. It will cost out-of-staters $35,523 to attend UW-Madison for 2018-’19 academic year.
To successfully help Wisconsin students and families, many UW-Madison administrators said the tuition cut must be funded by the state. Without coverage for the reduction, UW schools, many of which are still reeling from last budget’s $250 million funding cut, would potentially have to increase class sizes and decrease course offerings. Consequently, it could be harder for students to earn a degree.
The day after his address, Walker assured skeptics that the state will cover the tuition reduction with taxpayer money as well as provide additional funding for the UW System. Walker wants the additional funds tied to performance metrics, such as graduation rates or number of graduates who take jobs in Wisconsin.
“Our 2017-2019 state budget will pay for our cut in tuition for all in-state undergraduates at all University of Wisconsin campuses!” Walker said in a tweet.
Some legislators, however, are concerned about Wisconsin residents who didn’t attend a state college having to help cover the cut through taxes.
“You get to a point where you don’t want to go to Bernie Sanders-level free school and then have the hard-working people of Wisconsin subsidize,” said state Rep. Dale Kooyenga, R-Oconomowoc.
Earlier this month New York Gov. Andrew Cuomo proposed a free tuition plan for college students who attend an in-state school and whose family make $125,000 or less a year. Cuomo announced the plan alongside Sanders.
Despite the tuition cut being met with mixed reviews from Republicans, the cut has been praised by student groups on campus.
“The governor committing to cutting tuition for in-state students is a great step forward in better access and an affordable education,” said Carmen Gosey, chair of ASM.
Walker confirmed that he will still give the UW System additional funds besides money to cover the cost of the cut. The amount of money the system will receive in the next budget has not been released.
UW System Board of Regents requested $42.5 million in the upcoming 2017-’19 budget. Some of that money is intended to go toward higher pay for faculty and staff in an effort to retain talented professors.
Walker will release the finite details of his biennial budget, including how much money the UW System will receive, in February. The budget will then be sent to the Legislature to debate and modify.
In-state tuition is currently frozen at UW System schools. The unprecedented four-year freeze helped a typical student saved more than $6,300 over four years, according to Walker.
He explained in his Jan. 10 address that tuition rose by 118 percent in the decade before the freeze.
Walker hasn’t indicated how significant the cut will be.
If in-state tuition at UW-Madison was cut by 1 percent, students could save about $105 a year and the university would lose nearly $2 million dollars in revenue a year. If UW-Madison tuition is cut by 10 percent, each Wisconsin student would save about $1,050 dollar a year. About $20 million dollars in revenue would be lost each year.
National lawmakers are also grappling with how to make college more affordable when tuition costs are rapidly rising and how to rescue graduates from drowning in loan debt.
In 2016, the average college graduate owed $37,172 in loans. In 2015, the average Wisconsin college graduate owed $28,810 and 70 percent of all graduates had some amount of debt, according to the Institute for College and Success.
To help students with high debt, Walker proposed those students talk to financial institutions based in Wisconsin.
“Wisconsin credit unions and banks offer refinancing at rates that are the same or better than what is offered by many government-supported programs in other states,” Walker said in his address.
Some legislators were not impressed by Walker’s suggestion.
State Sen. David Hansen, D-Green Bay, said that private lenders would have solved the problem by now if they could. He added that Walker should work with Democrats to pass the Higher Ed/Lower Debt bill if he wants to help the roughly one million Wisconsin residents struggling with student loan debt.
Another top budget priority for Walker is to fund K-12 education, especially for rural schools. These schools are often challenged by high transportation costs, poor internet access and declining enrollment.
One solution proposed to help rural school is to invest more into broadband connectivity. Walker said his budget will invest $35.5 million into broadband, bringing the total investment of the state to $52 million.
