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Special Edition ~ March 2001

 
"We have reached a point where students are paying an inordinate amount of money for the education they are receiving."

--George Dennison

 

UM president offers
legislative update

President George Dennison summed up his early February update to UM about the Legislature with three words: "It's sobering news."

Sobering because the Board of Regents' request for an additional $500 per student from the state in each year of the biennium has been pared down to an additional $100 per student in Gov. Judy Martz' proposed budget.

If the governor's budget is approved with no additional money, the Montana University System could face a $37 million shortfall to maintain current services. On the UM campus, administrators estimate they would need to raise tuition 6 percent for resident students and 7.3 percent for nonresidents both years of the biennium to get out of the hole. And that would still leave UM $2.4 million in the red over the next two years. To completely balance the budget, UM would need to jump tuition 9 percent both years.

"We have presented an argument that it makes a great deal of sense to invest in higher education if we are really interested in economic development," Dennison said. "We are $2,600 below the average of state appropriations per student when compared to surrounding states. We have reached a point where students are paying an inordinate amount of money for the education they are receiving."

He said one big budget hit could come from utilities, which could increase by $6 million over the next two years.

While the budget picture looks gloomy at this point, Dennison said, at this point all scenarios are speculation until the Legislature finishes its budget work. "No one says this is what is going to happen -- it's potentially what will happen."

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