Paige Wassel
Editor-in-Chief
Student tuition and fees makes up approximately 69
percent of Milligan's 2002-2003 budget of $16.9 million, according to Milligan’s
annual report released last month.
But what does this number mean when viewing the larger realm of statistics? And
how has it changed at Milligan in recent years?
Milligan's Budgeted Income
In the 2003-2004 academic year, this figure declined 2 percent, making tuition
and fees 67 percent of the total budgeted income. This slight decline is related
to a small decline in enrollment between those years.
“We are an enrollment driven college,” Budget Director and Controller Chris
Rolph said. “If enrollment drops, we have less income to operate which would
explain the 2 percent drop.”
The college budget is approved at the April trustees meeting each year.
The “tuition and fees” category refers to the combined costs of tuition, a
technology fee, a student activity fee and a health fee. Room charges, bookstore
sales and board (meal expenses) make up the largest components of Milligan's
auxiliary income, which is another category that factors into the budgeted
income.
Tuition and fees made up 60 percent of the total income budget in the 1994 to
1995 academic year, according to Rolph. By comparison, in the 1999 to 2000
academic year, tuition and fees made up 67 percent of this figure.
Factors Affecting Tuition Costs
So why does the price tag on tuition change from year to year?
Rolph said that salaries and benefits, utilities, building repairs and
maintenance and scholarships are costs that can push up the price of tuition. Of
these factors, salaries are the biggest expense in the budget, with scholarships
making up the second largest component of the budget.
According to the annual report, Milligan budgeted $3.8 million for
college-funded financial aid last year. This is about 23 percent of the total
budget in 2002-2003. In the previous year, college-funded financial aid made up
22 percent of the total budget.
“I expect that next summer’s annual report for the current academic year will
indicate a very similar level of commitment to the funding of college
scholarships and grants,” Vice President for Enrollment Management David Mee
said.
Dr. Bill Greer, Kegley associate professor of economics and business chair, said
that inflation has also factored into higher education costs across the country.
“College and University tuition across the country has increased at a much
faster pace than the overall rate of inflation for the past several years,”
Greer said.
He said that this progression is due in part to the fact that more people are
looking to earn a college degree and that colleges are offering more scholarship
money to attract students.
Greer said today’s job market requires people who are more educated, thus the
higher demand for college degrees.
According to Greer, “inflation” is defined as a general increase in the price
level. It is most often measured by comparing the Consumer Price Index from one
year to the next. The CPI for 2003 is expected to increase approximately 2
percent over the CPI for 2002. The 2004 CPI is expected to increase 1.6 percent
over 2003.
Related to the cost of tuition is the size of a college's endowment. In times of
good economic growth, having a larger endowment gives a college more money for
scholarships. When the stock market is doing poorly, however, schools dependent
on this money are hurt because they have a smaller storehouse to provide for
scholarships. At Milligan, the endowment is fairly small.
"It's a blessing at this point," Rolph said.
Comparing Milligan's Cost
So how does Milligan's cost for tuition compare with other colleges?
According to the annual Trends in College Pricing report compiled by the College
Board, the average cost of attending a four-year private school, including
tuition, fees, room and board, is approximately $26,854. This figure, which was
published a few weeks ago, has gone up about 5.7 percent in the last year.
The report also found the average cost of attending a private college or
university, including room and board, in 2003 inflation-adjusted dollars, has
risen approximately 35 percent over the past decade.
Milligan's average cost with inflation-adjusted dollars rose 45 percent over
this time when comparing data provided in a financial summary report on tuition
supplied by the business office.
Perhaps a better factor for comparison would be comparing Milligan's cost with
other institutions that are members of the Council for Christian Colleges and
Universities, where Milligan fares slightly more expensive than average.
The most recent findings in an ongoing study of tuition at CCCU schools was
printed in the Nov. 1, 2002, edition of The Chronicle of Higher Education. This
report compares costs of tuition and mandatory fees at CCCU schools, but not
room and board, ranking schools from most expensive to least expensive.
Of the 100 colleges that participated in the 2002 to 2003 study, Milligan ranked
as the 45th most expensive with a cost of $14,340. This figure had risen
approximately 8.2 percent from the previous academic year, when Milligan was
ranked 47th of the 97 schools participating in the study that year.
By comparison, CCCU member institution King College, which is located in
Bristol, Tenn., was ranked 36th most expensive of the 100 schools participating
in the 2002 to 2003 study with a cost of $15,034. This figure had risen
approximately 12.7 percent from the previous academic year, when the college was
ranked 45th most expensive of the 97 schools participating that year. CCCU
member institution Montreat College, located in North Carolina, was ranked 59th
most expensive in the 2002-2003 study with a cost of $13,448. This figure rose
approximately 9.2 percent from the previous academic year, when the college was
ranked 62nd most expensive.
FYI: Tuition Terms
1. Tuition- “a fee charged for the credit hours pertaining to the teaching of
the class. Webster says...Tuition is the fee for teaching.” From Ron Garland,
director of student accounts.
2. Endowment- “Funds or property donated to an institution, individual or group
as a source of income.” From Dictionary.com
3. Grant- “A giving of funds for a specific purpose.” From Dictionary.com
4. Inflation- “a general and progressive increase in prices; in inflation
everything gets more valuable except money.” From WordNet
-Information compiled by Missie Mills