Princeton - News - 1996-97 Tuition and Fees

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PRINCETON UNIVERSITY
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FOR IMMEDIATE RELEASE
Date: January 22, 1996
Contact: Jacquelyn Savani (609) 258-3601

1996-97 Tuition and Fees Rise 4.6 Percent For Lowest Rate of Increase in Nearly 3 Decades

Princeton, N.J. -- The trustees of Princeton University voted Saturday, Jan. 20, to accept recommendations for next year's operating budget which include a 4.6 percent increase in the cost of a Princeton undergraduate education, from $27,076 in 1995-96 to $28,325 in 1996-97. That is the lowest rate of increase since 1967-68. Tuition for 1996-97 will rise 4.96 percent from $20,960 to $22,000. The 1996-97 room charge of $2,900 represents a 3.94 percent increase over the charge for 1995-95, and the $3,425 board charge an increase of 3.0 percent.

The Priorities Committee (one of six charter committees of the Council of the Princeton University Community [CPUC] with faculty, student, and staff members) made recommendations for the 1996-97 budget in a report to President Harold T. Shapiro. The President presented recommendations for a balanced budget to the board at its quarterly meeting.

The expected operating budget for 1996-97 is $525.4 million, including $62 million for the Princeton Plasma Physics Laboratory provided by the U.S. Department of Energy.

The budget for next year represents a high priority on continuing to slow the rate of increase in tuition and fees. According to the Priorities Committee report, ``For at least the past five years, the Trustees, President, and Priorities Committee have shared a strong commitment to reducing the rate of increase in Princeton's tuition and fees.'' The report notes that the increase in total fees of 4.6 percent for 1996-97 ``represents a meaningful reduction from the current year's 4.9 percent increase.''

The Committee also emphasized that the tuition and fees increase should be viewed in the context of its ``recommendation for a continued strong commitment to financial aid.'' Princeton University's undergraduate need- blind admission policy entails admitting students without regard to their families' financial circumstances by awarding aid (including scholarships, loans, and jobs) to meet the full extent of each student's demonstrated need.

Tuition for graduate students will rise to $22,000 in 1996-97 from the current year's cost of $20,960. Room and board charges for graduate students will increase on average 3.0 percent.

Though the operating budget presented for 1996-97 is balanced, the Priorities Committee report stresses that the budget for the current fiscal year is running a deficit with a shortfall estimated at nearly $4 million attributable principally to three factors:

- the need for financial aid this year exceeded the projected budget by $1 million;

- government support for sponsored research, including support for graduate students, is falling $1 million short of the projection;

- the faculty budget is exceeding projections by an estimated $2 million because, among other reasons, faculty vacancies are running lower than expected.

In order immediately to redress the projected deficit for 1995-96, a hiring pause in non-faculty positions has been instituted which will enable the University to capture some vacancy savings. Despite those projected savings, it looks at the present time that the fiscal year will close with a deficit in the operating budget which would recur without a reduction in the operating budget base. Hence, a cut in most administrative budgets has been instituted to take effect over the next two fiscal years.

Because normal inflationary increases still pertain to the budgets for the next two fiscal years, the actual budgets for administrative purposes will typically increase slightly. But two units, the library and Computing and Information Technology, have been asked to achieve a somewhat higher percentage of savings, amounting to $2 million and $1 million respectively. The cuts affecting administrative units will likely necessitate the reduction of between 80 and 120 positions and consequently, notes the report, ``also some level of reduction in services offered.''

Salaries, financial aid, the number of faculty positions, and major maintenance have been exempted from cutting.

The Priorities Committee stated its agreement ``with the President and the Provost that Princeton should not attempt to address its deficit through lowered salaries'' because of the high priority placed on attracting and retaining ``the highest quality faculty and staff.'' Accordingly, the Committee recommended an allocation of $525,000 to the academic and staff salary pools beyond the addition projected by last year's Committee to keep pace with inflation. That additional allocation is designed specifically to address primarily faculty areas particularly ``vulnerable to outside competition.''

Other funding beyond the rate of inflation includes $43,000 for both the Teacher Preparation Program and the Freshman Seminar Program. That sum will provide for a new program administrator in the Teacher Preparation Program to accommodate the increased number of students participating in the program, especially to assist with the oversight of practicing teaching. That sum will also provide for more administrative support of the highly successful Freshman Seminar Program, which has steadily grown from 10 seminars a few years ago to 45 this current academic year.

The Committee also funded a request to eliminate the coin operation of laundry facilities in undergraduate dormitories. About $25 of the increased room rate for undergraduates noted above is meant to compensate for the loss of revenues from those laundry facilities, so that costs incurred by students out-of-pocket over the academic year are being replaced by a one- time charge up front.

Finally, the Committee allocated an additional $50,000 for graduate student support, specifically for prizes and a slight increase in the highest stipends offered. That allocation is meant to augment the competitiveness of graduate programs in attracting the best candidates available.

In addition to the detailed recommendations for the 1996-97 budget, the Priorities Committee assesses the University's budget outlook over three more fiscal years. The Committee assumed a 4.6 percent rate of increase for tuition and fees and a general inflation rate ranging from 2.0 to 5.0 percent. Despite the base reductions affecting the next two fiscal years, modest deficits are again projected for 1997-98 and following, should no other actions be taken. The primary reason for this is the expected decline of sponsored research supported by the federal government.