OnDemand WTP Pricing Research

Bill to loosen state tuition cap stalled in Senate | Columbia Daily Tribune

Schaaf said Friday that he thinks there are far too many administrators making excessive salaries and doesn’t want students charged more to support them. He’s willing to give a bit, he said, if the bill also covers the course fees identified in a state audit last year as a loophole in the current cap.

“I believe that the rising cost of higher education, far above the CPI, is outrageous, and that there are many people at universities that are overpaid and right now there is a protection in the law for students from excessive tuition increases and I am not willing to give that away,” Schaaf said.

Under a law passed in 2007, with Schaaf’s support when he was in the Missouri House, higher education institutions cannot increase tuition by more than the change in the Consumer Price Index without putting a portion of their state appropriation at risk. Colleges and universities are seeking to change the cap to allow tuition increases above inflation in years when state appropriations are cut.

The law has effectively tied public higher education to tuition in Missouri, and since the law passed, the state has had one of the lowest rates of tuition increase in the nation.

Rowden’s bill, if passed, would not apply to tuition hikes approved by governing boards this spring for the fall term. The limit for the coming year will be a 2.1 percent increase, unless institutions seek a waiver of the law’s penalty provisions.

Read complete article here:

Bill to loosen state tuition cap stalled in Senate.