The good news is that UTM probably won’t have to cut its operating budget this year and employees will get a 2 percent pay raise.

For students, however, the bad news is that they are likely to see a tuition increase, part of which will help fund the pay raise.

“I’d say the tuition increase is going to be less than double digits, somewhere between 7 and 9 percent,” said UTM Chancellor Nick Dunagan.

While an increase has not yet been recommended, the 7-9 percent figure is being heavily discussed, he said, adding that higher education institutions were asked to pay the salary increase from the tuition increase.

“We know that it will take about a 5 percent tuition increase to pay a 2 percent salary increase for all of our employees,” he said.

Though budget cuts aren’t anticipated, he said, state funding for UTM will be 0.8 percent less than it was last year.

Meanwhile, the university is facing higher expenses, such as $150,000 more in utilities and other fixed costs. Also, three departments that formerly paid their own way – Motor Pool, Printing and Duplicating and Telephone Services – are running deficits, he said, but those operations are being subsidized to the tune of $250,000 to $300,000 rather than passing the extra costs to other departments.

Another fixed cost the university has incurred is in hiring two more employees – a person in the Admissions Office to work solely with transfer students and a person in the Financial Aid office to work solely with lottery scholarships.

Dunagan also said that the university’s 2004-05 budget has been based on zero enrollment growth; however, with the institution of the state lottery scholarships, enrollment is expected to increase and more faculty positions may have to be funded.

When asked about the student fee increase for athletics, Dunagan said the $27-per-semester fee will be instituted this fall. The fee will replace money lost for athletic trainers when Volunteer Community Hospital canceled its contract with UTM.

“The way I look at it is, ultimately, I have to ensure the health and safety of those athletes," Dunagan said. “... I think that we do need this athletic increase.”

Application totals compared to April 2003

First-time Freshmen: Up 12 - 13% Resident Housing: Up 14% Transfer Students: Up 26% April SOAR registrations: Up 47%

Source: General Faculty Meeting of April 1, 2004