A tuition increase for UNM students is inevitable.
A budget summit, which has never been done at UNM, will allow the University community to engage in dialogue about issues concerning UNM finances.
"We are going to have to make some choices, and we might have to make some sacrifices," UNM President Louis Caldera said. "At the end of the day, they may not be choices that any of us would like to make, but it is important for the University to understand all perspectives."
UNM is often compared to its peer group, which includes 16 other institutions comparable in size and student population to UNM.
At $3,313, UNM's tuition rate is the most affordable among the peer institutions.
Although the state's support for higher education has increased over the years, the money allocated by the state to higher education has decreased. UNM students pay a cost slightly below the national average of 30 percent for their education.
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With four scenarios to be presented, students could end up paying anywhere from $150 to $750 more per year for tuition and fees. Each scenario is tied to the University's priorities and also takes sources of revenue for instruction and activities into account.
Caldera said one of the ways students can avoid tuition increases is to stay on track and concentrate on graduating in four years. He said staying any longer would result in more money paid at the University and a loss in workplace earnings.
The University is also looking into increasing its technology systems, which would lead to an additional fee for students.
UNM's enrollment rate has risen due to recruitment, Lottery Scholarship incentives and increased retention rates. But Caldera said UNM has been a victim of its own success because of the "two-year lag."
The state bases its funding for UNM on the last available set of enrollment data from the New Mexico Commission on Higher Education. In 2002-2003, UNM's enrollment was at 25,000. If it continues to rise, more students will have to be funded with resources designed for less students.
"We never get healthy," Caldera said. "We never catch up."
Other factors included in the state's funding formula include inflation, building placement and renewal, high-cost programs and the tuition credit, which is subtracted by the state after assuming institutions will raise prices by at least that much.
UNM is also near the bottom in faculty salaries. Below the peer group's $71,890 average are UNM's faculty members who receive $65,313 on average per year.
"We are the lowest in our peer group and that has an impact on the quality of education our students are receiving," Caldera said.
UNM's Faculty Senate recommended an increase in faculty salaries as a high priority for the budget. According to its response to the budget summit, the central mission of the University is undermined when faculty is underpaid.
Scenario D is the only one that would begin to close the gap between UNM and its peer group for faculty compensation. It would also raise tuition and fees by 22 percent.
Caldera said he is looking forward to a good turnout.
The summit will be in Rodey Theater in the Center for the Arts on Thursday. From 9 a.m. to 11 a.m., the context of the budget will be discussed; from 11:15 a.m. to noon, Wynn Goering, special assistant to the president and Curt Porter, director of UNM's Budget Office, will present each of the scenarios with Caldera available for questions. From 1 p.m. to 4 p.m., delegate statements and responses will be heard.
"Part of this is an education process," Caldera said. "There are things we're going to have to do to be the kind of institution we want to be."
