Business students should expect $735 increase in tuition

Business students searching for summer jobs may want to consider something with a little more income to cover next year's tuition - $735 to be more precise.

College of Business Dean Douglas Anderson explained to various student groups this week why upper-classmen are going to pay a little more next year. Starting in the Fall of 2007, students will be charged $35 for every 3000 level and above business credit. That's $105 for a three credit class. An estimated $735 more for the average junior or senior studying business at USU. In the Fall of 2008, the differential tuition fee will increase to $50 per credit for an average of $1050 more for the academic year.

Mark Niebergall, a senior majoring in Business Information Systems, said he was "pretty upset" when he heard about the increase while working in the financial aid office. Although the fee increase will not affect his undergraduate studies, he plans on beginning a master's degree here in the summer. Graduate level courses will cost $75 more per credit and increase in cost $50 annually over the next two years. After hearing Anderson explain the increase, he said it makes more sense.

Anderson and Gaylen Chandler, the management and human resources department head, explain the dilemma the college of business is in. There is a nationwide demand for doctorate degree business educators and a short supply.

"There are more than 1,000 unfilled faculty positions in colleges of business nationwide," Anderson said. "You don't have to be a whiz at economics to know price is going to rise."

This trend means that business educators are able to demand higher salaries. That demand, if left unmet, can drive professors to find more generously paying positions. Chandler said he has lost his last five assistant professors just before they were given tenure. Now the department must fill those new openings at market prices. USU business professors are currently paid 25 percent below the national average.

Chandler says the USU College of Business has always been a little behind the market but not as far as they are now. Since 2001, the college of business has had two years of zero percent increase in pay and one year with a one percent increase. This has caused what Anderson calls a "merry-go-round" effect with a high attrition rate. If the cycle of professor rotation continues, the college of business will continue to eat a hole in its budget just to keep up with market rate prices for new hires.

"You can never build a program because you're spending too much money on developing junior faculty for other universities to use," Chandler says.

Niebergall agrees teachers needs to be paid well but still feels the raise is a little excessive. With close to 1,300 juniors and seniors, the tuition increase is expected to bring in more than $1 million. Evenly spread, that equates to an estimated extra $15,000 for each faculty member. Although, Anderson said it won't be spread that way.

Take Chandler as an example. He is paid 30 percent under the average pay for someone in his position. He publishes frequently and actively teaches. His resume is highly marketable. Yet, four of the new college hires are about to be in the top six highest paid faculty members for the entire college's nearly 80 faculty and staff.

Chandler admits it's not convenient to look for jobs elsewhere with a family content to stay in Logan. But he could be payed an additional $38,000 at other institutions. There are obvious temptations to change universities but if USU can secure him an endowed chair within the next few years, he is happy to stay.

Under the direction of Dean Anderson, it appears the college of business could have a much richer lifestyle in the near future. With improved teachers and resources, he says he envisions USU's college of business a highly recognized business educational facility. Without giving details, Anderson said the College of Business is about to make university history with fundraising efforts connected to the recently announced comprehensive campaign. President Albrecht told Kenneth Carr's Business Law Tuesday class the university received its largest private donation to date, $20 million. Some of that money will go to the College of Business, he said.

Troy Smith, the ASUSU Executive Vice President who originally had some concerns with the increase, said "Ultimately, it will give us brand recognition."

After discussing the matter at length with administrators, Smith now fully supports the measure. In other words, USU business degrees will be worth more.

Eric DeFries, a junior in finance, said he understands it's a good thing but is worried about paying higher tuition for benefits he fears he will never see.

"My only issue is I don't see what it's going to do for me," DeFries said.

His biggest concern, he said, is getting a job after graduation, not how people will view his degree 30 years down the road. But Anderson insists the effects of higher paid faculty will be felt in the coming year.

Provost Raymond Coward said the decision was not one lightly entered into. The Board of Regents and Board of Trustees each unanimously approved the measure which mirrors a measure the University of Utah adopted last year.

"Unanimous doesn't mean there wasn't some hard questions asked," Coward said.

Some of those questions are the same things USU students will be forced to face in the coming year. How much is too much? Should quality education be undermined to keep costs down?

Coward suggested that President Albrecht didn't approve this measure enthusiastically but likely did it with confidence it was the right direction for the university.

Despite the increase in tuition, Anderson says USU is still a "screaming opportunity."

The college of business will be holding an informal question and answer session concerning the tuition raise on April 4, from 2:30 - 3:30 p.m. on the ninth floor of the business building.

-jfullmer@cc.usu.edu