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Deregulation increased cost by up to 31 percent for middle class

By Michelle West
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The impact of tuition deregulation was the subject of disagreement among a handful of University organization representatives at the state Capitol on Tuesday.

Viewpoints from members of Student Government, the University Democrats and the Young Conservatives of Texas, and UT President William Powers differed as they testified in front of the Senate Subcommittee on Higher Education. The panel considered a number of bills that would restrict or eliminate the ability of universities to set their own tuition rates.

The Legislature passed tuition deregulation in 2003 in response to economic constraints. Tuition at the University has risen 102 percent since then, according to bill analysis by Sen. Rodney Ellis, D-Houston, citing the Texas Higher Education Coordinating Board. However, taking inflation and financial aid into account, the actual cost increase amounts to 16 percent to 31 percent for middle-class students, according to a document provided by UT Vice President and Chief Financial Officer Kevin Hegarty.

"This is like crack for the universities, they just can't seem to get enough of these tuition increases," said Sen. Tommy Williams, R-The Woodlands, early in the hearing.

Six bills would implement a variety of methods to cap the increases universities would be allowed to charge. One bill would do away with tuition deregulation altogether. Others would cap tuition increases at 5 percent per year or establish locked-in tuition rates.

Later in the hearing, former UT System Regent Brian Haley, a UT law student, said he was insulted by Williams' statement. "I have never gotten high off a tuition increase. In fact, I've been spat on, I've received threats, I've been beat up in the paper," Haley said. "I understand that tuition increases are a serious deal."

The elimination or restriction of deregulation would have negative ramifications on the growth of universities, he said.

In disagreement, SG spokesman and University Democrats member Zach Hall spoke on his own behalf against tuition deregulation. Tuition deregulation kills the ability of middle-class families to attend institutions of higher education, he said.
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