The Shippensburg University Council of Trustees unanimously voted in favor of a new tuition program on Friday, Jan. 30, during a meeting in the chapel at Old Main.

The Pricing Flexibility Pilot Program is a new model for SU students to pay tuition, based on a per-credit outline. Replacing the current flat rate, students taking 12, 15, or 18 credits per semester will see a sharp change in how much they are paying in their tuition under the new program.

The trustees passed the proposal with the hope of gaining new revenue to replace ongoing state funding cutbacks. SU has cut $34.5 million from its budget since 2003, according to the office of university communications and marketing.

The Board of Governors of Pennsylvania’s State System of Higher Education (PASSHE) still needs to approve the program, which is expected to happen sometime in late April, according to SU President George “Jody” Harpster.

If the state passes the proposal, students can expect to see changes in tuition rates for the fall semester, according to trustees.

The “Pilot Proposal One-Page Summary,” issued during Friday’s meeting, explains that out-of-state and graduate students will not be affected by the program.

However, undergraduate in-state students will experience the three-year implementation plan.

In year one, students will pay $264 per credit, which is 7 percent less than the PASSHE per credit rate of $284. The per credit rate is planned to be incrementally increased and by the start of the fourth year, students will pay the full PASSHE rate.

University officials claim the new tuition model is a necessary step to maintain operational costs at the university, while opponents argue it will place too much of a financial burden on students.

Students taking 15 credits a semester may see a 16 percent rise in tuition costs, which could possibly restrict their access to education, Deborah Jacobs, chair of the social work department and a member of the Association of Pennsylvania State College and University Faculties (APSCUF), said.

“The state’s appropriation wasn’t sufficient enough,” Michael Schaul, chairman of the Council of Trustees, said after Friday’s meeting. “We had to find alternative financial models.”

According to Schaul, SU has three main sources of income: appropriation funding from the state, tuition and fees. The university only has control over student fees, while appropriation and tuition are state regulated. In addition, SU has reserve funding it can use to supplement certain costs.

“We’ve recently been using our reserves to keep it off the backs of students as much as we possibly can,” Schaul said. “That’s coming to an end because we can’t spend our entire reserves. So we sought a new model for tuition.”

Laura Ludlam, director of marketing/publications, referred to the action as a “last resort.” According to Ludlam, SU took action to save money by reducing energy costs, equipment purchases, overtime and funding for building improvements.

Nicholas Johnson, SU student senate president, voiced his concerns to the council during Friday’s meeting. Johnson stressed that certain campus resources to support students in their education must be kept up to date, noting the campus Learning Center in the library.

“The Learning Center, as viable as it is, its understaffed and underinvested,” Johnson said after the meeting. Johnson, who said he understands why the plan is being implemented, hopes the additional revenue will be invested into campus resources.

“In order to assist students taking over 13 credits that have financial need, Shippensburg is proposing setting aside a minimum of 15 percent or more of net tuition revenue based on the need of students, not to exceed $1.5 million in financial aid for 2015-16,” the proposal summary states. The proposal is subject to change as needed during the pilot period.

Ludlam and Schaul both said other options were explored besides the one approved Friday, but according to the trustees chairman, they were aware from the start that students were going to have to pay more money.

“We did go into it knowing that, because of the appropriation formula given to us, it required us to find additional income,” Schaul said.

Indiana University of Pennsylvania and Millersville University already adopted similar programs in order to balance their budgets.

SU officials have a goal for the new model to yield a gross revenue increase of about 6 percent, while maintaining current projected enrollment trends.

If the new tuition plan fails to meet expectations, the university plans to return to the former model.

“This is being done to maintain the sustainability of the university and maintain the student experience,” Bill Morgal, SU’s sports information director, said.

News Editor Mary Grace Keller contributed to this article.

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