The University of Wisconsin-Milwaukee fears it has lost $3 million in tuition money due to the way in which the UW System allocated its funds. University officials calculated that if money was distributed as it was brought in, the school should have received $3 million more in funds for the 2003-04 school year. They also feel they might not be the only ones losing out.
Tuition is higher at UW-Madison and UW-Milwaukee, the two doctoral schools in the UW system, than at other universities within the state, charging $4,554 and $4,438, respectively. At comprehensive campuses such as UW-Eau Claire and UW-Stevens Point, tuition is $3,500 a year for resident undergraduates.
Professor and chair of economics at UWM William L. Holahan said the extra money, called tuition differentials, is appropriate since the doctoral campuses have unique and costlier missions.
However, UW-Madison and UWM are not getting even half of the tuition differentials back. UW-Madison only retains 38 percent of the tuition differential, while UWM keeps 13 percent of the money. The rest is spread around the UW System.
John Wanat, vice chancellor of academic affairs at UWM, argues that the extra money students at the doctoral campuses pay should be going back to those campuses.
“We have concerns and we’ve voiced them,” Wanat said.
The same process that has been used in the past was used this year. However, there are a number of different ways to allocate the money, and the manner in which it was distributed this year is causing UWM to protest.
Andrew Richards, acting vice president of budget and planning at UW-Madison, says that no one at UW-Madison is complaining.
“Some years you win and some years you lose,” said Richards. “That is what is good about being in a large system. It keeps us moving along evenly instead of bouncing up and down.”
Holahan, however, disagrees with this thought.
“While it is beneficial to be in a network like the UW campuses, you have to get the prices right,” said Holahan. “These revenues from tuition differentials should be used to maintain the world-class status of UW-Madison and to enable UW-Milwaukee to get to that status fast.”
Tuition differentials continue to rise each year, with tuition increasing $200 at both UWM and UW-Madison since last year. Gov. Jim Doyle has justified this rise by comparing these universities to peer institutions. In relation to their peer schools, UW-Madison and UWM are considerably lower in cost than others in the Big Ten.
“Doyle is right, but there are two edges to that sword,” Holahan said. “In order to compete, you must charge what the competitors are charging, but you must also spend that money to hire the faculty, staff and administration to remain a competitor.”
Funds are allocated annually, so there is nothing that can be done about the losses UWM officials feel they have endured. However, every year the UW System reviews how money is allocated and makes changes accordingly.
Holahan hopes these changes will consider the distribution method of money to the doctoral schools.
“They have been doing it wrong for a long time. Everyone, most importantly the students, need to become aware of it,” he said.
