ASU adding tuition surcharge, closing Lake Havasu campus because of budget cuts

TEMPE, AZ (AZFamily)—Arizona’s largest public university is announcing sweeping changes amid millions of dollars in state budget cuts, including the closure of a regional campus and increased costs for students.

Arizona State University says on-campus students can expect a “tuition surcharge” beginning in the upcoming spring semester. Officials estimate the surcharge will be about $350 for full-time students and a smaller proportionate amount for part-time students.

University officials emphasized that despite the price hike, it has managed to “increase tuition at a rate lower than inflation for the past eight years.”

“These necessary actions reflect the continuing lack of public investment from state government for higher education in Arizona,’’ said ASU President Michael M. Crow.

The state of Arizona provides less than 9% of ASU’s total budget. For reference, the university says the state invests about half of other states, like Texas and Florida, when compared on a per-capita basis.

The recently signed state budget decreased funding for ASU by about $11 million. With associated statewide programs cut or significantly reduced, it’s impacting the university’s bottom line by about $24 million compared to 2023.

Forbes recently reported that Arizona was one of nine states with declining public funding for higher education.

In June, Gov. Katie Hobbs signed a series of budget bills to eliminate a more than $1 billion budget deficit. Those bills cut back on higher education, trimmed funding for many state agencies and tapped into special funds.

“Nobody got everything they wanted, but this bipartisan, balanced budget puts our state on solid financial ground,” Hobbs said at the time the spending plan was finalized.

After the university’s announcement, a spokesperson for Hobbs said: “Facing a $1.8 billion budget deficit she inherited, Gov. Hobbs brought together a bipartisan majority to balance the budget without raising taxes while protecting critical services for everyday Arizonans.”

“She remains committed to partnering with ASU to provide students with a world-class education that helps Arizona grow and attract businesses, drive innovation and research, and grow our economy,” the spokesperson for the governor added.

The Associated Press reported that nearly all state agencies took a lump-sum cut. Most of them with decreases of about 3.45%.

However, public safety agencies like the Arizona Department of Public Safety and Arizona Department of Corrections, Rehabilitation & Reentry were spared from decreased funding.

“We have to consider our options to advance the university in a financially sound way,” Crow said in a prepared statement. “For whatever reason, state leaders want the public universities to be tuition-driven, independently funded and to advance on their own.”

New challenges for aspiring educators; state still struggles with teacher shortage

The multi-million dollar shortfall also means that about 800 students intended to participate in the Arizona Teachers Academy won’t be able to be start classes.

The program awards tuition and fees in return for an agreement to teach in the state’s public schools.

The timing couldn’t be worse. At the start of the 2023 school year, more than 2,200 teaching vacancies were reported across 131 school districts across the state.

In addition, hundreds of teaching roles in Arizona are being filled by educators who don’t meet the state’s requirements to obtain the standard teacher certificate.

Arizona’s Family Investigates previously reported that to help fill classrooms, the state allows those with college degrees but no background in education to work in schools under “emergency teaching certificates.”

Big changes at ASU’s campuses far and near

Additionally, ASU officials detail that the lack of funding could impact more than 2,600 students who would otherwise qualify for the Arizona Promise Program, which covers all tuition and fees for certain low-income students.

The university is also closing the Lake Havasu Center, which currently serves about 225 ASU students and 20 staff members. It’s not immediately clear when the center will close its doors permanently.

“It’s disappointing that state leaders do not see the value of higher education in places like Lake Havasu City,” said University Provost Nancy Gonzales. “ASU will continue to do all that it can to serve that portion of the state through ASU Online and agreements with our community college partners.”

Affected students will be guided to continue their degree or program at another ASU campus or online. However, high-school students in Mohave County who rely on the center’s dual-enrollment program will be impacted.

ASU also says some faculty members can transfer somewhere else within the school’s system.

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