Jessica Gutschow
The rapid inflation of college tuition prices is a burden barred by many throughout the nation. Although tuition at the University of Wisconsin- Madison reamins relatively low compared to national standards, Wisconsin students are not immune to the weight of paying for higher education. In-state UW students face an annual price of $25,025 for tuition, while out- of-state students front a bill upwards of $35,000 for undergrad.
The University operates on a $3.1 billion budget that funds all of its functions. Many different instituitons help fund university functions, and many people do not understand how it’s all divied up. As tuition prices rapidly climb, the importance of understanding how university budgets are funded and used does too.
Through extensive research on tuition pricing and overall funding at UW, I have compiled a list of the top ten insights every prospective UW student should know.
1. In-state Tuition Frozen Since 2013
Tuition for in-state undergraduates enrolled at UW System campuses has been frozen since 2013 in an effort to keep costs low. UW–Madison is ranked second lowest in tuition costs among the 14 schools that make up the Big Ten. The freeze protects students from
soaring tuition rates and encourages in-state students to seek secondary education at the UW, but University officials claim the freeze will be unsustainable in the long-run. Two other times in Wisconsin history when a tuition freeze was lifted, (adjusted for inflation), tuition rose 20 percent in 1967 by the fourth year and 10 percent in 1999 after four years.
2. UW- System Board of Regents Sets Tuition Prices
According to the UW- System Board of Regent’s website, The board consists of 18 members, 16 of which are appointed by the Governor, and an average term lasts approximately seven years. Tuition rates are established annually at the same time as the University’s annual operating budget is approved. Tuition supports only “instructional” portion of the UW budget, meaning only faculty salaries and fringe benefits according to the 2019-2020 budget report.
3. The Federal Government Pays The Most
The federal government is the University of Wisconsin- Madison’s primary source of revenue. According to thr 2019-2020 budget report, UW- Madison has a $3.1 billion budget for one academic year funded by multiple different sources. Currently, the federal government accounts for 29 percent of the $3.1 billion, coming out to about $906 million. Most of this funding is competitively awarded to the university for support salaries for faculty, staff, students, and funds research facilities.
4. The State is Gradually Contributing Less
Wisconsin has decresed it’s contribution for university funding since 2015. In 1974, state revenue accounted for 43 percent of the university’s budget, today it is 13. The real value of state revenue to UW- Madison is the lowest it has been in 45 years. A large portion of the state’s decreased funding is due to Governor Walker’s education cuts making professors responsible for paying for more of their own health care.
5. University Increasingly Reliant on Tuition to Cover Expenses
Recent increases in university utility, health care, and salary costs are partly to blame for the UW- Madison’s increasing reliability on student tuition to cover its many expenses according to the 2019-2020 budget report and employee compensation report. In 1974, tuition made up roughly 11 percent of the budget, compared to 20 percent today. That figure is only climbing according to the 2019-2020 budget report’s “changing budget landscape” graph.
6. Tuition Does Not Support Athletic Costs at UW- Madison
UW- athletics accounts for a very large portion of the University of Wisconsin’s expendatures. However, tuition prices do not cover coaches salaries, jerseys, athletic stadiums, etc. Contrary to common belief, the athletic department is an independent entity responsible for funding all in and out- of- state scholarships through public donations according to the UW athletic department website.
7. UW- Madison Has Above- Average Amount of High- Paid Professors
On average, 30.8 percent of professors at public universities are full professors
compared to UW- Madison’s 59 percent (According to UW- Madison’s faculty compensation report). The highest paid teaching- staff of any University consists of “full” professors. The amount of staff the University considers a “full” professor is completely up to the instituiton itself. Because of UW- Madison’s large amount of full professors, professors here earn comparitivly lower wages than professors at other institutions.
8. Tuition Less Than Half of Total Expenses for Students at UW
The average cost to live in a University Housing residence hall per year, including food, is $8,600, though it ranges from $8,546 to $9,696, depending on the specific hall. Learning communities aimed at students focused on the arts, the environment, or entrepreneurship, among other interests, come with additional fees. Students in Madison also face high housing prices outside the University system. Rent for a two-bedroom apartment in the campus area averages $1,200 a month. Besides housing, students must pay for things such as cellphones, laptops, textbooks, clothing, miscellaneous items, etc.
9. Average Student Loan Debt Declining Since 2016
As total outstanding student loan debt soars past the $1.5 trillion mark, trippling since 2005. However, student loan debt has slowly been declining. The class of 2016 carries an average of $37,172 in student debt according to 2016 statistics compared to past figures showing borrowers owed about $87,500 on average according to consumer reports.
10. In- State Enrollment is Declining
Over the last nine years, in-state enrollment at UW- Madison has been rapidly declining according to the University’s enrollment report. The loss of in-state students has been nearly offset by rising nonresident enrollment. In fact, even with the decrease in in-state students, total tuition revenue has grown by $336 million. In addition, regional populations have been decreasing and less Wisconsin kids are graduating from high school. Becasue of this, the state has revently been incentivized to attract out-of- state students in the hope they stay in the state to work and raise families.
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