University and College Tuition Rates, Spring 2007

Arizona's three universities asked for 2007-08 tuition rate increases in excess of five percent; however, the Board of Regents granted each university a five percent increase. {BAB:: Tuitions Going Up 5% At Arizona Universities (2007-08)} A few months later, the Board of Regents did allow for "fee" increases. {BAB:: Arizona Universities Increasing Student Fees}

The Maricopa County Community College District (MCCCD) could have raised tuition rates by at least five percent, but negative publicity forced the District to leave tuition rates for the 2007-08 academic year unchanged. [GDT has been with the Maricopa Community Colleges for ten years and this is the first time tuition rates were not increased.]

On 10 January 2007, GDT predicted the MCCCD would raise 2007-08 tuition rates `4.61%`, but he was wrong.

Let's Play... How GDT Made His Erroneous Prediction

Pretend the MCCCD was able to raise tuitions `5%`. The 2006-07 tuition rate was `\$65`. `5%` of `\$65` is `\$3.25` making the new tuition rate `\$68.25`. Historically, MCCCD tuition rates have been whole dollar amounts; therefore, the MCCCD could round the new tuition rate up to `\$69` or down to `\$68`.

```   if rounded up to \$69..... (69 - 65) / 65 = 4 / 65 = 6.15%
if rounded down to \$68... (68 - 65) / 65 = 3 / 65 = 4.61%
```

For the last two years (and three of the last four), the MCCCD has increased tuition rates in `\$5 increments`. A continuation of this practice would have resulted in a `7.69%` increase to a `\$70 tuition rate`.

Never over the span of the last decade, has the MCCCD increased tuition rates more than `\$5`, but they did have two `\$1` and two `\$2` increases from 1998-2002. These days a `\$1` tuition rate increase would be a `1.53%` rise, while a `\$2` increase is a `3.07%` rise.

If the MCCCD was restricted to increasing tuition rates at the current rate of inflation, the increase would be limited to about `2.2%`. `2.2%` of `\$65` is `\$1.43`. `\$1.43` rounded to the nearest dollar works out to a `\$1` increase. [According to BLS.gov, "during the first 11 months of 2006, the CPI-U rose at a 2.2 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 3.4 percent for all of 2005."]

Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 28 April 2007