Trustees on Wednesday unanimously approved a tuition freeze for the fall semester at Minnesota State colleges and universities, followed by a 3 percent increase in spring.
The plan gives students an incentive to enroll at a time when social restrictions related to the coronavirus pandemic are moving many courses online.
The spring tuition increase protects schools from long-term budget woes.
Trustee Jerry Janezich called the proposal “pretty creative.”
Low-income students will see a net reduction in college costs next year because of an increase in state and federal grants.
The system’s 30 state colleges expect enrollment to drop by 9.1 percent on average this fall, and its seven universities anticipate a 5.6 percent decline. Chancellor Devinder Malhotra said he hopes the fall freeze will persuade more students to enroll.
Some colleges expect enrollment to fall as much as 20 percent enrollment next year and universities up to 14 percent, Chief Financial Officer Bill Maki said.
The tuition freeze will cost about $8.7 million systemwide, most of which they’ll cover by stopping equipment purchases.
President Joe Mulford of Pine Technical and Community College said equipment is important for technical programs but the presidents support the concept on a one-time basis.
The University of Minnesota, which expects only about a 1 percent enrollment drop, froze tuition for the entire 2020-21 academic year, cutting costs through salary reductions and furloughs.
Minnesota State has collective bargaining agreements that don’t allow for those options. Despite reduced employee numbers, staff costs should go up about .3 percent next year.
Without the spring revenue bump, Minnesota State says its schools would have to eliminate more jobs and close low-enrollment, high-cost programs that are important to regional economies.