Grand Valley trustees adopt budget, set tuition

The Grand Valley State University Board of Trustees adopted the university's FY 2016 budget and set tuition rates for the academic year at its July 10 meeting held on the Allendale Campus. The tuition increase complies with the state's tuition cap and keeps Grand Valley's tuition in the bottom half of all Michigan universities. The budget passed by the trustees substantially raises financial aid in keeping with the university's mission to provide access to Michigan's students.

Trustees voted to increase tuition by $163 per semester, bringing the annual tuition to $11,078 for a full-time undergraduate Michigan resident. The budget includes $40.4 million in financial aid for students, an increase of more than $2 million to be awarded in the form of scholarships or grants. This results in financial aid increasing 6 percent, while tuition is increasing 3 percent.

"This budget reflects our deep concern for students searching for affordability and a quality education in the state of Michigan," said David Hooker, chair of the Grand Valley Board of Trustees. "We know Michigan is depending on the educated workforce that Grand Valley is producing, and we also know we want our graduates to stay in the state, being productive immediately with little or no debt. To that end, we increased financial aid by a substantial amount and kept the tuition increase modest. A Grand Valley degree continues to be an excellent return on investment."

In the fall of 2014, 64 percent of all undergraduate students received gift aid, and of the 2013-14 graduates who earned a degree in four years or less, 33 percent had no debt.

The university is expected to receive $65 million in state funding, some of which is awarded based on Grand Valley's performance in key areas such as retention and graduation rates. The university shows operational efficiency with administrative costs per student nearly $800 lower than the average Michigan university's administrative costs. That results in $16 million of savings being given back to Grand Valley students and their families.

The state's share of Grand Valley's entire budget is 18 percent, meaning students and their families pay 82 percent. Trustees earmarked all of the funding from the state to student financial aid, debt service, maintenance and utilities for classroom buildings.

President Thomas J. Haas said he is pleased lawmakers have begun linking performance to funding because that helps Grand Valley students.

"We have always been known for being student centered at Grand Valley," said Haas. "That has resulted in our enrollment growth and the number of our graduates who are leading in their communities. The state is recognizing our administrative efficiency and our student success, and that allows us to continue to hold down our tuition and offer students grants and scholarships that keep them excelling in our classrooms. We're poised for another great academic year."

Nearly 90 percent of recent graduates are employed or pursuing advanced degrees. Of those working, 86 percent are employed in Michigan.

The budget passed by the board also includes a modest 2.9 percent wage increase for faculty and staff members.

For additional information highlighting Grand Valley's performance, visit www.gvsu.edu/accountability. For a chart detailing tuition at Michigan universities, visit http://gvsu.edu/s/Vx.  

In other board action:

- The Board approved a proposal to create a graduate program in Applied Linguistics scheduled to be offered in fall 2015. The field of applied linguistics focuses on the systematic study of language and its practical application to real-world issues, such as language teaching, language policy and planning, literacy and advocacy. 

- The Board approved two new programs in the College of Health Professions. The Clinical Dietetics graduate program will focus on preparing students to provide nutrition therapy and consultations to patients. The second program, a undergraduate degree in Health Information Management, will focus on preparing students to acquire, analyze, and protect digital and traditional medical information. 

- The Board approved an easement agreement with Consumers Energy on 7 to 14 acres on the Allendale Campus, south of Pierce Avenue near 48th Avenue. Consumers proposes to construct a solar energy garden and would be responsible for 100 percent of all construction and operating costs. Separately, the university is being offered the ability to purchase one half of the first megawatt, which equates to about 7 percent of the total electricity currently purchased from Consumers. The project would be completed in 2016, in time to qualify for the federal energy investment credit.

- The Board approved an agreement with Consumers Energy to lease land on the Pew Grand Rapids Campus to co-locate a corporate training and professional development center adjacent to a university-owned warehouse on Front Avenue. Consumers plans to construct a $15 million building that is expected to open in late 2016. The riverfront site is between the L. William Seidman Center and the Steelcase Building. This is a 40-year agreement, after which ownership of the building transfers to Grand Valley. A groundbreaking is scheduled for July 20.

- Grand Valley State University received top ratings from Moody's and S&P. The university received A1 and A+ ratings, respectively. Moody's cited Grand Valley's increasing market share, healthy cash flow and strong management team; S&P cited the university's stable operating surpluses, adequate financial ratios and stable enrollment. The university has consistently received favorable ratings.

- The Board approved the authorization of a new public charter academy in Kalamazoo. Kalamazoo Covenant Academy will serve a unique population of students who have previously been dropouts, homeless, or at-risk. Serving grades 9-12, with special permission to educate students who would have otherwise aged-out of the public education system, the academy will serve up to 300 students. The board also approved the appointment or reappointment of charter school board members to GVSU authorized public school academy boards.

- The Board approved the second phase of an expansion to the Recreation Center on the Allendale Campus. The 33,500-square-foot, $12.2 million expansion includes three additional basketball courts, weight equipment, lockers and staff offices. The project will be funded by the Campus Development Fund.

- The Board approved the granting of an honorary degree to Dean Kamen to be awarded at Convocation August 28. Kamen is a leading inventor, entrepreneur, scientist and advocate for science and technology. He is founder of FIRST (For Inspiration and Recognition of Science and Technology) Robotics and invented the Segway, among other inventions.

- The trustees also elected to keep Chair David Hooker and Vice-Chair John Kennedy in their positions for another term.