UW Business School May Raise Tuition $500

By Heather Laroi, The Wisconsin State Journal

Jan. 24–UW-Madison’s School of Business has served notice to undergraduate students of a proposed $500-per-semester tuition increase that could take effect by fall 2007.

That would make it the first undergraduate program at UW- Madison to charge more than the university’s base tuition.

“The UW System funding just isn’t keeping pace with the markets that we deal in,” said Michael Knetter, business school dean. “Just to stay in the game, we’re going to need new resources.”

With 1,300 undergraduates in the UW-Madison Business School, the proposed tuition hike could bring an additional $1.3 million into the program each year.

Students in the business certificate program also would face a $150 per semester increase.

“Naturally you don’t like to see costs rise, but at the same time, if it’s going to help maintain the level of education we receive here, it’s one of those things you’ve got to live with, I guess,” said junior Dave Badura, a business major from Sheboygan. “It’s probably worth it in the end.”

The proposal is expected to go before the UW Board of Regents at its March meetings.

If approved, 25 percent of the new money would go to financial aid for students, according to Knetter. More than half of the remaining money would be designated for hiring additional faculty and expanded career services and advising.

Driving the need for more money is fierce global competition for business faculty, from other academic institutions and the private sector, Knetter said.

“It’s become incredibly lucrative for finance faculty to take a Wall Street job and make 10 times what they’d make as a faculty member, and that’s been happening. That puts a lot of pressure on us,” Knetter said.

At the same time, demand for access to business programs is increasing, according to Patrick Farrell, UW-Madison provost and vice chancellor for academic affairs.

“One of the things we’re trying to do is create more opportunities for students with other majors to get a business certificate or at least a taste of business,” Farrell added. “We still may not be able to meet all the demand, but at least we could get closer.”

While the business school would be the first at UW- Madison to charge “differential tuition” for its undergraduate program, the practice is common among Big Ten schools, Farrell said.

All other Big Ten schools, except the University of Michigan, already have differential tuition in place for their undergraduate business programs. Northwestern University does not have an undergraduate business program.

“Quality comes at a price. If you’re going to compete for the faculty that are of that stature, you’re going to have to pay for it,” Farrell said.

Senior Jesse Waldron, a business major from Edgar, west of Wausau, said he’s seen the business “brain drain” firsthand.

“I know a couple of professors that I really enjoyed have left in the past couple years,” he said. “I really think the increase in money they’ll get would really help with retaining faculty and improving things for students in the business school.

“Our business school is very highly regarded. I think it’d be worth it.”

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Copyright (c) 2007, The Wisconsin State Journal

Distributed by McClatchy-Tribune Business News.

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