Tuition spending restricted

For the first time, UH is told how to spend its revenue increase

University of Hawaii administrators and students are praising lawmakers for giving the 10-campus system $26 million for new faculty and staff positions, and $95 million for construction projects, including $37.5 million to fix aging buildings.

However, for the first time administrators and lawmakers can remember, the Legislature also directed how the university should spend money raised through tuition.

It is estimated the university will see an additional $20 million to $24 million because of tuition increases this fall. The budget passed earlier this month tells the university how to spend a little more than $10 million of that increase.

The Legislature earmarked about $8.6 million in tuition spending for UH-Manoa, the largest campus, which is also seeing the biggest tuition increase. An additional $2 million in tuition revenues is directed to the B-plus scholarship program, which promises financial aid at any UH campus for low-income public high school seniors who have maintained at least a B average.

The university has the final say in spending tuition money and does not have to follow the Legislature's budget, administrators and lawmakers said.

However, Senate Higher Education Chairman Clayton Hee said lawmakers will seek explanations from the university if their budget is ignored.

"I look at our job as asking them, in light of their spending formulas and their spending habits, what's the basis for it. I think every taxpayer has the right to know that," Hee said.

"If they were requesting certain moneys, it made sense that they could spend it through their own tuition moneys," said Senate Ways and Means Chairman Brian Taniguchi, adding that the university did not object during the budget conference to the Legislature's use of tuition money.

UH-Manoa Chancellor Denise Konan said some of what the Legislature did is in line with how her campus already planned to spent the tuition increase.

But, she noted, "To me it's important that we are respecting that tuition should benefit students. We should have a link between tuition and students learning."

Konan questioned whether paying for $5 million in increased electricity, sewage and maintenance contracts is really an appropriate use for the tuition increase. Some of the increased electrical and other costs are for research, which does not directly benefit students, she said.

She said she is also reviewing whether it is appropriate to use $165,000 in tuition money for UH-Manoa's marine research facility at Coconut Island.

Konan is also looking at whether the medical school will get the full $1 million in tuition funds directed by the Legislature.

Konan declined comment when asked if she thought the Legislature was infringing on university autonomy, preferring instead to talk about the six additional positions in the financial aid office, new academic advisers and the restoration of faculty positions in the College of Arts and Sciences in the general fund budget.

"Given that we haven't gotten increases from the state to this level previously, we're just focusing on the increase of $6.2 million (in general funds) for Manoa," Konan said. "I look at the budget, and I see a lot of support for students."

UH-Manoa student government President Grant Teichman also praised the Legislature for its general fund support. But he was more direct when it came to the university being able to make its own decisions.

"I thought there was autonomy. I don't know how that meshes with earmarking tuition dollars," he said. "Tuition money should ideally be going to more classes."

UH President David McClain said he does not see the Legislature infringing on UH autonomy, noting that lawmakers have directed the university spend money from its other special funds, although not the tuition fund.

Linda Johnsrud, UH vice president for academic planning, said when the university sought approval from the Board of Regents for the tuition increase, the administration promised students that except for a portion of the increases devoted to faculty raises, the money would be used for financial aid, safety and security on campus and classroom renovations.

Johnsrud said she is working on a comprehensive plan for financial aid and is not sure yet how the Legislature's B-plus scholarship program will fit into it.

"In the end the chancellors and the president have to implement the budget to best meet the needs of their campuses," Johnsrud said.

However, both she and Konan added that they understand the Legislature's need to know how the university spends all of its money.

"We are accountable for all of our funds," Konan said.