Thursday, March 8, 2007

Ratcheting Up College Tuition 

Wisconsin to be Punished for (Relative) Frugality?

Filed As:  Education (higher)

Minnesota and Wisconsin have an agreement for tuition reciprocity. When Minnesotans attend (most) public universities in Wisconsin, they don't pay out-of-state tuition; they pay whatever they would pay in Minnesota. Wisconsinites get a similar deal in Minnesota.

Wisconsin, as it turns out, charges less for tuition than Minnesota. That means that a Wisconsin resident attending a Minnesota university may pay less than a Minnesota resident would. At the most extreme case, the difference is $2,700.

In response, some legislators want to allow the University of Minnesota to charge Wisconsin residents more. In other words, to renege on the deal.

Why the disparity? It could also mean that Minnesota relies more on student tuition and less on general taxpayer subsidies. Given the state's political culture, that's unlikely, though possible.

Al alternative is that the Wisconsin system charges less than the Minnesota one because it has a lower cost structure; that is, it is more efficient. If so, that would mean that the University of Minnesota has some work to do in becoming more lean.

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