With the opportunity to raise in-state tuition for the first time in nearly a decade, the University of North Carolina at Chapel Hill has made a surprising decision. The university’s Board of Trustees chose not to proceed with a proposed 3% increase for resident undergraduate tuition.
During a budget and finance meeting held on Wednesday, the board almost unanimously opposed the tuition hike, which would have added $211 annually to the cost for the 2026 incoming class. This decision prevents an estimated $800,000 boost in annual revenue for the university.
However, the board did agree to a 10% increase for out-of-state undergraduates and tasked university staff with devising a plan to adjust graduate nonresident tuition, aiming to sustain a decade of stable in-state undergraduate tuition.
UNC-Chapel Hill Meeting Materials
The two-hour meeting saw heated discussions, with some board members arguing that increasing resident tuition would conflict with the state’s constitutional mandate to keep higher education “free as practicable” for North Carolinians.
Budget and Finance Committee Chair Marty Kotis emphasized the need to explore alternatives before resorting to a tuition hike. “I know the System guidance is 3% (increase) and what our sister institutions, so far I’ve heard, are all doing is taking the 3%,” Kotis continued. “Well, just because everybody else jumps off the bridge, we don’t need to. I think we need to show decisive leadership here.”
Some members were open to a tuition increase if the funds remained within Chapel Hill, but the prevailing view was to keep in-state tuition unchanged.
Recently, the UNC Board of Governors implemented a new performance funding model, shifting from legislature-allocated funds based on certain metrics to a university-contributed pool of $30 million. The funds are redistributed based on degree completion improvements, benefiting some schools, while UNC-Chapel Hill lost nearly $7 million.
Trustee Jim Blaine attributed this loss to “administrative bloat and wasteful spending,” explaining during the meeting that previous tuition increases for out-of-state students funded programs at other campuses. “It’s really hard for me to ask our students and our Carolina families to pay more to fund programs in Raleigh and Cullowhee and Boone,” Blaine said.
UNC Board of Governors Meeting Materials
To address this, the committee directed a revision of the tuition proposal, focusing on nonresident graduate students to cover the $800,000 previously intended from resident tuition increases.
Not all agreed with this approach. Trustee Ralph Meekins urged taking advantage of the Board of Governors’ allowance for a tuition increase, arguing it could help maintain the university’s competitiveness.
Chancellor Lee Roberts expressed concerns about funding shortfalls due to the state legislature’s delay in passing a budget, highlighting that current students are unfunded. “We don’t have enrollment funding for the current sophomores or for the current freshmen,” Roberts noted, emphasizing the need for state support.
Student Body President Adolfo Alvarez raised concerns about the impact of rising out-of-state tuition on the diversity of the student body. “A lot of students are concerned about what the admissions process will look like for out-of-state students and if there’s going to be socioeconomic diversity within the out-of-state student body,” Alvarez remarked, suggesting a fixed tuition plan for out-of-state students.
Trustee Blaine reiterated that North Carolina taxpayers should not subsidize out-of-state education, stating, “They need to pay what it takes to educate them, so the state taxpayers aren’t subsidizing them.”
Ultimately, the UNC Board of Governors holds the authority over tuition decisions, as Blaine noted, “The UNC Board of Governors can do whatever they want to – they can supersede us in a heartbeat.”
The Board of Trustees plans to present a revised tuition proposal soon, while other universities in the UNC System, such as NC State, are also considering similar changes. Chancellor Kevin Howell of NC State is set to propose a tuition increase at an upcoming meeting.
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