Limiting out-of-state students will raise costs for Virginians

This year, several bills have been introduced to cap enrollment of out-of-state students in Virginia colleges and universities. The patrons have introduced these bills in response to cases where Virginia high school students who have a 4.0 grade point average cannot get in to their first-choice university. This is a particularly sensitive subject with respect to our "flagship" universities -- the University of Virginia, Virginia Tech, and William and Mary.

On their face, the bills serve the laudable goal of increasing access to these schools for Virginia students. Unfortunately, their passage could have the opposite effect by pricing these schools beyond the reach of Virginia students.

Because out-of-state college students pay more than 100 percent -- and in some cases as much as 150 percent -- of the costs of their education, these students subsidize the educational expenses of in-state students. The tuition revenue from out-of-state students has become even more important to these schools as state funds have declined over the past several years.

Mandated reductions in the percentage of out-of-state students will further decrease revenue available to educate all students. The most likely result will be increases in in-state tuition to cover the difference.

Currently, at six Virginia schools, at least 30 percent of the freshman class is out-of-state students: James Madison, the University of Virginia, Virginia Military Institute, Virginia State University, Virginia Tech, and William and Mary. According to the Department of Planning & Budget, requiring these institutions to increase in-state students in the freshman class to 70 percent would cost the commonwealth an additional $5.9 million in general fund appropriations starting in fiscal year 2010-2011.

Given the budget cuts required by the projected budget shortfall of $3 billion -- which will likely increase as the January revenue numbers come in -- it will be virtually impossible to find $5.9 million in the budget to cover this cost. Moreover, these six schools will lose up to $9 million in out-of-state tuition revenue per year. Thus, even if we found an additional $5.9 million in the budget, some of the schools would be short approximately $4 million. In addition, it is impossible to calculate the amount of out-of-state alumni giving these schools would lose.

To make up the difference, these schools will be forced to raise in-state tuition. Many Virginia families already struggle to afford college. Tuition increases in the current economic climate will price many out of college altogether.

Recognizing the stark economics, Del. David Albo of Fairfax has proposed a different approach: to charge out-of-state tuition for any student who has completed 132 credit hours, but fails to graduate within four years. Albo's bill would apply only to James Madison, Virginia Tech, UVa, and William and Mary.

Not all students follow the traditional four-year college track -- and often need more flexible enrollment plans. Some students have to work to afford college and find that their work schedule delays graduation. Some students get sidetracked due to health or family reasons. Some switch majors mid-stream, or add an additional major, requiring additional course work.

It is not fair to punish these students for factors that are often beyond their control. Increasing tuition on students who take longer than four years to graduate will make completing their education unaffordable. Moreover, this proposal will not open more slots for incoming freshmen. Students in their fifth year of college or beyond do not limit freshmen student enrollment, as the schools account for these students in their class scheduling.

So, how do we fix the problem of increasing opportunities for Virginia students to gain admission to the Virginia college or university of their choice without increasing tuition? Some have suggested we look to North Carolina for the answer -- which caps out-of-state freshman enrollments at 18 percent.

However, North Carolina also provides significantly more state funding to its higher education institutions than Virginia. In 2008, North Carolina appropriated $1.3 billion (or 82 percent) more money from its general fund to higher education than Virginia did. Per student, North Carolina spent $3,710 (or 64 percent) more than Virginia did.

If we are serious about increasing a Virginia student's chances of attending his or her first-choice Virginia college or university, then the commonwealth must invest enough money in the higher education system to create more slots. Until we do so, there will always be a deserving student who gets a rejection letter from Virginia's highly competitive schools.

Jennifer McClellan is a Democrat who represents Virginia's 71st House of Delegates District, which includes parts of Henrico and Richmond. She may be contacted at or (804) 698-1071, and she has a newsletter available at http://www.jennifermcclellan.com.