As the number of students seeking higher education in Utah increases, state funding support is not keeping pace — a fact that could lead to another increase in tuition for public universities and colleges.

Richard Kendell, commissioner of the Utah System of Higher Education, spoke to the Salt Lake Rotary Club on Tuesday on investing in higher education and outlined some of the issues with which the state Board of Regents is dealing.

Kendell noted that higher education was mentioned predominately in the prayer given at the opening of the meeting. "Looking at some of the challenges that we have over the next 10 years, we may need divine intervention.

"We've had some cuts, this is a reflection of a poor economy, but it is catching us at a time when enrollment is going up and appropriations are flat if not going down," he said.

According to statistics from the Utah System of Higher Education, in 1998-99 about $5,694 state funds were spent per full-time higher education student. The projected figure for 2004-05 is $4,641 per student.

For the 2004-05 year, when the increase in students is factored in, "we've lost money coming to public higher education for the state," he said.

Reflecting that lack of funding from the Legislature, information from the USHE also shows that tuition rates are on the rise. During 1998-99, tuition for the University of Utah rose only 2.7 percent. But in 2003-04, tuition rose 11.5 percent.

For all colleges and state universities in Utah, the four-year average tuition increase in Utah is 30.7 percent. Nationally, it is 37 percent.

But Kendell said that percentage will rise.

"Utah has always been historically a kind of low-tuition, low-financial-aid state. We are now moving . . . to a rather high-tuition state."

During 2000-01, $497.9 million in tax funds and $188.5 million in tuition were spent on higher education. The percent of money coming from students, 27 percent, had been the same for many years, Kendell said.

However, the budget for 2004-05 indicates that $540.9 million in tax funds and $301.3 in tuition will be spent on higher education — 36 percent coming from students.

Kendell said only if the Legislature gives an additional $35 million a year to higher education and tuition continues to increase as it has in the past five years, will "everybody have a place in higher education."

Kendell hopes universities will increase their capacities for research and development, a goal echoed to the board by Gov. Olene Walker.

"For the fiscal year 2003, the University of Utah brought in roughly $287 million of research and development funds into this state," Kendell said. "Utah State brought in $141 million, for a total of just over $427 million of research and development money that is such a vital part of those institutions and our economy."

Science, technology and innovation will drive the economy into the future, Kendell said, and universities must be at the heart of the enterprise.

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