Utah Valley University cleared its first legislative hurdle Tuesday despite concerns about whether the Utah County school will sacrifice its current role and exactly how much the transformation will cost.

The Senate Education Committee moved forward SB70, sponsored by John Valentine, R-Orem, to turn Utah Valley State College into a master's degree university starting July 1, 2008. The school would continue to offer two-year programs and an expanded array of bachelor's degrees but would also begin offering several graduate programs including education and nursing.

"This offers us a fantastic opportunity to have more options for our young people and to keep our kids in state," said Sen. Pat Jones, D-Holladay. Jones jokingly added, "I would vote for anything that makes Utah County citizens smarter."

But Howard Stephenson, R-Draper, said although he'd like to see the school become a university, he's not ready to sign on. In particular, he's concerned the school will lose its place as Utah's "low-cost" school with a local industry focus.

"We haven't had a dearth of students coming to that institution. We haven't had to advertise to get more kids coming to those slots. It's a system that has worked," said Stephenson, who voted against the measure in the 5-1 vote. "I'm troubled by this approach of wanting to make it look like the other institutions."

Higher Education Commissioner Rich Kendell, however, said the UVSC model is only working on the backs of students. UVSC's tuition has gone up by 130 percent in the past 10 years and has the highest percentage of student funding of any school. While most Utah universities cover about 35 percent of faculty compensation with tuition dollars, UVSC funds about 51 percent of those costs with student money.

A $10 million infusion of state money could help bring UVSC more in line with its peers, and help reduce the number of courses taught by adjunct faculty, increase advisers and lessen the teaching load. About $1.1 million of the $10 million state investment would go toward new graduate degrees, with the remainder strengthening current undergraduate offerings, UVSC President William Sederburg said.

"The reason we've had to go to higher tuition is the underfunding per student. From our students' point of view, they feel they should get the same amount of money," Sederburg said.

Kendell has assured legislators that the $10 million in ongoing funds included in Valentine's bill will be the only state investment needed to get UVSC on the road to becoming UVU. But Stephenson said he's not convinced school leaders won't be back for more state money.