The Nebraska State College System announced Monday it plans to raise undergraduate tuition by 5.15 percent for the coming academic year.

The tuition hike, along with the rest of the state college system's $97.8 million operating budget for 2009-2010, goes before the system's Board of Trustees on Friday.

If the budget is approved, full-time, in-state undergraduates at Peru, Wayne and Chadron state colleges will pay $180 more in tuition next year than they did in 2008-2009.

Graduate tuition rates are set to go up 5.25 percent, and online rates will increase as well.

Tuition hikes are never easy, acknowledged Stan Carpenter, state college system chancellor.

But given the recession and the fact the system already has made layoffs and program cuts, tuition increases are necessary this time around to ensure the system's quality doesn't erode, Carpenter said.

"Is it higher than we'd like? Sure," he said. "But, recognizing the economic realities of the world, that seemed to be a number that we thought was reasonable and that students could understand and accept and, at the same time, wouldn't put the burden on them."

The tuition increase means in-state undergraduates would pay $122.50 per credit hour, up six dollars from 2008-2009. Out-of-state undergraduates would pay $245 per credit hour, up from $233.

In-state graduate students would pay $155.50 per credit hour, up from $147.75, and the out-of-state rate would rise from $295.50 to $311.

Online rates for in-state students would go from $168.50 to $180 per credit hour, and the out-of-state rate would go from $210.75 to $225.

Combined with a 1.5 percent increase in state funds for next year, the extra tuition revenue could help the state college system avoid further cuts.

The system already has had to make difficult decisions, including cutting the equivalent of 30 full-time positions through layoffs and unfilled positions.

In addition, pending Board of Trustees approval, Chadron State College is set to do away with academic majors in information science and technology and museum studies/applied history, and minors in humanities, geography, political science, sociology and Spanish.

On top of those cuts, each state college campus has trimmed 3 percent of its operating budget to give the system a cushion of $1.5 million to $2 million in case the economy worsens down the road, Carpenter said.

The salary pool for support staff will increase 3.3 percent next year, and professional staff will receive 3.5 percent raises. A special master awarded unionized faculty members raises of 11 percent over the next two years, but the state college system has appealed that decision and is awaiting a decision from the Commission of Industrial Relations.

No state college employee earning more than $75,000 will get a raise next year.

"The Board (of Trustees) is very appreciative of the sacrifice these employees are making on behalf of our students," said Larry Teahon, chairman of the board's fiscal and facilities committee.

Among the positives in next year's budget: Peru State College on Monday unveiled a three-year pilot program that eliminates out-of-state tuition next year as a way to keep enrollment growing and attract more educated workers to Southeast Nebraska.

The program applies to current and future students. After three years, trustees will decide whether to continue the program.

Also for 2009-2010, the state college system will implement a program called Advantage that guarantees first-time freshmen who receive federal Pell Grants pay no tuition.

Carpenter said the program fulfills one of the system's top priorities: access.

"We're doing all that we can to make sure that those who are the neediest are able to get a college education," he said.

He has said system leaders hope to make Advantage permanent.

Meanwhile, even though they face tough times, the state colleges will continue to invest when necessary, Carpenter said.

"Everything is directed toward making sure we're continuing to provide high-quality education for our students," he said. "That's the bottom line in this whole process."

Reach Melissa Lee at 473-2682 or mlee@journalstar.com.