AB 738

Under current law the Board of Regents (board) of the University of Wisconsin

(UW) System may not increase resident undergraduate tuition beyond an amount

sufficient to fund all of the following: 1) in an odd-numbered year, the highest

amount shown in the appropriation schedule for the tuition appropriation for that

year in the Joint Committee of Finance version of the budget bill, the engrossed

budget bill, or the enrolled budget bill; 2) in an even-numbered year, the amount

shown in the appropriation schedule for the tuition appropriation; 3) the approved

recommendations of the director of the Office of State Employment Relations for

compensation and fringe benefits for staff; 4) projected losses of revenue caused by

enrollment declines; 5) certain state-imposed costs; 6) nontraditional courses; and

7) differential tuition.

In addition to tuition, the board charges students segregated fees. Under board

policies, there are two types of segregated fees: allocable and nonallocable. Allocable

fees support campus student activities, such as student organizations, concerts, and

lectures. Nonallocable fees support fixed obligations and programs that require

stable funding, such as debt service, base operating funds for student unions, and

student health services.

In fiscal years 2009-10, 2010-11, 2011-12, and 2012-13, this bill suspends the

restrictions described above. Instead, the bill limits any increase in resident

undergraduate tuition during those fiscal years to no more than 4 percent above the

tuition in effect in the previous fiscal year. In addition, the bill limits any increase

in total nonallocable segregated fees for resident and nonresident undergraduate

students during those fiscal years to no more than 4 percent above the total

nonallocable segregated fees in effect during the previous fiscal year. However, the

bill provides an exception to the limit on increases for nonallocable segregated fees.

If the undergraduate students enrolled at an institution of the UW System approve

an increase in nonallocable segregated fees for a specified fiscal year that exceeds the

foregoing limit, the board may increase nonallocable segregated fees for

undergraduates at that institution for that fiscal year by the amount approved. For

the exception to apply, more than 10 percent of the undergraduate students enrolled

at an institution must vote to approve the increase. In addition, the ballot used in

the referendum must do the following: 1) identify the amount of the increase and the

fiscal years for which the increase applies; and 2) explain the reasons for the

increase.