The tuition increase was approved Nov. 8 by the Executive Committee of the Board of Trustees. The budget cuts, which will affect all state agencies, were necessary because of the state's slowing economy and declining revenues.

The Columbia campus' share of the budget cut--$6.8 million--will be covered by:

• a $98 spring semester increase for resident and nonresident undergraduates, which will generate about $1.2 million. Graduate students will pay and additional $109 (resident) and $86 (non-resident)

• departmental budgets selectively cut from zero to 4 percent, saving about $2 million

• about $3.6 million from reserves allocated for the anticipated budget cut.

"We have the responsibility of managing this budget reduction and preparing the University for futher fiscal exigencies," said President Palms in a letter to the Executive Committee. "To help departments manage this cut and plan accordingly, we will permit a 100-percent carry-forward into the next budget year."

The regional campuses will increase their spring semester tuition by $50 for resident and $129 for non-resident students. USC Spartanburg will increase tuition by $95 per semester; USC Aiken will absorb its mandated cut without imposing a tuition increase.

A hiring freeze, implemented Nov. 2, affects permanent positions on all eight campuses.

"Should revenue shortfalls for the state continue, we most likely will sustain another budget cut, ranging we believe from 0.5 to 1 percent, but it could be larger," Palms said in his letter to the Executive Committee.

"At that time, we will have to consider more austere measures (such as tapping into the funded annual leave reserve, furloughs, and deeper departmental cuts) than have already been implemented."

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