(WBIR-Knoxville) The University of Tennessee Board of Trustees approved an across the board tuition hike on Thursday afternoon.
In-state students will see a 6 percent increase next academic school year, and out-of-state students will see a 2 percent increase. UT officials cite rising costs of higher education for the increase, even though the university is receiving more money from the state. UT officials said on-campus living, food and transportation prices are increasing as well.
UT Chancellor Jimmy Cheek said despite the tuition hikes, the university still provides students a quality education for a great value.
"We need to do everything we can to be effective and efficient, but if you look at the quality of education students get here and the price they pay, we're still a very good bargain," said Cheek.
The tuition hike is part of the approved a $1.99 billion budget for the 2014 fiscal year. The state is giving the university an additional $38.2 million in funding, which will help pay for faculty salary raises of 1.5 percent.
UT System President Joe DiPietro said the university remains optimistic for the next fiscal year.
"We have a strong budget from the state, and most numbers are better than in most years although much of the increased state funding is earmarked for specific programs and not for general funds," Dr. DiPietro said in a statement.
UT officials also said the university will be increasing the salaries of its top officials, but they will remain below or average of other similar positions at other schools.