Salem, Mass. - Anticipating a severe budget shortfall for FY `04, the Salem State College Board of Trustees approved today a $500 per semester fee hike for the next academic year. Passage of the hike took place on the same day that the House released its proposed budget, one that reduces the FY `04 state appropriation by 20 percent, or $7 million.

Responding to significant budget shortfalls in previous years, the college has already implemented dramatic cost saving measures. Among the actions taken are reduction of part-time faculty, an increase in class sizes, a cut-back in the hours of computer lab availability in the residence halls, a freeze on equipment purchases, a hiring freeze, and reduced operating hours in the library and the O'Keefe Athletic Center.

The board deemed the fee increase necessary to avoid jeopardizing the quality of education offered at Salem State College. Although the new fee structure will partially offset this year's reduced appropriation, the balance of the budget gap will be realized through deeper cuts. College officials are currently evaluating stringent cost saving options to meet the current fiscal constraints.

Members of the board have indicated that if the level of state appropriation does increase, improving the financial stability of the college, they would consider a future reduction in the fee structure. In addition, it was noted that approximately one-half of Salem State College students qualify for and receive financial aid.

Despite the pending increase in fees, college officials anticipate that enrollment for the academic year 2003-2004 will be the largest in six years. The college experienced a dip in enrollment from 1999-2001, due to the phased-in impact of the new admissions standards passed by the Board of Higher Education (BHE), but has now recovered to the 1998 level.

Prior to tonight's board vote, combined tuition and fees at Salem State College had increased by only $530 since fall 1995. In fact, between fall 1995 and fall 1999 the combined total of tuition and fees at Salem State fell from $3,408 to $2, 958. In fall 2000, the total was $3,098 and in fall 2002, the total was $3,938. Based on figures released by the National Center for Education Statistics, the average cost of an education at the public colleges and universities in the New England region was $4,844.