If the State Board of Higher Education approves its request in April, Oregon State University could raise tuition by 21 percent for resident undergraduate and graduate students, and 18 percent for non-residents beginning fall term.

The tuition increase is proposed to cover expenses - such as rising insurance costs and retirement contributions - that will not be covered in the 2003-04 budget coming before the Oregon Legislature this spring, according to OSU Interim Provost and Executive Vice President Sabah Randhawa,

"These costs are not part of that (budget request) equation, yet they are costs we're facing," he said.

Students are paying a tuition surcharge of more than $100 per term for winter and spring. It ends this summer. The proposed tuition increase equals the surcharge, plus another 4 or 5 percent.

"It still certainly is a significant increase," Randhawa said, "but hopefully it is approved. It will help us break even with our '03-04 budget. We will still be looking at additional cost cuts."

Rising health care costs and contributions to the state retirement system, as well as providing health care coverage for graduate students is expected to add $15 million to $20 million in expenses to next year's budget, most of which will be made up by the tuition increase and budget cuts in other areas.

The university already has made cuts that will continue into the next fiscal year, Randhawa said. He's hopeful the state's economic forecast will improve and that implementing some of the university's redesign plans might save money.

Randhawa predicts the state board will approve the tuition increase. Other Oregon universities are seeking increases ranging from 15 percent to 25 percent.

"They did approve the surcharge," Randhawa said. "It boils down to the same thing."

Part of the tuition increase will be set aside for additional financial aid to low-income students.

"We're looking at how can we keep it to the level that doesn't impact students too dramatically."

Theresa Hogue is the higher education reporter for the Gazette-Times. She can be reached at theresa.hogue@lee.net or 758-9526.