(Radio Iowa) – The Board of Regents has approved a proposal from the University of Northern Iowa to charge in-state tuition rates for incoming freshmen or transfer students from the nearby states of Illinois, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. U-N-I president Mark Nook says the plan will help the Cedar Falls school and the state. “The data from neighboring states that have tuition reciprocity indicate that U-N-I will see a seven-fold increase in enrollment and graduates from the six neighboring states. Once this initiative is fully implemented, U-N-I should increase the number of workers placed into Iowa workforce annually by a little over 300,” he says. Nook says there are some start up costs when the program begins this fall.

“The first few years of this initiative will cost the university significantly. This fall we do not expect to see a significant increase in enrollment due to this initiative. However, there will be approximately 160 new entering students from six states who would have paid non-resident tuition,” Nook says. He says the school will absorb the cost of the higher out-of-state tuition for those students until they graduate. “The university needs approximately one-point five million (dollars) per year for the next few years to close this financial gap. After the initial start up period, enrollment should grow to the point that this new revenue will cover the financial gap and provide the resources necessary to cover the additional costs,” Nook says.

U-N-I will use funds from its foundation to finance the difference in cost for the current out-of-state students. Governor Kim Reynolds had recommended in January giving U-N-I three million dollars in state funds to support the initiative, but lawmakers only included half that amount in their budget plan and Reynolds vetoed the money.