The Board of Regents gave final approval Wednesday to the proposal to increase the tuition at the University of Iowa by three percent next fall. That brings the U-I into line with the tuition increase implemented for Iowa State University and the University of Northern Iowa in September for this spring semester. Student Regent Rachael Johnson joined the board this year and says there has been a lot of discussion about tuition in that time.

“Throughout these long conversations I have come to believe that the current way we as a board go about setting tuition is neither predictable to the students and their families, nor sustainable,” Johnson says. “This lack of predictability, reliability and sustainability is a point of concern for me as a student and as a regent.” Johnson, who is originally from Sioux City, says the board should look at the recommendation of a consultant that they use a need-based aid system for students in the public university system.

“I think the way in which tuition rates are decided needs to be carefully looked at and discussed to find the best methods for the state, the Board of Regents, our universities and out students and their families,” Johnson says. The increase is for undergraduate students who are residents of the state. Board of Regents president, Bruce Rastetter says they have continued to work with state officials to turn around the trend that saw students paying more of the burden of college and the state less. Rastetter says that continued as the presidents of the University of Iowa, Iowa State University and the University of Northern Iowa all made pitches to the governor for more state money during budget hearings this week.

“So, if we’re not successful in doing that, it would be my recommendation that this board come back and revisit tuition increases. Because at the end of the day, the universities need the resources to compete and improve programs and maintain quality,” Rastetter says. “Student debt without quality isn’t something that this board is going to support.” Regent Larry McKibben of Marshalltown, says the board needs to keep up the push for the state to spend more on higher education.

“It is time that we stop the decline in the amount of support we get from our legislature and from our state of Iowa. It has been a downturn for the last decade and it is time it stops,” McKibben says. “We’ve made some headway…. but we have not made enough, in my estimation.” McKibben is a former legislator and says it is important that lawmakers hear about the issue.

“I’m asking all Iowans that might listen and hear this — it is time to talk to your resident legislator. It is time to get into their back yard, get into their town halls and deliver the message. The only way you do it is to deliver it to one senator or one representative at a time,” McKibben says. The tuition rate had been frozen for three years before the increase in the spring semester.

(Radio Iowa)

Here is the latest Iowa news from The Associated Press

The City Council in Atlantic met Wednesday night and approved the Fiscal Year 2016 Budget for Atlantic Municipal Utilities (AMU), following a presentation by AMU General Manager Steve Tjepkes. The $17.9-million dollar budget was approved earlier by the AMU Board of Directors, following a public hearing. The City Council’s adoption of the budget was merely a formality, and is an opportunity for the Council to ask questions about how the utility spends its money.

Tjepkes said along with the budget is a proposed three-percent rate increase for both electric and water users, effective Feb. 1st, 2016, for usage beginning in January. He said electric rates are being increased because of expenses associated with the coal powered generating plant in Council Bluffs. He said EPA regulations on the handling and disposal of coal ash will result in an increased cost to AMU of to $2.3-million.

AMU has a 2.5-percent investment in the plant, from which it receives about two-thirds of its power. The costs to run and maintain the plant are shared by three other utilities, including Mid-American Energy, which is an 80-percent share holder. Cedar Falls Utilities and two rural electric cooperatives are the other owner-investors.

Locally, Tjepkes said the utility is in the process of burying many of its overheard power lines in order to reduce the number of power outages related to power lines being down from ice and wind damage, and, they are continuing to work on the installation of “smart” electric meters, which relay real-time two-way communications to AMU on usage and power outages. Tjpekes said overall, the three-percent rate increase will mean about an extra $1.80 per month on their residential electric bill.

Water rates in Atlantic will increase about 70-cents per month to help cover the costs of new lines being installed in the residential area near the Sunnyside Pool, and near.
Councilman Dick Casady asked “What would happen if [AMU] didn’t get the three-percent raise. Tjepkes said the utility issues revenue bonds, which are paid for by revenue from the utility. AMU he said, needs to keep up its cash reserve level in order to maintain its revenue bond rating.

He said there is also a huge risk associated with maintaining the Council Bluffs plant, and funds need to be set aside to purchase electricity from other sources, should the Bluffs plant go down. If AMU didn’t have a cash reserve, Tjpekes said there could be a substantial rate increase in that type of emergency situation. Tjepkes said utilities such as AMU should have an eight-to 10-million dollar cash reserve. Right now, he says they have about five-to six-million dollars.

The last rate increase from AMU came about two-years ago, and about three-increases over the past 10-years, due to environmental improvements at the Council Bluffs generating plant. Tjepkes says Atlantic is still “On the low end” for electric rates, when compared to utilities of similar size.