The State Board of Education on Monday reduced the University of Idaho's student fee increase request to 9.5 percent, a move that will cost the institution about $1.1 million in revenue for the 2010-2011 school year.

Lewis-Clark State College saw its full 8.7 percent increase approved at the end of the board's daylong fee-setting meeting at the Idaho Capitol in Boise. If projected enrollment increases materialize, the tuition hike will generate approximately $1.27 million in new revenue for the college.

The UI initially asked for a 12 percent increase in resident matriculation fees, the largest request by any public college or university in the state. But the board sought to balance the institution's need for money to replace state budget cuts with students' ability to pay for a higher education.

The increase will still bring an estimated $8.9 million in new student fee money to the UI.

With those actions, the board set annual resident fees and tuition next year for the UI at $5,402, and $4,998 at LCSC.

Idaho State University was granted an increase of 9 percent, down from its initial 9.5 percent request. The board gave Boise State University its requested increase of 9 percent.

Higher education has seen tens of millions of dollars cut from its budget over the past 18 months, prompting the board in December to temporarily waive its 10 percent cap on student tuition and fee increase requests.

Several board members pressed the institutions' presidents on whether they thought they would be back next year asking for significant increases.

UI President Duane Nellis said he was optimistic that in the next three to five years, the university can raise private funding, begin public-private partnerships and generate alternative revenue sources in order to stem the growth in student fees.

But he said he was concerned about the overall trend colleges and universities are facing.

"I worry about where we are in terms of American competitiveness, in the context of what's been happening relative to disinvestment of public education," Nellis said.

BSU President Bob Kustra was much more forceful in his assessment of how Idaho treats higher education.

"Obviously, this is a very conservative state in many ways," Kustra said. "But it's also a very conservative state in how big or how large the Idaho elected officials think the budget ought to be."

Before coming to BSU, Kustra was president at Eastern Kentucky University in what he called another conservative, small state. But Kentucky has chosen to invest heavily in public higher education, and has become a nationwide model for other states.

"I've seen nothing that comes even close to emulating the commitment the people of Kentucky and its elected officials have made to the state's higher education system," he said. "I just don't see this state's leadership looking on higher education as the key link to the economy and the driving force behind a growing economy."

Kustra concluded he would be back next year asking for another tuition increase after another round of state cuts.

LCSC President Dene Thomas agreed state budget action is the driving force behind any tuition increases.

"You're going to continue to see our incremental changes and our tuition requests connected to what the state Legislature does," Thomas said, noting the old view of higher education as a public good has been steadily shifting to a private benefit for those who choose to pay for it.

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Mills may be contacted at jmills@lmtribune.com or (208) 883-0564.