University of Delaware approves 4% tuition hike, braces for 'per-student tax' bill

Attending the University of Delaware is getting more expensive.

This week, the university's board of trustees approved a 4% tuition bump across undergraduate, graduate and associate in arts students. That's tuition for the average Delaware undergrad on campus increasing by $560, now reaching $14,600, while out-of-state students can expect a $1,510 increase to $39,100.

The cost of dorm living will increase by about the same percentage, according to the board, though dining prices will increase about 6% on average. Student fees will also increase — the comprehensive fee by 13.7%, the student center fee by 4.2% and the student wellbeing fee up 1.4%.

These increases meet concern with a "per-student tax" the city of Newark hopes to levy on its university neighbor.

And now, there's a bill on the table to make it happen.

University of Delaware student fee:City of Newark moves forward on new UD student tax, looks to state for support

Newark's hope for a per-student tax on UD

State Rep. Cyndie Romer introduced a bill at the top of May that would allow Newark to execute a new tax — seeking "up to $50 per semester, per full- or part-time undergraduate or postgraduate student, at any college or university" attending in-person, the resolution reads, with that fee adjusting with inflation.

The Newark Democrat's bill would amend the city's charter to allow for such a tax, if passed and signed, and Newark would then set the fee.

That's $100 a year at the largest amount, aiming for some $2 million in annual impact for the city depending on UD enrollment. The concept resolution passed in City Council caused a stir back in February, and the university has been lobbying against it since.

The tension here has existed for decades.

Newark says about 42% of real estate within the city is tax-exempt. That's because the University of Delaware, like all nonprofits under state law, doesn't pay property taxes. If it did, the city estimates they would total around $6 million. It does pay operating costs to the city, like water and electricity, as well as certain fixed payments in lieu of taxes — but the council says such "PILOT" payments haven't been adjusted in nearly 60 years, despite the school quadrupling in enrollment.

It contends that additional revenue sources are "imperative" to continue to provide city services. The city says it's staring at a widening budget deficit, and an unstable path forward with inflation and rising labor costs.

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Over at UD, last year already marked the largest increase in a decade. Hikes were marked up to 5% for the 2023-2024 school year, alongside a 9% increase to the cost of a meal plan and a 5% increase to the cost of living in the dorms.

With Romer's bill awaiting consideration in the House, time will tell if it adds to the growing cost for Delaware's largest university.

Got a story? Contact Kelly Powers at kepowers@gannett.com or (231) 622-2191, and follow her on Twitter @kpowers01.