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University of Maine System Board of Trustees yesterday approved the system's fiscal-year 2013 budget, which does not include a tuition increase for in-state undergraduate students for the first time in 25 years. The $529 million budget includes a $2.3 million decrease in state appropriations.

The budget freezes tuition and mandatory fees, which range from $7,300 at the University of Maine Presque Isle to $10,594 at the University of Maine Orono, according to MaineToday Media. To offset the freeze, UMS will spend $1 million in reserves and $2.1 million in state appropriation designated for other uses.

In a press release, UMS Chancellor James Page said the system's current financial model is not sustainable over the long term, and that he will move ahead with several actions established by trustees in January:

• Aligning the system's funding with performance-based outcomes
• Reallocating savings from administration and infrastructure to the university's main mission of teaching, research and public service. This includes an in-depth review of administrative costs and structures, as well as a plan to improve the system's statewide information technology.
• Improving the college credit transfer process to make it easier for students to move among Maine's public universities and to transfer from the Maine Community College System to the University of Maine System, and vice versa.

In related news, Page also said his review of the system's compensation program found it appropriate, but suggested a few changes, according to the Bangor Daily News. He previously suspended discretionary raises following controversy over pay increases given at the University of Southern Maine. A human resources report of the compensation program did recommend setting a 30% pay-increase limit when the raise is related to a promotion or reclassification. It also recommended additional scrutiny for raises in some circumstances.

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