State Could Slap $400K Fine on Oakland University

Oakland University could be on the hook for a hefty financial penalty for exceeding the state's suggested cap on tuition increases.

The state may impose a $400,000 fine on the post-secondary institution if its budget — it includes an added $40 million in higher ed spending — gains approval, according to The Detroit News. 

A report by The Oakland Press this week indicated:

                Oakland raised its tuition nearly 8.5 percent last year, forgoing $1.2 million in state aid. School                                                                 officials have said the additional $12 million generated by the increase was needed, in part, to compensate for state                             funding which did not take into account Oakland’s rapid enrollment growth.

The publication said in September that administrators at the school justified the raise to lawmakers. It detailed Oakland University president George Hynd's "45-minute" experience in the hot seat. At the time, Hynd reportedly said he was "not at all surprised" to be summoned.

The school’s board of trustees will convene Monday to potentially discuss tuition rates for the 2016-17 academic year and Hynd has said he does not expect to repeat the overture. The cap was set at 3.2 percent last school year.

Check out The Oakland Press and Detroit News for more on this story.