To recover $40 million in funds cut from the University’s budget, President Michael Crow proposed Friday a tuition surcharge of $600 per semester for all in-state students at ASU.

The economic recovery surcharge is expected to be maintained for two or three years, but additional cuts in state funding or changes to federal stimulus dollars may affect that, Crow said in a statement released early Friday afternoon.

“The economic recovery surcharge is to help maintain quality classroom instruction and course availability,” Crow said in the statement.

Crow also proposed a health and wellness fee of $40 per semester beginning in fall 2009. The fee will be waived for students enrolled only in online courses.

The proposal also includes an increase in financial aid support “to assure that accessibility is maintained for students with need.”

Specific numbers in financial aid increases were not mentioned in the proposal, but it did say merit-based aid would not increase.

“ASU is more than prepared and willing to live with less state funding than it has in the past, and has taken and is continuing to take actions to accomplish this,” Crow said in the statement. “But the reductions go beyond what is possible without dramatically altering the nature, size, scope and quality of its programs.”

Reach the reporter at adam.sneed@asu.edu