Madison: The UW Board of Regents will be forced to set tuition for the coming school year with no state budget in place. UW System chancellors are worried about making even more cuts.

"We really are at a fundamental decision point in this state about in what direction we are going to go," says Governor Jim Doyle. Doyle says the state has reached a tipping point when it comes to funding the UW System.

The Assembly Republican's budget contains $120 million less than the Democrat's version.

At a roundtable discussion at the Capitol, Chancellors from around the state say it will be impossible to increase the number of graduates without more funding.

But even before the final budget is reached, the UW System will have some big decisions to make. The Board of Regents will set tuition at their August 7th meeting. "We've gotta get those bills out for the fall semester so families know what they're going to have to put down for their kids to come to the university," says UW System President Kevin Reilly.

The problem is state funding has a big impact on tuition levels. "There's a direct relationship between the amount of state money the legislature agrees to put in and the amount of tuition we have to raise," says Reilly.

Reilly says they originally hoped for a 4% increase. "One of the regents at the last meeting mentioned we're probably going to have to go in the 6% range."

"This uncertainty just adds to all that. It's a tough time," says UW Madison Chancellor John Wiley. He is worried about staffing. "Obviously we have to play it safe. Right now the deans have no idea what their budget will be for the year so a lot of hires on are hold, a lot of replacements for faculty who have retired or left for other reasons."