NASHVILLE, Tenn. -- Students at Tennessee's public colleges and universities could be facing a 5 percent tuition increase.

Tennessee Higher Education Commission executive director Richard Rhoda told Gov. Phil Bredesen at budget hearings Thursday that the tuition recommendation has been passed along to the administrators of the University of Tennessee system and the Board of Regents schools.

Rhoda said THEC is also encouraging differential tuition payments, meaning students would pay varying rates depending on which subjects they focus on.

Rhoda said higher education has planned a 6 percent, or $64 million, reduction in its spending plan for the budget year that starts July 1. The planned cuts come even as schools cope with a 7.4 percent increase in enrollment this year.

Next year stimulus money will continue to assists state colleges and universities, but when that money runs out, interim University at Tennessee-Knoxville president Dr. Jan Simek said layoffs will be "in the hundreds." Tuition will likely also be increased and there will be larger classes.

The stimulus money for higher education runs out after the 2010-2011 school year.