MADISON Wis. (CBS 58) --Discussions about a possible tuition hike at UW-campuses are true.

On Thursday, UW-System President Jay Rothman announced plans to raise tuition by 5% for in-state undergraduate students next year.

The UW Board of Regents are set to vote on the proposal during their upcoming board meeting later this month. If approved, it would be the first tuition increase in 10 years.

The move comes two years after the state Legislature voted to lift the UW's tuition freeze, which now allows the Board to raise rates. The freeze has been in place for in-state undergraduates since 2013.

The 5% increase would raise about $38 million per year. The price hike would still more affordable than schools in the upper Midwest, Rothman said.

"This tuition increase will not change that we still be the most affordable option in the Midwest," Rothman said while speaking to the Assembly College and Universities Committee.

The UW System has launched the Wisconsin Tuition Promise program, which provides tuition costs for new, in-state freshman students whose families income is $62,000 or less.

Rothman said the program is one of the best ways for Wisconsin to compete and help address a shortage of workers.

"This modest tuition increase will help us provide our universities to continue to provide students with a world class education that produces the talent that the Wisconsin workforce needs to succeed and spark innovation, and vitality in our communities," he said.

Rep. David Murphy (R-Greenville), who chairs the committee, said he was pleased the increase is below the rate of inflation -- which is the focus of a bill he reintroduced last week that would limit how much the University of Wisconsin can increase tuition fees.

Current undergraduate tuition for Wisconsin residents ranges from about $4,750 annually at the system’s two-year schools to about $9,275 at UW-Madison, the system’s flagship four-year university, according to system figures. Those costs don’t include student fees and living expenses.

But like all other sectors, the system faces rising inflation, and Gov. Tony Evers' budget would leave the system about $130 million short of what regents say they need to run their campuses over the next two years.

Rep. Kristina Shankland, a Democrat whose district includes UW-Stevens Point Campus, did express some concerns. She's worried if lawmakers on the Joint Finance Committee don't approve more funding for the UW-System, there could be future financial hardships.

"What I'm worried about what you're saying, there may be cuts down the road if there's no General Revenue Purpose allocated by Joint Finance," Shankland said speaking to Rothman.

"I just hope this is an impetus for the members of JFC to focus hard on funding our UW-System just as they have for other programs."

The Associated Press contributed to this report.