This document outlines the University of Hawaii's tuition schedule proposal, which recommends that the Board of Regents approve rate schedules in four areas for 1998-1999 and 1999-2000: (1) full-time tuition schedule per semester; (2) continuing education and community services per-credit-hour schedule; (3) summer session per-credit-hour schedule; and (4) apprentice and journey worker per-clock-hour schedule. The proposed tuition schedule for community college students is $492/semester for residents in 1998-99 and $516 for 1999-2000. The modest dollar tuition increases proposed for 1998-1999 and 1999-2000 are based on a rationale that takes into consideration the components of the Board of Regents tuition setting policy. The proposed increases for the next two years, when coupled with available financial assistance, will continue to afford access for Hawaii's residents. Approximately $10 million of tuition revenues were set aside and used to grant one out of every seven students' tuition wavers in the past year. These tuition waiver programs will continue. In addition to the rationale for the tuition proposal for 1998-1999 and 1999-2000, the following attachments are enclosed: proposed tuition schedules; key characteristics of the proposal; background information on tuition and Hope and Lifetime Learning tax credits; per-credit-hour schedule; institutional comparisons of tuition rates; and summary of comments as concerns raised at public meetings. (JA)