Fiscal Year 2015-16 Undergraduate Resident Tuition Rates

Health and Student Incidental Fee Rates Recommendations

Higher Education Coordinating Commission Funding and Achievement Subcommittee

April 2, 2015

Summary recommendations:

Resident undergraduate- Corvallis: $100 plus $183/credit hour (eliminates plateau)* Cascades: $100 plus $174/credit hour (eliminates plateau)* Differential tuition rates- No increases, in recognition of plateau changes Mandatory fees- No increases (building, matriculation, distance ed fees) Health and incidental fees- Corvallis Health fees increase $9.47 or 7.6%* Corvallis Incidental fees increase $24.07 or 7.52%* Cascades Incidental fees increase $35.00 or 25%* *these increases require approval by the HECC

April 2, 2015

1

Process:

• Tuition and mandatory fee rate proposals developed by a subcommittee of the University Budget Committee, including representatives of student government from Corvallis and Cascades. Proposals approved by the Budget Committee, then referred to the Provost and approved by the President for referral to the Board of Trustees. This group has been involved at each step in the three-year phase out of the plateau.

• Student health and incidental fee proposals at Corvallis are developed by

the Student Incidental Fee Committee, a committee of ASOSU, then approved by ASOSU and President Ray for review by the Board.

• Student incidental fee proposals at Cascades are developed by the Student

Fee Committee, approved by the Associated Students of Cascades Campus, and by Vice President Johnson and President Ray for review by the Board.

April 2, 2015

2

Undergraduate Tuition Rate Proposal

• OSU has been moving from a tuition plateau to linear undergraduate tuition over the last three years with discussion and approval from student government and appropriate governing boards (originally approved by the SBHE). This is a unique and one-time adjustment.

• OSU was the last public university in Oregon to utilize an undergraduate tuition plateau model.

April 2, 2015

3

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

3,500

10 12 14 16 18 20

Tu

itio

n c

harg

es p

er

qu

art

er

Credit hours taken per quarter

Resident Undergraduate Tuition Changes

FY13

FY14

FY15

FY16

Model for Undergraduate Tuition

• The last step in phasing out the plateau is a significant increase for students at 14, 15, and 16 credit hours. To lessen the impact, the recommendation is for a flat charge plus a per credit hour charge (the green line).

April 2, 2015

4

0 2 4 6 8 10 12 14 16 18 20

TuionCharge

CredithourLoad

Illustra onofproposedundergraduatetui onstructure(green)

Current

Percredithouronly

Flatchargepluspercredithour

Undergraduate Tuition Rate Proposal

• This approach flattens the increase for students at the full-time threshold of 12 credit hours per term and lowers the increase for students at 15 credit hours. The weighted increase for resident students is 7.6% at Corvallis and Cascades campuses.

April 2, 2015

5

Annual Dollar

Increase Percent Increase

Corvallis undergraduate resident:

12 credit hours $84 1.10%

15 credit hours $885* 11.60%

Cascades undergraduate resident:

12 credit hours $120 1.70%

15 credit hours $885* 12.20%

*$855 from end of tuition discount left from the plateau;

$30 increase over that

Undergraduate Tuition Rate Proposal

• Because the tuition plateau was a discount for > 13 credit hours, eliminating the plateau does impact students differently depending on credit hour load (7.6% weighted average increase).

April 2, 2015

6

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Percent of resident student population taking various credit hour loads

$0

$100

$200

$300

$400

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Dollar Increase Distribution, Resident Undergraduate Tuition (by credit hour load)

Credit hour load

Still appropriate relative to peer institutions’ rates:

April 2, 2015

7

Comparison of OSU resident tuition to peer institutions - excluding program specific differential tuition or course specific fees

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Annual Resident Tuition (FY15)

Health and Incidental Fees (recommended by student government):

Health and incidental fees- Corvallis Health fees increase $9.47 or 7.6%* Student Health services +$6.33 Counseling and Psychological Services +$3.14

Corvallis Incidental fees increase $24.07 or 7.52%* Cascades Incidental fees increase $35.00 or 25%* *these increases require approval by the HECC

April 2, 2015

8

Allocations for : Memorial Union, Student Media, Intercultural Services, Recreational Sports, ASOSU, Sustainability Initiative, Music and Performing Arts, Student Facility Improvement, Student Access and Family Resources, Educational Activities

Allocations for : Associated Students of Cascades Campus, student clubs and groups (16 clubs), student services, tutoring, student gear store, counselor, disability services, leadership training, reserve fund

Summary recommendations:

Resident undergraduate- Corvallis: $100 plus $183/credit hour (eliminates plateau)* Cascades: $100 plus $174/credit hour (eliminates plateau)* Differential tuition rates- No increases, in recognition of plateau changes Mandatory fees- No increases (building, matriculation, distance ed fees) Health and incidental fees- Corvallis Health fees increase $9.47 or 7.6%* Corvallis Incidental fees increase $24.07 or 7.52%* Cascades Incidental fees increase $35.00 or 25%* *these increases would require approval by the HECC

April 2, 2015

9

Questions?

April 2, 2015

10

Net Corvallis E&G Revenue Increases

April 2, 2015

11

2015-16 revenue estimates:

Co-chairs budget, Undergraduate Tuition as Recommended

FY16 Estimate

Growth from 2nd Quarter FY15

estimates % Growth

State Appropriation $101,166,010 $7,831,281 8.4%

Gross Tuition

Undergrad Resident $108,380,509 $7,939,505 7.9%

Undergrad Non-resident $115,705,759 $8,363,650 7.8%

Other Tuition* $57,526,784 $2,315,728 4.2%

Online and Summer $76,542,102 $10,660,720 16.2%

Tuition Waivers $(34,194,270) $(4,194,270) 14.0%

Student Fees $12,592,802 $47,901 0.4%

Sales, Service & Misc. $13,154,098 $383,129 3.0%

Net F&A Recovery $36,000,000 $900,000 2.6%

Total: $486,873,795 $34,247,645 7.6%

*graduate, professional

about 0.5% of undergraduate revenue increase is from enrollment growth

Corvallis E&G Projected Cost Increases

April 2, 2015

12

2015-16 Education and General Expense Increase Estimates

Current operations cost escalation (3% raise, benefit increases as defined at present, 2.5% general inflation)

Total Increase Contribution to Increase

Unclassified Salary and Benefits $9,285,367

Classified Salary and Benefits $2,290,942

Other Pay and Benefits $1,329,408

Service, Supplies, Capital Outlay $2,296,847

Subtotal $15,202,564 3.4%

New investments, costs, and program commitments

Faculty and academic staff in areas of student need 5,666,560

Facilities improvements and operations 3,842,500

Reserves and liabilities 4,850,000

Targeted student experience & success initiatives 1,280,150

Student recruitment and enrollment stability 1,578,000

Risk management and additions 585,750

Management and governance 914,339

Subtotal 18,717,299 4.2%

Total Projected Cost Increases: $33,919,863 7.5%