Proposed Tuition Adjustments

University of Alaska

Board of Regents Meeting

November 9-10, 2017

Overview

• Context

• Proposal• 5% Tuition Increase

• Community Campus Tuition Parity

• 25% Discount for OEs and Certificates

• FAQs

• Appendix

2

Context

Tuition setting process: transparent / open• 244 students either attended one of the three forums [80] or provided

feedback on the form created for them [164];

• 2,564 people either watched the Facebook Live feeds during the actual campus sessions or viewed them sometime between Oct. 17 - Nov. 1.

3

UA Tuition Rates & GF AY14 to AY18

AY2014(Fall 2013, Spring and

Summer 2014)

AY2015(Fall 2014, Spring

and Summer 2015)

AY2016(Fall 2015,

Spring and Summer 2016)

AY2017(Fall 2016,

Spring and Summer 2017)

AY2018(Fall 2017, Spring

and Summer 2018)

Tuition Rates increase 2 & 4% for UG; 2% for

Grad

Tuition Rates increase $6.00 for

UG; $12.00 increase for all other

Tuition Rates increase $8 to $11 for UG; $20 to $22 increase for all

other Tuition Rates increase

+5% for all rates

Tuition Rates increase of +5%

for all rates2%/4%/2% $6.00/$12.00 $8.00-$22.00 $8.00-$23.00 $10-$50

Lower DivisionPWSCC 145 152 160 168 185Kodiak 147 153 161 169 185

All Others 168 174 183 192 202Upper Division 204 210 221 232 244

Graduate 391 403 423 444 466Non Resident

Surcharge 513Non Resident

SurchargeU-GRAD 432 444 466 489

Non Resident Surcharge

GRAD 408 420 441 463General Fund

Allocation $376,703,900 $375,827,200 $350,787,000 $324,883,500 $317,033,500

4

Undergraduate tuition (4-year) 2006-07 vs. 2016-17

State 2006-07 High-Low State 2016-17 High-Low

OREGON $5,498 15 ARIZONA $10,891 15

WASHINGTON $5,400 14 COLORADO $9,983 14

NORTH DAKOTA $5,173 13 OREGON $9,114 13

SOUTH DAKOTA $5,129 12 HAWAII $8,941 12

MONTANA $4,869 11 CALIFORNIA $8,754 11

ARIZONA $4,575 10 WASHINGTON $8,537 10

ALASKA $4,445 9 SOUTH DAKOTA $8,504 9

COLORADO $4,404 8 WICHE AVG. $8,211

WICHE AVG. $4,402 ALASKA $7,223 8

CALIFORNIA $4,220 7 NORTH DAKOTA $7,118 7

IDAHO $4,110 6 IDAHO $6,847 6

UTAH $3,568 5 NEVADA $6,445 5

WYOMING $3,515 4 UTAH $6,301 4

HAWAII $3,472 3 NEW MEXICO $6,097 3

NEW MEXICO $3,323 2 MONTANA $5,793 2

NEVADA $3,302 1 WYOMING $5,055 1

5

Ratio of Tuition and Fees to Median Household Income, Public Institutions, 2015-16, 2010-11, and 2005-06

State 2005-06 Low-High State 2010-11 Low-High State 2015-16 Low-High

Hawaii 3.77% 1 Utah 6.35% 1 Utah 8.17% 1

Utah 4.35% 2 Nevada 6.85% 2 Alaska 9.06% 2

Nevada 4.53% 3 Alaska 6.87% 3 Nevada 9.36% 3

California 4.97% 4 New Mexico 7.50% 4 Montana 10.45% 4

Colorado 5.22% 5 Hawaii 7.81% 5 California 10.69% 5

Alaska 5.39% 6 Colorado 8.02% 6 North Dakota 11.21% 6

New Mexico 5.56% 7 California 8.14% 7 Hawaii 11.23% 7

WICHE w/ CA 6.01% WICHE w/ CA 8.86% WICHE w/ CA 11.58%Washington 6.20% 8 Montana 9.41% 8 New Mexico 12.13% 8

Idaho 7.35% 9 Idaho 9.97% 9 Colorado 12.18% 9

North Dakota 7.89% 10 North Dakota 10.03% 10 Washington 12.43% 10

Oregon 8.45% 11 Washington 10.12% 11 Idaho 12.47% 11

Montana 8.51% 12 Oregon 11.32% 12 Oregon 13.63% 12

South Dakota 8.65% 13 South Dakota 12.13% 13 South Dakota 14.92% 13

Arizona N/A Arizona N/A Arizona N/A

Wyoming N/A Wyoming N/A Wyoming N/A

Source: http://www.wiche.edu/pub/factbook (Table 24)

6

Net Tuition as a Percent of Public Higher Education Total Educational Revenue by State, FY 2016

Source: SHEEO SHEF FY 2016

12

.7%

21

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29

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31

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31

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34

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34

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35

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37

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37

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38

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40

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40

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43

.3%

44

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45

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46

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46

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47

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47

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48

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48

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48

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48

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48

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49

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50

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51

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51

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52

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53

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55

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58

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59

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59

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60

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60

.7%

61

.0%

62

.6%

63

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64

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64

.1% 67

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67

.8%

68

.8%

69

.4%

72

.7%

75

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.8%

86

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7

Family Share of Public Higher Education Operating Revenues - Alaska

Source: SHEEO8

Family Share of Public Higher Education Operating Revenues, US Average

Source: SHEEO9

Net Cost as a Percent of Median Family Income, Public 4-Year Institutions

Sources: NCES, IPEDS Institutional Characteristics Files; hd2013 and ic2013_ay Provisional Release Data Files; NCES, IPEDS Fall 2012 Enrollment File; ef2012a Final Release Data File; NCES, IPEDS Academic Year 2012-13 Student Financial Aid File; sfa1213 Provisional Release Data File; U.S. Census Bureau, 2013 American Community Survey (ACS) One-Year Public Use Microdata Sample (PUMS) File.

27

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10

Net Cost as a Percent of Lowest Quintile Family Income, Public 4-Year Institutions

Sources: NCES, IPEDS Institutional Characteristics Files; hd2013 and ic2013_ay Provisional Release Data Files; NCES, IPEDS Fall 2012 Enrollment File; ef2012a Final Release Data File; NCES, IPEDS Academic Year 2012-13 Student Financial Aid File; sfa1213 Provisional Release Data File; U.S. Census Bureau, 2013 American Community Survey (ACS) One-Year Public Use Microdata Sample (PUMS) File.

92

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83

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81

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80

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78

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76

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71

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71

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69

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67

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11

Estimated Need-based Undergraduate Grant Dollars per Undergraduate FTE, by State, 2012-13

Source: US Department of Education, NASSGAP 44th Annual Survey Report on State Sponsored Student Financial Aid

1,3

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1,1

78

1,0

49

91

88

32

82

58

12

69

56

85

66

15

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53

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24

19

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34

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35

63

47

33

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15

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53

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27

12

66

22

52

22

21

11

98

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71

91

17

71

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12

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10

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74

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12

Restricted & Unrestricted Grant Aid p/Student FTE, 2005-06 Restricted & Unrestricted Grant Aid p/Student FTE, 2014-15

State Baccalaureate/Master's High to Low State Baccalaureate/Master's High to Low

New Mexico $3,480.61 1 California $6,293.09 1

Montana $2,592.25 2 WICHE AVG. $5,106.70

Washington $2,417.59 3 Hawaii $4,726.81 2

California $2,364.97 4 New Mexico $4,256.30 3

WICHE AVG. $2,176.79 Washington $3,999.14 4

Colorado $1,966.33 5 Colorado $3,926.39 5

North Dakota $1,801.28 6 Oregon $3,836.55 6

Oregon $1,754.54 7 Montana $3,490.79 7

Idaho $1,647.07 8 Idaho $2,940.85 8Hawaii $1,619.62 9 Utah $2,780.99 9

Utah $1,461.88 10 South Dakota $2,544.15 10

South Dakota $1,445.20 11 Nevada $2,462.62 11

Alaska $1,076.92 12 North Dakota $2,328.53 12

Nevada $1,015.12 13 Alaska $2,130.93 13Arizona N/A 14 Arizona N/A 14

Wyoming N/A 15Comm. of No.

MarianasN/A 15

Wyoming N/A 1613

Proposal

1. Increase tuition rate by 5 percent in AY 2019 and again in AY 2020

2. Bring tuition at Kodiak College and Prince William Sound College up to par with other campuses

3. 25% tuition discount for occupational endorsements and certificates

14

Proposal

15

Tuition increases and budget cuts

16

Community Campus Tuition Parity

• The proposal is limited to tuition; it does not include fees.

• The cost of living at 8 of UA’s 15 campuses is at or above Kodiak; 4 are higher than Valdez. Students at all those higher cost of living locations pay full tuition (see appendix).

• 25% tuition discount for occupational endorsements and certificates.

17

25% tuition discount for occupational endorsements and certificates.$1 million dollars in budget request to provide this discount to students in programs such as:

• Pharmacy Technology

• Nondestructive Testing Tech

• Logistics

• Wild land Fire Science

• Rural Utilities Business Management

• Welding

• Fisheries Technology

18

25% tuition discount

19

FAQs

How does tuition get spent?

Tuition supplements general funds to cover instructional costs. Tuition is distributed at the campuses through a revenue sharing model:

• 60/40 UAF

• 80/20 UAA, UAS

• CC’s retain 100% of their tuition;

• Exceptions to the revenue split varies (see appendix)

20

FAQs

Will a tuition increase hurt enrollment?

In Alaska, there is little evidence that tuition and overall enrollment are highly correlated for traditional student populations. In the mid-2000’s UA aggressively raised tuition 10% for four consecutive years which coincided with some of the largest enrollments at UA. Conversely, years in which UA has chosen to seek tuition increases that approximate inflation enrollment has not increased appreciably.

21

FAQs

What about our fees? How do they get spent?

Fees cover direct services provided to students. These range from specific course fees (labs) or program fees (nursing) to institutional fees (student organization).

Fees are either cost recovery OR less (sometimes much less) than cost recovery.

See appendix for list of mandatory student fees.

22

Appendix

23

UA Tuition DistributionTuition is the general contribution that students make to their education at the university and is “not directly connected to a specific course or program” (BOR P05.10.020H).

Tuition paid to UA is distributed within the universities to support academic programs, as well as scholarships and tuition waivers (which are largely funded by nonresident surcharge), some student services including advising, and a small fraction of certain facilities and infrastructure costs.

UA’s total tuition and fee revenue is much less than the total direct instructional costs incurred by UAA, UAF, and UAS. The largest part of the direct instructional costs partly covered by tuition are faculty salaries, with much smaller amounts expended for graduate teaching assistants, services, supplies, and equipment.

24

Tuition Distribution at UAA

Tuition Community Campus Exceptions Non-resident Surcharge

Anchorage campus tuition revenue is distributed 80% to the college generating the revenue, and 20% centrally to cover campus-wide needs, such as academic tuition waivers and annual SW system computing assessment.

The four UAA communitycampuses retain 100% oftheir tuition and managetheir resources as a separateallocation.

Three Masters levelprograms on the Anchoragecampus retain 100% of theirprogrammatic tuitionsurcharge fees due to thecost recovery nature of theprograms: MS ProjectManagement, MS Healthand MS Global Supply ChainManagement.

Non-resident surcharge is treated as tuition revenue.

25

Tuition Distribution at UAFTuition Community Campus Exceptions Non-resident Surcharge

The normal tuition revenue distribution for UAF Fairbanks Campus is 60% to the School or Collegedelivering the course and 40% toCentral.

Tuition distributed to schools and colleges ($25.8 million in FY17) is part of their unrestricted revenue, which also includes State appropriation, student fee revenue, and indirect cost recovery, along with a few other small sources.

School/college tuition revenue is always much less than the unit’s direct instructional costs, so tuition only partly covers those costs. The other revenue sources (mainly State appropriation) cover the rest, which are mainly faculty salaries, and include much smaller amounts for staff support, administration, commodities and services.

The Central allocation of resident tuition is distributed to student services, including advising ($3.5 million in FY17) and to utilities payments and other facilities support ($4.9 million in FY17).

The community campuses retain 100% of their tuition revenue to cover many of the same costs noted for Fairbanks Campus.

School of Management and College of Engineering and Mines’ regular tuition is subject to the normal 60/40 split, and they retain the 20% tuition surcharge.

UAF eLearning (a service unit rather than an academic unit) retains 5% of tuition revenue, while Central receives 35% and the Fairbanks campus School or College delivering the course receives 60%. However, community campus courses receive 75%, with the eLearning and Central share reduced to 3% and 22%, respectively.

UAF Summer Sessions and Lifelong Learning retains 100% of their tuition revenues (with some distribution to Colleges/Programs where specific arrangements are in place).

100% of the non-resident surchargeaccrues to Central and is used to fundscholarships and graduate teaching assistantships.

For FY17 $5.2 million was spent on graduate teaching assistantships and on several different types of student tuition waivers (talent/merit/needs-based).

$2.7 million was spent on tuition discounts mandated by Policy (WUE, Come Home to Alaska, etc.)

26

Tuition Distribution at UAS

At UAS, 80% of tuition is retained by academic departments to supplement GF and other revenue sources to cover direct costs of program delivery.

Community campusesretain 100% of theirtuition revenue.

--100% of the non-resident fee and 20% of regular tuition is centrally held is to: Supplement funding in the Library,

Learning Center, IT, Student Services and the Provost Office

Help fund student tuition waivers Help fund web delivered services such

as the Blackboard Learn and the web content management system.

Transfer to SW for the UAS computing Charge

Tuition CommunityCampus

Exceptions Non-resident surcharge

27

Fees

• Fees cover direct services provided to students as opposed to tuition which supplements general funds to cover instructional costs.

• Fees range from specific course fees (labs) or program fees (nursing) to institutional fees (student organization fees).

• Fees are either cost recovery OR less (sometimes much less) than cost recovery.

• Fees are charged for services provided at the system, university, and campus level and vary by the student’s location. A student at Kodiak College, for example, though part of UAA, does not pay housing or recreation center fees to UAA.

28

Mandatory Student Fees 2017-2018

UAA UAFUAS

(X denotes cost is in the consolidated fee)

9 credits 12 credits 15 credits 9 credits 12 credits 15 credits 9 credits 12 credits 15 credits

e-Portfolio Fee $8 $8 $8

Green Fee, Student Sustainability Fee

$3 $3 $3 $20 $20 $20

Student Concert Board Fee$10 $10 $10

Consolidated Fee $47 $47 $47

Student Government Fee $9 $12 $12 $42 $42 $42 X X X

Athletics/Recreational Sports/Intramural

$81 $108 $108 $90 $120 $120

Student Activities (includes UAF Wood Center Fee) $40 $54 $54 $45 $45 $45 X X X

Student Health and Counseling Services

$126 $168 $168 $135 $135 $135 X X X

Student Recreation Center $75 $75 $75 X X X

Library resources X X X

Learning Center X X X

Student Media Fee (includesUAS Whale song Fee)

$11 $11 $11 X X X

Student Transportation Fee$13 $13 $13 $22 $22 $22

Technology Fee $45 $60 $60 $45 $60 $60 X X X

UA Network Fee $73 $97 $121 $73 $97 $121 $73 $97 $121

UA Facilities Fee $54 $72 $90 $54 $72 $90 X X X

Total Fees $473 $616 $658 $580 $666 $707 $496 $661 $826

29

The Cost of Living across Alaska• Anchorage 128

• Kodiak 132

• Fairbanks 132

• Homer 136

• Kenai 136

• Ketchikan 136

• King Salmon (includes Bristol Bay Borough) 136

• Valdez 138

• Juneau 140

• Sitka 142

• Nome 148

• Bethel 150

Source: Alaska Department of Labor, Trends. U.S. Department of Defense Survey, January 2017.

30

Discussion

31