Tuition and Fee Recommendations

Board of Trustees December 4, 2014

Presentation Outline

• Overview of Tuition and Fee Policy • Comparisons • Tuition Recommendations • Fee Recommendations • Board Discussion

Slide 2

The University of North Carolina Establishing Tuition and Fees

• The constitutional provisions for setting

tuition are codified in General Statute 116-11(7), which states, in part, "The Board (of Governors) shall set tuition and required fees at the institutions, not inconsistent with actions of the General Assembly.”

• The UNC Policy Manual Chapter 100.1.1 https://www.northcarolina.edu/apps/policy/index.php?pg=vs&id=s474

Slide 3

Establishing Tuition “Tuition is charged to partially defray the

costs of general academic and administrative operations of campuses, including academic programs and faculty and administrative salaries and benefits.”

Slide 4

Establishing Fees

“Fees will be charged only for limited, dedicated purposes and shall not be used to defray the costs of general academic and administrative operations of campuses, including academic programs and faculty and administrative salaries and benefits.”

Slide 5

Campus-initiated Tuition

• “Campuses may request increases in tuition to provide revenue for specific purposes and programs.”

• Revenues will be used to cover general operating inflationary increases and significant changes in fixed personnel costs, strategic investments that improve student outcomes, and faculty and staff compensation.

Slide 6

Tuition and Fees Four-Year Plan 2015-16 through 2018-19

• Maximum tuition rate of increase for resident undergraduate students shall be 5% per year.

• Allowable increases in student fees required for all students, other than debt service fees, are also capped at 5% annually.

Slide 7

Tuition and Fees Four-Year Plan

• 15% cap on total tuition dollars for need-based financial aid.

• Combined tuition and fee rates for undergraduate residents shall remain in the bottom quartile of public peers.

• Combined rates for nonresident undergraduate students should be market driven and reflect the full cost of providing a quality education.

Slide 8

Tuition and Fees Four-Year Plan

Tuition and fee rates will be set on a biennial basis. • 2015-16 and 2016-17 rates set in the winter

of 2015 • 2017-18 and 2018-19 rates set in the

winter of 2017

Slide 9

How do UNCG’s tuition and fee rates compare nationally?

Most recent national report from College Board: “Average in-state published tuition and fees at public four-year institutions increased from $8,895 in 2013-14 t0 $9,139 in 2014-15.”

UNCG’s in-state undergraduate rates:

$ 6,086 2012-13 $ 6,323 2013-14 $ 6,382 2014-15

Slide 10

Institution In-State Undergraduate Tuition and Fees Northern Illinois 12,346

Virginia Commonwealth 12,002

Bowling Green State University 10,726

Western Michigan 10,355

University of Louisville 9,946

Indiana University-Purdue University-Indianapolis 8,756

Old Dominion University 8,550

Georgia State University 8,368

Oregon State University 8,322

University of Memphis 8,312

Indiana State University 8,256

Portland State University 7,878

Middle Tennessee State University 7,546

Florida International University 6,496

UNC Greensboro 6,382

University of Central Florida 6,317

Incomplete Data

Kent State University

University of Southern Mississippi

The University of Texas at Arlington

How does UNCG compare with national peers? 2013-2014 Annual Rates

Slide 11

How does UNCG compare within our system? 2014-2015 Annual Rates

Institution In-State Undergraduate Tuition and Fees

NC State 8,134

UNC Chapel Hill 8,128

Appalachian State 6,439

UNC Greensboro 6,382

UNC Wilmington 6,316

UNC Asheville 6,273

UNC Charlotte 6,180

Western Carolina 6,157

East Carolina 5,985

Winston-Salem State 5,624

NC A&T 5,536

NC Central 5,445

UNC Pembroke 5,207

Fayetteville State 4,631

Elizabeth City State 4,498

Slide 12

UNCG’s Budgeted Recurring State Appropriation per Budgeted In-State Full

Time Equivalent Students

$11,509 $10,950

$9,668 $9,985 $9,569

$2,590 $3,243

$3,454 $3,779

$3,932

2009-10 2010-11 2011-12 2012-13 2013-14

Budgeted Appropriation per In-State Student FTE Tuition In-State Undergraduate

Slide 13

How does UNCG compare with national peers? 2013-2014 Tuition and Fees

Institution Out-of-State Undergraduate Tuition & Fees

Indiana University-Purdue University-Ind 29,571 Virginia Commonwealth University 29,473 Old Dominion University 24,210 Western Michigan University 24,109 University of Louisville 23,834 Oregon State University 23,514 Portland State University 23,088 University of Memphis 23,024 Middle Tennessee State University 23,002 Georgia State University 22,936 University of Central Florida 22,416 Northern Illinois University 21,924 UNC Greensboro 20,180 Florida International University 18,895 Bowling Green State University-Main 18,034 Indiana State University 17,992 Kent State University at Kent The University of Texas at Arlington University of Southern Mississippi

Slide 14

How does UNCG compare with national peers? 2013-2014 Tuition and Fees

Institution In-State Graduate Tuition & Fees

Portland State University 13,539 Oregon State University 13,110 Western Michigan University 12,812 Virginia Commonwealth University 12,002 Northern Illinois University 11,976 Bowling Green State University-Main Campus 11,798 University of Louisville 10,984 Florida International University 10,763 Old Dominion University 9,888 University of Memphis 9,560 University of Central Florida 8,831 Indiana University-Purdue University-Ind 8,795 Middle Tennessee State University 8,424 Georgia State University 8,392 The University of North Carolina at Greensboro 6,991 Indiana State University 6,914 Kent State University at Kent NA The University of Texas at Arlington NA University of Southern Mississippi NA

Slide 15

How does UNCG compare with national peers? 2013-2014 Tuition and Fees

Institution Out-of-State Graduate Tuition & Fees

University of Central Florida 28,616 Western Michigan University 26,139 Old Dominion University 25,152 Indiana University-Purdue University-Ind 23,991 Georgia State University 23,944 Virginia Commonwealth University 23,081 Florida International University 22,861 University of Louisville 22,642 Middle Tennessee State University 21,150 University of Memphis 20,738 Oregon State University 20,643 Portland State University 20,451 UNC Greensboro 20,440 Northern Illinois University 20,192 Bowling Green State University-Main Campus 19,106 Indiana State University 13,394 Kent State University at Kent NA University of Southern Mississippi NA The University of Texas at Arlington NA

Slide 16

How does UNCG compare on fees? 2014-2015

Athletic Activity Health Ed. & Tech. Facility ASG TOTAL ASU 701 623 268 495 579 1 2,667 UNCC 747 561 214 450 685 1 2,658 UNCA 730 720 346 473 337 1 2,607 WCU 688 572 296 544 387 1 2,488 WSSU 694 531 247 416 591 1 2,480 UNCG 696 378 275 397 707 1 2,454 UNCW 655 664 191 399 381 1 2,291 NCA&T 723 546 304 405 288 1 2,267 NCSU 232 601 310 428 525 1 2,097 ECU 631 599 235 342 218 1 2,026 UNCP 655 582 160 351 247 1 1,996 NCCU 749 476 243 401 120 1 1,990 FSU 618 493 151 310 315 1 1,888 ECSU 624 609 250 238 0 1 1,722 UNCCH 279 358 436 445 186 1 1,705

Slide 17

UNCG Tuition and Fee Process

• Since the beginning of the Fall semester, two committees have reviewed proposals for campus-initiated tuition and student fee increases.

• Two campus forums were conducted in early November to provide opportunities for the campus community to provide input before the committees made final recommendations to the Chancellor.

• Continued opportunities to provide input and feedback were available through November 11, 2014 using email accounts that went directly to the Vice Provost and Vice Chancellor for Student Affairs who shared the results with their committees.

• Final recommendations were determined by the committees after a review of that feedback and submitted to the Chancellor.

Slide 18

Campus Initiated Tuition Committee

Committee Chair: Simone Stephens, SGA President Alan Boyette, Vice Provost

Student Leaders: Melissa Elmes, Graduate Student Dylan Frick, Undergraduate Student Zachary Vestal, Undergraduate Student Elizabeth Warren, Graduate Student

Faculty Representatives: Gregory Grieve, Religious Studies Spoma Jovanovic, Communication Studies Eileen Kohlenberg, Nursing Professional Staff: Cherry Callahan, Vice Chancellor for Student Affairs

Steve Honeycutt, Director of Financial Planning and Budgets Deborah Tollefson, Director of Financial Aid

Slide 19

What are the Guiding Principles* of the UNCG Tuition Committee?

1. UNCG must remain affordable for its neediest students.

2. UNCG must not significantly increase its rank among the constituent UNC institutions in terms of cost.

3. Recommended actions are believed to provide positive contribution toward the quality of the students’ educational/learning experience.

*These principles were established by UNCG’s first CITI Committee in Fall 2000 and

observed by each subsequent committee.

Slide 20

Chancellor Recommendation (based on Tuition Committee recommendations)

Academic Year Tuition Increase:

Undergraduates Tuition Increase:

Graduate Students

Total Revenue

2015-16 $197 $232 $3.3 Million

2016-17 $206 $244 $3.5 Million

*Represents a 5% increase for in-state students; the same dollar amount of increase is charged to out-of state students

Slide 21

How would the increased tuition revenue be used?

Purpose for funds 2015-16 2016-17

1. Retention and Support of EPA Faculty and Professional Staff (60%)

$1,982,000 $2,106,000

2. Undergraduate Student Success and Retention Initiatives (22%)

$724,000 $767,000

3. Graduate Assistantship Stipends and Tuition Awards (18%)

$594,000 $627,000

Slide 22

1. Retention of EPA Faculty and

Professional Staff

Slide 23

What is the salary increase history?

Faculty EPA Non-Faculty

2008-09 5% 3% 2009-10 0 0 2010-11 0 0 2011-12 0 0 2012-13 1.2% 1.2% 2013-14 0 0 2014-15 * - - - 0

million was %.

* The General Assembly provided $5 million for all EPA salary increases system-wide. UNCG’s portion of the $5 million was $276,634 for salary increases.

Slide 24

2014-15 Faculty Salary Increase*

(Allocation of $276,634 in salary increase funds)

Number of UNCG faculty receiving increase: 182 of 842

Percent of UNCG faculty receiving increase: 21.6%

Among those awarded salary increase:

Average dollar amount of increase = $1,699 Average salary increase percentage = 1.98%

*No salary increase provided to EPA professional staff (non-faculty)

Slide 25

How does UNCG compare with national peers? 2013-2014 Average Faculty Salaries, in thousands

Institution All Ranks Professor Associate Professor

Assistant Professor

Florida International University 87.5 120.2 90.3 81.4 University of Louisville 84.6 115.5 77.8 64.5 Western Michigan University 82.2 101.7 75.5 64.5 Georgia State University 80.7 120.7 79.1 75.0 Old Dominion University 79.7 114.1 81.3 70.1 Virginia Commonwealth University 79.1 118.0 82.9 71.7 Indiana University-Purdue University-Ind 78.3 113.6 81.1 68.8 Oregon State University 78.2 112.1 88.0 77.2 University of Central Florida 78.1 120.6 82.4 69.7 Kent State University 76.6 109.9 82.0 71.3 University of Memphis 75.5 108.1 73.9 64.5 Portland State University 74.9 101.6 76.3 65.5 The University of Texas at Arlington 74.5 105.9 82.0 68.5 Northern Illinois University 72.8 98.5 75.5 68.3 UNC Greensboro 72.7 108.0 76.1 69.8 Indiana State University 70.5 95.6 71.0 64.2 Bowling Green State University Ohio 66.5 99.3 65.9 63.0 University of Southern Mississippi 64.5 87.3 66.7 61.6 Middle Tennessee State University N/A N/A N/A N/A

Slide 26

2. Undergraduate Student Success and Retention

Initiatives

Slide 27

Assess and Strengthen Academic Advising

Support for academic advising improvement

has been cited as a priority by the Student Government Association leadership

for at least five consecutive years.

Slide 28

83.0%

81.0%

83.0%

80.0% 81.0%

83.0%

85.0%

76.0% 77.0% 77.0%

76.0% 76.0%

74.0%

78.0%

68.0%

70.0%

72.0%

74.0%

76.0%

78.0%

80.0%

82.0%

84.0%

86.0%

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

LAC Participants All Full-time Freshmen

The Learning Assistance Center provides academic support programs including tutoring, academic skills instruction, and workshops that help students improve study skills, increase their understanding of

course content, enhance self-confidence, and encourage positive attitudes toward learning.

One Year Retention: Learning Assistance Center Users

Slide 29

59.0% 61.0% 63.0% 65.0%

53.0% 54.0% 55.0% 56.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2005/06 2006/07 2007/08 2008/09

LAC Participants All Full-time Freshmen

Six-Year Graduation Rates: Learning Assistance Center Users

Slide 30

What is the average debt of graduates?

Not reporting: ECSU, NCCU, UNCC, UNCSA, and WSSU

Source: http://projectonstudentdebt.org/state_by_state-data.php Slide 31

What is the three year student loan default rate?

Slide 32

3. Graduate Assistantship Stipends and Tuition Awards

Slide 33

Graduate Assistantship Stipend Levels at UNCG compared to National Averages, 2013-14*

Teaching Assistantships

Research Assistantships

National Average

$13,893

$13,486

UNCG Average

$7700

$7700

Difference

($6193)

($5786)

*Data represent average stipend levels across all disciplines and academic programs, and across all degree levels (e.g. MA, MS, MFA, PhD).

Source: National Graduate Stipend Study, Oklahoma State University and UNCG Graduate School

Slide 34

Student Fee Committee Committee Chair: Joseph Graham, SGA Vice President

Cherry Callahan, Vice Chancellor for Student Affairs

Students: Brenna Barnett (U) Derek Strong (G) Kayla Hansen (U) Courtney Laganke (G) Tom Gill (U) Elizabeth Warren (G) Erika Sisk (U) Cameron Davis (U) Faculty Members: Alice Hill, Languages, Literatures, and Cultures Chris Rhea, Kinesiology Patti Sink, Music

Professional Staff: Steve Honeycutt, Director of Financial Planning & Budgets Charles Maimone, Vice Chancellor for Business Affairs

Deborah Tollefson, Director of Financial Aid

Slide 35

What are Fees?

• “General fees” are – Activities – Athletics – Educational & Technology – Health – “ASG fee”

• “Fees related to the Retirement of Debt” – Facilities Fee

• Other Fees – Transportation – Registration

Slide 36

What Does It Provide? Student Activities Fee

2014-15

Elliott University Center 651,139

12% Campus Activities &

Programs 1,097,183

20%

Facilities Maintenance 1,042,889

19%

Campus Recreation 1,055,071

19%

Other (each less than 3%) 703,878

13%

Student Government General Fund

195,684 4%

Leadership & Service Learning 419,244

8%

Equipment Replacement 168,918

3% Safety Escort & ID

Center 124,311

2%

Slide 37

What does it provide? Athletics Fee

• Fee supports most costs of UNCG’s Division I intercollegiate athletics program.

• Some costs are also met by ticket revenue and endowment income.

Slide 38

What does it provide? Education and Technology Fee

Education = academic course materials & supplies (such as lab equipment)

Technology = partial support of IT for student use; classroom technology, and ongoing refresh projects including band-width expansion Slide 39

What does it provide? Health Fee

• Wellness programs (nutrition, eating disorders, smoking cessation, etc.)

• Alcohol and drug programs

• Medical services • Pharmacy • Immunizations • Lab/X-ray • Psychiatry • Counseling

Slide 40

Proposed Sustainability Fee (UNCG Green Fund)

The Green Fund will support sustainability efforts on campus and governed by

students with assistance from faculty and staff. The fund will invest in campus

infrastructure to help meet the goals of the UNCG Climate Action Plan.

Slide 41

What does it provide? Facilities Fee

• Pays off the debt incurred on “capital projects” when

student facilities are built or renovated—for example: – Soccer stadium – Student Recreation Center – Baseball stadium – EUC renovation – Student Health Center expansion/renovation

(**Facilities fee does not include residence halls, dining or parking facilities; these are paid for by users.)

Slide 42

Who Pays General Fees?

• Students pay fees along with their tuition each semester. • Exceptions:

– Distance learners who take no courses on campus pay only the Educational & Technology Fee.

– Graduate students enrolled in fewer than 6 credit hours and undergraduates enrolled in fewer than 9 credit hours have the option of paying the health fee or they could pay for services at the “market rate” of the Greensboro community.

Slide 43

Chancellor’s Fee Increase Recommendations 2015-16

2014-15 Increase Proposals from Fee

Receiving Units

Proposed Increases Percentage Increase

Athletics

$696

$39

$21.00

3,2%

Activities

$378

$22.11

$9.00

2.38%

Health

$275

$9.00

$9.00

3.27%

Ed.&Tech.

$397

$34.00

$23.00

5.79%

3.55% Overall

Slide 44

How would the 2015-16 increases be used?

Activity Fee: a new sustainability fee proposed by UNCG Green – a student organization, inflationary cost of Spartan Card software, increased programming funds for CAB, OMA, and OLSL, additional Graduate Student Association support Athletics: Added health insurance costs for coaches in compliance with ACA; increase in travel costs; maintain program as close as possible to status quo Education: Inflationary increases for educational materials Technology: Classroom Technology and refresh (upgrades) to the wireless system Health Fee: Equipment replacement and incremental increases in supplies and services costs

Slide 45

Recommended Fee Increase 2016-17

Increase Proposals from Fee

Receiving Units

Recommendation from Chancellor

Percentage Increase

Athletics

$0 $0 0%

Activities

$145 $90* 5%

Health

$0 $0 0%

Ed.&Tech.

$0

$0

0%

5% Increase

*To be committed to opening of new Recreation Center

Slide 46

How would the 2016-17 activity fee increase be used?

The 5% recommended increase will support the opening of the new Recreation Center in

2016. Additional revenue will be sought through fundraising, special events, and

memberships to support a fully operational program over time.

Slide 47

UNCG Tuition and Fees 2015-2016

Regular Term Tuition & Fees Increase Per

Semester

Tuition & Fees Increase Per

Year

Total Tuition & Fees Year

In-State Undergraduate $129.50 $259.00 $6,701.00

Out-of-State Undergraduate $129.50 $259.00 $21,563.00

In-State Graduate Student $147.00 $294.00 $7,445.00

Out-of-State Graduate Student $147.00 $294.00 $20,894.00

Slide 48

Next Step

Feb 27 Board of Governors Meeting

**Legislative session begins in January—could have impact on tuition and fees

Slide 49

Discussion