University of Louisville Tuition Recommendation to CPE April 30, 2008

UofL Proposal

( per semester) Resident 2007-08 NonResident Undergraduate $3,470 $8,867 Resident 2008-09 NonResident $3,782 $9,177 $ Change Resident NonResident $312 $310 Graduate $3,764 $9,045 $4,103 $9,045 $339 0

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Justification

1.

Comparison of CPE Recommendation to Enacted State Budget for FY 2008-09

(Including Estimated Tuition & Fee Revenue) Enacted 07-08 Net General Fund Appropriation Research Support / Joint Engineering Adjusted Base Maintenance of Ongoing Operations Strategic Investements 6% Budget Reduction Metropolitian College (Moved to Economic Development Cabient)

Net General Fund Appropriation CPE Recommendation

168,572,300 1,125,000 169,697,300 7,517,800 3,044,600 0 0

180,259,700 Enacted State Budget

168,572,300 1,125,000 169,697,300 0 0 (10,029,100) (1,992,300)

157,675,900

Gross Tuition & Fee Revenue (9% Increases)

Net Projected Public Funds

188,543,500 *

368,803,200

186,974,900

344,650,800 Difference

0 0 0 (7,517,800) (3,044,600) (10,029,100) (1,992,300) (22,583,800) (1,568,600) (24,152,400)

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*CPE Calculated Estimate of Tuition & Fee Revenue included a provision for an increase in enrollment.

Justification

2.

Mandate – “The University of Louisville shall become a preeminent nationally recognized metropolitan research university” – Postsecondary Education Improvement Act of 1997 Progress – Despite lack of state support     ACT Scores – 1998 2007 State Average 20.2

20.7

UofL Graduation rates – 10.6% Federal Research Awards – 407.6% Community – New Economic Clusters  UPS  Health Care 21.3

24.3

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Justification

Net State Appropriation Increase Since 1999

Net State Appropriation

1998-99 1999-00

Current Dollars

130,785,900 134,484,100

Constant Dollars*

80,931,900 81,852,800 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 142,248,400 148,897,200 141,766,400 145,847,600 141,789,500 144,690,500 155,959,900 161,522,800 157,675,900 84,270,400 85,035,500 80,048,800 80,268,400 76,560,200 75,873,400 78,648,500 79,795,900 74,699,600

Dollar Increase from 1998-99 to 2008-09 26,890,000 (6,232,300) Percent Increase from 1998-99 to 2008-09 Increase of about 2% per year

* Using Consumer Price Index (CPI)

20.6% -7.7% 5

Justification

3. Process           Task Force for Tuition and Fee Setting  Peers   Competitive Affordability Market  Faculty Senate Staff Senate Student Government Leaders (SGA) Vice Presidents and Deans Provost’s Budget Advisory Committee Public Forums  Two Campus Tuition Forums  Campus Budget Forum – April 15 CPE – April 25 and April 30 Board of Trustees – May 8 Council on Postsecondary Education – May 9

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Justification

Undergraduate Admissions

Total Applications 1 Total Admitted 2 Fall 2002 5,659 3,890 Fall 2003 5,932 Fall 2004 6,092 4,062 4,163 Fall 2005 6,363 Fall 2006 6,916 4,315 4,726 Fall 2007 7,556 Fall 2008 4 7,760 5,070 5,255 % Change 02-07 33.5% 30.3% GRS Cohort 3 2,212 2,199 2,307 2,256 2,383 2,529 14.3% 1,2 Source: Office of Undergraduate Admissions 3 Graduation Rate Survey (GRS) = defines the student cohort used to calculate the 6-year graduation rates and includes all first-time, full-time, baccalaureate degree-seeking students 4 As of 4/28/08

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Justification

4. Financial Aid Available to Students Since First Budget Cut

Scholarship and Grant Funds Disbursed to UofL Students Source

Federal State Institutional Private FFELP Loans Perkins Loans

Total Merit

0 6,806,989 27,629,101 1,513,879 0 0

35,949,969 2002-2003 Need-Based

9,045,209 2,376,647 0 0 59,542,482 1,064,207

72,028,545 Total 9,045,209 9,183,636 27,629,101 1,513,879 59,542,482 1,064,207 107,978,514 Merit

0 11,307,551 42,886,913 2,175,360

2007-2008 1 Need-Based

11,749,134 4,137,995 1,763,275 0 0 98,034,590 0 1,712,036

56,369,824 117,397,030 Total 11,749,134 15,445,546 44,650,188 2,175,360 98,034,590 1,712,036 173,766,854

1 UofL is still disbursing aid for FY 2007-2008; totals are not final and will increase.

For FY 2008-09 Institutional merit-based aid increased $2,166,100 or 6 %.

Institutional need-based aid increased $1,008,500 or 55%.

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UofL Budget Snapshot

Resources "Where It Comes From"

Reduction in State Base Appropriation Other State Funding Changes University Revenue Decisions Tuition Rate Increase Enrollment Increase Transfer from Athletics Other General Fund Revenue Unit Budget Reductions 11,704,100 3,315,600 250,000 497,953 6,203,000 University-Wide Budget Reductions Resources based on UofL Actions 5,305,600 Increased Revenue Available for Budget Inititiatives (10,029,100) (648,653) 27,276,253

16,598,500 9

UofL Budget Snapshot

Expenditures Where It Is Proposed To Go"

Fixed Costs Personal Services 3,302,886 1,240,894 Current Expenses Policy Initiatives (204,499) 12,259,219 Proposed Increases in Operating Expenses

16,598,500 10

UofL Budget Snapshot

Expenditures Where It Is Proposed To Go" Policy Initiatives

Student Financial Aid 4,174,600 Salaries/Health Insurance 4,677,899 Strategic Research Faculty BioSafety Lab Ph.D. Fellowships Diversity Initiatives "Ideas to Action" QEP 1,500,000 1,316,320 230,400 100,000 260,000 Total Policy Initiatives 12,259,219

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Moving Forward Strategies

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6.

Private Partnerships Underperforming Assets

eg. Reynolds Metal/Shelby Campus

Reengineering Clinical Operations

 PPP  ULH

Fund Raising Other

 Commercialization  TIF

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