Transcript Public Forums Tuition Policy Advisory Committee Recommendations November 2007 The Tuition Setting Process Aug 2007: Constitute TPAC – 4 students, 2 deans, 1 faculty member,

Public Forums
Tuition Policy Advisory Committee
Recommendations
November 2007
1
The Tuition Setting Process
Aug 2007: Constitute TPAC – 4 students, 2 deans, 1 faculty
member, 2 administrators
Sept-Nov 2007: Assess critical needs, formulate proposal
Nov 2007: Recommend tuition policy to President, present proposal to
campus & solicit feedback
Dec 2007: President develops tuition proposal, submits to UT System
Mar 2008: Regents consider and vote on campus proposal
2
Summary of TPAC Recommendations to
President
 Continue to target a total student population of 49,700 students.
 Allow the 2-year Energy Fee to expire as originally planned.
 Increase average resident undergraduate total cost by
$318/semester (7.8%) fall 2008-09 and $303/semester (6.9%)
fall 2009-10. Total Cost for resident graduate students will
be increased similarly.
 Establish a flat-rate tuition structure for graduate and
professional students.
 Continue an aggressive UT Grant financial aid set-aside program
to provide aid to students of families earning up to
$80,000/year.
3
Incremental Needs and Funding Sources
($ in Millions)
08-09
NEEDS:
Hire 30 additional faculty members
Fund a 3% salary increase and benefits pool
Fund SSBC recommendations
Fund University/College academic initiatives
Fund financial aid set-aside
Incremental funding needs
University:
SOURCES:
Cost reductions and budget reallocations
Projected increase in AUF
Cash balances
Other income
subtotal University
$
$
$
State of Texas: Legislative appropriations
subtotal State
Students:
Increase total cost to attend
subtotal Students
Total proposed funding sources
$
09-10
2.3
24.6
0.8
29.7
7.2
64.6
$
17.7
15.1
(1.6)
0.2
31.4
$
$
2.5
25.6
0.8
21.1
6.4
56.4
13.6
0.6
0.2
14.4
0.2
10.3
0.2
10.3
33.0
33.0
31.7
31.7
64.6
$
56.4
4
Growth Rate of Funding Sources
State General Revenue
Tuition Income
Available University Fund
Indirect cost
Other revenue
Total Core Academic Budget
Cost Reductions and Cash Balances
(1)
Budget
2007-08
$M
322.4
469.0
142.5
67.0
31.0
1,031.9
(2)
(3)
Increase Assuming
All Grow at 4.70%
$M
%
15.2
4.70%
22.0
4.70%
6.7
4.70%
3.1
4.70%
1.5
4.70%
48.5
4.70%
(4)
(5)
(6)
Increase Assuming
Forecast Growth Difference
$M
%
$M
0.2
0.06%
(15.0)
33.0
7.04%
11.0
15.1
10.60%
8.4
0.0
0.00%
(3.1)
0.2
0.65%
(1.3)
48.5
4.70%
0.0
16.1
16.1
64.6
64.6
NOTE: The Higher Education Price Index (HEPI) is 5.0% for 2006 compared to
the Consumer Price Index (CPI) of 3.8%.
5
Diminishing State Support
1975-76
Total Academic Budget Sources:
$120M
Other
$30M
25%
State
General
Rev
$90M
75%
2007-08
Total Academic Budget Sources:
$1032M
Other
$710M
69%
State
General
Rev
$322M
31%
6
The Permanent University Fund (PUF)
UT System West Texas Lands
$ Financial
UTIMCO
PUF Lands (minerals & surface rights)
Return
PUF Endowment Fund Investments
2007 Market Value $14.1B
4.75% payout
Available University Fund
2/3 UT System
55%
UT System
1/3 A&M System
45%
UT Austin
Fy07-08 $142.5M
UT Austin receives about 30% of the
total AUF income from the PUF
7
Private Endowments
Total 2007 Value $3.0B
Payout of 4.75% equals $110M
Unrestricted
3.0%
Restricted by
Donor
97.0%
8
Historical Tuition Increases – Full-Time
Undergraduate Resident Students
Fall 2003
Average Academic Charge for All
Colleges/Schools
$
2,721
Liberal Arts Only
$
2,508
Natural Sciences Only
$
2,668
T
u
i
t
i
o
n
D
e
r
e
g
u
l
a
t
i
o
n
Fall 2004
4 year
Increase
Fall 2003
to Fall
Proposed
2007
Fall 2008
Fall 2007
5 year
Increase
Fall 2003
to Fall
2008
$
3,500
$
4,065
49.4% $
4,383
61.1% $
4,686
72.2%
$
3,294
$
3,835
52.9% $
4,167
66.1% $
4,476
78.5%
$
3,459
$
4,030
51.0% $
4,330
62.3% $
4,621
73.2%
Proposed
Fall 2009
6 year
Increase
Fall 2003
to Fall
2009
In 2003, the Legislature initially proposed a $46/SCH tuition increase or $690 for
15 SCH. Ultimately, the Legislature passed deregulated tuition instead.
Of the $779 increase in fall 2004, $690 would have come from a “catch up” by
the Legislature.
9
Financial Aid – Grant Awards per
Semester for Continuing Students
Annual Family Income
Resident Undergraduate Student
$0-$40,000
$40,001-$60,000
$60,001-$80,000
Award
2008-09
$1,450
75% of above
50% of above
Award
2009-10
$1,540
75% of above
50% of above
Resident Independent Student
Graduate Student
50% of above
50% of above
50% of above
50% of above
10
Financial Aid – Grant Awards per Semester for
New Students
(entering summer 2008 or later)
Annual Family Income
Resident Undergraduate Student
$0-$40,000
$40,001-$60,000
$60,001-$80,000
Award
2008-09
$1,250
75% of above
50% of above
Award
2009-10
$1,450
75% of above
50% of above
Resident Independent Student
Graduate Student
50% of above
50% of above
50% of above
50% of above
11
How many students currently benefit from
the UT Grant program?
Annual Family Income
$0-$40,000
$40,001-$60,000
$60,001-$80,000
TOTAL
Fall 2007
Number of Students
Receiving UT Grants
8,801
2,147
1,580
12,528
The above figures only include students who applied for financial assistance.
About 56% of students receive some form of financial
assistance.
12
Graduate Flat Rate Tuition
Revenue neutral: No matter how many hours a student takes, their tuition
bill will not be significantly higher or lower under this plan than it would be
in current system
Not intended to change behavior: Undergraduate flat rate system
provides an incentive for taking more credit hours – Graduate flat rate
does not
Greater transparency: Student will know ahead of time how much total
bill will be, and so will the university
More fair for dual degrees: Eliminates redundant fees
13
National Comparison of Tuition
RESIDENT 2007-08
Undergraduate
Tuition
and Fees
Rank
Institution
University of Illinois-Urbana/Champaign
11,130
1
11,111
Michigan State University
$
Rank
9,882
2
2
10,341
1
9,912
3
8,887
4
University of Minnesota-Twin Cities
9,598
4
9,173
3
Ohio State University-Main Campus
8,676
5
8,667
5
University of California-Berkeley
8,385
6
7,800
6
Indiana University-Bloomington
7,837
7
7,460
8
University of California-Los Angeles
7,713
8
7,143
9
University of Texas-Austin
7,670
9
7,630
7
University of Wisconsin-Madison
7,188
10
6,730
10
University of Washington
6,385
11
5,985
11
University of North Carolina-Chapel Hill
5,340
12
5,033
12
University of Michigan-Ann Arbor
$
RESIDENT 2006-07
Undergraduate
Tuition
and Fees
14
Questions?
A copy of this presentation and other tuition
information is available on the
TUITION DOLLARS AND SENSE WEBSITE:
http://www.utexas.edu/tuition/
15
Supplemental Materials
16
Tuition Policy Advisory Committee (TPAC)
Financial Forecast Summary
($ in millions)
ACADEMIC CORE BUDGET SOURCES
State General Revenue (GR)
Tuition Income
Energy Fee
AUF System Estimate
Indirect Cost
Other Revenue
Balances
Total Budget Sources
ACADEMIC CORE STATUS QUO USES
Texas Tomorrow shortfall
Texas Public Education Grants (TPEG)
Personnel Costs--Salaries
Personnel Costs--Medical Benefits
Personnel Costs--Retirement, Insurance Benefits
Post-retirement Benefits
Utilities (excluding personnel costs)
Transfers for Capital Projects
Transfers for Debt Service
Financial Aid
Other Operations
Total Status Quo Uses
Total Budget Sources Minus Status Quo Uses
ADDITIONAL USES
Texas Tomorrow shortfall
Personnel Costs - Salaries and Fringes
Reduction of St./Fac. Ratio--salaries + assoc. fringes
Institutional Commitments Beginning FY 08-09
Student Services Increase (Net)
College Increase (Net)
New Space Maintenance and Utilities
Capital Projects
Increased Recurring Repair & Renovation Funding
Additional Financial Aid
Total Additional Uses
Total Budget Sources Minus All Costs
Forecast
Budget
2007-08
Forecast
2008-09
Forecast
2009-10
Forecast
2010-11
Forecast
2011-12
Forecast
2012-13
Forecast
2013-14
Forecast
2014-15
322.4
464.0
5.0
142.5
67.0
31.0
8.6
1,040.5
322.6
464.0
157.6
67.0
31.2
3.0
1,045.4
332.9
464.0
171.2
67.0
31.4
3.6
1,070.1
335.2
464.0
182.7
67.0
31.6
3.0
1,083.5
345.2
464.0
191.9
67.0
31.8
3.0
1,102.9
347.8
464.0
201.0
67.0
32.1
3.0
1,114.9
358.3
464.0
210.5
67.0
32.3
3.0
1,135.1
361.2
464.0
220.5
67.0
32.5
3.0
1,148.2
8.5
12.3
547.6
59.3
82.5
15.4
50.3
22.0
31.9
27.9
178.8
1,036.5
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
31.8
17.8
175.2
1,018.8
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
31.8
17.8
175.2
1,018.8
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
31.5
17.8
175.2
1,018.5
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
30.2
17.8
175.2
1,017.2
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
30.2
17.8
175.2
1,017.2
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
30.2
17.8
175.2
1,017.2
8.5
12.3
547.6
59.3
82.5
15.4
46.4
22.0
30.2
17.8
175.2
1,017.2
4.0
26.6
51.3
65.0
85.7
97.7
117.9
131.0
-
0.5
24.6
2.3
11.2
0.8
14.7
1.3
2.0
7.2
64.6
1.5
50.2
4.8
18.6
1.6
27.1
1.6
2.0
13.6
121.0
1.5
75.3
7.3
35.8
1.6
27.1
3.3
6.3
2.0
13.6
173.8
1.5
101.5
10.0
55.6
1.6
27.1
3.3
6.3
2.0
13.6
222.5
1.5
128.4
12.8
75.5
1.6
27.1
3.3
6.3
2.0
13.6
272.1
1.5
156.4
15.7
95.4
1.6
27.1
3.3
6.3
2.0
13.6
322.9
1.5
185.5
18.8
115.4
1.6
27.1
3.3
6.3
2.0
13.6
375.1
(38.0)
(69.7)
(108.8)
(136.8)
(174.4)
(205.0)
(244.1)
4.0
17
Resident Undergraduate Tuition per Semester
2008-09
2008-2009
RESIDENT
2007-08
COLLEGE
ARCHITECTURE
BUSINESS
COMMUNICATION
EDUCATION
ENGINEERING
FINE ARTS
GEOSCIENCES
LIBERAL ARTS
NAT SCIENCES
NURSING
SOCIAL WORK
2008-09
FLAT RATE PROPOSED FLAT RATE
TUITION INCREASE
TUITION
3,945
465
4,410
4,454
353
4,807
4,019
311
4,330
4,020
304
4,324
4,292
273
4,565
4,154
300
4,454
4,068
389
4,457
3,835
332
4,167
4,030
300
4,330
4,127
463
4,590
4,000
374
4,374
18
Resident Undergraduate Tuition per Semester
2009-10
2009-2010
RESIDENT
2008-09
COLLEGE
ARCHITECTURE
BUSINESS
COMMUNICATION
EDUCATION
ENGINEERING
FINE ARTS
GEOSCIENCES
LIBERAL ARTS
NAT SCIENCES
NURSING
SOCIAL WORK
2009-10
FLAT RATE PROPOSED FLAT RATE
TUITION
INCREASE
TUITION
4,410
382
4,792
4,807
326
5,133
4,330
275
4,605
4,324
290
4,614
4,565
283
4,848
4,454
320
4,774
4,457
408
4,865
4,167
309
4,476
4,330
291
4,621
4,590
446
5,036
4,374
329
4,703
19
Resident Graduate Tuition per Semester
2008-09
2008-2009
RESIDENT
COLLEGE
ARCHITECTURE
BUSINESS
COMMUNICATION
EDUCATION
ENGINEERING
FINE ARTS
GEOSCIENCES
INFORMATION
LIBERAL ARTS
NAT SCIENCES
NURSING
PHARMACY
PUBLIC AFFAIRS
SOCIAL WORK
2007-08
PROPOSED
2008-09
AVG BILL
INCREASE AVG BILL
3,425
362
3,787
3,041
144
3,185
3,392
277
3,669
3,210
221
3,431
3,620
250
3,870
3,522
257
3,778
3,203
313
3,516
3,321
658
3,979
3,059
209
3,269
3,154
215
3,369
3,420
399
3,819
3,198
422
3,620
3,270
321
3,591
3,460
312
3,773
20
Resident Graduate Tuition per Semester
2009-10
2009-2010
RESIDENT
COLLEGE
ARCHITECTURE
BUSINESS
COMMUNICATION
EDUCATION
ENGINEERING
FINE ARTS
GEOSCIENCES
INFORMATION
LIBERAL ARTS
NAT SCIENCES
NURSING
PHARMACY
PUBLIC AFFAIRS
SOCIAL WORK
2008-09 PROPOSED 2009-10
AVG BILL INCREASE AVG BILL
3,787
328
4,115
3,185
153
3,338
3,669
238
3,907
3,431
187
3,618
3,870
259
4,129
3,778
276
4,054
3,516
332
3,848
3,979
338
4,317
3,269
213
3,482
3,369
229
3,598
3,819
314
4,133
3,620
385
4,005
3,591
330
3,921
3,773
273
4,046
21
National Comparison of Tuition
RESIDENT 2007-08
Undergraduate
Tuition
and Fees
Rank
Institution
University of Illinois-Urbana/Champaign
11,130
1
11,111
Michigan State University
$
DIFFERENCE
Dollar
Percentage
Rank
9,882
2
1,248
12.63%
2
10,341
1
770
7.45%
9,912
3
8,887
4
1,025
11.53%
University of Minnesota-Twin Cities
9,598
4
9,173
3
425
4.64%
Ohio State University-Main Campus
8,676
5
8,667
5
9
0.10%
University of California-Berkeley
8,385
6
7,800
6
585
7.49%
Indiana University-Bloomington
7,837
7
7,460
8
377
5.05%
University of California-Los Angeles
7,713
8
7,143
9
570
7.98%
University of Texas-Austin
7,670
9
7,630
7
40
0.52%
University of Wisconsin-Madison
7,188
10
6,730
10
458
6.81%
University of Washington
6,385
11
5,985
11
400
6.68%
University of North Carolina-Chapel Hill
5,340
12
5,033
12
307
6.09%
University of Michigan-Ann Arbor
$
RESIDENT 2006-07
Undergraduate
Tuition
and Fees
$
22