1 Forum on Tuition and Fees FY 2009 and FY 2010 A Discussion Sponsored by the Cost of Education Committee Tuesday, November 13, 2007

2 Agenda Role of the Cost of Education Committee Tuition and Fee Rate Setting Process Trends & Issues in Higher Education Funding Fee Recommendations Designated Tuition Recommendation Impact on Student Costs Financial Assistance For Students

3 Cost of Education Committee Purpose of the committee: To review tuition and fee proposals and make recommendations to the president Composition of the committee:  9 Students (voting) including SGA president (co-chair) (Includes one student from each of the 6 colleges, plus an international student and a graduate student.)  3 Faculty and 8 Staff Members (voting)  1 Parent (voting)  VP for Enrollment & Student Services (co-chair; non-voting)

4 Cost of Education Committee (cont.) Responsibilities of the committee:  To discuss budget issues related to tuition and fees  To host campus forums on the tuition and fee proposals and the draft recommendations  To engage requestors, students, alumni, parents, and the greater community in a transparent process  To provide a written report on the committee’s recommendations to the president

5 Tuition and Fee Process

6 Tuition and Fee Process (cont.)

7 Higher Education Funding - Background State appropriations are not keeping pace with needs. FY 2008 Formula (GR) General Revenue = 16.3% of the UTPA budget. This percentage has steadily declined since FY Trend toward viewing higher education as a private good instead of a public good Unlike community colleges UTPA does not receive property tax revenues

8 Where Does UTPA Get Its Operating Funds? 2008 Operating Budget (Total = 257.4M) State Appropriations (GR)73.7M28.6% Tuition & Fees79.8M31.0% Sales, Services, Auxiliary11.3M4.4% Sponsored Programs-Federal48.7M18.9% Sponsored Programs-State17.9M6.9% Sponsored Programs-Local2.1M0.8% Investments & Gifts3.4M1.3% HEAF12.9M5.0% Balances7.8M3.0%

9  UTPA Budget vs. NOTE: General revenue shown is appropriations by the state for basic operations. Not included are funds the institution receives, from the state, for special line items, bond payments & other transfers such as Texas Grant.  State General Revenue Received for Core Operations (Formula Revenue)

10 Which items are eligible in this cycle? Mandatory Fees (those charged to all students) Course and Program Fees Other Incidental Fees (such as parking permits) Housing and Board Rates Designated Tuition

11 Your Feedback is Important! Changes being discussed today are the preliminary recommendations of the Committee. The Committee will consider your input when it reconvenes to make final recommendations to the President. The UT System Board of Regents will make the final determination on the proposed changes.

12 Recommendations – Mandatory Fees Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Academic Advisement Fee $19.00-Fall/Spr $9.50-Sum $25.00-Fall/Spr $12.50-Sum $25.00-Fall/Spr $12.50-Sum Information Technology Access Fee $7.75/SCH (semester credit hour) $10.25/SCH Medical Service Fee $19.45-Fall/Spr $9.42-Sum $21.20-Fall/Spr $10.60-Sum $23.10-Fall/Spr $11.55-Sum Registration Fee 1 $8.00$10.00 Utility Fee 2 $2.85/SCH-0- Rates for the following mandatory fees will remain unchanged for FY 2009 and FY 2010: Recreation Fee - $75 per Fall/Spring; $35 per summer session Student Union Fee - $30 per Fall/Spring; $15 per summer session Student Service Fee - $14 per SCH (up to $250 max per Fall/Spring; $125 max per summer session) International Education Fee - $1 per semester Library Technology Fee - $2.25 per SCH 1.Proposal includes removal of the $5 Drop Fee starting in FY UT System has requested that separately charged energy fees be subsumed into the Designated Tuition rates proposed for FY 2009 and 2010.

13 Recommendations – Course & Program Fees Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Course Fees: Communication Sciences and Disorders $10-COMD 6395 $20-COMD 6105 $20-COMD 6395 $30-COMD 6105 $20-COMD 6395 $30-COMD 6105 Master of Science in Nursing NEW-0-$30 Nursing$20$50 Alternative Certification Program – Extension of Probationary Certificate $200 The Committee recommends to disapprove increase to $1,275.

14 Recommendations – Course & Program Fees (continued) Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Cooperative Pharmacy Program Application Fee ( Justification Update only) $60 (no rate change) $60 (no rate change) Educational Diagnostician and School Psychology Program Fee NEW -0-$50 Field Experience – Occupational Therapy NEW -0-$20 Instrument User Fee – College of Education (Courses Added) $25 (no rate change) $25 (no rate change)

15 Recommendations – Other Incidental Fees Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Child Development Center Rates Per Week (Student) $85$90$100 Per Week (Employee) $95$105$115 Registration Fee $35$40 Drop Fee 1 $5-0- Graduate Admission Application Fee$35$50 International Student Service Fee$30/semester$32/semester$35/semester 1.Starting in FY 2009, administrative costs incurred for students dropping courses will be covered by the proposed increase in the Registration Fee.

16 Recommendations – Other Incidental Fees (continued) Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 New Student Orientation Fee$50$60 Optical Mixed Media Fee 1 $10-0- Parking Permits (All Year) 2 Student and General Parking $34$44 Remote Parking $17$22 Faculty and Staff (Reserved) $65$85 Texas Success Initiative (TSI) Lab Fee $110$115$120 1.The fee to recover cost associated with producing optical media used to supplement course instruction is no longer needed. 2.Refer to proposal for listing of prorated charges for permits acquired after the Fall semester.

17 Recommendations – Housing Rates NTE = “Not to Exceed” Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Unity Residence Hall Room Rates per Semester (Double Occupancy) Fall/Spring NTE $1,800NTE $1,900NTE $2,000 Summer Session $481$650NTE $700 Troxel & Heritage Halls Room Rates per Semester (Double Occupancy) Fall/Spring, Pre-Renovation NTE $1,500NTE $1,600 Fall/Spring, Renovated NTE $1,650NTE $1,700NTE $1,800 Summer Session $481$650NTE $700 Bronc Village Room Rates per Month One Bedroom, One Bath $650$700NTE $750 Four Bedroom, Two Bath NTE $400NTE $450NTE $500 Reservation/Damage Deposit $100 $150 Not all rates are shown. Refer to the proposal for a complete listing.

18 Recommendations – Board Rates NTE = “Not to Exceed” Fee Name Current FY 2008 Proposed FY 2009 Proposed FY 2010 Residence Hall Board Rates per Fall or Spring Semester 17 Meal Plan + $50 $950NTE $1,000NTE $1, Meal Plan + $75 $921NTE $970NTE $1, Meal Plan + $100 $868NTE $915NTE $960 Bronc Bucks (Dining Dollars) $270.62$300 Residence Hall Board Rates per Summer Session 17 Meal Plan + $25 $351$370$ Meal Plan + $25 $331$350$ Meal Plan + $25 $303$320$335 Bronc Bucks (Dining Dollars) $135.31$150 Refer to the proposal for listing of proposed weekly and daily rates for Special Programs.

19 Why increase tuition? Appropriations contribute decreasing percent of total funding Keep and attract high quality faculty in the face of national demand Increasing costs (e.g., salary adjustments, technology, utilities) Balances used in previous years are no longer available How will I benefit? Recruitment and retention of high-quality faculty Development of research and graduate programs Retention of reasonable class sizes Classrooms equipped with appropriate technology Enhance student services

20 Tuition Rates at UTPA per Semester Credit Hour Fiscal Year Designated Tuition Statutory TuitionHeadcount 1999$18$3612, $22$3812, $22$4012, $26$4213, $26$4414, $32$4615, $38$4817, $46$5017, $63.15$5017, $79.15$5017,435

21 Designated Tuition Rates ($) per SCH Deregulated in FY 2005 ▼ (9/1/03) FY 2004 (9/1/04) FY 2005 (9/1/05) FY 2006 (9/1/06) FY 2007 (9/1/07) FY 2008 UT Austin4694Flat UT Dallas Flat UT El Paso UT San Antonio UT Arlington 4673min 79.75Flat UT Tyler UT Pan Am UT Perm. Basin UT Brownsville

22 Designated Tuition Recommendations Raise cap from 14-hours to 15-hours Designated Tuition charges are currently capped at 14 semester credit hours (SCHs) in order to promote heavier course loads and shorten time to graduation. This incentive, however, does have a cost which is spread among all students. In other words, a higher tuition rate for all is required in order to replace the revenues foregone due to the cap. The Committee recommends that the cap be increased to 15 hours effective for FY This change produced reductions of $2.35/SCH (FY 2009) and $2.70/SCH (FY 2010) which are included in the proposed Designated Tuition rates shown below. Subsume Utility Fee ($2.85/SCH) UT System is requesting that the Utility Fee be subsumed into the Designated Tuition rates instead of being charged separately. This revenue will then be subject to the financial assistance set-asides and to the 15-hour cap. The total amount to recover in order to fund the same level of utilities is: $1,278,487 Foregone Utilities Fee Revenue + $233,029 Set-Aside for Financial Assistance + $26,205 Reduction due to Cap = $1,537,721. Increase rates from the current $79.15/SCH ($82/SCH after inclusion of Utility Fee) to: $108.60/SCH in FY 2009 (after subsumption of Utility Fee) $125.90/SCH in FY 2010 (after subsumption of Utility Fee)

23 Designated Tuition Proposal Current FY 2008 Proposed FY 2009 Proposed FY 2010 Rate per SCH$79.15$108.60$ Utility Fee Rate $ Combined Rate$82.00$108.60$ Increase-$26.60$17.30 Gross Revenue 1 $34,383,016$48,041,451$55,670,631 Increase-$13,658,435$7,629,180 1.Estimates shown are before deduction of financial assistance set-asides and are based on zero percent enrollment change. Does not include FY 2008 Utility Fee estimated at $1,278,487.

24 Projected Uses of Additional Designated Tuition UseFY 2009*FY 2010* Financial Assistance Set-Asides$2,507,881$1,442,138 Allowance for New Faculty Positions1,200,000 Allowance for New Staff Positions630,000 Salary Adjustments2,400,8272,483,142 Banner Project – Continuation of Salaries617,036 Employee Benefit Costs (including ORP commitment of $78k) 830,483933,484 Campus Facilities (FY09 one-time costs yield savings in FY10) 2,139,213(139,213) Utilities – Replace Utility Fee (hold harmless) 1,537,721 Utilities – Projected Increases348, ,000 Oracle Project – Additional Software Maintenance475,152 Substitute Balances No Longer Available1,598,969 Allowance for Other Increases254,436260,593 Savings Identified (Advisement Fee $188k; Lighting $76k) (264,247) Total Uses$13,658,435$7,629,180 * Amounts shown are projected incremental requirements.

25 Tuition and Mandatory Fees for Undergraduate Resident Student Enrolled for 15 Hours Current FY 2008 Proposed FY 2009 Proposed FY 2010 Statutory Tuition $ Designated Tuition 1, , , Mandatory Fees Total$2,413.30$2,938.70$3, Increase ($)-$525.40$ Increase (%)-21.8%8.9%

26 Comparison of Tuition and Mandatory Fees (Resident Undergraduates taking 15 Hours) UT Component FY 2008 CurrentFY 2009 Proposed Austin (average of 12 colleges) $4,173n/a Dallas 3,885n/a Arlington 3,597n/a San Antonio 3,349$3,630 El Paso 2,807n/a Tyler 2,511n/a Permian Basin 2,425n/a Pan American $2,413$2,939 Brownsville 2,203n/a Average$3,040n/a UTPA $ Below Average$627n/a UTPA % Below Average20.6%n/a

27 Tuition and Mandatory Fees for Undergraduate Resident Student Enrolled for 12 Hours Current FY 2008 Proposed FY 2009 Proposed FY 2010 Statutory Tuition $ Designated Tuition , , Mandatory Fees Total$2,024.45$2,383.40$2, Increase ($)-$358.95$ Increase (%)-17.7%8.8%

28 Financial Assistance Set Aside A portion of the designated tuition charges are required to be set aside to provide need-based financial assistance for resident students. Estimated total set-asides are as follows: FY 2008FY 2009FY 2010 Undergraduates*$2,564,838$4,920,603$6,273,681 Graduates170,149322,265411,325 Total$2,734,987$5,242,868$6,685,006 Increase ($)-$2,507,881$1,442,138 Increase (%)-91.7%27.5% * One fourth of the undergraduate set aside amount is used for B-On-Time loans.

29 Financial Assistance Initiatives from Tuition Set Asides in FY08 (Need-Based) UTPAdvantage Program - $650,000  Proposals have been submitted to expand the program for FY09. Undergraduate Tuition Assistance Grant (UTAG)- $1,125,000 Graduate Tuition Assistance Grant (GTAG) - $170,000 B-on-Time Loan Funds - $630,000 Texas Public Education Grant (TPEG) - $3,200,000 TPEG is funded from Statutory Tuition set asides. The other initiatives are funded from Designated Tuition set asides.

30 Financial Aid Awards FY 2006FY 2007 Grants$46,030,714$50,861,903 Scholarships8,274,8739,582,818 Work-study2,277,5502,159,405 Waivers5,320,2375,933,112 Loans29,735,55033,802,369 Total$91,638,924$102,339,607

31 It’s hard to choose among good things! What’s the right balance between affordability, access, and quality?

32 Questions? Comments? Website: