Setting Tuition for 2012-2013 April 27, 2012 Pullman

Historical & Current State Budgets State Budget Cycle Historical & Current State Budgets

State Budget Cycle Budgets are enacted on a two-year cycle, beginning on July 1 of each odd-numbered year. The biennial budget for 2011-13 remains in effect from July 1, 2011 through June 30, 2013. The biennial budget can be modified in any legislative session. These revisions are known as supplemental budgets. The supplemental budget recently passed by the Legislature and awaiting the Governor's signature includes no further cuts for WSU, however, the $40M cuts in the 2011-13 biennial budget are still in effect.

2007-09 Biennial Budget (July 1, 2007 – June 30, 2009) 10/10/2017 2007-09 Biennial Budget (July 1, 2007 – June 30, 2009) FY2008 No Reduction Included funds for increases in WSU enrollment, research funding, and salary increases for WSU employees. ‘High water mark’ in state funding preceding the economic downturn.

10/10/2017 2009 Supplemental Budget FY2008 No Reduction 2009 Supplemental Budget $10.5M one-time cut WSU was required to return $10.5M in state appropriations by June 30, 2009 on a one-time basis.

2009-11 Biennial Budget (July 1, 2009 – June 30, 2011) 10/10/2017 2009-11 Biennial Budget (July 1, 2009 – June 30, 2011) FY2008 No Reduction 2009 Supplemental Budget $10.5M one-time cut 2009-11 Biennial Budget $27M permanent cut per year WSU's state appropriations reduced by $112M, or $56M per year. $16M in Federal stimulus funds appropriated to help offset state cuts. Tuition increased 14% each year of the biennium. Net reduction of $54M for the biennium, or $27M per year.

2010 & 2011 Supplemental Budgets 10/10/2017 2010 & 2011 Supplemental Budgets May 2010, the Legislature approved the 2010 supplemental budget reducing WSU's allocation by an additional $13.5 million for the biennium. During a December 2010 special session, the Legislature approved the 2011 supplemental budget including a $7.5 million one-time budget reduction for WSU. Total permanent reductions for the 2009-11 biennium of approximately $68 million. FY2008 No Reduction FY2009 Supplemental Budget $10.5M one-time 2009-11 Biennial Budget $27M permanent cut per year 2010 & 11 Supplemental Budgets $13.5M permanent cut & $7.5M one-time cut

2011-13 Biennial Budget (July 1, 2011 – June 30, 2013) 10/10/2017 2011-13 Biennial Budget (July 1, 2011 – June 30, 2013) WSU's state appropriations reduced $108M, or $54M per year. The legislative budget assumed a 16% tuition increase for resident undergraduates in each year of the biennium as well increases in other tuition categories. Net reductions of $40M for the biennium, or $20M per year.

10/10/2017 2012 Supplemental Budget April 2012: Legislature passed the 2012 supplemental budget. (Currently awaiting the Governor's signature). No additional reductions to higher education. The enacted budget for the 2011-13 biennium remains in effect and includes $20M in annual cuts for WSU. These cuts are AFTER an assumed 16% tuition increase for resident undergraduates in each year of the biennium and increases in other categories.

Background and Timeline Tuition Setting Background and Timeline

Tuition Defined RCW 28B.15.020: The term "tuition fees" as used in this chapter shall mean the fees charged students registering at the state's colleges and universities which consist of:      (1) The "building fees" as defined in RCW 28B.15.025; and      (2) The "operating fees" as defined in RCW 28B.15.031.

Regents’ Tuition Setting Authority For the 2011-13 biennium governing boards are authorized to increase tuition (including operating and building fees) For resident undergraduates: up to 16% per year* For all other categories of students: by any amount *Institutions have authority to go higher, triggering financial aid mitigation requirements.

2012-2013 Tuition Rates Typically the WSU Regents approve tuition rates for both years of the biennium at one time. Last spring rates were approved for one year only due to uncertainty of future economic conditions and the possibility of additional supplemental budget cuts. Fiscal Year 2013 rates will be adopted by the Regents this spring and will go into effect in the fall of 2012.

Tuition Setting Timeline March 2012 – Convene University Tuition Committee comprised of faculty, staff, and students from all campuses to make recommendations for FY13 rates. April 2012 – Engage WSU’s shared governance process via open forums with students and the university community. Public review and comment period. May 2012 – Rate recommendations presented to Board of Regents along with input gathered from the online comment site and the public meetings. August 2012 – Rates adopted by the Board of Regents go into effect.

Tuition Committee Recommendations

Tuition Committee Key Considerations Despite the recent 'no cuts' supplemental budget, the enacted 2011-13 biennial budget contains $40M in cuts for WSU after an assumed 16% increase in resident undergraduate tuition rates for both years of the biennium and assumed increases in other tuition categories. Rate increases less than the rates assumed by the Legislature would result in the need for deeper cuts to WSU programs, services, and course offerings. Legislative action in recent years has moved to ‘semi- privatize’ public higher education institutions, forcing a greater share of the overall cost of education on students and their families.

State and Tuition Funding per FTE (in 2013 Dollars) 84% 65% 16% 35% Adjusted for inflation, the total cost of educating a student at WSU has remained steady during 20 years of declining state investments. Student tuition now covers 65% of the cost of education. Chart from the Council of Presidents

Key Considerations (cont.) Approximately 83% of total tuition is from undergraduates. If double digit increases are inevitable for resident undergraduate students, similar increases should apply to non-residents.

Tuition Committee Recommendations The percentage increases for most categories of students are the same as Fiscal Year 2012. The Legislature left little flexibility in setting resident undergraduate rates by assuming annual tuition rate increases to backfill the $108M cut to state appropriations in the biennial budget. Undergraduate non-resident rates are recommended to increase 16% - the same as resident undergraduates. This is an increase over the FY2012 8% increase. Non-resident DDP rates will be adjusted to equal resident DDP rates in conformity with industry standards for distance education.

Tuition Committee Recommendations

President Floyd’s Recommendations for Regent Consideration Rates as recommended by the tuition committee except: Non-resident DDP rates will be held flat at the FY12 rate. The equalizing of resident and non-resident DDP rates will be accomplished in a phased process. An 8% increase for the resident MBA rate.

President’s Recommendations for Regent Consideration

Next Steps Invite feedback on the proposed tuition rates for 2012-13. Comments and feedback accepted through the Budget Office website at: http://budget.wsu.edu/tuition-and-fees/index.html The input gathered from the online comment site and the public meetings will be shared with the Board of Regents for review during their consideration of the proposed tuition rates.

R-Undergrad Rate History HISTORICAL TUITION AND FEES Resident Undergraduate Building Operating Total $ Incr % Incr 2002-03 206 3,939 4,145 571 16% 2003-04 220 4,215 4,435 290 7% 2004-05 235 4,510 4,745 310 2005-06 251 4,826 5,077 332 2006-07 269 5,163 5,432 355 2007-08 288 5,524 5,812 380 2008-09 308 5,910 6,218 406 2009-10 351 6,737 7,088 870 14% 2010-11 400 7,680 8,080 992 2011-12 464 8,910 9,374 1,294

R-Graduate Rate History Resident Graduate Building Operating Total $ Incr % Incr 2002-03 173 5,590 5,763 222 4.0% 2003-04 176 5,701 5,877 114 2.0% 2004-05 180 5,815 5,995 118 2005-06 189 6,106 6,295 300 5.0% 2006-07 198 6,412 6,610 315 2007-08 212 6,860 7,072 462 7.0% 2008-09 227 7,339 7,566 494 2009-10 238 7,706 7,944 378 2010-11 249 8,091 8,340 396 2011-12 289 9,387 9,676 1,336 16.0%

NR Undergrad Rate History HISTORICAL TUITION AND FEES Non-Resident Undergraduate Building Operating Total $ Incr % Incr 2002-03 537 11,403 11,940 985 9% 2003-04 564 11,973 12,537 597 5% 2004-05 592 12,571 13,163 626 2005-06 633 13,452 14,085 922 7% 2006-07 677 14,395 15,072 987 2007-08 724 15,402 16,126 1,054 2008-09 775 16,479 17,254 1,128 2009-10 815 17,349 18,164 910 2010-11 857 18,265 19,122 958 2011-12 926 19,726 20,652 1,530 8%

NR Graduate Rate History Non-Resident Graduate Building Operating Total $ Incr % Incr 2002-03 511 14,091 14,602 562 4.0% 2003-04 521 14,372 14,893 291 2.0% 2004-05 531 14,658 15,189 296 2005-06 558 15,391 15,949 760 5.0% 2006-07 586 16,162 16,748 799 2007-08 627 17,293 17,920 1,172 7.0% 2008-09 671 18,503 19,174 1,254 2009-10 704 19,428 20,132 958 2010-11 739 20,399 21,138 1,006 2011-12 798 22,032 22,830 1,692 8.0%

Dollar Change Comparison-Resident Students

Dollar Change Comparison-Nonresident Students

Resident Student Tuition Increases Increase over prior year Delta G to Resident Undergraduate Graduate UG 2002-03 571 222 (349) 2003-04 290 114 (176) 2004-05 310 118 (192) 2005-06 332 300 (32) 2006-07 355 315 (40) 2007-08 380 462 82 2008-09 406 494 88 2009-10 870 378 (492) 2010-11 992 396 (596) 2011-12 1,294 1,336 42 Total 5,800 4,135 (1,665)

Nonresident Student Tuition Increases Increase over prior year Delta G to Resident Undergraduate Graduate UG 2002-03 985 562 (423) 2003-04 597 291 (306) 2004-05 626 296 (330) 2005-06 922 760 (162) 2006-07 987 799 (188) 2007-08 1,054 1,172 118 2008-09 1,128 1,254 126 2009-10 910 958 48 2010-11 1,006 2011-12 1,530 1,692 162 Total 9,697 8,790 (907)