Portland State University 2017-18 Undergraduate Tuition Rate Proposal May 10, 2017 H

Presentations by: Rick Miller, Portland State University Board of Trustees, F&A Committee Chair, Incoming Board Chair Wim Wiewel, President Sona Andrews, Provost and Chief Academic Officer Kevin Reynolds, Vice President, Finance and Administration Introduction before you testify: Chair Bryant, Vice-Chair Rives, and members of the Commission. For the record my name is ***** and I am **** at Portland State University. I am here today….

Rick Miller - Board of Trustees From the Board of Trustees’ Perspective: High level of confidence in the PSU team - responsive, rigorous, transparent Board focus - strategic planning, student success, partnerships Unanimous but regrettable support for the tuition increases Balanced response - tuition increases & cost reductions Financial challenges ahead

Rick Miller - Board of Trustees PSU Board Approved Tuition Rates FY17-18 2016-17 Per Credit Hour Rate 2017-18 Proposed Per Credit Hour Rate $ Increase % Change Resident Undergraduate $156 $170 $14 8.97% Non-Resident Undergraduate $523 $550 $27 5.16% Resident Graduate $368 $401 $33 Non-Resident Graduate $576 $605 $29 5.03% 2016-17 Per Term Rate 2017-18 Proposed Per Term Rate Student Building Fee $45 $37 -$8 -18.00% Incidental Fee $221 $238 $17 7.69% Health Service Fee $129 $141 $12 9.30% Recreation Center Fee (ASRC) $44 $0 0.00% Unanimous support. Note lowest $ increase is for resident undergraduate students

Rick Miller - Board of Trustees PSU Board Approved Tuition Rates FY17-18 2013-14 2014-15 2015-16 2016-17 Proposed 2017-18 Quarterly Increase Annual Increase Undergraduate (15 SCH) Resident $2,628 $2,598 $2,678 $2,779 $3,010 $231 $693 % Change 3.02% -1.14% 3.08% 3.77% 8.31% Historic perspective- some years very low tuition rates As a result of tuition rates are at the lowest among the 7 universities- more to come on that By reducing some mandatory fees the actual increase in tuition and mandatory fees is 8.31 %. Lowest cost increase in $ at 693 is for resident undergraduates. And Kevin will explain later how many students will be held completely harmless from this increase. We have intentionally kept tuition increases modest in recent years

Rick Miller - Board of Trustees PSU Tuition Proposal at the limits of cost reductions - we cannot cut our way and reach our vision “an equitable and sustainable future through academic excellence, urban engagement and expanding opportunity for all” Investments to provide Upward mobility opportunity for our students Much needed well-trained work force for the region Board of Trustees will revisit tuition rates and cost reductions with a higher Public University Support Fund Allocation Anticipate tuition rate increases should be lower in the 2nd year of the biennium

President Wim Wiewel Nine Years of Progress 46% increase in students of color who now represent 38% of enrollment; 198% increase in Latino students 20% Increase in undergraduate degrees to 5,785 14% Increase in tenured faculty to 655 Expanded academic advising and added cultural centers for Latino, African American, and Asian/Pacific Islander students 6% increase in six-year rate for entering freshmen to 47% last year Retention rate for freshmen to sophomore years has grown to 73%

PUSF Allocation to PSU in Nominal Dollars President Wim Wiewel Success has come despite essentially flat state support PUSF Allocation to PSU in Nominal Dollars Nominal dollars. Adjusting for inflation, our 2016 allocation ($78.1 million) is less than the peak of 2008 ($79.4 million - inflation adjusted using HEPI); and the per student inflation adjusted number ($3,875) is still 8.5% lower than 2008 ($4.233 inflation adjusted).

President Wim Wiewel FY17 State Allocation per Degree PSU has the lowest allocation per degree in Oregon FY17 State Allocation per Degree Oregon has just started to invest and is now on the verge of disinvesting We should be investing in PSU and the success of our students

Peer and Oregon Resident Undergraduate Tuition President Wim Wiewel Peer and Oregon Resident Undergraduate Tuition Gap to OSU is more than $2,000. Others have made higher tuition rate increases in the past- Even with the 8.3% we will still be just above EOU…..

President Wim Wiewel HECC Criteria 3: A plan for how the university’s board and central administration are managing costs on an ongoing basis. Item Additional Cost Retirement Costs $5.2 million Salaries and Wages $4.12 million Other Payroll Costs (including health care costs through PEBB) $850,000 Estimated Cost of Minimum Wage Increase $680,000 Additional Investments $0 Total $10.85 million PSU has low tuition, low state allocation, but the same cost drivers Provost will talk more about managing costs and the impact. add more specifics to PSU cost drivers - limited or no control Managing Costs- Commit to find $9 million in cost reductions to offset these drivers

The High Cost of Reductions President Wim Wiewel The High Cost of Reductions PSU has committed to finding $9 million of reductions, if necessary A 5% cap on resident tuition would require finding an additional $5 million in cost reductions Long term negative impact on mission Hurt our most vulnerable students Our proposal reflects a balanced and thoughtful approach

Provost Sona Andrews HECC Criteria 3: A plan for how the university’s board and central administration are managing costs on an ongoing basis. Instruction and service delivery that is responsive to demand PSU is focused on improving student outcomes while containing costs through curricular innovation, community engagement and effective use of technology, giving students low-cost opportunities to complete their degrees and improving their access to advising 29 Flexible degrees and certificates including credit for prior learning, online and hybrid courses Redesigned advising and invested in 12 advising positions Creating interactive degree maps allowing students to dynamically compare academic pathways in relation to time and cost allowing them to make good degree planning decisions and reduce their cost

Provost Sona Andrews Impact of $9 Million Reductions 19 Full-time instructional positions and about 160 Adjunct sections Potential impact on students’ time to degree and retention and graduation rates 14 staff positions, including at least 2 academic advisors Decreases support to students and, similarly, impacts students’ time to degree and retention and graduation rates (higher cost to students) Academic Quality

Vice President Kevin Reynolds HECC Criteria 4: A summary of how students, faculty and staff were consulted on the proposed tuition increases. Over 9 months of meetings to share information and receive feedback: Board of Trustees and Administration hosted six budget roundtable meetings, some with only students, others with faculty, staff, union leadership, and legislators F&A Committee of the Board of Trustees discussed budgetary challenges throughout the fall and winter ahead of the April 5th meeting where the tuition proposal was unanimously approved Student Budget Advisory Committee (SBAC) met five times to understand the budget environment and participate in discussions about multiple tuition scenarios. SBAC provided written and verbal testimony at F&A Committee meetings Met with ASPSU, Faculty Senate, Faculty Senate Budget Committee, Academic Leadership Team Hosted a campus-wide budget forum including faculty, staff, and students Hundreds of people participated Many opportunities for feedback and dialogue

Vice President Kevin Reynolds HECC Criteria 1: Clear and significant evidence that the university gave serious consideration to alternatives that involved tuition and fee increases below the 5% threshold. 14 months during which multiple tuition scenarios ranging from 0% to 10% were considered and discussed - documented in materials provided Pushed ourselves to find reductions and found those beyond the $9 million would have a deleterious effect on students Evaluated higher tuition increases for other student types We continue to look at long-term solutions

Vice President Kevin Reynolds State Appropriation Tuition Increase Budget + Cut from CSL* $620 million 5% All -1.2%/ -$3.5 million -$17.9 million $640 million -0.4%/-$1.2 million -$15.6 million $660 million 0.4%/$1.2 million -$13.2 million $680 million 1.2%/$3.5 million -$10.9 million State Appropriation Tuition Increase Budget + Cut from CSL* $620 million 9% Res/ 5% Non-Res 0.1%/$280 thousand -$14.1 million $640 million 1.0%/ $2.6 million -$11.8 million $660 million 1.7%/$5 million -$9.4 million $680 million 2.5%/$7.3 million -$7.1 million Approved Minutes January 26th - “Committee members discussed the scenarios presented and reached consensus, given the current information, that the university plan its FY18 budget at 1.5% over the FY17 budget”

Vice President Kevin Reynolds Peer and Oregon Non-Resident Undergraduate Tuition

Vice President Kevin Reynolds HECC Criteria 2: Clear and significant evidence of how Oregonians who are underrepresented in higher education, including low-income students and students of color, would benefit more under the university’s proposal than one that stays within the 5% threshold. Resident undergraduate annual increase $693 Average annual increase in tuition remission of nearly $900 per Pell-eligible resident undergraduate student in 2017-18 Made possible by higher tuition increase and higher remission budget Not possible with 5% tuition increase cap Additional cuts necessary would impact underrepresented students disproportionately We’ve already said this in previous slides: Impact 5% cap- manage a $5 million problem Smaller remission budget and higher cost for low income students Less support services, advisers, full time faculty etc Pay freezes and potential disruptions

Vice President Kevin Reynolds HECC Criteria 5: A summary of how tuition will be affected should additional state funds beyond the number in the Governor’s Recommended Budget be appropriated. The Governor’s letter to the HECC - 5 criteria on April 11, 2017 The PSU Board of Trustees - proposed tuition increases April 11th, 2017 Last biennium PSU reduced tuition increase after a PUSF increase PUSF + $100 Million to keep tuition below 5% Increase in PUSF - commitment from Board to review both cost reductions and tuition increase