1. Portland State University
Undergraduate Tuition Rate Proposal
May 10, 2017 H

2. 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….

3. 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

4. Rick Miller - Board of Trustees
PSU Board Approved Tuition Rates FY17-18
Per Credit Hour Rate
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%
Per Term Rate
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

5. Rick Miller - Board of Trustees
PSU Board Approved Tuition Rates FY17-18
Proposed
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

6. 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

7. 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%

8. 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).

9. 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

10. 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…..

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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”

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

19. 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
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

20. 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