1. Restructuring NWCCU Dues

2. Current Institutional Dues
 Tier
E&G Expenditures ($)
Dues ($)
1,2
Under 4 M
3,821 3
4-6
4,460 4
6-8
5,416 5
8-10
6,371 6
10-12
7,331 7
12-14
8,285 8
14-16
9,558 9
16-18
10,514 10
18-20
11,470 11
20-22
12,429 12
22-24
13,384 13
24-30
14,342 14
30-42
15,299 15
42-66
16,270 16
66-114
17,524 17
18,480 18
Over 210
19,756
Unchanged structure/formula since before 2003
18 tiers based on institutional E&G expenditures
Not reflective of changes during last two decades in budgets, enrollments, demographics, other factors
Institutions grouped arbitrarily
e.g., Seattle University and University of Washington
UW’s E&G expenditure is 15X and enrollment is 7X that of SU

3. Dues at Regionals
Regionals use simple to complex calculations and annual dues vary significantly, ranging from a low of almost $4,000 to almost $160,000
The simplest dues are calculated primarily using student FTE or E&G or combination of FTE and E&G
Most complex dues include combinations of base amount plus student FTE plus E&G plus number of branch campuses and additional complex formulas
Low
Mid
High
HLC
$4,500
$25,450
$77,000
WSCUC
$11,220
$34,656
$158,810
NECHE
$6,722
$29,616
$33,278
NWCCU
$3,821
$10,514
$19,756

4. Guiding Principles
Non-profit membership organizations must derive most of their income identifiably from dues
Dues must be fair and equitable
Dues model must be simple, clear, and rational
Must provide value proposition of accreditation for institution and students
Consider the context of the institution, i.e., enrollments, E&G, location, student profile, etc.
Must not result in significant changes to existing dues or total income for NWCCU
Institutional and total dues must be reanalyzed/reassessed every year
Be all-inclusive and not need additional fees, beyond what is charged for reports, evaluation, visits, workshops, and substantive change proposals
Any increase in total dues must be minimal (~inflation rate) or not at all
Combination of dues, fees, visits, meetings/workshops income, and future endowment income must meet NWCCU’s annual expenditures without creating burden on institutions

5. NWCCU Income and Operating Expenses
FY income of $3.62 million, included Dues (~70 %), Evaluation Visits (~14 %), Meetings and Workshops (~12 %), Substantive Change Fees (~2.5 %), and Reports (~1.5 %)
FY annual operating expenses of ~$3.53  million included
Salaries and Benefits, Evaluation Visits and Training, Workshops, Annual Conference, Technology, Commission Expenses, Insurance, Staff Accreditation Visits, Operations, Repairs and Renovations, Utilities, Conferences and Meetings, Membership (CHEA, ACE, Penn Hill), Attorneys, Audits/Accounting, Custodial, Washington State Taxes, Landscape, Miscellaneous 

6. Source FY2018-2019 Proposed New Dues FY2020-2021
$2,510,000
$2,823,000*
Evaluation Visits
$525,000
Reports
$50,000
Substantive Change
$100,000
Workshops
$450,000
Total
$3,635,000
$3,798,000
*Base of $5,000 + $5,000 for E&G tiers of $10-$20 M; + 4,000 for E&G $20-$30 M; +$3,000 for E&G $30-$50 M; +$2,000 for E&G $50-$100 M; +$2,000 for E&G $100-$200 M; +$2,000 for E&G $200-$500 M; +3,000 for E&G $500 M-$1 B; +$4,000 for E&G >$1 B

7. Proposed New Dues
Iterative process of looking at multiple models with the help/approval of Commissioners
New model with eight tiers of annual Dues ranging from $5,000 to $30,000 per year based on institutional E&G expenditures
One annual charge will include Dues, Substantive Change Fees, and Special Report Fees
Generate ~75 percent of base income and accommodate annual variation in income from other sources
Meet WA state requirement
Dues will be reanalyzed/reassessed annually based on reported annual, institutional E&G expenditures and projected NWCCU income and expenditures for the upcoming budget year
Amount of Dues may increase or decrease depending institutional budgets
Minimal increase (~ annual inflation rate) or no increase at all
Use future endowment and other income to hold down increases or reduce Dues
No Dues increase for FY
Operationalize in FY

8. Tillamook Community College $6,186,903 $5,416 $5,000 -$416
Institution
E&G
Dues
Delta
Reports
Sub Change
Tillamook Community College
$6,186,903
$5,416
$5,000
-$416 $0
Oregon Coast Community College
$6,817,669
Columbia Gorge Community College
$14,131,850
$9,558
$10,000
$442
Clatsop Community College
$15,821,669 
$9,558 
Klamath Community College
$20,801,318
$12,429
$14,000
$1,571
$1,000
Blue Mountain Community College
$29,248,641
$14,342
-$342
Treasure Valley Community College
$29,708,013
Umpqua Community College
$34,297,057
$15,299
$17,000
$1,701
Southwestern Oregon Community College
$34,765,332
Linn-Benton Community College
$70,656,017
$17,524
$19,000
$1,476
Central Oregon Community College
$72,858,561
Rogue Community College
$73,588,063
Oregon Institute of Technology
$76,864,270
Clackamas Community College
$80,446,156
$1,500
Mt. Hood Community College
$101,461,000
$21,000
$3,476
Chemeketa Community College
$138,444,071
$18,480
$2,520
Lane Community College
$147,956,435
Portland Community College
$348,277,924
$19,756
$23,000
$3,244