1. Campus Based Tuition Increase Proposal for FY 2004-05 Robert N. Shelton Executive Vice Chancellor and Provost The University of North Carolina at Chapel Hill at Chapel Hill January 21, 2004

2. BOT Tuition Rate Philosophy Undergraduate tuition for North Carolina residents must remain affordable to ensure accessibility. We will retain our position in the lowest quartile of our national public peers for in-state tuition. Undergraduate tuition for North Carolina residents must remain affordable to ensure accessibility. We will retain our position in the lowest quartile of our national public peers for in-state tuition. Out of State tuition will be value and market driven. We will increase out of state tuition over time to the 75 th percentile of our national public peers. Out of State tuition will be value and market driven. We will increase out of state tuition over time to the 75 th percentile of our national public peers.

3. Assumptions All campus based tuition receipts remain on campus All campus based tuition receipts remain on campus Minimum impact on resident students Minimum impact on resident students Increases are consistent with philosophy articulated by the BOT on January 7th Increases are consistent with philosophy articulated by the BOT on January 7th

4. Tuition Increase Uses Need-based Student Aid Need-based Student Aid Carolina Covenant Carolina Covenant Merit/Talent Based Student Aid Merit/Talent Based Student Aid Chancellor’s Scholars Chancellor’s Scholars Morehead, Robertson, Other Academic Morehead, Robertson, Other Academic Additional Merit-based scholarships Additional Merit-based scholarships Ath l etic scholarships Ath l etic scholarships Graduate Tuition Remissions Graduate Tuition Remissions Salary Support for Teaching Assistants Salary Support for Teaching Assistants Faculty Salaries Faculty Salaries New Faculty Positions (Reduce Student Faculty Ratio) New Faculty Positions (Reduce Student Faculty Ratio) Staff Salaries Staff Salaries

5. Cost of Education $15,230 = 2002-2003 Cost of College Analysis NACUBO Methodology $15,230 = 2002-2003 Cost of College Analysis NACUBO Methodology $15,626 = 2003-2004 Projected Cost Using HE Price Index (2.6%) $15,626 = 2003-2004 Projected Cost Using HE Price Index (2.6%) Tuition & Fees 2003-2004 Undergraduate Tuition Fees Total Undergraduate Tuition Fees Total Resident $ 2,955 $1,117 $ 4,072 Resident $ 2,955 $1,117 $ 4,072 Non Resident $14,803 $1,117 $15,920 Non Resident $14,803 $1,117 $15,920 Graduate Graduate Resident $ 3,163 $1,106 $ 4,269 Resident $ 3,163 $1,106 $ 4,269 Non Resident $15,161 $1,106 $16,267 Non Resident $15,161 $1,106 $16,267

6. Cost Subsidy Undergraduate Education FY 2003-2004 Non Resident Resident $15,626 $15,626 $15,626 $15,626 ($15,920) ($ 4,072) ($15,920) ($ 4,072) ($ 294) $ 11,554 ($ 294) $ 11,554 The State’s subsidy to resident students is $11,554. Non-resident students pay the full cost of education plus $294.

7. In State Tuition & Fees Comparison

8. Out of State Tuition & Fees Comparison

9. Tuition Increase Scenarios

10. Resident Tuition Increase (Includes all resident students) Non-Resident Tuition Increase (Excludes students paying professional degree tuition in excess of the campus-based tuition) tuition in excess of the campus-based tuition)

11. Summary of Campus-Based Tuition Proposal for FY2004-05 Resident tuition increase: $300 Resident tuition increase: $300 Non-resident tuition increase: $1,500 Non-resident tuition increase: $1,500 Permanent budget increase: $15,290,400 Permanent budget increase: $15,290,400 Need-based aid: $6,116,160 Need-based aid: $6,116,160 Merit/talent-based aid: $937,500 Merit/talent-based aid: $937,500 Tuition remissions: $1,980,000 Tuition remissions: $1,980,000 Balance: $6,256,740 Balance: $6,256,740

12. Tuition & Fee Increase Recommendation FY 2004-05 Undergraduate & Graduate Resident $300.00 Resident $300.00 Non resident $1,500.00 Non resident $1,500.00 Fees $121.50 Fees $121.50