East Carolina University

Transcription

1 East Carolina University EXECUTIVE SUMMARY ECU /Fee Proposal This report provides the ECU Board of Trustees with tuition and fee recommendations for Academic Year These recommendations conform to guidance provided by the Board of Governors (BOG). I. Process The annual tuition and fee increase process began in September 2016 with the establishment of the Campus Based and Fee Committee (CBTFC). There are 33 members of this committee, consisting of students, faculty, and staff from across the university. Meetings were held in September and October The CBTFC reviewed current tuition and fee policies and guidance from General Administration and the Board of Governors, past rates and increases, peer institution tuition and fees, and discussed approaches to tuition/fee increases for the year. The recommendations from the CBTFC were provided to the Chancellor s Executive Council as well as the Student Government Association (SGA) and Graduate and Professional Student Senate (GPSS). Two student forums were conducted by the Student Government Association to inform students of the proposed increases and receive feedback. The fee increase proposals impacting all students were presented to the SGA Senate for their recommendations. Other fees that were program-specific such as the School of Dental Medicine and the College of Engineering and Technology, were discussed with the students in those respective programs. In addition, the School of Dental Medicine, the Brody School of Medicine and other professional programs met with students within their respective programs to discuss recommended increases. As in past years, we believe our process exceeds the standards for student input set forth by the BOG. II. Background The UNC Board of Governors tuition and fee guidelines [Attachment 1] issued on October 7 th provide parameters for setting tuition and fee rates for the year. There were two provisions included in the recently adopted state budget that impact the tuition and fee setting process for UNC Institutions. First, the budget enacted a fixed tuition rate for first-time full time resident undergraduates and new transfer students that remain continuously enrolled for eight consecutive semesters or the equivalent number of remaining semesters for transfer students. The fixed rate was effective for Fall 2016 admits. Second, with respect to fees and effective Fall 2017, the legislation mandated a maximum increase in student fees, including debt service fees, of 3%. In past years the cap on fees has generally been limited to 5% and debt service fees were excluded from the cap. BOG guidelines sets an annual 2% maximum increase in tuition for incoming undergraduate resident freshman and transfers for Fall 2017 and a 3% maximum increase for fees that are charged to all students (including debt service fees). An additional guideline communicated to the campus that is not stated in the October 7 tuition and fee guideline document is that all current undergraduate resident students will receive the same fixed tuition rate as paid by current incoming freshmen. Effectively, all resident undergraduate students will receive the same fixed tuition rate (prorated for their time remaining). Specific implementation details are being worked on by a UNC System Committee with representatives from system universities. Increase proposals for tuition and required fees (Athletics, Education-Technology, Campus Recreation and Wellness, Student Centers Operations, Student Health Services, and Transit) are presented below for BOT consideration for the year. Vice Chancellor for Administration and Finance November 11, 2016 Page 1 of 49

2 In addition to required tuition and fees (those charges that all students pay), we are recommending tuition and fee changes in this year s proposal that are charged only to students who are participating in a specific program, course or activity. Use of revenues generated with the proposed tuition and fee increases are described below. III. Increase Proposals The tuition increase recommendation for FY is: For incoming resident freshmen and undergraduate transfer students, a 2% increase in their fixed tuition rate. For undergraduate non-residents and all graduate students, a 2% increase. For current resident undergraduate students, no increase. Note that these students receive a fixed tuition rate, but that rate is only provided for a fixed period of time (normally a maximum 8 semesters, prorated for those who did not first attend as freshmen). The specific increase for each student classification is detailed below. Campus-Based Increase Recommendations [Attachment 2] are as follows: Student Category for Proposed CBTI Proposed for Proposed Increase Increase UG Resident current students $4,365 $0 $4, % UG Resident Incoming Freshman and Transfers $4,365 $87 $4, % UG Nonresident $20,323 $406 $20, % GR Resident $4,656 $93 $4, % GR Nonresident $17,547 $351 $17, % The proposed Campus-Based Increases (CBTI) will yield an estimated $2 million for undergraduate and graduate students in We propose to spend the additional resources in accordance with BOG spending categories as follows: $1 million for inflationary adjustments; $200,000 for faculty and staff retention and equity; $200,000 for student services; $200,000 for academic support; $200,000 for Graduate Assistantship support; $100,000 for Honors College merit scholarships in the B-STEM fields; and $100,000 for technology improvements and support. Medical and Dental increases for the Brody School of Medicine and the School of Dental Medicine are not subject to the same percentage limitations noted above for undergraduate and graduate students. The BOG has not established ceilings for these entities although campuses are encouraged to carefully review all revenue sources before recommending increases that are higher than the undergraduate rate increases. These two schools have virtually no alternative revenue sources to pay for instructional costs. While both schools have clinical operations, the gross and net revenues from these clinical operations must be used to support those operations. Particularly in these times of increased pressures on clinical revenue sources, the use of clinical revenues for instructional purposes would be not be prudent fiscal and operational management and would put the clinical operations at significant risk. Thus, it is appropriate that increased costs of instruction in these critically-important health-related areas be borne through an increase in tuition. Vice Chancellor for Administration and Finance November 11, 2016 Page 2 of 49

3 The Brody School of Medicine is proposing a tuition increase of $2,000 in This increase would be in addition to the general graduate student CBTI of $93 in The combination of the general graduate student increase plus the school-specific request represents a total increase of 11.53% for the Brody School [Attachment 2]. Even after the increase, the Brody School will remain second to lowest of our peer institution group. [Attachment 3]. The general CBTI revenue and professional tuition generated by graduate medical students will be allocated: 43% towards faculty support of Student Distinction Tracks including staff support and operating costs; 47% towards supporting a new curricular design to meet new national educational standards, entitled Entrustable Professional Activities and 10% for staffing enhancements for M3 and M4 clerkship administration. Details of these uses are provided in Attachment 3. The School of Dental Medicine is proposing a 4.07% tuition increase of $1,000 per year. Again, this proposed increase would be in addition to the general graduate tuition increase of $93 [Attachment 2]. The general CBTI revenue and professional tuition generated by graduate dental students will be allocated to two new positions, one for a Learning Specialist and the other a 0.5 FTE for a general dentistry faculty member. Details of these uses are provided in Attachment 4. Professional Programs Across the country and within the UNC-system, it is common to see additional tuition charged for those graduate professional programs which are high demand and/or which cost more to deliver. At ECU, additional tuition is currently being charged for the MBA and MSA programs in business, graduate and professional programs in Nursing, Master s in Social Work, and five graduate programs in the College of Allied Health Sciences. Three professional programs are being recommended for additional program-specific tuition: Master s in Communication Sciences and Disorders, Doctorate of Audiology, and Doctorate of Philosophy (PhD) in Communication Sciences and Disorders [Attachment 5]. Operationally, the increases are determined on a per-credit-hour basis. The Masters in Communications Sciences and Disorders is requesting an increase of $50 per SCH and the other programs are requesting an increase of $25 per SCH. In all cases, the resulting new rate will be $100 per-credit-hour for each program. Revenues generated from these program-specific tuition differentials are maintained at the department level to directly support the respective programs. The funds will be allocated to provide additional support for clinical operations, increase faculty salaries to be more competitive, and provide funds for student research participation and presentation. Details as to how each unit will use the revenue are shown on Attachment 5. IV. Fee Proposals Fee increases for all students are proposed for Athletics ($27), Education-Technology ($13), Campus Recreation and Wellness ($25), Student Centers Operations ($25), Student Health Services ($8), and Transit ($12). The proposed fee increases total $110 for We will be reducing our Student Union Debt Service fee by $50, therefore, the net increase is 2.28% which is less than BOG 3% maximum. Details are set forth in attachments 6 and 7. The projected increased revenues for Athletics would be about $594,000. The increased revenue will be used to offset increased operating costs including adding women s lacrosse. [Attachment 6] The projected increased revenues for Education-Technology is about $348,400. The revenue increase will support student-related technology needs including enhanced student support services and funds to address Vice Chancellor for Administration and Finance November 11, 2016 Page 3 of 49

4 general fixed operating costs for new and existing smart classrooms and student computer labs. Technology demand grows as programs continue to integrate technology in the curriculum. [Attachment 6] Campus Recreation and Wellness projected increased revenues would be about $550,000. The increased revenue will be used for Campus Recreation and Wellness operations within the new Health Sciences Student Center. [Attachment 6] Student Centers Operations projected increased revenues would be about $550,000. The increased revenues will be used for the building operating cost of the new Health Sciences Student Centers. [Attachment 6] Student Health Services projected increased revenues would be about $176,000. The increased revenue will be used to provide operating support for the new Health Sciences clinic that will be located in the new Health Sciences Student Center, as well as to provide funding to support third party billing. [Attachment 6]. Transit projected increased revenues would be about $264,000. The increased revenue will cover the increased cost of the Gregory Poole maintenance contract for the busses as well as fund the increased cost to refurbish two busses annually. [Attachment 6] In addition to the across-the-board fee increase requests noted above, we are proposing the following changes to special fees and miscellaneous charges. We are proposing a new $300 program fee for all students in the College of Engineering and Technology. The funds will be used to support innovative educational programs and to enhance the professional development programs that prepare students to enter the workforce. Specific uses of the funds include personnel; equipment maintenance, replacement and purchases; facility upgrades and renovations. Personnel support includes teaching assistants, lab supervisor, IT and advising support, as well as undergraduate and graduate assistants. [Attachment 8] Dental Medicine is proposing a $5 increase to the ASDA fee and a new $225/$300 fee for preclinical educational materials for students in years 1 and 2. The ASDA fee is partly a pass through fee. We have been informed by ASDA that their fee will increase by $5 in calendar year The new preclinical educational materials fee will pay for the purchase of practice teeth and a typodont [Attachment 8]. Other fees proposed are increases in the undergraduate, graduate, and medical application fee ($5), a new enrollment and degree verification fee ($8), a $55 increase in the student orientation fee, and a $10 increase in the orientation fee for a second family member. [Attachment 8] V. Other Miscellaneous Charges Housing has proposed a rate increase of 3% for residence halls. The increases range from $156 to $175 annually. Total annual rates will range from $5,366 to $5,985. Room rates differ per hall based on facility accommodations [Attachment 9]. No increase is proposed for dining. Parking is proposing a 2% increase in all rates. The increases range from $3 to $8 annually. There are different permit prices based on proximity zones. [Attachment 9] VI. Generated and Fee Revenue in Relation to the ECU Total Budget Over the five fiscal years from to , student tuition revenue increased from $105.5 million, or 12.5% of total revenue, to $127.9 million, or 14.3% of total revenue. [Attachment 10, two pages] State appropriations increased from almost $272 million, to about $286 million, and remained about 32% of revenues. It is critically important to note that this $14 million increase in appropriations is the net change Vice Chancellor for Administration and Finance November 11, 2016 Page 4 of 49

5 after taking into account increases and decreases. In the time period in question, our appropriations increased because of revenue stabilization funding for Brody, legislative salary increases or benefit rate increases, maintenance and operating dollars for Coastal Studies and Dental School buildings, and funding to support additional students in the dental school and enrollment growth funding. In all cases, the additional funding was for very specific purposes. The decreases were for budget cuts which affect general fiscal resources. In the same time frame, required student fees increased from $44.4 million to $54.1 million, 5.3% of total revenues in and 6.1% in [Attachment 10] Total revenue generated from tuition and required fees in was about $154 million, which was about 18.3% of the $844 million total ECU revenue. The revenue percentage from tuition plus required student fees in was 21.25%. Our experience is consistent with the general trend over time throughout the state and nation wherein statesupported institutions receive a larger proportion of fiscal resources from tuition and fees and a smaller proportion from state appropriations. VII. Financial Aid Attachment 11 provides information over time relative to the number and proportion of students who receive financial aid as well as the total and average debt load for graduating students and all students. The proportion of all students receiving financial aid has been relatively constant over the last five years. The average amount of graduating student debt has increased over the five years provided. In , the percentage of financial need met ranges from 59.53% to 67.81%, with resident undergraduates receiving the highest percentage. [Attachment 12] VIII. ECU Comparisons with UNC-System and Peer Institutions UNC-System Institution comparisons Attachment 13 provides data on our tuition relative to other UNC System universities. Attachment 14 provides data on all tuition and fees for all UNC-system universities. With respect to tuition, we rank about fifth in the system. When we examine tuition plus fees, we are roughly in the middle of all UNC-system schools. Attachment 15 illustrates currently required student fees for all UNC-system universities. Overall, and by category, our fees rank in the middle or in the lower quartile of all sister institutions. National peer university comparisons: All UNC-system schools have a BOG-approved list of peer Universities from around the country. Attachment 16 provides tuition and fees data for all our peer schools for the fiscal year All data on this attachment was obtained from IPEDS data source, therefore, it lags by one academic year. As indicated on Attachment 16, our undergraduate resident tuition and fees is second lowest of all peer schools, eighth lowest for undergraduate non-residents, second lowest for graduate residents, and seventh lowest for graduate non-residents. On Attachment 17, we provide a comparison of our out-of-state tuition and fee rates versus the in-state and out-of-state tuition and fee rates for students at representative universities in New Jersey, Maryland, South Vice Chancellor for Administration and Finance November 11, 2016 Page 5 of 49

6 Carolina, West Virginia and Virginia. With the exception of Towson University and West Virginia, our outof-state rate is less than the out-of-state rates for the schools indicated. As has historically been the case, our out-of-state rate is greater than the in-state rate for those schools. When total cost of attendance is considered, the difference is narrowed considerably. IX. Other In Attachment 18 we have provided some additional historical information. Vice Chancellor for Administration and Finance November 11, 2016 Page 6 of 49

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10 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 Establishing and Fees The General Assembly shall provide that the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense. North Carolina Constitution, Article IX, Section 9 I. Establishing This citation from the North Carolina Constitution sets the parameters for establishing resident tuition rates at the constituent institutions of The University of North Carolina. The constitutional provisions for setting tuition are codified in General Statute (7), which states, in part, "The Board (of Governors) shall set tuition and required fees at the institutions, not inconsistent with actions of the General Assembly. This statute governed the setting of tuition rates for both resident and nonresident students from 1971 through 1999 during which time the Board of Governors recommended no tuition increases except as required by statute. This policy outlines the framework to be followed by the Board in establishing tuition levels for constituent institutions, 1 commencing with academic year is charged to students enrolled in academic programs during regular terms, summer sessions or through off-campus distance instruction and is used to partially defray the costs of general academic and administrative operations of campuses, including academic programs and faculty and administrative salaries and benefits. 1. Board-initiated Rates A. Undergraduate General Policy The appropriate tuition policy at the undergraduate level encourages students to pursue academic and intellectual interests without regard to program costs. Accordingly, no difference in tuition between undergraduate programs will occur within an institution, and there will be only minimal differences in undergraduate tuition among campuses in similar institutional categories as defined by the Board to reflect both varying missions and contrasting costs of education. Deviation in undergraduate tuition among campuses in different institutional categories will be based upon institutional offerings and will be reasonable. B. Graduate and Professional General Policy The Board will attempt to extend the principle that tuition be set as low as practicable to graduate and professional students as well as those at the undergraduate level. The financial structure and educational purposes of graduate and professional education, however, are sufficiently different from undergraduate education that distinct tuition policies at the graduate and professional level will be permitted. The application of what is practicable varies by level of instruction for a number of reasons, and those differences will be reflected in the tuition policies associated with each. The Board will apply Article IX, Section 9 of the North Carolina Constitution to graduate and professional level students but with the realization that the costs, sources of funds and purposes of graduate and professional education are materially different from undergraduate education. for graduate and professional students will be set with an 1 Consistent with G.S , no tuition or fees may be charged to students in the high school program at the North Carolina School of Science and Mathematics. Service charges may be established consistent with Section II.2. below. Page 1 of 7 Page 10 of 49

11 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 understanding that tuition revenues may be needed to maintain and increase the excellence of the University s graduate and professional programs. In setting tuition rates, the Board will consider the need to provide access to these programs for students irrespective of their financial capacity as well as the desire to attract and retain the best students to serve North Carolina s needs in each field. C. for Nonresident Students - General Policy Under General Statute , the Board of Governors is required to set tuition rates for nonresident students at levels higher than the rates charged residents of North Carolina and comparable to the rates charged nonresident students by comparable public institutions nationwide.... In complying with the statute, the Board will set tuition for nonresident students after considering the results of a review of rates set by comparable public institutions nationwide. The Board will further consider the need for tuition remissions for nonresident graduate students when setting tuition rates and tuition remission policies. D. Process for Setting Board-initiated Rates i. Proposed increases in general tuition rates are to be recommended by the President for consideration by the Board. The President will seek counsel from University Chancellors and a committee of campus representatives appointed by each chancellor, before making the recommendations for tuition changes. The committee of campus representatives appointed by each chancellor will include students. ii. The President, the chancellors and the committee of campus representatives will consider a number of factors in deciding whether to recommend changes to general tuition rates in any given year. After the President recommends any action to the Board of Governors, the Board will also consider those factors, which include: a. Availability of State general fund revenue to maintain quality and access within the campuses of the University of North Carolina; b. Evidence of institutional efforts to manage costs through increases in productivity, budget flexibility, and/or efficiency improvements; c. Analysis of the impact of tuition and fee charges on student access to the campuses of the University of North Carolina as measured by the collegegoing rate and other metrics so as not to limit access to the University; d. s in various price and income indices (e.g., North Carolina per capita personal income, Consumer Price Index, Higher Education Price Index); e. The current level of student charges (tuition, fees, room and board) at UNC institutions and whether campuses have proposed campus or program tuition differentials for the budget period that would be in addition to general increases in tuition; f. Analysis of student indebtedness levels within the University, viewed in the context of student attrition rates; Page 2 of 7 Page 11 of 49

12 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 g. Availability of financial aid and tuition remission and amount of unmet need. Financial aid should be reviewed in the context of the different missions of the institutions, the diverse capacities of the institutions to provide financial assistance and the contrasting needs of students attending the institutions. iii. In academic years ending in odd numbers (e.g., June 30, 2003, the long session of the General Assembly), the Board will act by October of the preceding year or when it adopts its biennial budget request to establish the University's general tuition rates for the next academic year. This timing allows Board action on tuition to be incorporated into the University s budget request as part of its overall financing plan. In academic years ending in even numbers when the Board prepares a supplemental budget request, the Board will set Board-initiated tuition rates in conjunction with its establishment of campus-initiated tuition rates. 2. Campus-initiated Rates A. Campuses may request increases in tuition to provide revenue for specific purposes and programs. Revenue generated from a campus-initiated change in tuition rates will be accounted for in the budget of the originating campus and transferred within the institution by the chancellor in accordance with the priorities identified in the approved campus proposal. B. Undergraduate The Board recognizes that campuses may experience circumstances that suggest that an across-the-board change in undergraduate tuition may be needed at one or more institutions. In the event that circumstances lead a campus or campuses to the conclusion that a change in undergraduate tuition rates is needed, campuses are permitted to bring proposals for undergraduate tuition changes before the Board for its consideration. Campuses wishing to submit requests for undergraduate tuition changes will conduct a process that includes consultation with participation by students. A campus will consider the following factors when creating an undergraduate tuition proposal. i. Availability of State general fund revenue to maintain quality and access within the campuses of the University of North Carolina; ii. Evidence of institutional efforts to manage costs through increases in productivity, budget flexibility, and/or efficiency improvements; iii. Analysis of the impact of tuition and fee charges on student access to the campuses of the University of North Carolina as measured by the college-going rate and other metrics so as not to limit access to the University; iv. s in various price and income indices (e.g., North Carolina per capita personal income, Consumer Price Index, Higher Education Price Index); v. The current level of student charges (tuition, fees, room and board) at UNC institutions and whether campuses have proposed campus or program tuition differentials for the budget period that would be in addition to general increases in tuition; Page 3 of 7 Page 12 of 49

13 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 vi. Analysis of student indebtedness levels within the University, viewed in the context of student attrition rates; vii. Availability of financial aid and tuition remission and amount of unmet need. Financial aid should be reviewed in the context of the different missions of the institutions, the diverse capacities of the institutions to provide financial assistance and the contrasting needs of students attending the institutions. viii. A plan for the intended use of additional tuition receipts (e.g., needed improvements to the educational program, funding for competitive salary increases, financial aid, etc.) 3. Graduate and Professional The Board of Governors will permit individual campuses to initiate requests for Board approval of different base or program tuition rates at the graduate and professional level. If a campus explores the possibility of developing such a request, it will present evidence to ensure that students in the affected graduate and/or professional programs have been consulted. for graduate and professional students will be set with an emphasis on maintaining and increasing the excellence of the campus graduate and professional programs as well as ensuring access. To the extent possible, there should be full tuition remission for graduate assistants to improve a campus competitiveness in recruiting and retaining highly qualified nonresident graduate students. In reviewing potential criteria to recommend as a basis for deciding when specific graduate or professional tuition differentials may be appropriate at a particular institution, a flexible policy framework that allows judgments to be reached based on a number of factors is preferable either to cost-based formulas or to discipline or program typologies that treat all academic or professional programs the same. In particular, a flexible approach based on the unique factors associated with specific programs is desirable because of the potential mix of graduate and professional programs that one may find within any given school or college; e.g., a professional school may offer a Ph.D. program in addition to one or more professional degree programs. Therefore, the campuses will consider the following factors in developing graduate and professional school tuition proposals. A. The anticipated impact of a proposed change on program quality; B. The projected impact of a proposed change in tuition on access for North Carolina residents; C. The availability of student financial aid for students with economic need and of tuition remission; D. The extent to which current and prospective students can afford possible increases in tuition; E. The relationship of projected tuition revenue to institutional and/or program costs; F. and fees, net of remissions and waivers, charged by peer institutions or programs, as compared to tuition and fees, net of remissions, at the UNC institution or program (the public subsidy received by students at public institutions or programs in the peer set, Page 4 of 7 Page 13 of 49

14 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 including the UNC institution or program in question, will also be identified as part of the comparison); G. A plan for the intended use of additional tuition receipts (e.g., needed improvements to the educational program, funding for competitive salary increases, financial aid, etc.); and H. Assistantships or grant support for graduate students; I. Analysis of student indebtedness levels within the University. 4. Timing and Review of Board Action The Board will act by February of each year, or as soon as possible thereafter, to establish the University's campus-initiated tuition rates for the next academic year. Setting campus-initiated tuition rates by February will permit students and their families to know in early spring what their tuition charges for the fall semester will be, assuming consistency between the actions of the Board of Governors and the General Assembly. Moreover, an institution is required to submit a one-time report at the end of the first full biennium following an approved campus-initiated tuition rate increase in order to confirm that the additional revenues were used as the Board intended in approving the campus request. This will ensure the accountability of a campus for its tuition proposals as well as enable the Board to maintain the University s accountability to the State. 5. Requests in Context of Long Range Plans All proposals for campus-based tuition increases will include the campus plan for other tuition increases for a prospective period of five years, including the year of the current application. 6. Individual Consideration of Campus Request The Board will review each campus-based tuition request on an individual basis, within the context of the University s long range plan, the need for Board-initiated tuition increases, the state s economic environment, and the financial impact on students. The Board is obligated to exercise its discretion in granting, modifying or denying a campus request. II. Establishing Fees. The Board of Governors is responsible for establishing fees at the constituent institutions of the University consistent with the philosophy set forth in the North Carolina constitution. Fees will be charged only for limited, dedicated purposes and shall not be used to defray the costs of general academic and administrative operations of campuses, including academic programs and faculty and administrative salaries and benefits. Consistent with the above citation, the Board will make every effort to keep fees for students as low as possible while providing the revenues needed to support the purposes for which the fees are charged. Each year, the Board establishes the fees listed below. All fees established shall be based upon the recommendation of the chancellor, the institutional Board of Trustees, and following his or her review, the President. Excluding the application fee charged to prospective students, all fees set by the Board are annual fees. Once an annual fee has been established, semester rates, summer rates, and part-time rates shall be established by the President. It is the policy of the Board to act no later than February of each year to establish fees for the following fall semester. Page 5 of 7 Page 14 of 49

15 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 1. Although the General Assembly provides for most of the instructional costs of institutions through State appropriations, institutions traditionally rely entirely on student fees to finance a number of activities, services, and facilities. Institutional Boards of Trustees are required to weight the benefits of the activity, facility or service against the fee required to provide financial support. Orientation sessions for the Boards of Trustees will regularly include discussions of the process followed when establishing student fees. A. Application Fee. An application fee shall be established for each institution. Specific programs within an institution may require an application fee different from the fee charged for most students and the Board may set different fees according to program needs. B. General Fees. Fees generally applicable to all students shall be established by the Board of Governors. Four general fees are authorized: athletic fees, health services fees, student activity fees, and educational and technology fees. C. Fees Related to the Retirement of Debt Incurred for Capital Projects. Fees generally applicable to all students that provide revenues for the retirement of debt shall be fixed by the Board of Governors at the time of the borrowing. Indebtedness fees may not include components for operations and maintenance but shall reflect the cost of servicing the debt at the coverage levels required in Board resolutions and other documents authorizing the debt. s in fees required subsequent to the issuance of the debt may be approved by the President upon the request of the chancellor. Indebtedness fees expire when the related debt is retired. D. Special Fees. Fees applicable only to students engaged in particular activities or courses of study shall be established by the Board of Governors when needed. These fees will not be used to provide general academic revenues that will be provided for from campusinitiated tuition increases. 2. Each chancellor is authorized to establish miscellaneous service charges for such items as transcripts, diplomas, caps & gowns, special examinations, late registrations, and replacement of I.D. cards. A schedule of such charges shall be filed with the President prior to the beginning of each school year The process for establishing fees shall be as follows: A. In academic years ending in odd numbers (e.g., June 30, 2003, prior to the short session of the General Assembly in 2004), the process shall be initiated at the beginning of the fall semester and contain the following steps. i. The Vice President for Finance shall issue instructions to the campus chancellors calling for them to initiate a review of fees. ii. Each chancellor shall establish a fee review committee with representatives of all aspects of campus life, including, but not limited to, representatives from Business Affairs, Student Affairs, the Financial Aid Office, and the student body. The Committee shall conduct a complete review of student fees from a zero-based budgeting 2 The Chancellor of the North Carolina School of Science and Mathematics shall transmit by July 1 of each year a schedule of service charges at that institution for approval by the President. Page 6 of 7 Page 15 of 49

16 Attachment 1 Attachment 1 The UNC Policy Manual Adopted 02/09/73 Amended 06/18/73 Amended 07/12/74 Amended 06/11/93 Amended 02/14/03 Amended 07/01/07 perspective and shall make recommendations to the chancellor for establishing fees effective with the upcoming fall semester. The review will include an examination of alternative resources, including available institutional reserves, to determine if other funding is available to provide the services in lieu of establishing the fee. The review will include a reassessment of the existing operating methods to ensure that operations are performed in a cost-effective manner. If the committee determines that an increase in a fee is needed, the committee shall attempt to decrease another fee so that the total cost of education for students does not increase. In order to ensure that all students are able to meet the increased cost of education, the university's financial aid officer, working with the committee, shall determine that sufficient financial aid is available, from whatever sources are possible. iii. The chancellor shall review the recommendations of the Committee and present recommendations to the Board of Trustees for review and approval. Before a chancellor makes recommendations to the Board of Trustees, the recommendations of the fee review committee will be shared with student government leaders so that students may inform the chancellor of their perspectives on the proposed changes. iv. The recommendations of the Board of Trustees will be forwarded to the President for review. v. When the review is completed, the President will present fee recommendations to the Budget and Finance Committee for consideration by the Board of Governors. Each step in the process shall be an iterative and comprehensive review of the previous step, resulting in changes to the fee recommendations as deemed appropriate. B. In academic years ending in even numbers (e.g., June 30, 2004, prior to the long session of the General Assembly in 2005), fee increase proposals submitted by the institutional Board of Trustees to the President may be approved by the President if the increase provides only for the following: i. Additional revenues equal to the amount required for funding compensation increases for fee-supported employees at a level equivalent to the previous years' compensation increases authorized by the General Assembly. ii. Additional revenues for nonpersonnel items at a level equivalent to increases in the consumer price index. If a campus requires other changes in fees in academic years ending in even numbers, the process that shall be followed is identical to that followed in academic years ending in odd numbers. Page 7 of 7 Page 16 of 49

17 Attachment 1 Attachment 2: Special Provision of S.L (HB 1030) Related to and Fees ACCESS TO AFFORDABLE COLLEGE EDUCATION SECTION 11.4.(a) Guarantee of No In-State Increase for Standard College Term. Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read: " Fixed tuition payment. (a) There is established the fixed tuition payment program. The rate of tuition of any freshman or transfer undergraduate student who is admitted to any constituent institution of The University of North Carolina and deemed to be a North Carolina resident for purposes of tuition shall be guaranteed as provided by this section. The program shall have the following components: (1) A guarantee that the rate of tuition approved by either the Board of Governors or the Board of Trustees of the constituent institution will remain constant or decrease during the tuition period. (2) Except as provided in subsection (b) of this section, the tuition period shall be (i) eight consecutive academic semesters for a student seeking a baccalaureate degree in a four-year program or 10 consecutive academic semesters for a student seeking a baccalaureate degree in a program officially designated by the Board of Governors as a five-year program, not including any summer sessions, or (ii) the appropriate balance of a designated program length after making the proper adjustments for a student who transfers to the constituent institution. (3) Except as provided in subsection (b) of this section, the student must remain enrolled continuously at the constituent institution during the entire tuition period. (4) At the end of the tuition period, the cost of tuition for any additional academic semesters reverts to the amount of the current tuition for that constituent institution and a tuition surcharge imposed under G.S , if applicable. (b) The tuition period may be tolled if the student is able to demonstrate a substantial disruption or interruption in the student's pursuit of a degree as provided in G.S (c). (c) The Board of Governors shall adopt the policies needed to implement this section and shall also determine what the fixed tuition rates and the tuition periods shall be for undergraduate transfer students who are North Carolina residents for purposes of tuition." SECTION 11.4.(a1) Subsection (a) of this section is effective when it becomes law and beginning with the 2016 fall academic semester, applies to the rate of tuition for freshmen and transfer students who enroll at a constituent institution and to the rate of tuition for freshmen and transfer students who enroll at a constituent institution in subsequent academic semesters. SECTION 11.4.(b) Cap on Student Fees. Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read: " Cap on student fees. Notwithstanding G.S and G.S (7), the Board of Governors of The University of North Carolina and the Board of Trustees at each constituent institution may increase the cumulative total of all undergraduate student fees approved by either the Board of Governors or the Board of Trustees by no more than three percent (3%) per academic year." SECTION 11.4.(b1) Subsection (b) of this section is effective when it becomes law and applies beginning with the academic year. The student fees charged for the academic year shall be the baseline used to determine the amount of the three percent (3%) increase in student fees that is permissible for the academic year. SECTION 11.4.(c) NC Promise Plan and "Buy Down." Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read: " NC Promise Plan; State "buy down" of certain financial obligations. (a) The NC Promise Plan shall be established and implemented as provided by this section. Notwithstanding G.S and G.S (7), the Board of Governors of The University of North Carolina shall set the rate of undergraduate tuition for Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University as follows: beginning with the 2018 fall academic semester, the rate of tuition for students deemed to be North Carolina residents for purposes of tuition shall be five hundred dollars D-1 Page 17 of 49

18 Attachment 1 Attachment 2: Special Provision of S.L (HB 1030) Related to and Fees ($500.00) per academic semester and the rate of tuition for nonresident students shall be two thousand five hundred dollars ($2,500) per academic semester. (b) Notwithstanding any other provision of law, the State shall "buy down" the amount of any financial obligation resulting from the established tuition rate that may be incurred by Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University as provided by this subsection. Beginning with the fiscal year, the Director of the Budget shall determine each fiscal year, based on information provided by the Board of Governors and the Chancellor of each constituent institution, the amount required to offset the forgone tuition receipts at each of the three institutions as a result of the tuition rate established by this section. The Director of the Budget shall authorize an increase in the base budget of The University of North Carolina of up to forty million dollars ($40,000,000) each fiscal year to cover the cost of the "buy down" that fiscal year and shall allocate the appropriate sum to each constituent institution. Any increase in the base budget authorized pursuant to this subsection shall not be included in the calculation of projected enrollment growth under G.S (c) When implementing the provisions of this section, the Board of Governors shall give due consideration to maintaining the unique historical character of each institution, including service to students who are first generation, college-going, economically disadvantaged, or minority." SECTION 11.4.(c1) By January 16, 2017, the Board of Governors shall develop and implement a marketing strategy utilizing advertising means with historically successful results that is designed to increase enrollment at Elizabeth City State University and to effectively market the NC Promise Plan at that campus. Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the fiscal year, the Board of Governors may use a sum of up to two hundred fifty thousand dollars ($250,000) to accomplish the purpose provided in this subsection. SECTION 11.4.(c2) G.S reads as rewritten: " Higher tuition to be charged nonresidents. The Unless provided otherwise by law, the Board of Governors shall fix the tuition and required fees charged nonresidents of North Carolina who attend the institutions enumerated in G.S at rates higher than the rates charged residents of North Carolina and comparable to the rates charged nonresident students by comparable public institutions nationwide, except that a person who serves as a graduate teaching assistant or graduate research assistant or in a similar instructional or research assignment and is at the same time enrolled as a graduate student in the same institution may, in the discretion of the Board of Governors, be charged a lower rate fixed by the Board, provided the rate is not lower than the North Carolina resident rate." SECTION 11.4.(d) Evaluation of Admission Cap on Nonresident Students Entering the Freshman Class of a Constituent Institution. The Board of Governors shall consider what effect, if any, the elimination of or an increase in the current cap of eighteen percent (18%) on the enrollment of nonresident students entering the freshman class at the constituent institutions listed in subsection (d1) of this section may have regarding the student applications to those institutions. If the Board of Governors determines that eliminating or increasing such cap may increase the number, academic strength, and diversity of student applications at those institutions, then the Board of Governors may, in its discretion, adopt a policy that eliminates or establishes a different cap and the period of time for which the modification of the cap shall be implemented at those institutions. SECTION 11.4.(d1) Subsection (d) of this section applies only to Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University. SECTION 11.4.(e) Establish Merit Scholarships at North Carolina Agricultural and Technical State University and North Carolina Central University. Chapter 116 of the General Statutes is amended by adding a new Article to read: "Article 35. "Cheatham-White Scholarships. " Cheatham-White Scholarships; establishment and purpose; benefits. (a) Scholarships Established; Purpose. The Cheatham-White Scholarships are established as a merit scholarship program at North Carolina Agricultural and Technical State University and at North Carolina Central University. The purpose of the scholarships is to provide an outstanding educational experience for students who are exceptional scholars, versatile and well-rounded individuals with a broad range of interests, and who are D-2 Page 18 of 49

19 Attachment 1 Attachment 2: Special Provision of S.L (HB 1030) Related to and Fees accomplished and proficient in areas of both the arts and the sciences. They must also demonstrate leadership potential and a strong commitment to service. (b) Scholarship Benefits. Each scholarship is a fully funded four-year scholarship that covers the cost of all of the following: full tuition, student fees, housing, meals, textbooks, a laptop, supplies, travel, and personal expenses. Each scholarship also provides four summers of fully funded enrichment and networking opportunities that may include international travel and study. (c) Number of Scholarships Awarded. Up to 50 scholarships, 40 for resident students and 10 for nonresident students, may be awarded each academic year to students admitted to North Carolina Agricultural and Technical State University. Up to 50 scholarships, 40 for resident students and 10 for nonresident students, may be awarded each academic year to students admitted to North Carolina Central University. " Cheatham-White Scholarships; fund established; administration of fund. (a) Fund Established. There is established the Cheatham-White Scholarships Fund to be used to fund scholarships awarded pursuant to this Article. Both private and public funds may be solicited in the creation of the fund. (b) Matching Funds. The funds appropriated each fiscal year to the Cheatham-White Scholarships Fund shall be matched by non-state funds and disbursed pursuant to G.S. 143C-4-5. (c) Administration of Fund. The University of North Carolina General Administration shall administer the Cheatham-White Scholarships Fund and the Cheatham-White Scholarships program. " Cheatham-White Scholarships; eligibility and selection criteria. (a) Eligibility. To be eligible to be nominated as a potential candidate for a Cheatham-White Scholarship, a person must satisfy all of the following criteria: (1) Be a competitive applicant for admission as a freshman in the fall semester into a baccalaureate program at either North Carolina Agricultural and Technical State University or North Carolina Central University. (2) Be a United States citizen or permanent resident. (3) Be on course to graduate from high school in the spring semester prior to college admission. (b) Selection Criteria. Candidates for Cheatham-White Scholarships shall be selected on the basis of academic merit, honorable character, outstanding leadership potential, and a demonstrable commitment to service. Financial need shall not be a consideration. " Cheatham-White Scholarships; school nomination of candidates. All North Carolina high schools are eligible to nominate a student to be considered as a candidate for a Cheatham-White Scholarship. For purposes of this section, a high school includes a public school under the direction of a local board of education, a charter school, a regional school, a high school operated as part of The University of North Carolina, a school operated by the Department of Health and Human Services, a school operated by the State Board of Education, or a nonpublic school regulated under Article 39 of Chapter 115C of the General Statutes. The number of nominees from each school is determined by the size of the senior class as follows: (1) Up to 199 seniors...2 nominees. (2) seniors...3 nominees. (3) seniors...4 nominees. (4) 500 or more seniors...5 nominees. " Cheatham-White Scholarships; administration of scholarships. The University of North Carolina General Administration shall administer the Cheatham-White Scholarships, in consultation and collaboration with North Carolina Agricultural and Technical State University and North Carolina Central University, pursuant to policies adopted by the Board of Trustees of both constituent institutions. As part of its administrative responsibilities, The University of North Carolina General Administration, in consultation and collaboration with North Carolina Agricultural and Technical State University and North Carolina Central University, shall do all of the following: (1) Design and implement an application and school nomination process to be used to identify potential scholarship candidates and a process for awarding the scholarships. D-3 Page 19 of 49

20 Attachment 1 Attachment 2: Special Provision of S.L (HB 1030) Related to and Fees (2) Develop a direct nomination process, in addition to the school nomination process, that allows a student to nominate himself or herself to be considered as a candidate for the scholarship in certain circumstances. (3) Define and describe more fully the selection criteria to be considered when choosing a scholarship candidate and recipient. (4) Identify the parties that will (i) evaluate scholarship applications and nominations and (ii) determine which candidates shall be awarded scholarships. (5) Design the framework and add the necessary substantive detail for the scholarship program, including courses of study that will be available, summer enrichment programs, and other extraordinary educational opportunities, and oversee its implementation. (6) Establish a mentoring and networking system for scholarship recipients. (7) Administer the Cheatham-White Scholarships Fund. (8) Establish a Cheatham-White Scholarships alumni association and network. (9) Any other function necessary for the successful implementation of the Cheatham-White Scholarships program and administration of the Cheatham-White Scholarships Fund." SECTION 11.4.(e1) G.S , as enacted by subsection (e) of this section, becomes effective July 1, The remainder of subsection (e) of this section becomes effective beginning with the 2017 fall academic semester so that students may be nominated for the scholarship during the academic year, and recipients of the scholarship may enroll to begin a course of study at the constituent institution beginning with the 2018 fall academic semester. SECTION 11.4.(f) Scope. Subsections (a) through (d) of this section do not apply to high schools governed by The University of North Carolina General Administration. SECTION 11.4.(f1) Effective Date. Except as provided otherwise, this section is effective when it becomes law and applies to the 2016 fall academic semester and each subsequent academic semester. D-4 Page 20 of 49