Rutgers Tuition and Fee Charges in a State and National Context F&F Committee June 9, 2016
The Challenge of Keeping Tuition Moderate as Public Higher Education is Privatized In FY06, well before the UMDNJ merger, Rutgers received $356m in state operating $. For FY16 the post-merger RU state appropriations totaled $394m, a 10% increase over FY06, to cover A decade of inflation The addition of the former UMDNJ schools Almost 17,000 additional FTE students vs ten years ago. 2
In a Period of Growth and Transformation, With at Best Flat State Support, Rutgers has Held Tuition/Fee Increases to Modest Levels From 2010-11 to 2015-16, tuition and mandatory fees for a typical in-state undergraduate student have increased an average of just 2.4% per year at Rutgers-NB and Rutgers- Newark, and 2.5% at Rutgers-Camden. Rutgers tuition and fee increases have been among the lowest in New Jersey and within national peer groups during that period. 3
Rutgers Recent Tuition & Fee Increases Have Been Below Those For Most New Jersey Senior Publics 4.0% Average Annual In-State Undergraduate Tuition and Fee Percentage Increase (FY11-FY16) 3.5% 3.0% 2.5% 2.5% 2.4% 2.4% 2.0% 1.5% 1.0% 0.5% 0.0% NJIT NJ City U Kean Montclair St TCNJ Ramapo Rutgers-C Rutgers-N Rutgers-NB Stockton Rowan Wm Paterson Source: Rutgers Office of University Budgeting, utilizing IPEDS data. CM NW NB 4
8% 7% 6% 5% Rutgers-NB s Recent Tuition & Fee Increases Among the Lowest for Its AAU Peer Group Average Annual In-State Undergraduate Tuition and Fee Percentage Increase (FY11-FY16) FY11-FY12 FY12-FY13 FY13-FY14 FY14-FY15 FY15-FY16 Rutgers-New Brunswick 1.6% 2.5% 3.3% 2.3% 2.3% 4% 3% 2% 2.4% 1% 0% Georgia Tech Washington Stony Brook Arizona Virginia Buffalo Colorado North Carolina Florida Oregon Kansas Illinois Michigan Michigan State UC-Berkeley Pittsburgh UC-San Diego UC-Santa Barbara Maryland UCLA UC-Irvine Texas A&M UC-Davis Wisconsin Indiana Penn State Minnesota Rutgers - NB Missouri Iowa State Purdue Iowa Ohio State Texas Source: Rutgers Office of University Budgeting, utilizing IPEDS data. 5
7% 6% 5% Rutgers-Newark s Recent Tuition & Fee Increases Among the Lowest for Its Peer Group Average Annual In-State Undergraduate Tuition and Fee Percentage Increase (FY11-FY16) FY11-FY12 FY12-FY13 FY13-FY14 FY14-FY15 FY15-FY16 Rutgers-Newark 1.9% 2.4% 3.2% 2.3% 2.3% 4% 3% 2.4% 2% 1% 0% Alabama-Birm UNC-Charlotte George Mason Georgia State Illinois-Chicago UMBC Missouri-St.Louis Rutgers-NW - Texas-Dallas Source: Rutgers Office of University Budgeting, utilizing IPEDS data and figures from the Georgia State website. 6
7% 6% Rutgers-Camden s Recent Tuition & Fee Increases Among the Lowest for Its Peer Group Average Annual In-State Undergraduate Tuition and Fee Percentage Increase (FY11-FY16) FY11-FY12 FY12-FY13 FY13-FY14 FY14-FY15 FY15-FY16 Rutgers-Camden 2.0% 2.4% 3.3% 2.5% 2.3% 5% 4% 3% 2.5% 2% 1% 0% UT-Chattanooga Wayne St San Fran St Mich-Dearborn SUNY-Geneseo UNC-Wilm Western Conn UMBC UMass-Boston Montclair State TCNJ Wisc-Milw Ramapo Rutgers-CM - Portland St Stockton Rowan Southern Maine Source: Rutgers Office of University Budgeting, utilizing IPEDS data and figures from the Southern Maine website. 7
How do Rutgers Tuition & Fees Compare with Those of Regional and National Peer Institutions? 8
Rutgers-New Brunswick s Current Tuition & Fee Charges Compared to Those of Its AAU Public Peers $20,000 $18,000 FY2015-16 In-State Undergraduate Tuition and Fee Rate $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $14,131 $11,704 $10,877 $0 Pittsburgh Penn State Illinois Michigan Michigan State Virginia RU-NB - NB UC-Santa Barbara UC-Davis Minnesota UC-San Diego UC-Berkeley UC-Irvine UCLA Georgia Tech Washington AAU Peer Mean Colorado AAU Peer Median Arizona Wisconsin Indiana Oregon Kansas Ohio State Purdue Maryland Texas A&M Texas Missouri Buffalo Stony Brook North Carolina Iowa Iowa State Florida Source: Rutgers Office of University Budgeting, utilizing IPEDS data and figures from the Georgia Tech website. 9
Adjusted by Cost of Living, Rutgers-NB s Tuition & Fee Charges Fall to Middle of the AAU Group $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 FY2015-16 In-State Undergraduate Tuition and Fee Rate Adjusted for Local Cost of Living $10,816 Penn State Illinois Pittsburgh Michigan State Michigan Virginia Minnesota Georgia Tech UC-Davis UC-San Diego AAU Public Mean Indiana Purdue Colorado $10,429 $10,084 Source: Rutgers Office of University Budgeting, utilizing IPEDS data, figures from the Georgia Tech website, and Runzheimer s 2013 cost-of-living index. - NB RU-NB Washington Kansas Wisconsin AAU Public Median Missouri Texas A&M Arizona UC-Irvine Ohio State UCLA Oregon UC-Berkeley Texas Buffalo North Carolina Maryland UC-Santa Barbara Iowa Iowa State Florida Stony Brook 10
$16,000 $14,000 Rutgers Newark s Current Tuition & Fee Charges Compared to Those of Its Public Peers $13,597 FY2015-16 In-State Undergraduate Tuition and Fee Rate $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $10,465 $10,098 $0 Illinois-Chicago RU-NW - NW UMBC George Mason Texas-Dallas Peer Median Peer Mean Missouri-St Louis Georgia State Alabama-Birmingham UNC-Charlotte Source: Rutgers Office of University Budgeting, utilizing IPEDS data. 11
Adjusted by Cost of Living, Rutgers-Newark s Tuition & Fee Charges Fall to the Middle of Its Peer Group $16,000 $14,000 FY2015-16 In-State Undergraduate Tuition and Fee Rate Adjusted for State Cost of Living $12,000 $10,826 $10,473 $10,393 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Illinois-Chicago Texas-Dallas George Mason Missouri-St Louis Source: Rutgers Office of University Budgeting, utilizing IPEDS data and 2015 Missouri Economic Research and Information Center cost-of-living comparisons. - NW RU-NW Peer Mean Peer Median Georgia State UMBC Alabama-Birmingham UNC-Charlotte 12
$18,000 Rutgers Camden s Current Tuition & Fee Charges Compared to Those of Its Public Peers FY2015-16 In-State Undergraduate Tuition and Fee Rate $16,000 $14,000 $12,000 $14,000 $11,006 $10,582 $10,000 $8,000 $6,000 $4,000 $2,000 $0 TCNJ RU-Camden - CM Ramapo Rowan Stockton Wayne St UMass-Boston Montclair State Mich-Dearborn Peer Median UMBC Peer Mean Wisc-Milw Western Conn Southern Maine UT-Chattanooga SUNY-Geneseo Portland St UNC-Wilm San Fran St Source: Rutgers Office of University Budgeting, utilizing IPEDS data and figures from the Southern Maine website. 13
Adjusted by Cost of Living, Rutgers-Camden s Tuition & Fee Charges Compared to Those of Its Public Peers $16,000 $14,000 FY2015-16 In-State Undergraduate Tuition and Fee Rate Adjusted for State Cost of Living $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $11,146 $9,373 $9,182 $0 Wayne St Mich-Dearborn TCNJ RU-Camden - CM Ramapo Rowan Stockton UMass-Boston Wisc-Milw Peer Median Montclair State UT-Chattanooga Peer Mean UMBC Southern Maine Western Conn UNC-Wilm Portland St SUNY-Geneseo San Fran St Source: Rutgers Office of University Budgeting, utilizing IPEDS data, figures from the Southern Maine website, and 2015 Missouri Economic Research and Information Center cost-of-living comparisons. 14
An Overview of Financial Assistance Provided to Students Paying Tuition & Fees at Rutgers 15
Demographic Snapshot of RU Major Responsibility Centers NEW BRUNSWICK NEWARK CAMDEN Total Undergraduate Enrollment Full and Part Time 35,060 7,713 4,899 Total Undergraduate Enrollment Full Time Degree Seeking 33,294 6,206 3,925 Incoming First Year Full Time 6,602 1,192 422 Percent Receiving Pell Grant Aid 28.3% 51.9% 45.6% Incoming Transfer Full Time 2,579 770 733 Percent Receiving Pell Grant Aid 26.6% 46.3% 45.3% Incoming First Year Full Time In Campus Housing (As Percent of Total Incoming FYFT) 5,787 (87.7%) 374 (31.4%) 194 (46.0%) 16 Data source: Rutgers Office of Institutional Research and Academic Planning, Figures are for 2015-16, except Pell data (2014-15).
Snapshot of Aid to RU Undergraduates by Major Responsibility Centers NEW BRUNSWICK NEWARK CAMDEN PERCENT AVERAGE AWARD PERCENT AVERAGE AWARD PERCENT AVERAGE AWARD NEED BASED All Need Based Grant Aid Federal Need Based Loans Federal Work Study 43.0% 45.9% 7.0% $9,770 $4,552 $1,460 61.7% 52.6% 6.0% $9,985 $4,551 $1,405 47.8% 64.3% 4.2% $11,208 $4,353 $1,533 MERIT Admissions/ Recruitment Grants Other Merit Grants Total Merit Grants 9.3% 1.8% 10.5% $8,471 $9,798 $9,136 0.9% 3.2% 3.3% $8,026 $5,891 $8,082 0.7% 5.3% 5.9% $6,453 $4,012 $4,355 Total Merit and Need Based Grants 49.3% $10,475 63.0% $10,203 66.4% $8,460 Athletic 1.4% $23,893 17 Data source: Rutgers Office of Financial Aid, 2014-15 figures
Scholarships & Grants Significantly Reduce Costs for Many Students Average net price for Rutgers first-year, in-state students receiving scholarship/grant assistance: New Brunswick Newark Camden $15,869 net price out of $29,076 total costs $10,569 net price out of $24,233 total costs $13,524 net price out of $24,306 total costs Total costs include tuition, fees, room, board, and other expenses. Figures shown are impacted by commuter/resident mix at each location. Data source: Rutgers Office of Institutional Research and Academic Planning, 2014-15 figures 18
Total Cost vs Net Price By Income NEW BRUNSWICK NEWARK CAMDEN Total Cost $29,076 $24,233 $24,306 Net Price by Income $0 $30,000 $11,728 $9,330 $8,157 $30,001 $48,000 $13,372 $9,962 $9,710 $48,001 $75,000 $19,869 $15,036 $14,000 $75,001 $110,000 $26,158 $21,569 $19,351 $110,001 and more $27,610 $23,109 $20,820 Notes: Total costs include tuition, fees, room, board, and other expenses. Figures shown are impacted by commuter/resident mix at each location. Income cohorts include FTFT instate undergraduates awarded any Title IV federal aid (grants, loans, work study) Net price based on grant aid awarded only (all sources) 19 Data source: Rutgers Office of Institutional Research and Academic Planning, 2014-15 figures
Rutgers Assistance Grants (RAG) Supplement State and Federal Need-Based Aid Offerings In addition to need-based financial aid provided by the state (TAG) and federal (Pell) governments, institutionally-funded support is offered to students through the Rutgers Assistance Grant (RAG) program. For the current (2015-16) academic year, funding for the RAG program was increased by $1 million (3%) to $32.5 million. RAG funding is anticipated to increase again in 2016-17. 20
Primary Budget Drivers State funding at best level for FY 2017 Projected FY 16 and FY17 revenue shortfalls urge caution Contractual salary increases of 2% for staff and 2.125% for faculty RCM cost pool increases Strategic investments at school and university level Clinical revenues at RBHS Tuition and fees Enrollments Restricted funds important but do not impact tuition need 21
RCM Cost Pool Increases Provide Modest New Investments to Increase service to students (disability services, libraries, public safety) Provide RAG $ Build institutional capacity (Institutional Research, Academic Labor Relations, HR compliance) Maintain fund raising ability Fund mandatory costs, e.g., compliance, ground water remediation 22
Required Efficiencies Cost pool increases held to 1.8% vs requests totaling 6% If salary increases were funded totally with tuition, 2.4% increase would be needed. Instead Cost pools funding about half of the salary increases through internal reallocations/efficiencies Other efficiencies needed to help cover these costs Other mandatory increases also being financed by reallocations 23
Recommended Changes in Student Charges To be distributed at the meeting 24
Why Can Some Universities Hold Tuition Flat? Need to understand the finances of these universities But significant increases in state funding is an important factor for some 25
University of California 4.4% base budget increase $436m over three years toward pension obligations $25m for deferred maintenance $25m for energy efficiency projects Out-of-state tuition increases up to 8% allowable 26