Tuition Setting: Review of Policy and Practice Risa E. Dickson Vice President for Academic Affairs January 2016
Beginning The Tuition Setting Process Overview of the Process Guiding Documents Outlining Factors for Consideration RP 6.202 Policy on Tuition Setting EP 6.202 Tuition Setting Procedures EP 6.204 Student Financial Assistance Program Factors in Today s Discussion Cost of education Enrollment trends of target populations Financial Aid and student debt Current educational expenditures per completion Areas of Need for New Tuition Revenue Length of Tuition Schedule OVPAA January 2016 Tuition Briefing 2
The Process 1. Research, policy review and proposal preparation Fall 2015 - ongoing 2. BOR tuition setting discussion January 2016 3. BOR tuition proposal February 2016 4. Proposal distribution / public meetings April 2016 5. Revisions May 2016 6. BOR consideration and action June 2016 7. Filing with Lt. Governor June 2016 OVPAA January 2016 Tuition Briefing 3
Tuition Setting Process The Upcoming Tuition Proposal Will: Link tuition to the larger financial model at the unit level (UHM, UHH, UHWO, CC). Provide an overview of how enrollment is related to revenue generation and expenditures at the unit level. Place tuition within the context of the revenue and expense plans for each unit level. Outline how the tuition proposal is related to enrollment, the unit level revenue and expense model, and planning. OVPAA January 2016 Tuition Briefing 4
Guiding Documents RP 6.202: Tuition The ultimate intent of this policy is that every qualified Hawai i citizen shall have an opportunity to pursue postsecondary education within the university system. EP 6.202: Tuition-Setting Procedures The objectives of the policy are: To provide students and others with timely notice, distribution, and explanation of tuition To ensure that students and others have the opportunity to present testimony on UH tuition proposals OVPAA January 2016 Tuition Briefing 5
RP 6.202 Outlines the Following Considerations 1. Accessibility and the mix of students (ethnic background, residents and non-residents, etc.) 2. Financial aid availability and use 3. The cost of education and the sharing of that cost between students and the general public 4. Differential tuition rates by unit missions, student level (undergraduate, graduate, professional), and by residency 5. Relative standing in terms of tuition charges at like regional and national institutions of higher education OVPAA January 2016 Tuition Briefing 6
Guiding Documents: EP 6.204 Student Financial Assistance Specifies minimum levels of tuition revenue to be set aside for need-based financial aid. UH Mānoa: a minimum of 10% UH Hilo, UH West O ahu: a minimum of 12% UH Community Colleges: a minimum of 8.8% OVPAA January 2016 Tuition Briefing 7
Value of Higher Education in the US Education and Training Pay Unemployment Rate in 2014 Median Earnings in 2014 1.9% 2.1% 2.8% 3.5% 4.5% 6.0% 6.0% 9.0% Professional Degree Doctorate Degree Master s Degree Bachelor s Degree Associate Degree Some College, No Degree High School Graduate Less Than High School $85,228 $82,732 $68,952 $57,252 $41,184 $38,532 $34,736 $25,376 Note: Source: Earnings for year-round full-time workers 25 years and over; unemployment rate for those 25 and over Bureau of the Census; Bureau of Labor Statistics. OVPAA January 2016 Tuition Briefing 8
Cost of Education and Cost Sharing OVPAA January 2016 Tuition Briefing 9
Sharing Cost of Education RP 6.202 The board recognizes that students and the general public derive benefits from higher education and that both can be expected to share in its cost through user charges and taxes. Source: Chart 3. FY2017 Executive Supplemental Budget-In-Brief. Department of Budget & Finance. State of Hawai i. Page 132. OVPAA January 2016 Tuition Briefing 10
Sharing Cost of Education University of Hawai i Budget As Legislatively Appropriated Act 119 (2015) - FY16 ($ millions) $106.79 $234.21 $427.57 $104.18 $12.74 $572.47 State-Contributed General Funds Federal Funds State-Contributed Fringe Payments Special Funds (Tuition, Fees, & Other) Revolving Funds State-Contributed Debt Service OVPAA January 2016 Tuition Briefing 11
Educational Appropriations per Student FTE Percent Change From 2008 to 2014, educational appropriations in Hawai i dropped 25.7%, from $10,129 to $7,618, making Hawai i one of the states with the largest drop. 49.5% 50% Appropriations per FTE Percent Fiscal 2008 2014 40% 30% 20% 10% -38.4% -25.7% -13.3% 0% -10% -20% -30% -40% Illinois North Dakota Alaska Nebraska New York Vermont Arkansas Maryland California Indiana Montana Wyoming Rhode Island Texas Maine New Mexico Massachusetts North Carolina West Virginia South Dakota U.S. Georgia Kansas Mississippi Utah Alabama Wisconsin Kentucky Michigan South Carolina Minnesota Washington Florida Oklanhoma Tennessee Iowa Connecticut Delaware Virginia New Jersey Oregon Ohio Hawaii Missouri Nevada Idaho New Hampshire Colorado Arizona Pennsylvania Louisiana NOTE: Dollars adjusted by 2014 HECA, Cost of Living Adjustment, and Enrollment Index SOURCE: State Higher Education Executive Officers 12 OVPAA January 2016 Tuition Briefing
Net Tuition as a Percent of Public Higher Education Total Educational Revenue, by State, Fiscal 2014 100% Although appropriations from the state have dropped, net tuition as a percent of total educational revenue in Hawai i is lower than in most other states (34% versus national average of 47%). 84.5% 80% 60% 43.7% 47.1% 40% 34.0% 20% 15.1% 0% Wyoming California Alaska New Mexico North Carolina Hawai i Florida Illinois New York Nevada Idaho Georgia Texas Mississippi Nebraska Arkansas Oklahoma WICHE Average Massachusetts Louisiana North Dakota Utah Tennessee US Average Washington Kentucky Wisconsin Maryland Kansas Missouri Connecticut Montana Minnesota Indiana Maine Arizona New Jersey Iowa West Virginia Oregon Virginia Ohio Alabama South Carolina South Dakota Michigan Rhode Island Pennsylvania Colorado Delaware New Hampshire Vermont Source: SHEEO SHEF 2014-15 OVPAA January 2016 Tuition Briefing 13
Cost Comparisons (Relative Standing) Undergraduates, UH and Local Institutions, AY 2015-16 UH, Chaminade, HPU and BYU HI Annual Tuition & Fees $31,516 Private UH Resident UH Non-Resident $22,440 $21,780 $19,788 $19,608 $10,200 $5,100 $11,164 $7,332 $7,152 $2,948 $7,940 HPU Chaminade BYUH (non-lds) BYUH (LDS) UHM UHH UHWO UHCC UHM UHH UHWO UHCC Note: UH Community Colleges tuition is charged on a per-credit basis for all enrolled credits effective AY 2001 02. The amount shown here is based on 15 enrolled credits per semester (UHCC median). OVPAA January 2016 Tuition Briefing 14
Cost Comparisons (Relative Standing) 2015-16 UH Undergraduate Tuition & Required Fees as a Percentage of WICHE Medians 120% 100% 112% 111% 110% 121% 120% 107% 104% 109% 80% 60% 40% 20% 0% UHM UHH UHWO UHCC Resident Non-Resident OVPAA January 2016 Tuition Briefing 15
UH Mānoa Undergraduate Tuition and Fee Comparisons (Relative Standing) UH Mānoa Undergraduate Tuition & Fees Relative to Other Flagships, 2014-15 18,000 16,000 Resident 17,502 14,000 12,000 10,000 8,499 10,230 10,620 8,000 6,000 4,646 4,000 2,000-45,000 40,000 Non-Resident 42,394 35,000 30,000 25,000 20,000 10,794 24,099 26,931 29,412 15,000 10,000 5,000 - WICHE Average U.S. Average Hawai i OVPAA January 2016 Tuition Briefing 16
UH Mānoa Graduate Tuition and Fee Comparisons (Relative Standing) 35,000 30,000 UH Mānoa Graduate Tuition & Fees Relative to Other Flagships, 2014-15 Resident 30,042 25,000 20,000 15,000 10,000 5,234 9,746 11,815 14,048 5,000-45,000 Non-Resident 40,892 40,000 35,000 32,816 30,000 25,000 20,000 13,136 22,649 25,374 15,000 10,000 5,000 - WICHE Average U.S. Average Hawai i OVPAA January 2016 Tuition Briefing 17
Percent of Education Paid by the Student (Tuition Over Education and Related Expenditures) Resident Unit Fall 2011 Fall 2012 Fall 2013 Fall 2014 UH Mānoa 39.0% 36.7% 36.8% 37.0% UH Hilo 23.7% 24.9% 27.2% 28.3% UH West O ahu 35.6% 30.7% 33.1% 43.2% UHCC 19.5% 19.3% 18.3% 19.3% Non-Resident Unit Fall 2011 Fall 2012 Fall 2013 Fall 2014 UH Mānoa 107.8% 105.6% 107.6% 107.7% UH Hilo 71.8% 73.9% 79.0% 79.5% UH West O ahu 109.1% 91.5% 95.8% 121.1% UHCC 61.4% 59.4% 52.6% 53.6% Note: Estimated expenditure data based on fiscal years. OVPAA January 2016 Tuition Briefing 18
Enrollment Trends of Target Populations OVPAA January 2016 Tuition Briefing 19
Enrollment Trends of Selected Groups UH System, Fall 2006-Fall 2015 30.0% 25.0% 24.8% (14,900) 27.2% (16,412) 28.0% (16,891) 25.7% 26.4% (15,131) (15,041) 24.5% (13,675) Pell Recipients* 20.5% (11,893) 20.0% 16.7% 15.5% (8,943) 14.3% (7,816) 17.9% (7,152) (10,392) 15.0% 15.3% (8,196) 13.9% 14.7% (7,441) (6,932) 12.8% 12.9% 13.1% 13.0% (6,405) (6,485) (6,991) (7,513) 10.0% 23.2% 23.3% 23.0% 22.9% 22.9% 22.4% (14,012) (14,078) (13,532) (13,039) (12,784) (13,463) 12.4% 12.5% 12.7% 13.2% 13.4% 13.5% (7,443) (7,570) (7,661) (7,777) (7,631) (7,536) Hawaiian/ Part-Hawaiian Filipino 5.0% 3.3% 3.5% 3.6% 3.6% (1,674) (1,769) (1,937) (2,101) 2.9% (1,752) 2.7% 2.6% 2.6% (1,616) (1,597) (1,520) 2.4% 2.4% (1,385) (1,344) Pacific Islander 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *Pell recipients are based on enrollment for the respective Fall semester. Fall 2013-2015 Pell recipient data is preliminary. Values in parenthesis are enrollment count, Fall semester. OVPAA January 2016 Tuition Briefing 20
Financial Aid and Student Debt OVPAA January 2016 Tuition Briefing 21
Tuition Funded Financial Aid $50 $45 $40 $35 $ million Number of students $46.7 $43.1 $43.6 $40.8 $6.3 $6.4 $6.3 $6.6 $32.6 65,000 60,000 55,000 $30 $25 $28.0 $4.1 $5.6 50,000 $20 $15 $10 $23.9 $27.0 $34.2 $36.7 $37.3 $40.4 45,000 40,000 $5 35,000 $0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Four-Year UHCCs Total Enrollment 30,000 OVPAA January 2016 Tuition Briefing 22
Financial Aid Availability and Use Campus Grants, Scholarships and Pell: AY14-15 $ million $70.0 $66.2 $60.0 $50.0 $46.7 $40.0 $19.6 $30.0 $20.0 $10.0 $5.0 $27.1 $6.0 $0.0 Pell $4.5 $0.5 Other Grants & Scholarships $5.6 $1.6 $0.4 Tuition Scholarships UH Foundation Native Hawaiian TW Need-Based Merit-Based OVPAA January 2016 Tuition Briefing 23
Average Student Debt Upon Graduation $30,000 $25,000 $20,735 $21,513 $21,635 $23,425 $22,221 $20,000 $16,665 $15,000 $10,000 $9,613 $7,834 $10,320 $11,669 $12,090 $12,152 $5,000 $0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Four-Year UHCCs OVPAA January 2016 Tuition Briefing 24
Average Total Debt Per Undergraduate Completer Common Data Set UH Mānoa and Comparison Groups $30,000 IPEDS Group, $24,298 $20,589 $20,000$20,074 $19,758 $16,757 Benchmark Group, $21,790 Peer Group, $22,761 UH Mānoa, $22,196 $10,000 $0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Fiscal Year Source: The Institute for College Access & Success, College InSight, http://www.college-insight.org. Note: The data used here include only student loans and do not include Federal Parent PLUS loans, which parents of dependent undergraduates can use to cover any college costs not already covered by aid. OVPAA January 2016 Tuition Briefing 25
Average Total Debt Per Undergraduate Completer Common Data Set UH Hilo and Comparison Groups $40,000 $30,000 IPEDS Group, $27,779 $20,000 $18,783 $17,900 Peer Group, $23,396 UH Hilo, $23,194 $16,249 $10,000 $0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Fiscal Year Source: The Institute for College Access & Success, College InSight, http://www.college-insight.org. Note: The data used here include only student loans and do not include Federal Parent PLUS loans, which parents of dependent undergraduates can use to cover any college costs not already covered by aid. OVPAA January 2016 Tuition Briefing 26
Current Education Expenditures OVPAA January 2016 Tuition Briefing 27
Annual Expenditures Per Completion and FTE UH Mānoa and Comparison Groups Per Completion Per FTE Student 140 40 $ Thousands 120 100 80 60 $108.1 $90.5 UH Mānoa, $90.2 $76.9 $66.3 Benchmark Group, $107.7 IPEDS Group, $75.6 Peer Group, $65.2 $ Thousands 35 30 25 20 15 $27.6 $21.4 $18.2 $15.8 Mānoa Benchmark Group, $30.7 UH Mānoa, $26.6 Mānoa Auto Group, $20.7 Mānoa Peer Group, $17.2 40 10 20 Data adjusted to constant dollars using HEPI Index. 5 0 2003 2005 2007 2009 2011 2013 0 2003 2005 2007 2009 2011 2013 Fiscal Year Fiscal Year OVPAA January 2016 Tuition Briefing 28
Annual Expenditures Per Completion and FTE UH Hilo and Comparison Groups Per Completion Per FTE Student 140 40 120 35 100 $96.2 UH Hilo, $103.3 30 $ Thousands $84.8 Peer Group, $80.8 80 IPEDS Group, $81.7 $77.5 60 $ Thousands 25 20 15 $23.9 $18.3 $15.2 UH Hilo, $23.47 Peer Group, $19.9 40 10 $14.8 IPEDS Group, $14.9 20 Data adjusted to constant dollars using HEPI Index. 5 0 2003 2005 2007 2009 2011 2013 Fiscal Year 0 2003 2005 2007 2009 2011 2013 Fiscal Year OVPAA January 2016 Tuition Briefing 29
Annual Expenditures Per Completion and FTE UH West O ahu and Comparison Groups 140 Per Completion 40 Per FTE Student 120 35 100 30 $ Thousands 80 60 40 $74.1 $71.2 $37.9 IPEDS Group, $73.3 UH West O ahu, $68.9 Peer Group, $60.7 $ Thousands 25 20 15 10 $17.2 $12.8 $12.2 Peer Group, $16.8 UH West O ahu, $15.4 IPEDS Group, $14.5 20 Data adjusted to constant dollars using HEPI Index. 5 0 2003 2005 2007 2009 2011 2013 Fiscal Year 0 2003 2005 2007 2009 2011 2013 Fiscal Year OVPAA January 2016 Tuition Briefing 30
Annual Expenditures Per Completion and FTE UHCC Average and Comparison Groups Per Completion Per FTE Student 140 40 120 35 100 $93.5 30 25 $ Thousands 80 60 40 $83.6 $71.3 UHCC Average, 55.0 Peer Group, 68.7 IPEDS Group, 55.5 $ Thousands 20 15 10 $12.9 $12.0 $11.0 UHCC Average, $14.1 Peer Group, $13.3 IPEDS Group, $11.2 20 Data adjusted to constant dollars using HEPI Index. Completion excludes certificates <1 year. 5 0 2003 2005 2007 2009 2011 2013 Fiscal Year 0 2003 2005 2007 2009 2011 2013 Fiscal Year OVPAA January 2016 Tuition Briefing 31
Potential Areas of Need for New Tuition Revenue 1. Academic support to increase student completion Expanded academic student support - advising, learning support, tutors 2. Financial aid to facilitate student access and completion Increasing financial aid to provide access, improve completion, reduce student debt 3. Deferred maintenance/capital renewal Retrofitting classrooms/laboratories Computing & technology related expenses (Note: We will not be including academic support for existing programs in tuition request) OVPAA January 2016 Tuition Briefing 32
Duration of the Tuition Schedule? Usefulness of a multi-year schedule Provides advanced notice that allows students and families to plan Allows campuses to engage in financial long range planning Aids recruitment (Financial aid award process begins March 1) What if our assumptions are incorrect or something changes? Mid-schedule review By policy, tuition is subject to modification by the BOR OVPAA January 2016 Tuition Briefing 33
Summary An overview of the tuition setting process A review of the governing documents and factors to be considered in the process Considerations for new tuition revenue Academic support to increase student completion Financial aid to facilitate student access and completion Deferred maintenance/capital renewal Next steps Tuition proposal at the February 2016 BOR Meeting OVPAA January 2016 Tuition Briefing 34
Mahalo! tuition@hawaii.edu www.hawaii.edu/offices/aa/tuition.html OVPAA January 2016 Tuition Briefing 35