University of Connecticut Oflice 0f;"be Vim Preiidezcir mm' December 19, 2011 TO: Members of the Board of Trustees FROM: Peter J. Nicholls Provost and Executive Vice President for Academic Affairs Richard D. Gray Vice President and Chief Financial Officer RE: Fiscal Years 2013-2016 Institutional Fees (Tuition, Room, Board) for the University of Connecticut, Storrs and Regional Campuses RECOMMENDATION: That the Board of Trustees approve tuition increases for Fiscal Years 2013-2016 of approximately 6.0% and 6.3% respectively based upon an annual increase in the I state appropriation of at least 0.5% (if there is no annual increase or decrease in the state appropriation, the Board of Trustees approve tuiton increases for Fiscal Years 2013-2016 of 6.5% and 6.8% respectively); room increases for Fiscal Years 2013-2016 of 3% per year for undergraduate students and 4% per year for graduate students; and board increases for Fiscal Years 2013-2016 of 3% per year. If the State appropriation decreases or the current fiscal climate worsens. the University may revisit the approved tuition increase amounts. BACKGROUND The University has an established student fee review process that categorizes the fees as follows: (1.) Institutional Fees, which require central administrative approval, such as Tuition, Room, Board, Infrastructure Maintenance Fee and self-supporting programs; (2.) Academic Materials Fees, which are for consumables and instructional materials that are specific to a particular course or major; and (3.) Student Fees, which include the General University Fee and student activity and service fees. Senior Management charged permanent committees with promoting a fee structure for the academic and student fees that supports excellence, provides comprehensive procedures, and is uniform without sacrificing efficiency and flexibility. These Institutional Fees -- tuition, room and board adjustments have been proposed by the University leadership. An EgIr:z/ 352 Road Unit 212.2 Telephone: (860) 486-5455 (860) Based upon the need to remain competitive and to lower the student to faculty ratio, the University has developed a four year faculty hiring plan. The plan includes hiring 290 faculty and lowering the student to faculty ratio from 18:1 to 15:1. Along with the proposed tuition increases of 6.0% and 6.3% over the FY 2013-2016 timeframe, the plan includes funding from an increased state appropriation of 0.5% per year by FY16) and from other University sources by FY16). If the state appropriation is not increased, the tuition increases necessary for this faculty hiring plan would be 6.5% and 6.8% over the FY 2013-2016 timeframe. In addition, this plan assumes that the state will fully fund the collective bargaining increases for General Fund employees in Fiscal Years 2014-2016. If these funding levels are not attained or the current fiscal climate worsens, the University may revisit the approved tuition increase amounts. Approving this four year proposal allows both students and parents to plan for the cost of an education at the University. The budget that forms the basis of this plan continues the University's strong commitment to funding financial aid at levels that will allow substantial support for need based assistance to talented students. Room increases of 3% per year for undergraduate students and 4% per year for graduate students and Board increases of 3% per year are based on the operational needs of residential life and dining services. These increases are projected to generate sufficient revenue to support operations, continue some deferred maintenance programs, and some equipment replacement/maintenance. If the University's priorities change for these operations, we may revisit the approved rate increases. See attached schedule for summary of recommended tuition, room and board rates. Attachment University of Connecticut (Storrs & Regionals) Summary of Recommended Institutional Fees Fiscal Years 2013-2016 Institutional fees require central administrative review and approval. These budgets are largely driven by what it takes to run the operation (including payment of debt service). These increases are proposed by the University leadership. Annual Rates Tuition* Undergraduate - In-State Undergraduate - Out-of-State Graduate - In-State Graduate - Out-of-State FY12 $8,256 $25,152 $10,224 $26,532 FY13 Proposed % Increase 5.52% $8,712 5.53% $26,544 5.46% $10,782 5.50% $27,990 FY14 Proposed % Increase 5.79% $9,216 5.79% $28,080 5.68% $11,394 5.72% $29,592 FY15 Proposed % Increase 5.99% $9,768 5.98% $29,760 6.00% $12,078 5.96% $31,356 FY16 Proposed % Increase 6.14% $10,368 6.21% $31,608 6.26% $12,834 6.20% $33,300 3 Room - Undergraduate Room - Graduate $5,918 $6,972 $6,096 $7,250 3.01% 3.99% $6,278 $7,540 2.99% 4.00% $6,466 $7,842 2.99% 4.01% $6,660 $8,156 3.00% 4.00% Board - Ultimate Meal Plan Board - Value Meal Plan Board - Custom Meal Plan $5,132 $4,898 $4,646 $5,284 $5,044 $4,784 2.96% 2.98% 2.97% $5,444 $5,196 $4,928 3.03% 3.01% 3.01% $5,608 $5,352 $5,076 3.01% 3.00% 3.00% $5,776 $5,512 $5,228 3.00% 2.99% 2.99% 6.30% $9,912 6.44% $10,584 6.78% *If there is no annual increase in the state appropriation, the tuition increases would be as follows: Undergraduate - In-State $8,256 $8,760 $9,312 6.10% Undergraduate - Out-of-State $25,152 $26,640 5.92% $28,296 6.22% $30,120 6.45% $32,136 6.69% Graduate - In-State $10,224 $10,836 5.99% $11,520 6.31% $12,276 6.56% $13,104 6.74% Graduate - Out-of-State $26,532 $28,116 5.97% $29,880 6.27% $31,824 6.51% $33,966 6.73% Four Year Faculty Hiring Plan* Option 1 Funding Sources 10.1% 9.8% Other Sources 70 17.1 5.50% 0.5% $1.0M $1.5M 90 16.2 5.75% 0.5% $2.1M $3.0M 65 15.6 6.00% 0.5% $3.2M $4.5M 65 15.0 6.25% 0.5% $4.4M $6.0M 9.5% 74.0% 73.3% 73.8% 74.7% FY13 FY14 FY15 FY16 $12.7M $29.6M $47.0M $66.5M Tuition & Fees State Support Other*** 4 State Approp Increase 16 11.8% FY Tuition Increase 15 16.4% Student Faculty Ratio 14 16.6% 15.8% # of Faculty** 13 14.2% *Assumes that State will fully fund collective bargaining increases in FY14-FY16 **Number of additional faculty this tuition increase enables UConn to hire ***For example: philanthropy, summer and online courses, further cuts to non-faculty, non-bargaining personnel, shutting down institutes/centers as appropriate, exploring more executive education programs, royalty & patent income, corporate partnerships Option 1 FY13 – FY16 Proposed Increases for In-State Undergraduate Students In-State Undergraduate FY13 FY14 FY15 $8,712 $9,216 $9,768 $10,368 Other Fees 2,530 2,590 2,676 2,762 Room - Double 6,096 6,278 6,466 6,660 Board - Value Plan 5,044 5,196 5,352 5,512 Tuition FY16 Total $22,382 $23,280 $24,262 $25,302 Increment $898 $982 $1,040 Percentage 5 $896 4.2% 4.0% 4.2% 4.3% Option 1 FY13 – FY16 Proposed Increases for Out-of-State Undergraduate Students Out-of-State Undergraduate Tuition FY13 FY14 FY15 FY16 $26,544 $28,080 $29,760 $31,608 Other Fees 2,530 2,590 2,676 2,762 Room - Double 6,096 6,278 6,466 6,660 Board - Value Plan 5,044 5,196 5,352 5,512 Total $40,214 $42,144 $44,254 $46,542 Increment $1,930 $2,110 $2,288 Percentage 6 $1,832 4.8% 4.8% 5.0% 5.2% Option 1 FY13 – FY16 Proposed Increases for In-State Graduate Students In-State Graduate FY13 Tuition $10,782 FY14 FY15 FY16 $11,394 $12,078 $12,834 Other Fees 2,004 2,046 2,114 2,182 Room 7,250 7,540 7,842 8,156 Board - Value Plan 5,044 5,196 5,352 5,512 Total $25,080 $26,176 $27,386 $28,684 Increment $1,096 $1,210 $1,298 Percentage 7 $1,080 4.5% 4.4% 4.6% 4.7% Option 1 FY13 – FY16 Proposed Increases for Out-of-State Graduate Students Out-of-State Graduate Tuition FY13 FY14 FY15 FY16 $27,990 $29,592 $31,356 $33,300 Other Fees 2,004 2,046 2,114 2,182 Room 7,250 7,540 7,842 8,156 Board - Value Plan 5,044 5,196 5,352 5,512 Total $42,288 $44,374 $46,664 $49,150 Increment $2,086 $2,290 $2,486 Percentage 8 $1,980 4.9% 4.9% 5.2% 5.3% Four Year Faculty Hiring Plan* Option 2 Funding Sources 0.0% 0.0% 0.0% Other Sources 70 17.1 6.00% $0 $1.5M 90 16.2 6.25% $0 $3.0M 65 15.6 6.50% $0 $4.5M 65 15.0 6.75% $0 $6.0M 0.0% 80.3% 79.7% 80.2% 81.1% FY13 FY14 FY15 FY16 $12.7M $29.6M $47.0M $66.5M Tuition & Fees State Support Other*** 9 FY 16 18.9% State Approp Increase 15 19.8% Tuition Increase 14 20.3% Student Faculty Ratio 13 19.7% # of Faculty** *Assumes that State will fully fund collective bargaining increases in FY14-FY16 **Number of additional faculty this tuition increase enables UConn to hire ***For example: philanthropy, summer and online courses, further cuts to non-faculty, non-bargaining personnel, shutting down institutes/centers as appropriate, exploring more executive education programs, royalty & patent income, corporate partnerships Option 2 FY13 – FY16 Proposed Increases for In-State Undergraduate Students In-State Undergraduate FY13 FY14 FY15 $8,760 $9,312 $9,912 $10,584 Other Fees 2,530 2,590 2,676 2,762 Room - Double 6,096 6,278 6,466 6,660 Board - Value Plan 5,044 5,196 5,352 5,512 Tuition FY16 Total $22,430 $23,376 $24,406 $25,518 Increment $946 $1,030 $1,112 Percentage 10 $944 4.4% 4.2% 4.4% 4.6% Option 2 FY13 – FY16 Proposed Increases for Out-of-State Undergraduate Students Out-of-State Undergraduate Tuition FY13 FY14 FY15 FY16 $26,640 $28,296 $30,120 $32,136 Other Fees 2,530 2,590 2,676 2,762 Room - Double 6,096 6,278 6,466 6,660 Board - Value Plan 5,044 5,196 5,352 5,512 Total $40,310 $42,360 $44,614 $47,070 Increment $2,050 $2,254 $2,456 Percentage 11 $1,928 5.0% 5.1% 5.3% 5.5% Option 2 FY13 – FY16 Proposed Increases for In-State Graduate Students In-State Graduate FY13 Tuition $10,836 FY14 FY15 FY16 $11,520 $12,276 $13,104 Other Fees 2,004 2,046 2,114 2,182 Room 7,250 7,540 7,842 8,156 Board - Value Plan 5,044 5,196 5,352 5,512 Total $25,134 $26,302 $27,584 $28,954 Increment $1,168 $1,282 $1,370 Percentage 12 $1,134 4.7% 4.7% 4.9% 5.0% Option 2 FY13 – FY16 Proposed Increases for Out-of-State Graduate Students Out-of-State Graduate Tuition FY13 FY14 FY15 FY16 $28,116 $29,880 $31,824 $33,966 Other Fees 2,004 2,046 2,114 2,182 Room 7,250 7,540 7,842 8,156 Board - Value Plan 5,044 5,196 5,352 5,512 Total $42,414 $44,662 $47,132 $49,816 Increment $2,248 $2,470 $2,684 Percentage 13 $2,106 5.2% 5.3% 5.5% 5.7% Public Schools 14 Washington UCLA UC Berkeley UC Irvine UC San Diego UC Santa Barbara UC Davis Florida Georgia Tech Virginia Georgia Pittsburgh William & Mary Wisconsin Minnesota Michigan Illinois North Carolina Penn State Purdue Texas Ohio State Clemson Maryland UConn Rutgers Texas A&M US News Public Rank FY11-FY12 Change FY08-FY12 Change 10 2 1 13 8 10 9 19 7 2 23 19 6 10 25 4 13 5 13 23 13 17 25 17 19 25 19 20.7% 17.7% 17.3% 16.8% 16.5% 16.1% 15.7% 12.1% 10.7% 8.9% 8.4% 8.0% 7.7% 7.6% 6.7% 6.7% 5.7% 5.1% 4.8% 4.5% 4.0% 3.3% 3.3% 2.8% 2.4% 1.4% 0.4% 69.6% 80.3% 79.2% 73.7% 77.6% 72.2% 70.9% 67.9% 71.1% 36.2% 68.5% 25.3% 43.3% 34.5% 31.7% 20.9% 24.3% 31.2% 24.4% 27.8% 27.7% 12.2% 24.7% 8.6% 20.7% 19.4% 14.8% In-State Tuition & Mandatory Fees for Top 25 Public Universities Public Schools 15 Washington Minnesota Virginia North Carolina UC San Diego William & Mary UCLA Rutgers UC Irvine UC Santa Barbara UC Davis Wisconsin Michigan Maryland Ohio State Texas Pittsburgh Purdue Clemson Georgia Tech Penn State Georgia Illinois UConn Florida UC Berkeley Texas A&M US News Public Rank FY11-FY12 Change FY08-FY12 Change 10 25 2 5 8 6 2 25 13 10 9 10 4 17 17 13 19 23 25 7 13 23 13 19 19 1 19 10.6% 9.2% 9.1% 8.5% 8.2% 6.6% 5.7% 5.7% 5.5% 5.4% 5.4% 4.9% 4.9% 4.8% 4.3% 4.1% 3.9% 3.8% 3.8% 3.5% 3.5% 2.7% 2.7% 2.6% 2.2% 1.1% 0.2% 27.9% 23.2% 30.5% 27.9% 33.5% 32.5% 33.4% 28.0% 32.5% 32.6% 32.5% 18.6% 20.7% 17.2% 15.7% 32.4% 14.1% 24.4% 30.6% 19.2% 18.4% 33.6% 11.0% 21.0% 56.6% 33.3% 45.8% Out-of-State Tuition & Mandatory Fees for Top 25 Public Universities UConn's Affordability FY12 Tuition, Fees, Room & Board In-State* Tuition & Fees Out-of-State Tuition & Fees In-State Total Cost Out-of-State Total Cost 1 Dartmouth College $42,996 $42,996 $55,365 $55,365 2 Johns Hopkins University $42,280 $42,280 $55,242 $55,242 3 Brown University $42,230 $42,230 $53,136 $53,136 4 Washington University in St Louis $41,992 $41,992 $55,366 $55,366 5 Northwestern University $41,983 $41,983 $54,868 $54,868 6 Duke University $41,958 $41,958 $54,618 $54,618 7 University of Pittsburgh-Pittsburgh Campus $16,132 $25,540 $26,232 $35,640 8 Pennsylvania State University-Main Campus $15,984 $28,066 $25,404 $37,486 9 University of Illinois at Urbana-Champaign $13,558 $27,700 $23,638 $37,780 10 Clemson University $12,668 $28,826 $20,238 $36,396 11 University of Connecticut $10,670 $27,566 $21,720 $38,616 12 Purdue University-Main Campus $9,478 $27,646 $17,480 $35,648 13 University of Georgia $9,472 $27,682 $18,180 $36,390 14 University of Florida $5,656 $27,933 $14,456 $36,733 * List sorted by In-State rates highest to lowest. 16 University of Connecticut (Storrs) Division of Student Affairs- Department of Residential Life Room Fee - Fiscal Years 2013, 2014, 2015 and 2016 I. Proposed Action A. Description of Room Fee: A 3% increase in FY 2013 through FY 2016 on the double room fee, and a 4% increase in FY 2013 through FY 2016 on all other room fees as noted below. B. Description of Recommended Revision: The recommended revision increases the double room fee as follows: $178 year/$89 semester in FY 2013, $182 year/$91 semester in FY 2014, $188 year/$94 semester in FY 2015, and $194 year/$97 semester in FY 2016. Other room fee rates are recommended to increase by 4% for FY 2013 through FY 2016 including graduate rooms, Husky Village, Hilltop Apartments and Charter Oak Apartments. C. Basis of Requested Revision: The projected fee increases are needed to meet the cost of inflation, continue deferred maintenance programs, provide for equipment, and to continue routine furniture replacement. D. Students Affected: The increases would apply to all students living in the University residential areas. E. Proposed Dates of Implementation: Fall 2012 and each fall thereafter through fall 2015. II. Analysis A. Fiscal Need for Revision: The Department of Residential Life operates as a self-supporting auxiliary operation. Therefore, it is necessary for the Department to generate a sufficient amount of revenue to support its operation, continue deferred maintenance programs, and to continue providing inclusive laundry services to students in the traditional residence halls. B. Impact on Program and Clients: Failure to implement the fee requests would result in a delay in planned deferred maintenance projects and furniture replacement. C. Comparative Student Costs: See attached. D. Student Involvement in Fee Revision Proposal: Two public forums were held to present the rate increases as defined. Residence Halls FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Apartments & Husky Village FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Undergraduate Double Room $5,918 $6,096 $6,278 $6,466 $6,660 Hilltop & Charter Oak 4 Bedroom Undergraduate Single Room $6,972 $7,250 $7,540 $7,842 $8,156 Hilltop & Charter Oak 2 Bedroom Graduate Room $6,972 $7,250 $7,540 $7,842 $8,156 Hilltop 1 Bedroom Suite Triples $6,256 $6,506 $6,766 $7,036 $7,318 Husky Village Double Room $9,590 $9,974 $10,372 $10,786 $11,218 $7,432 $7,730 $8,040 $8,362 $8,696 $7,432 $7,730 $8,040 $8,362 $8,696 $6,972 $7,250 $7,540 $7,842 $8,156 17 UConn's Affordability FY12 Tuition, Fees, Room & Board Room* In-State Total Cost Out-of-State Total Cost 1 University of Illinois at Urbana-Champaign $10,080 $23,638 $37,780 2 Washington University in St Louis $8,374 $55,366 $55,366 3 Purdue University-Main Campus $8,002 $17,480 $35,648 4 Northwestern University $7,635 $54,868 $54,868 5 Johns Hopkins University $7,408 $55,242 $55,242 6 Dartmouth College $7,395 $55,365 $55,365 7 Duke University $7,110 $54,618 $54,618 8 Brown University $6,004 $53,136 $53,136 9 University of Connecticut $5,918 $21,720 $38,616 10 University of Pittsburgh-Pittsburgh Campus $5,100 $26,232 $35,640 11 University of Georgia $4,916 $18,180 $36,390 12 Pennsylvania State University-Main Campus $4,770 $25,404 $37,486 13 University of Florida $4,548 $14,456 $36,733 14 Clemson University $4,320 $20,238 $36,396 * List sorted by Room rates highest to lowest. Room rates reflect the standard double rate. 18 University of Connecticut (Storrs) Division of Student Affairs Department of Dining Services Board Fee - Fiscal Years 2013, 2014, 2015 and 2016 I. Proposed Action A. Description of Board Fee: A fee increase of 3.0% each year for FY 2013 through FY 2016 as noted below. B. Description of Recommended Revision: To increase the board fee in FY 2013 and each fiscal year through FY 2016 as follows: Ultimate: Unlimited meals, 500 points, 35 flex passes (per semester)-$152 year/$76 semester in FY 2013, $160 year/$80 semester in FY 2014, $164 year/$82 semester in FY 2015, and $168/$84 semester in FY 2016 Value: Unlimited meals, 200 points, 40 flex passes (per semester)-$146 year/$73 semester in FY 2013, $152 year/$76 semester in FY 2014, $156 year/$78 semester in FY 2015, and $160 year/$80 semester in FY 2016 Custom: Unlimited meals, 75 flex passes (per semester)-$138 year/$69 semester in FY 2013, $144 year/$72 semester in FY 2014, $148 year/$74 semester in FY 2015 and $152 year/$76 semester in FY 2016. C. Basis of Requested Revision: 3% increases in each year beginning in FY 2013 through FY 2016 are needed to meet the cost of inflation, renovations to older dining facilities, and equipment maintenance and replacement. D. Students Affected: The increases would apply to all students living in the University undergraduate residence halls and any graduate or commuter student who chooses to purchase a meal plan. E. Proposed Dates of Implementation: Fall 2012 and each fall thereafter through fall 2015. II. Analysis A. Fiscal Need for Fee Revision: The Department of Dining Services is a self-supporting auxiliary operation. Therefore, it is necessary for the Department to generate sufficient revenue to support its operation. B. Impact on Program and Clients: Failure to implement the fee requests would result in a reduction of some student services. C. Comparative Student Costs: See attached. D. Student Involvement in Fee Revision Proposal: Two public forums were held to present the rates as defined. Meal Plans Ultimate Value FY 2012 $5,132 $4,898 FY 2013 $5,284 $5,044 FY 2014 $5,444 $5,196 FY 2015 $5,608 $5,352 FY 2016 $5,776 $5,512 Ultimate = unlimited meals, 500 points, 35 flex passes Value = unlimited meals, 200 points, 40 flex passes Custom = unlimited meals, 75 flex passes Custom $4,646 $4,784 $4,928 $5,076 $5,228 19 UConn's Affordability FY12 Tuition, Fees, Room & Board Board* In-State Total Cost Out-of-State Total Cost 1 Johns Hopkins University $5,554 $55,242 $55,242 2 Duke University $5,550 $54,618 $54,618 3 Northwestern University $5,250 $54,868 $54,868 4 University of Connecticut $5,132 $21,720 $38,616 5 Washington University in St Louis $5,000 $55,366 $55,366 6 University of Pittsburgh-Pittsburgh Campus $5,000 $26,232 $35,640 7 Dartmouth College $4,974 $55,365 $55,365 8 Brown University $4,902 $53,136 $53,136 9 Pennsylvania State University-Main Campus $4,650 $25,404 $37,486 10 University of Florida $4,252 $14,456 $36,733 11 University of Georgia $3,792 $18,180 $36,390 12 Clemson University $3,250 $20,238 $36,396 13 University of Illinois at Urbana-Champaign** $23,638 $37,780 14 Purdue University-Main Campus** $17,480 $35,648 * List sorted by Board rates highest to lowest. Board rates reflect the most expensive plan available. **These schools include the cost of the meal plan in the housing fees. 20