rf, THE UNIVERSITY OF TEXAS AT AUSTIN Tuition Policy Advisory 'Committee 28, 2011 IVI l\/I A To: President Bill Powers From; Tuition Policy Advisory Committee Subject: Tuition Recommendations - Academic Years 2012-13 and 2013-14 Tuition Recommendation Based on guidelines from The University of Texas System Board of Regents and Office of Academic Affairs, the Tuition Policy Advisory Committee (TPAC) is submitting tuition recommendations for the tvvo-year period 2012-13 and 2013- 14, which are as follows: TPAC recommends a Tuition increase for Texas resident undergraduate students for 2012-13 and 2013-14 of 2.60% each year. The effect is to increase the weighted average per semester Total Academic Costs for a full time Texas resident undergraduate student by $127 to $5,023 in 2012-13 and by $131 to $5,154 in 2013-14. TPAC recommends a Tuition increase for nonresident undergraduate students for 2012-13 and 2013-14 of 3.60% each year. TPAC recommends a Tuition increase for all graduate students for 2012- 13 and 2013-14 of 3.60% each year. For the average resident graduate student taking 9 semester credit hours (full time) it is an increase of $155 to $4,447 in 2012-13 and $160 to $4,607 in 2013-14. The current and _recommended per semester tuition rates for each college are included as Appendix to this document. lf enacted, the recommended tuition increases would generate approximately $17.3 million gross in 2012-13 and $17.8 million gross in 2013-14. After deductions for the State-mandated financial aid set-aside these increases would provide the University approximately $15.1 million in 2012-13 and approximately $15.5 million in 2013-14 for education and general use in achieving its academic mission. Process Employed by TPAC The TPAC employed a consultative process with the campus. During its deliberations the TPAC held two public forums to inform the campus of its work and solicit campus feedback. The forums were advertised using email, Twitter and Facebook. The forums were also webcast. Approximately 50 people President Bill Powers November 28, 2011 attended each of the two forums. The general theme of the feedback was that students are not pleased they may be asked to pay more to attend the University However, they expressed understanding of the possible consequences to the University and to the quality of their education if tuition is not increased, and therefore support an increase as a necessary measure. They encouraged the University to continue to pursue additional funding from the State to minimize the need to increase tuition in the future. Upon submission to you, the recommendations in this document will be made available to the University community for review and comment through December 15, 2011, when your final recommendations are due to the University of Texas System. T-PAC will host a third and final public forum on November 30, 2011 to obtain feedback on TPAC's recommendations to you. The comments received during this period will help inform your recommendations to the UT System and the Board of Regents. Basis for TPAC Recommendations Based on the guidelines provided by The University of Texas System Board of Regents and Office of Academic Affairs, the TPAC considered the need to shorten time to degree and improve four-year graduation rates. Over the course of its deliberations the TPAC reviewed in detail the Status-Quo Financial Forecast for the University [Appendix Requests Submitted by Each Co|lege's Dean and College Tuition Budget Advisory Committee (CTBAC) [Appendix Recommendations Submitted by the Provost for Course Transformation, Teaching and Learning lnitiatives [Appendix a Request Received from the Student Services Budget Committee (SSBC) [Appendix and Total State Funding and Tuition Revenue per FTE Student [Appendices and A financial summary of items included as Appendices A- is as follows: . Incremental (5 minions) 2012-13 2013-14 College instructional needs (Appendix B) $14.5 $14.6 Central instructional needs (Appendix c) 16.0 16.0 Employee Fringe, facility costs 18.2 18.5 Student Services needs (Appendix D) 0.8 0.8 . Total needs 49.5 49.9 Net Funds available before a tuition increase (Appendix A) 19.2 1.9 Unfunded needs (30.3) (48.0) The college instructional needs of $14.5 million and $14.8 million, respectively, were submitted by the college and school deans, with input from the student President Bill Powers November 28, 2011 CTBACs. These needs represent the highest priorities for instructional enhancements that will improve four-year graduation rates. The central instructional needs, which were submitted by the Provost's office, include course transformation initiatives, enrollment management programs, financial aid incentives, and advising improvements. All of these services will benefit students and contribute to increased four-year graduation rates. The SSBC requested $800,000 to enhance student services. ln addition to the instructional and student needs, costs for employee fringe benefits which are paid by the University are expected to rise at the same time that state contributions to these benefits are decreasing. Although fringe benefit increases were considered, no provisions were made for employee merit-based salary increases. Operational costs of new and renovated facilities, and possible utility cost increases, are also a fundamental financial need. The total of the needs in each of the 2012-13 and 2013-14 years is about $50 million. Funds available from Available University Fund (AUF) and other revenue sources will cover a portion of these needs, leaving $30.3 million in 2012-13 and $48.0 million in 2013-14 of unfunded needs before the effect of an increase in tuition. The recommended tuition increases would provide the University approximately $15.1 million in 2012-13 and approximately $15.5 million in 2013- 14 for education and general use in achievi_ng its academic mission. After carefully analyzing the needs of the University and in consideration of the total State funding and tuition revenue per FTE student relative to the University's national comparison group of institutions, the TPAC concluded that a modest tuition increase is justified and necessary to maintain the basic core services and make progress towards improving four-year graduation rates. The committee is convinced that the $15 million increase in net tuition revenue in each year is reasonable and necessary to pursue the most critical of needs, understanding that it will fund only one-half ofthe needs for 2012-13 and a third in 2013-14. TPAC is not responsible for determining which of the needs are most critical, since that is the responsibility of the University Budget Council. Conclusion For The University of Texas at Austin to continue as a premier institution of higher education and to move toward its goal of being one of the best public institutions in the nation, as well as toward your goal of improving four-year graduation rates, the University must be funded at a level competitive with its peers. lf this is not achieved, the University will face a steady decline in educational quality due to its inability to recruit and retain talent. TPAC believes that such a decline is not acceptable to the students, faculty and staff of the University nor is it in the best interest of the people of the State of Texas. President Bill Powers November 28, 2011 Respectfully sub_mitted, c; r. - ra . Hegarty Vi sfident and Chief 'nancial Officer, Co-Chair _fr _f 3. Dff' Steven Leslie Executive Vice President and Provost Co-Chair 7 If fr 7 ,yd ?l/1 ray fo ..s lVls.lNatal|e E. Butler Student Government Representative QQU fi; Dr. Randy L. Diehl College of Liberal Arts, Dean .Gonzalez Grad uat Student Assembly Representative Ms. Rosa I, Student Representative at Large in Dr. Hillary Chair of the Faculty Advisory Committee on Budgets 6U l\/ls. Carisa K. Niet che fC ll t' ena egg?/Cpunci epresen a ive Dr. Victoria .Ro uez Vice Provost of Graduate Studies President Bill Powers November 28, 2011 Appendix A: Status-Quo Financial Forecast for 2012-13 and for 2013-14 THE UNIVERSITY OF TEXAS AT AUSTIN Forecast Forecast rs in millions) 2012-133 201344 ACADEMIC CORE BUDGET SOURCES State General Revenue (GR) -- AUF - Operations indirect Cost Other Revenue Subtotal Other Budget Sources -- Flat Rate Tuition Student Activity Center Net Tuition Total Budget Sources ACADEMIC CORE STATUS QUO USES TPEG 12.5 Personnel Costs- Salaries 585Personnel Costs- Medical Benefits Personnel Costs- Retirement, OASI, Longevity Post-retirement Benefits Utilities (excluding personnel costs) Transfers for Capital Projects 25 5857 597 980 233 520 2 2 Incremental instructional and Student Increases in FY 12-13 I - - Transfers for Debt Sen/ice Financial Aid (incl grandfatnered students) Financial Aid - B-on-Time Other Operations Total Status Quo Uses Net Funds available before a tuition increase 19-2 President Bill Powers November 28, 2011 Appendix B: Requests Submitted by Each Co|lege's Dean and College Tuition Budget Advisory Committee for 2012-13 and (Summarized) College Tuition Proposals, 2012-2014 Brief Summary by College of Proposals'Related to Improved Graduation Rates ARCH Course materials, digital fabrication BUS Faculty hiring, decrease student to faculty ratio COMM More sections of key courses Increased use of TAS to enhance academic success (SI) Hire more advisors More faculty hires (expanded course offerings) Create more online summer courses COE Hire more faculty, expand course offerings Provide more TA support in key courses Address bottleneck courses Hire more advisors to support mandatory advising Start summer cohorts in select majors ENGR Hire more faculty to decrease student to faculty ratio Expand TA support to improve student success Establish Center for Engineering Education COFA Augment college readiness strategies More selective admissions; improved recruitment Strengthen academic advising Create curriculum efficiencies Increase parental engagement Improve career counseling and placement l_S?f_ Expand staffing in advising and career counseling Expand college FIG program Develop Web based student resources Hire additional TAS and graders COLA 8 6 9 0 9 9 Expand course availability in key areas Expand summer start program; mandate 6 SCH of summer enrollment Increase Sl support Expand career services Hire more advisors for mandatory advising and advisor training Enhance study abroad opportunities President Bill Powers November 28, 2011 Appendix B: Requests Submitted by Each College's Dean and College Tuition Budget Advisory Committee for 2012-13 and for 201344 (Summarized and continued) CNS Add sections to improve course availability Augment college readiness efforts Expand academic support and enrichment programs Expand academic advising and career placement services Expand academic advising services Provide summer courses for students in academic difficulty Better funding for clinical TAS Technical support for distance learning PHAR Faculty hiring to address specific curricular needs Increased educational staffing support Funding for educational technology Lab supplies and equipment Funding for course redesign and online learning Hire additional academic advisor Hire additional career counselor. Space renovation for advising staff Develop and utilize student tracking system Expand summer course offerings Expand faculty development opportunities related to course redesign . Fully fund signature course program Create summer bridge program Expand academic advising and peer mentoring resources Fund development of Writing flags Fund additional assessment specialist Expand Waytinder initiative Space renovation for Sanger Center to create learning emporium i Summarized by GR from the tuition proposals submitted by the thirteen undergraduate schools and colleges, Oct. l9, 2011. President Bill Powers November 28, 2011 Appendix C: Recommendations Submitted by the Provost for Course Transformation, Teaching and Learning Initiatives for 2012-13 and 201344 (summarized) GRADUATION EDUCATIONAL ENHANCEMENT FIJNDING PROPOSAL - SUMMARY I. Central Recurring Initiatives 1. Enrollment Management Leader ($200,000) Creation of a new position to coordinate admission, recruitment, retention, and timely graduation efforts across the following units: Admissions, Financial Aid, the Registrar, and the thirteen undergraduate schools and colleges. 2. Financial Aid Incentives Creation of new Preferred Scholars Program, four-year financial aid packages that are tied to performance indicators, better coordination with schools and colleges on recruitment, expansion of work study funding, and incentives for on time graduation. 3. Universal Tracking E-Advising System ($500,000) . For maintenance and use of online system that allows students to perform routine academic functions (course planning, registration, add/drop), perform audits on student academic records, assist advisors, and inform administrators on student flow. 4. Educational Innovation Funding ($2,200,000) For course redesign and curricular enhancement efforts, including the Course Transformation Program and On-ramps. Will also fund the maintenance and use of a learning platform and learning analytics system. 5. Classroom Enhancement Recurring funding for wifi, ilabs, interactive classrooms, assessment spaces, and 'educational technologies. 6. Faculty Development Enhancement for Educational Excellence Funding for a postdoc teaching fellows program, a university teaching fellows program (CTP, On-ramps, etc.), start-up educational excellence STARS, and faculty merit pool funding. Several colleges want to fund faculty development. II. College Proposals - Summagjy Of Key Requests Across University (reguests related to 2.6% tuition increase) 1. Expanding Course Offerings in bottleneck courses Several colleges requested funding to address course bottlenecks through adding additional sections in key areas (COLA, CNS, ENGR, COE). 2. Advising Increased staffing for mandatory advising, freshman advising, transitional advising, as well as training for advisors. 3. Career Services Expanded staffing for selecting majors, professional development, and job placement (COPA, COLA, CNS, ENGR, SG). 4. Summer Bridge/Summer Course Offerings Several colleges want to create or expand summer bridge programs, particularly for academically underprepared students, and expand summer offerings to improve time to degree. 5. Faculty Hiring Proposed both to address the student/faculty ratio (BUS, ENGR) and to address curricular needs (NURS, PHAR, COE, COMM) 6. support Often requested in connection with supplemental instruction or project-based learning (J SG, COLA, ENGR, UGS). 7. Academic Support Program Expansions Several colleges hope to expand their FIG programs, and expand enrollments in key academic support/enhancement programs such as TIP, ESP and FRI. 8. College Readiness Enhanced academic outreach to K-12, development of learning modules, assessment tools, professional development for teachers, etc. (COFA, CNS, ENGR) One Time Funding Items 1. Funding for IDA revision and enhancement as well as integration and enhancements to advisor's toolkit ($500,000) 2. Data integration and infrastructure funding -improved student flow reporting ($500,000) 3. Start-Up Costs for Learning Platform and Learning Analytics System ($3,000,000) i Developed from proposals and input from Gretchen Ritter, Kristi Fisher, Harrison Keller, Dan Slesnick, Shelby Stanfield, and drawing from the tuition proposals (and CTBAC recommendations) from the thirteen undergraduate schools and colleges. Draft dated October 19, 2011. President Bill Powers November 28, 2011 Appendix D: Request Received from the Student Services Budget Committee for 2012-13 and 2013-14 '11 Dep resident Uflf AUSTIN STUDENT GOVERNMENT . I I I THE UNIVERSITY OP TEXAS AT AUSTIN A OCT 34 2011 js Qy?i 45'/12' 1 University Station, /16210 - Austin, TX 78712-0180 8. RETURN (512) 471 -31 66 Fax: (512) 471 -3408 - FILE CR . October 14, 2011 MEMORANDUM To:_ President Bill Powers From: Student Services Budget~Committee Subject: SSBC Allocation and Optional Fees The Student Services Budget Committee allocations for fiscal year 2011-2012 are $41,736,082, including salaries and operations expenses, distributed to at least 39 budget groups aligned with more than 15 portfolios across campus; includes 6 allocations representing building_fees authorized by statute and education code. However, the Student Services Budget Committee (SSBC) is submitting initial recommendations for the two-year period, fiscal year 2012-2013 and 2013-2014. it is important to note, the SSBC understands the budget difficulties of the University, and recommends increases close to the initial recommendation of TPAC. The committee recommends a 2.0% increase of $834,722 for a total of $42,570,804 for the 2012-2013 fiscal year and a 2.0% increase of $851,416 for a total of $43,422,220 for the 2013-2014 fiscal year. The Student Services Budget committee members approved the increases for both fiscal year 2012-2013 and 2013-2014 unanimously and felt that the increases for each fiscal year are both reasonable and necessary considering the pressure resulting from recent budget reductions. In addition to these factors, the proposed increases reflect the desire to maintain and expand health and wellness services. Based on a number of factors, the committee deemed student wellness beneficial and essential to Student achievement and academic success. lf approved, the additional resources will fund increased budgets in areas able to show evidence of the need for innovative services that directly impact student matriculation. After considering multiple options, the committee concluded investing resources in health and wellness services strengthen students' ability to excel academically. On a separate matter that does not impact tuition, the committee recommends the increase in one optional fee-the Texas Performing Arts Package. After hearing requests, the committee supports the increase of the Texas Performing Arts Package optional fee from $30 to $40 for the annual year, and $15 to $25 for spring semester only purchases. Summarily, this fee is optional and is not a part of the total cost of attendance, however it grants access to a highly subsidized and quality product. A President Bill Powers November 28, 2011 Appendix D: Request Received from the Student Services Budget Committee for 2012-13 and 2013-14 (continued) The services funded by the SSBC are vital and essential to a student's educational experience on campus. While a student's academic and classroom experience are first and foremost, the classroom experiences rely heavily on the complementary support and development offered through student-centered services. ln closing, vve appreciate' the confidence in the voice of students and for the preservation of the critical role students play in our University's complex budgeting processes. Thank you in advance for 'full consideration ofour request. Please contact me should you have additional questions. Respectfully submitte Ashley Baker Chair, Student Services Budget Committee, 2011-2012 Student Body Vice President, 2011-2012 Encl: Roster of SSBC Allocations PAC Optional Fee Request cc: l\/lr. Kevin Hegarty Vice President and Chief Financial Officer Juan C. Gonzalez Vice President for Student Affairs Dr. Steve Leslie Provost Dr. Charles Roeckle Office of the President President Bill Powers November 28, 2011 Appendix E: Total State Funding and Tuition Revenue per FTE Student Fiscal Year 2009-10 (EXCLUDES Available University Fund -- AUF) University of California-Berkeley University of California-Los Angeles University of Illinois at Urbana-Champaign :Indiana University-Bloomington University of Michigan-Ann Arbor Michigan State University University of Minnesota-Twin Cities University of North Carolina at Chapel Hill Ohio State University~Main Campus University of Washington~SeattIe Campus University of Wisconsin-Madison The University of Texas at Austin Total State Funding and Tuition Revenue per FTE Student at National Comparison Group Institutions Escal Year 2009-10 (AUF Is Not Included for UT Austin) Total State Total FTE Students Fall Appropriations and State Appropriations Appropriations Tuition Revenue plusTuition $488,624,000 $623,800,000 $257,231,744 $229,834,996 $316, 571,000 $355, 537,600 $577,918,599 $509,690,868 $415,211,095 $303,454,172 $399,110,702 $411,952,000 $445,373,000 $538,279,363 $575,621,407 $752,812,000 $542,389,357 $487,828,700 $249,082,638 $624, 175,569 $527,957,510 $353,705,684 $329,682,365 $433,159,309 $900,576,000 $1,069, 173,000 $795,511,107 $805,456,403 $1,069,383,000 $897,926,957 $1,065,747,299 $758,773,506 $1,039,386,664 $831,411,682 $752,816,386 $762,841,674 2009 34, 749 37, 710 41,360 39, 295 39,922 43, 579 43, 197 25,901 50, 127 41,432 38, 822 48,283 State Appropriations for UT Austin does not include the Available University Fund amount of $160,690,000 for 2009-10. Source: Natrona/ Center for Ed:/cat/bn Stat/stics Tuition per FTE Student $25,917 $28,353 $19,234. $20,498 $26,787 $20,605 $24,672 $29,295 $20,735 $20,067 $19,391 $15,799 Rank President Bill Powers November 28, 2011 Appendix F: Total State Funding and Tuition Revenue per FTE Student Fiscal Year 2009-10 (INCLUDES Available University Fund - AUF) Total State Funding and Tuition Revenue per FTE Student at National Comparison Group Institutions Hscal Year 2009-10 (with AUF Included for UT Austin) Total State Total FTE Appropriations and State Appropriations Students Fall Tuition per FTE Appropriations Tuition Revenue plus Tuition 2009 Student Ra University of California~BerlrQfeSS,iQn,al INFORMATION Qrogremetter, LIBERAL ARTS Spring ZQQB, NATURAL SCIENCES NURSING PHARMACY PUBLIC AFFAIRS SOCIAL WORK Current Recommended Recommended Tuition Faii Tuition Fail Tuition Fall 2011 2012 2013 4,559 4,723 4,893 3,797 3,934 4,076 4,371 4,528 4,691 4,055 4,201 4,352 4,616 4,782 4,954 4,532 4,695 4,864 4,228 4,380 4,538 4,744 4,915 5,092 3,903 4,044 4,190 4,030 4,175 4,325 4,576 4,741 4,912 4,397 4,555 4,719 4,308 4,463 4,624 4,522 4,685 4,854 7,864 8,147 8,440 7,078 7,333 7,597 7,590 7,863 8,146 7,355 7,620 7,894 7,924 8,209 8,505 7,836 8,118 8,410 7,555 7,827 8,109 8,123 8,415 8,718 7,221 7,481 7,750 7,386 7,652 7,927 7,903 8,188 8,483 7,660 7,936 8,222 7,640 7,915 8,200 7,951 8,237 8,534 8,433 8,737 9,052 7,570 7,843 8,125 8,228 8,524 8,831 7,885 3,159 3,463 8,449 8,753 9,068 8,401 8,703 9,016 8,188 8,483 8,788 8,652 8,963 9,286 7,737 8,016 8,305 7,941 8,227 8,523 8,456 8,760 9,075 8,366 8,667 8,979 8,202 8,497 8,803 8,355 8,656 8,968