Tuition Proposal Academic Years 2017-18 to 2019-20 Risa E. Dickson - - PowerPoint PPT Presentation

Tuition Proposal Academic Years 2017-18 to 2019-20

Risa E. Dickson Vice President for Academic Planning and Policy July 2016

Overview

• Schedule and Process
• Tuition-Setting Goals, Parameters and

Considerations Presented

• Summary of Public Meetings
• Review of Tuition Proposal
• Recommendation

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Tuition Schedule

3

• 1. Research, policy review and

proposal preparation Fall 2015 – Spring 2016

• 2. BOR tuition setting discussion

January 2016

• 3. BOR reviews tuition proposal

prior to public meetings February 2016

• 4. Proposal distribution / public

meetings March – May 2016

• 5. Revisions

May 2016

• 6. BOR consideration and action

July 2016

• 7. Filing with Lt. Governor

July 2016

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Tuition-Setting Goals

• Ensure access to public higher education for

every qualified Hawai‘i resident

• Keep higher education affordable
• Modernize and repair facilities and campus

environments to be safe, sustainable and supportive of modern teaching & learning, and research practices

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Parameters and Considerations Presented

Regents Policy 6.202

I.

Relative standing in terms of tuition charges at like regional and national institutions of higher education

• II. Differential tuition rates by unit missions, student level

(undergraduate, graduate, professional), and residency

• III. Accessibility and the mix of students (ethnic

background, income levels, residents and non- residents, etc.)

• IV. Financial aid availability and use
• V. The cost of education and the sharing of that cost

between students and the general public

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Tuition Proposal Meetings

• Held meetings from March through May to

share the proposal and to solicit feedback

• 13 public meetings (~230 people attended)
• 3 internal meetings (Student Caucus, Mānoa ASUH,

ACCFSC)

• Oral and written testimonies were received in

person and via email, and any questions asked were answered during the meetings

• A summary of the testimonies have been

submitted to the Board of Regents and UH administration for review and consideration

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Summary of Testimony Received

• 52 oral and written testimonies; 3 student

government resolutions

• Most opposed the proposed increases; a few

supported the increases

• Opposition cited affordability and financial

hardship; a few objected to the use of tuition for deferred maintenance

• Other comments included requests for

transparency in how funds from the increase are spent, and consideration of ways to reduce expenses rather than raising tuition

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Our Commitment

To ensure access to every qualified Hawai’i resident, to keep higher education affordable and to invest in

• ur facilities so that our students have

modern classrooms and learning environments.

This proposal is part of a long-term strategy, intended to invest approximately $100M to address the current $500M deferred maintenance backlog over three years beginning in 2017-18.

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Current Deferred Maintenance Backlog

(Fiscal Year)

$227.4 $260.4 $239.2 $346.4 $380.6 $406.7 $372.8 $420.5 $34.5 $29.8 $25.9 $16.3 $19.9 $21.3 $21.4 $23.0 $39.3 $78.2 $69.1 $64.9 $60.3 $58.9 $50.6 $59.2

$301.2 $368.4 $334.1 $427.6 $460.8 $486.9 $444.8 $502.7

100 200 300 400 500 600 2008 2009 2010 2011 2012 2013 2014 2015 $ Millions MAN HIL UHCC

9

Note: No backlog at UH West O‘ahu

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Tuition Proposal

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Tuition Proposal Basics

• A 3-year tuition schedule from 2017-18 to 2019-20

with modest increases

• Non-resident tuition to be raised the same $ amount

increases as resident tuition

• No increases for UH Mānoa Professional Schools
• No increases in UH Community College

apprenticeship fees

• Tuition revenue increases will be used only to

address facilities needs, not general operations

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Proposed Tuition Increases

UH Mānoa

• Full-Time Resident Undergraduates: $216 / year
• Full-Time Resident Graduates: $312 / year
• Full-Time Non-Resident Undergraduates and

Graduates: Same $ amount increases as residents ($216 and $312 per year, respectively)

• Professional Schools: No increases

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Proposed Tuition Increases

UH Hilo

• Full-Time Resident Undergraduates: $0 in Year 1; $72 in

each of Years 2-3

• Full-Time Resident Graduates: $0 in Year 1; $120 increase

in each of Years 2-3

• Non-Resident Undergraduates and Graduates: Same $

amount increases as residents ($0 in Year 1, then $72 and $120, respectively, in each of Years 2-3)

• Graduate Nursing: $0 in Year 1; $192 increase in each of

Years 2-3

• College of Pharmacy: $240 / year

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Proposed Tuition Increases

UH West O‘ahu

• Full-Time Residents: $0 in Year 1; $72 increase in each of

Years 2-3

• Full-Time Non-Residents: Same $ amount increase as

residents ($0 in Year 1; $72 in each of Years 2-3)

UH Community Colleges

• Full-Time Residents: $0 in Year 1; $60 increase in each of

Years 2-3 (revised)

• Full-Time Non-Residents: Same $ amount increase as

residents ($0 in Year 1; $60 in each of Years 2-3) (revised)

• Apprenticeship Fees: No increases

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2016-17

Actual

2017-18

Proposed

2018-19

Proposed

2019-20

Proposed

UH Mānoa

Resident Undergraduate $10,872 $11,088 $11,304 $11,520 Graduate $15,288 $15,600 $15,912 $16,224 Non-Resident Undergraduate $32,904 $33,120 $33,336 $33,552 Graduate $36,768 $37,080 $37,392 $37,704

15

Proposed Annual Full-Time Tuition

By Residency and Level

AY 2016-17 rates were approved by BOR on 5/21/15.

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2016-17

Actual

2017-18

Proposed

2018-19

Proposed

2019-20

Proposed

UH Hilo

Resident Undergraduate $7,200 $7,200 $7,272 $7,344 Graduate $11,496 $11,496 $11,616 $11,736 Grad Nursing $18,744 $18,744 $18,936 $19,128 Pharmacy $23,376 $23,616 $23,856 $24,096 Non-Resident Undergraduate $20,160 $20,160 $20,232 $20,304 Graduate $26,328 $26,328 $26,448 $26,568 Grad Nursing $37,392 $37,392 $37,584 $37,776 Pharmacy $40,320 $40,560 $40,800 $41,040

16

Proposed Annual Full-Time Tuition

By Residency and Level

AY 2016-17 rates were approved by BOR on 5/21/15.

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Proposed Annual Full-Time Tuition

By Residency and Level

17

2016-17

Actual

2017-18

Proposed

2018-19

Proposed

2019-20

Proposed

UH West O‘ahu

Resident $7,200 $7,200 $7,272 $7,344 Non-Resident $20,160 $20,160 $20,232 $20,304

UHCCs

Lower Division Resident $3,024 $3,024 $3,084* $3,144* Non-Resident $8,160 $8,160 $8,220* $8,280* Upper Division Resident $7,200 $7,200 $7,272 $7,344 Non-Resident $20,160 $20,160 $20,232 $20,304

* Revised AY 2016-17 rates were approved by BOR on 5/21/15.

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Assumptions for Planning Investments in Facilities

• Enrollment projections will be held constant for the duration
• f the proposed tuition schedule.
• Fluctuations in enrollments will be handled within campus
• perating budgets.
• Institutional aid will be maintained at current percentage

levels.

• Additional tuition revenues generated by modest rate

increases will be used only to address facilities requirements and the deferred maintenance backlog, not general operations.

• UH will have revenue bond authority.

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Projected Change in Net Tuition Revenue and Impact

• f Investment / Approach Under Assumptions

19

UH Unit and Intended Use 2017-18

Projected

2018-19

Projected

2019-20

Projected

UH Mānoa Reduce deferred maintenance backlog using revenue bonds $2.36 $4.72 $7.08 UH Hilo Establish sinking funds for capital renewal and maintenance, consistent with national best practices $.06 $.32 $.57 UH West O‘ahu Establish sinking funds for capital renewal and maintenance, consistent with national best practices $.00 $.13 $.25 UH Community Colleges Eliminate deferred maintenance backlog by Year 3 using revenue bonds; funds from 2016-17 will be used for Year 1 debt, $0.00 $1.10* $2.20*

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* Revised

Reporting on the Use of Tuition Revenue Increases

The UH Administration will provide an annual accounting of the actual tuition revenue generated through this increase and how it has been used to address facilities requirements and the deferred maintenance backlog through revenue bonds, sinking funds, etc.

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Recommendation

It is recommended that the Board of Regents approve the proposed tuition schedules for 2017–18 through 2019–20 as provided in Attachment 1 to the President’s transmittal to the Board dated July 15, 2016.

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Appendix I

Capital Financing

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Capital Strategy to Address Deferred Maintenance and Capital Renewal Needs

Capital Renewal Scheduled / Annual / Anticipated major repair and major maintenance to upkeep facilities. Deferred Maintenance Any capital renewal that is not addressed timely or

• n schedule that results in deferring the necessary

repair and maintenance.

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A Strategy for Addressing Capital Renewal and Deferred Maintenance Needs

Capital Renewal via GO Bonds

• Primarily funded by General Obligation

(GO) Bonds appropriated by the Legislature.

• Desired as lump sum funding to the

University.

• No debt of the University.
• Annual capital renewal needs in UH

between $60-80 million per year.

• Additional GO Bond appropriations are

desired and would accelerate reduction of deferred maintenance. Deferred Maintenance via Revenue Bonds

• UH can self-finance some reduction of

deferred maintenance backlog through University Revenue Bonds.

• Need legislative authority and Board of

Regents approval to issue University Revenue Bonds.

• Creates debt of the University.
• $562 million in revenue bonds

currently outstanding. FY16 debt service $46.2 million from all sources.

• 10-year deferred maintenance

program would require more than $60 million of financing each year.

• GO Bonds for capital renewal AND

deferred maintenance projects would reduce debt service needs.

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Estimated Capital Capacity Under Assumptions

UH – Mānoa AY/FY 2017-2018 AY/FY2018-2019 AY/FY2019-2020 Assigned Revenue $ 2.36 million $4.72 million $ 7.08 million Revenue Bond Issuance (est.) $ 30-35 million $30-35 million $30-35 million UH – Comm Colleges AY/FY 2018-2019 AY/FY2019-2020 AY/FY2020-2021 Assigned Revenue $ 0.00 $ 1.10 million $ 2. 20 million Revenue Bond Issuance (est.) $ 0.00 $15 – 16 million $ 15-16 million Annual Additional University Debt $ 30 - 35 million $45 – 51 million $ 45 – 51 million TOTAL Capital for Deferred Maintenance $ 120 – 137 million

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Reference: Slide 19

Projected Debt Profile

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10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 FY42 FY43 FY44 FY45 FY46 FY47 Refunding Series 2006A Series 2006A Series 2009A Series 2010A-1 Series 2010A-2 Series 2010B-1 Series 2010B-2 Series 2012A(R) Series 2015A Series 2015B Series 2015C Series 2015D Series 2015E

Bonds FY2018 Bonds FY2019 Bonds FY2020

Annual debt service to the University could increase as much as $9.7 million/year to finance $135+ million in capital projects.

Bond Issuance Approvals



UH Board of Regents approve AY/FY2018-2021 tuition schedule.



2017 or 2018 Legislature would need to authorize the issuance of University Revenue Bonds.



Administration can only sell amounts of revenue bonds for which there is legislative approval and sufficient corresponding revenue to support all future debt service.



UH Board of Regents would have to approve specific bond issuance resolutions for each bond transaction to

• ccur in FY2019, FY2020, and FY2021.

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There are additional Board of Regents reviews and approvals required along the way to implement this capital financing approach. Administration and BOR have opportunities to tune numbers and adjust approach at any step along the way.

Appendix II

Tuition Comparisons

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UH and Top 10 Mainland 4-Year Institutions Attended by Hawai‘i DOE Class of 2014

RANK BY ENROLLMENT STATE INSTITUTION CARNEGIE CLASSIFICATION FALL 2014 WHAT HI RESIDENTS PAY IN-STATE TUITION & FEES OUT-OF-STATE TUITION & FEES WUE TUITION & FEES 1/

* HI University of Hawai‘i at Mānoa Research Universities (very high research activity) 797 10,620.00 10,620.00 29,412.00 * HI University of Hawai‘i at Hilo Baccalaureate Colleges--Arts & Sciences 217 7,036.00 7,036.00 19,036.00 * HI University of Hawai‘I - West O‘ahu Baccalaureate Colleges--Diverse Fields 195 6,888.00 6,888.00 18,888.00 1 NV University of Nevada, Las Vegas Research Universities (high research activity) 107 9,732.00 6,710.00 20,620.00 9,732.00 2 OR Pacific University Master's Colleges and Universities (larger programs) 47 38,510.00 38,510.00 38,510.00 3 AZ Northern Arizona University Research Universities (high research activity) 45 14,550.00 9,990.00 22,510.00 14,550.00 4 WA Washington State University 2/ Research Universities (very high research activity) 34 17,865.00 12,428.00 25,510.00 17,865.00 5 CO Mesa State College 3/ Baccalaureate Colleges--Arts & Sciences 33 10,294.50 7,116.00 17,720.00 10,294.50 6 AZ Grand Canyon University- Traditional Master's Colleges and Universities (larger programs) 32 17,050.00 17,050.00 17,050.00 7 OR University of Portland Master's Colleges and Universities (larger programs) 30 40,424.00 40,424.00 40,424.00 8 OR Western Oregon University Master's Colleges and Universities (medium programs) 29 12,885.00 9,105.00 22,200.00 12,885.00 9 OR Portland State University Research Universities (high research activity) 28 11,056.50 7,794.00 23,319.00 11,056.50 9 OR Oregon State University Research Universities (very high research activity) 28 26,294.00 9,122.00 26,294.00

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1/ Calculated at 150% of the published in-state tuition plus the published in-state fees. 2/ Does not offer WUE rate to transfers 3/ Mesa State College was renamed in 2011 to Colorado Mesa University. The Statewide: Class of 2014 College Enrollment reported the institution as Mesa State College. Source: Hawai'i Department of Education (DOE) Class of 2014 college enrollment in the Fall semester following their high school graduation: Hawaii DXP

UH and Top 10 Mainland 2-Year Institutions Attended by Hawai‘i DOE Class of 2014

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1/ Calculated at 150% of the published in-state tuition plus the published in-state fees. 2/ University of Hawai'i Community College's Hawai'i DOE Class of 2014 enrollment is the sum of all 7 campuses from the report. The Tuition & Fees information was extracted from the AY 2014-2015 Tuition & Fees Schedule Report by UH Insitutional Research and Analysis Office. UH Maui College is the only UHCC campus to participate in WUE and has a different Carnegie classification - Associate's--Public 4-year Primarily Associate's. Source: Hawai'i Department of Education (DOE) Class of 2014 college enrollment in the Fall semester following their high school graduation: Hawaii DXP Tuition & Fees Data: NCES IPED Data Report

RANK STATE INSTITUTION CARNEGIE CLASSIFICATION HAWAI'I CLASS OF 2014, FALL 2014 WHAT HI RESIDENTS PAY IN-STATE TUITION & FEES OUT-OF-STATE TUITION & FEES WUE TUITION & FEES 1/

* HI University of Hawai'i Community Colleges 2/ Associate's--Public 2-year colleges under 4-year universities 2,868 2,815.00 2,815.00 7,663.00 1 AZ Arizona Western College Associate's--Public Rural-serving Large 10 3,620.00 2,480.00 8,085.00 3,620.00 2 NM New Mexico Military Institute Associate's--Public Special Use < 10 5,321.50 4,536.00 9,647.00 5,321.50 2 CA Santa Barbara City College Associate's--Public Rural-serving Large < 10 6,836.00 1,374.00 6,836.00 2 CA Feather River Community College Associate's--Public Rural-serving Medium < 10 7,266.00 1,446.00 7,266.00 5 CA Sierra College Associate's--Public Suburban-serving Multicampus < 10 6,190.00 1,150.00 6,190.00 5 CA College of the Redwoods Associate's--Public Rural-serving Large < 10 6,846.00 1,182.00 6,846.00 7 CA San Diego Mesa College Associate's--Public Urban-serving Multicampus < 10 5,774.00 1,142.00 5,774.00 7 CA Orange Coast College Associate's--Public Suburban-serving Multicampus < 10 6,584.00 1,184.00 6,584.00 7 CA Ventura College Associate's--Public Urban-serving Multicampus < 10 7,050.00 1,388.00 7,050.00 7 CA Sacramento City College - Los Rios CC Dist Associate's--Public Urban-serving Multicampus < 10 7,272.00 1,104.00 7,272.00

UH and Top 10 Western Undergraduate Exchange (WUE) Institutions Attended by Hawai‘i High School Graduates

Fall 2015 Enrollment, AY 2015-16 Tuition Rates

UH & TOP 10 WUE STATE INSTITUTION CARNEGIE CLASSIFICATION HI RESIDENT AT WUE CAMPUSES FALL 2015

HAWAII RESIDENT WUE RATE 1/ PUBLISHED IN-STATE TUITION

2015-16 2/ 2015-16 2/

8 WA Washington State University 3/ Doctoral Universities: Higher Research Activity 53 15,534.00 10,356.00 2 AZ Northern Arizona University Doctoral Universities: Higher Research Activity 233 14,193.00 9,462.00 3 OR Western Oregon University Master's Colleges & Universities: Medium Programs 184 11,619.00 7,746.00 10 CO University of Colorado Denver Doctoral Universities: Higher Research Activity 33 11,106.00 7,404.00 9 OR Oregon Institute of Technology Baccalaureate Colleges: Diverse Fields 43 10,984.50 7,323.00 * HI University of Hawai‘i at Mānoa Doctoral Universities: Higher Research Activity N/A N/A 10,344.00 4 CO Colorado Mesa University Baccalaureate Colleges: Diverse Fields 148 10,059.00 6,706.00 6 OR Southern Oregon University Master's Colleges & Universities: Larger Programs 94 9,922.50 6,615.00 5 CO University of Northern Colorado Doctoral Universities: Higher Research Activity 97 9,558.00 6,372.00 1 NV University of Nevada, Las Vegas Doctoral Universities: Higher Research Activity 260 9,415.50 6,277.00 7 NV University of Nevada, Reno Doctoral Universities: Higher Research Activity 77 8,967.00 5,978.00 * HI University of Hawai‘i at Hilo Master's Colleges & Universities: Small Programs N/A N/A 6,912.00 * HI University of Hawai‘i - West O‘ahu Baccalaureate Colleges: Diverse Fields N/A N/A 6,912.00 OVPAPP July 2016 31

1/ Calculated at 150% of the published in-state tuition 2/ Preliminary release 3/ Does not offer WUE rate to transfers Source: UH Mānoa HI Resident HC Enrollment: IRAO DAPIR Enrollment (CENSUS), Table 4 WUE Institution HI Resident HC Encrollment: http://wiche.edu/info/publications/statReport0116.pdf Published In-State Tuition: NCES IPED Data Report

UH Mānoa Undergraduate Tuition and Fee Comparisons (Relative Standing)

32

10,794 24,099 26,931 29,412 42,394

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

UH Mānoa Undergraduate Tuition & Fees Relative to Other Flagships, 2014-15

4,646 8,499 10,230 10,620 17,502

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Resident

WICHE Average U.S. Average Hawai‘i

Non-Resident

OVPAPP Apr 2016

UH Mānoa Graduate Tuition and Fee Comparisons (Relative Standing)

33

UH Mānoa Graduate Tuition & Fees Relative to Other Flagships, 2014-15

Resident

WICHE Average U.S. Average Hawai‘i

Non-Resident

5,234 9,746 11,815 14,048 30,042

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000

13,136 22,649 25,374 32,816 40,892

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

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Cost Comparisons (Relative Standing)

34

Undergraduates, UH and Local Institutions, AY 2015-16

UH, Chaminade, HPU, and BYU HI

$22,440 $21,780 $10,200 $5,100 $11,164 $7,332 $7,152 $2,948 $31,516 $19,788 $19,608 $7,940

HPU Chaminade BYUH (non-LDS) BYUH (LDS) UHM UHH UHWO UHCC UHM UHH UHWO UHCC

Annual Tuition & Fees

Private UH Resident UH Non-Resident

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). OVPAPP Apr 2016