tuition proposal academic years 2017-18 to 2019-20 · bor reviews tuition proposal prior to public...
TRANSCRIPT
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
2 OVPAPP Jul 2016
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
5 OVPAPP Jul 2016
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
6 OVPAPP Jul 2016
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
7 OVPAPP Jul 2016
Our Commitment
To ensure access to every qualified Hawai’i resident, to keep higher
education affordable and to invest in our 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.
8 OVPAPP Jul 2016
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
0
100
200
300
400
500
600
2008 2009 2010 2011 2012 2013 2014 2015
$ M
illio
ns
MAN HIL UHCC
9
Note: No backlog at UH West O‘ahu
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Tuition Proposal
10 OVPAPP Jul 2016
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
12 OVPAPP Jul 2016
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
14 OVPAPP Jul 2016
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.
OVPAPP Jul 2016
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 of the proposed tuition schedule.
Fluctuations in enrollments will be handled within campus operating 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.
18 OVPAPP Jul 2016
Projected Change in Net Tuition Revenue and Impact of 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*
OVPAPP Jul 2016
* 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.
20 OVPAPP Jul 2016
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.
21 OVPAPP Jul 2016
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 on 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.
24 OVPAPP July 2016
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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0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000 FY
15
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 occur 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
OVPAPP July 2016 29
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
OVPAPP July 2016 30
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
OVPAPP Apr 2016
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