Board of Visitors Finance Committee and Full Board Meeting

April 20, 2017

Agenda

ACTION ITEM • 2017-2018 Undergraduate Tuition

1. University of Virginia 2. College at Wise

2017-2018 Undergraduate Tuition Proposal

3

In-State Out-of-State % Change

from 2016-17 % Change

from 2016-17

Fall 2017 University of Virginia 2.2% 3.5% Fall 2017 College at Wise 3.0% 3.0%

1.9% scenario

3

These increases would generate incremental revenue of $7.5 million for UVA and $210,000 for the College at Wise

2017-2018 UNIVERSITY OF VIRGINIA undergraduate tuition proposal

2017-18 Tuition Setting Context • Tuition is always the last funding source considered

• Operating Requirements • Permanent general fund budget reduction ($7.03 million) • State-authorized salary increase (2% for faculty and 3% for staff) • Unfunded federal compliance • IT security, leases, and periodicals

• Balanced with Affordability • AccessUVA with continued loan caps ($4,000 for low-income Virginians, $18,000 for all

other Virginians, and $28,000 for non-Virginians) • 67% of our students graduate with no debt. The 33% of students who graduate with debt

do so with an average of $20,500, which is $5,000 below national average. • Guaranteed Tuition Plan • Cornerstone Grants • Bicentennial Scholars Fund

5

2017-18 Operating Challenges

6

Amount Allocable to Graduate Programs

Allocable to Undergrads

Equivalent UG Tuition Increase

General Fund Reduction $ 7,036,034 $ (1,027,452) $ 6,008,582 2.4%

State Authorized Salary Increase, Tuition Share 5,705,126 (1,158,140) 4,546,986 1.8%

Supplemental Faculty Increase (1.75%) 3,087,811 (626,826) 2,460,985 1.0%

Unfunded Compliance 935,000 (273,071) 661,929 0.3%

IT Security, Library, Leases 7,768,900 (2,268,941) 5,499,959 2.2%

$24,532,871 ($5,354,430) $19,178,441 7.7%

6

Meeting incremental operating needs solely from undergraduate tuition alone would require a 7.7% increase for both in-state and out-of-state students

Note: The above table does not include inflation on other-than-personnel-services which, based on a Bureau of Labor Statistics report from February 2017 (2.7%), would be approximately $15 million.

2017-18 Operating Challenges Planned Actions

7

1. Seek efficiency opportunities in schools and administrative budgets. Already planned reduction includes $21.25M for organizational excellence savings.

2. Review planned compensation changes for 2017-18

3. Defer enhancements to certain compliance areas

4. Defer need to absorb certain items in permanent budget until next year

7

Access and Affordability • AccessUVA, the University’s need-based financial aid program, guarantees meeting 100% of

the demonstrated financial need of all students admitted to the University. • In 2016-17, UVA provided approximately $115 million in financial aid to undergraduate

students. • AccessUVA also limits student indebtedness by capping loans ($4,000 for low-income

Virginians, $18,000 for all other Virginians, and $28,000 for non-Virginians). • 67% of UVA undergraduate students graduate with no debt; the 33% of students who

graduate with debt do so with an average of $20,500, which is $5,000 below the national average.

• Cornerstone Grants were established by the Board of Visitors in 2016 for Virginia families who just miss qualifying for AccessUVA (with income less than $125,000 and assets less than $150,000).

• Bicentennial Scholars Fund was established by the Board of Visitors in 2016 to create a permanent, sustainable endowment for AccessUVA. 8

Change in UVA In-State Undergraduate Tuition* vs. General Funds per UVA In-State Student*

9

*In 2015 Constant Dollars

Over the 25-year period on a per-

student basis, the cumulative UVA undergraduate

tuition increase is less than the decrease in

general funds UVA receives from the Commonwealth

$0

$2,000

$4,000

$6,000

$8,000

25 Years20 Years

15 years

Increase in Tuition Loss of State General Funds

(FY91-FY15) (FY96-FY15)

(FY01-FY15)

23.2%

11.7%

9.0%

9.9% 8.6%

9.9%

5.0%

11.5% 10.3%

3.9%

3.9% 4.5%

3.8%

1.5% 2.2%

7.7%

3.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

In-State Undergraduate Tuition Historical Rate Increases

10 Proposed Increase

*Denotes year of a General Fund Reduction

2017-2018 Undergraduate Tuition Proposal College of Arts & Sciences, Curry School of Education,

School of Architecture, School of Nursing

11

In-State Out-of-State

2017-18 $ Change from 2016-17

% Change from 2016-17 2017-18 $ Change

from 2016-17 % Change

from 2016-17

Fall 2017 First and Second years $13,348 $288 2.2% $43,194 $1,472 3.5% Fall 2017 Third years $12,326 $266 2.2% $43,194 $1,472 3.5% Fall 2017 Fourth years $11,304 $244 2.2% $43,194 $1,472 3.5% Fall 2017 Optional Guarantee* $14,398 n/a n/a n/a n/a n/a

* Offered to Fall 2017 first years only

1.9% scenario

11

2017-2018 Undergraduate Tuition Proposal School of Engineering & Applied Science, Batten School of Leadership &

Public Policy, McIntire School of Commerce

In-State Out-of-State

2017-18 $ Change from 2016-17

% Change from 2016-17 2017-18 $ Change

from 2016-17 % Change

from 2016-17

School of Engineering & Applied Sciences Fall 2017 First and Second years $17,436 $376 2.2% $47,322 $1,600 3.5% Fall 2017 Third years $16,414 $354 2.2% $47,322 $1,600 3.5% Fall 2017 Fourth years $13,348 $288 2.2% $45,252 $1,530 3.5%

Batten School of Leadership and Public Policy/McIntire School of Commerce Fall 2017 Third years $17,436 $376 2.2% $48,358 $1,635 3.5% Fall 2017 Fourth years $16,414 $354 2.2% $48,358 $1,635 3.5%

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In-State vs. Out-of-State Comparison Net Tuition Revenue (FY16-17)

13

68.8%

31.2%

FY2017 Undergraduate Enrollment

In-State

Out-of-State

37.5%

62.5%

FY2017 Budgeted Tuition Revenue

In-State

Out-of-State

In-State vs. Out-of-State Comparison Net Tuition Revenue + GF Allocation (FY16-17)

14

68.8%

31.2%

FY2017 Undergraduate Enrollment

In-State

Out-of-State 54.5%

45.5%

2017 Budgeted Tuition + GF Allocation

In-State

Out-of-State

Previously Approved 2017-18 Fees, Room and Board Rates for First Year Student

Actions taken in December 2016 and March 2017

In-State Out-of-State

2017-18 Rate % Increase over 2016-17 2017-18 Rate % Increase

over 2016-17 Mandatory Fee $2,670 2.5% $3,352 2.0%

Orientation Fee $210 0% $210 0%

Room $6,042 2.8% $6,042 2.8%

Board $4,950 2.1% $4,950 2.1%

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2017-18 Cost of Attendance (First Year, UVa College of Arts & Sciences)

16

In-State Out-of-State Tuition & Fees $16,068 $46,596 Orientation Fee $210 $210 Room $6,042 $6,042 Board $4,950 $4,950 Books, Travel, Other $4,002 $5,252 Total Cost of Attendance $31,272 $63,050 Percent Increase over 2016-17 2.3% 3.0% Expected % Students on Aid 34% 29%

For Students on Aid Average Grants $11,574 $18,703 Average Net Price before loans $19,698 $44,347 Average Loan $3,142 $6,321

2016-17 National Peer Comparison First Year Undergraduate Tuition

17

$0$10,000$20,000$30,000$40,000$50,000$60,000

U of

S. C

alifo

rnia

U of

Pen

nsyl

vani

a

Duk

e U

Tula

ne U

Corn

ell U

Was

hing

ton

U.

Emor

y U

Vand

erbi

lt U

U of

Pitt

sbur

gh

U of

Virg

inia

U of

Illin

ois

U of

Mic

higa

n

Rutg

ers

U

UC B

erke

ley

UCLA

U of

Ariz

ona

U of

Col

orad

o

U of

Was

hing

ton

U of

Wis

cons

in

U of

Mar

ylan

d

U of

Tex

as

SUN

Y-St

ony

Broo

k

U of

Nor

th C

arol

ina

U of

Iow

a

U of

Neb

rask

a

U of

Flo

rida

Private Public - Out of State Public - In State

2016-17 Virginia Public Comparison Weighted Average Undergraduate In-State Tuition

18

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Non E&G Fees

Tuition

2017-2018 College at wise Undergraduate tuition AND FEE proposal

Tuition Setting Context College at Wise

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• Tuition Requirements • Addressing the needs from base budget instability • Enhancing the quality and stability of academic faculty • Addressing affordability and debt burden of our students • State-authorized pay increases

• Continual Investment In • Title IX and compliance • Regional economic development • Accreditation initiatives to strengthen our marketing position

2017-2018 Tuition and Fees College at Wise

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Tuition • In-State Undergraduates: 3.0% increase to $5,366 ($156) • Out-of-State Undergraduates: 3.0% increase to $21,926 ($638)

Mandatory Fee • In-State: $130 increase (3.0%) • Out-of-State: $168 (3.4%)

2017-2018 Proposed Price of Attendance First Year, College at Wise

Actions taken in December 2016 and March 2017

22

In-State Out-of-State 2017-18

Rate % Increase

over 2016-17 2017-18

Rate % Increase

over 2016-17 Tuition & Fees $9,825 3.0% $27,055 3.0% Room $6,202 (1.2%) $6,202 (1.2%) Board $4,112 0% $4,112 0% Total $20,139 1.1% $37,369 2.0%

Enrollment Comparisons College at Wise

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1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

1,500

Fall 2014 Fall 2015 Fall 2016 Fall 2017

Projected Full-Time Students Actual Full-Time Students

To B

e D

eter

min

ed

2016-17 COPLAC* Peer Comparison In-State Tuition & Fees

25

$-

$4,000

$8,000

$12,000

$16,000U

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Tuition Fees

*Council of Public Liberal Arts Colleges

2016-17 Virginia Public Comparison Weighted Average Undergraduate In-State Tuition

26

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Non E&G Fees

Tuition