1.0 TUITION AND FEES. Trends in College Pricing 2014 by the College Board.

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1 1.0 TUITION AND FEES 1.1 National Trends Concerns over the rising costs of higher education have been raised for many years and have significantly influenced state policies regarding tuition and fees. Since the average cost for attending colleges and universities has increased faster than the rate of inflation as measured by the Consumer Price Index (CPI) 1. As indicated by the chart above, this trend increased markedly from to as states dramatically reduced general fund appropriations for public higher education in response to declining tax revenues. Colleges and universities increased tuition to compensate. Tuition and fee increases moderated somewhat in and , but increased in through due to the national economic downturn that severely restricted state tax revenues. Allocations from the American Recovery and Reinvestment Act of 2009 helped moderate tuition increases for and Factors involved in rising costs for higher education include: Reduction in state general fund support due to other funding priorities (health, retirement funding, prisons, etc.), Increase in the costs of medical insurance for faculty and staff, Relative decline in federal student grant programs, High cost of institutionally funded financial aid, Migration of students from low to high cost disciplines, Administrative support and governmentally imposed requirements have risen, The need to keep pace with new technologies, Federal funding for research has not kept up with institutional expenditures for research, Program expansion, and New construction or renovation. 1 Trends in College Pricing 2014 by the College Board. 1

2 Virginia Public FTE Enrollment, Educational Appropriations And Total Educational Revenue per FTE, FY Expanding enrollments in the 1960s and 70s permitted colleges and universities to spread fixed costs and increase total expenditures (15 percent per year from 1970 to 1975) while holding per student (FTES) expenditure increases to 4.0 percent annually. In the decade of the 1980s, the rate of increase in tuition did not come down as fast as the CPI because at least in part students were paying a larger share of the costs of their education. In the public sector, more than half of the added tuition revenue from 1982 to 2014 represents increases in the share of educational costs borne by students to compensate for decreases in state general fund support. (Please see the chart above). The graph shows how the proportion of the revenue to fund a student s academic experiences has changed dramatically since Virginia's tuition and fees are higher than corresponding national and regional charges. The Commonwealth's position as a high tuition state is reflected in national comparisons that rank Virginia 6 th highest among the fifty states 2. This is still an improvement from previous years when Virginia was ranked as high as 2 nd. However, the tuition and fees for non-virginia residents continue to be among the highest in the country. The 1998 Acts of Assembly established the Joint Subcommittee on Higher Education Funding Policies to develop funding guidelines. The Subcommittee adopted higher education funding guidelines for Virginia public institutions in December The funding guidelines for operation and maintenance of the physical plant were developed and added to the higher education funding guidelines in In addition, the Joint Subcommittee adopted a fund share policy of 67/33 between general fund support and tuition revenue for base funding estimates derived by the funding guidelines in Tuition and Fees at Virginia's State-Supported Colleges and Universities, State Council of Higher Education for Virginia, July

3 (1) Based on a national survey conducted by the Washington Student Achievement Council (WSAC). Although not all public institutions are included in this survey, the averages and changes over time at the same set of institutions offer consistency, and the large number of institutions included provides a close approximation to state averages. (2) VA Charges are actual tuition and fees in FY15. Charges in other states are estimated by applying national increase rates of 3.0% for doctoral, 3.21% for comprehensive institutions, and 3.17% for public two-year colleges in preliminary 2014 national tuition and fee survey results prepared by WSAC. Source: SCHEV tuition and fees annual report. The following excerpt and chart from SCHEV s annual tuition and fee report describes the tuition and fee rankings for the Virginia public institutions since Over the past 15 years, tuition charges to in-state undergraduate students in Virginia largely have been greatly influenced by the state s economic condition. The Commonwealth restricted tuition increases during a period of strong economic growth and allowed institutions to assess double-digit tuition increases to offset general fund reductions when growth in the economy slowed or declined. The lack of continuity and predictability has limited the ability of students and their families to save effectively for college and has not provided equity for students and their parents in terms of meeting the cost of education. *The tuition policy required out-of-state students to pay 100% of cost, but had not cost-share requirement for in-state undergraduate students. Calculation based on the average appropriated cost of education. **The goal of the tuition policy was for in-state undergraduate students to pay 25% of the cost. Calculation based on the average appropriated cost of education. ***The goal of the tuition policy is for students to pay 33% of the cost. Calculation based on average guideline calculated cost of education. 3

4 New this year, the graphic below displays federal IPEDS data on the total cost of attendance that includes tuition, fees, books and supplies, and room and board. The institutions selected are public institutions in which new JMU freshmen often consider enrolling, but selected JMU instead. JMU s cost of attendance is $1,665 below the average. Total Cost of Attendance 3 : In-State Students Living On Campus Institutions Where Many JMU Freshmen Applied for Admission * and Were Accepted + Source: IPEDS Average = $24,405 3 Total cost of attendance is the sum of published tuition and required fees (lower of in-district or in-state for public institutions), books and supplies, and the weighted average for room and board and other expenses. 4

5 1.2 Regional Trends Virginia is affiliated with the Southern Regional Education Board (SREB) the nation's first interstate compact for education. SREB was created in 1948 at the request of southern governors and acts as a clearinghouse for information on trends and issues that affect education in the South. Colleges and universities are classified according to SREB definitions based on institutional size and degree programs. Undergraduate tuition and fees in each state's universities and colleges are compared with specific groups based on SREB definitions. For example, James Madison University is considered to be a Four-Year 3 institution, offering at least 100 doctoral, masters, education specialist, or post-master's certificates and degrees distributed among at least 10 broad program areas. JMU and Radford are the Four-Year 3 public institutions in Virginia. Data for will be available in February 2016 and will appear in the next report. As the graphic below demonstrates, Virginia has the second highest tuition and fees for in-state undergraduates at regional Four-Year 3 institutions. Virginia was fourth for two years ago. Virginia s two-year increase (20 percent) was above the median (9 percent) for all the states. Virginia s eightyear increase (77 percent) was higher than the SREB median (44 percent). The smallest eight-year increase was Maryland (28 percent), and the largest was Kentucky (145 percent). 5

6 "Tuition and fees" refers to the annual tuition and mandatory fees charged all full-time undergraduate students. Mandatory fees do not include special fees assessed in particular programs such as music, science laboratories, or nursing. Other fees unique to given situations are not included; for example late registration fees or automobile registration fees. Mandatory fees do include health service fees, building use fees, student activity fees, and athletic fees where the fee is not optional for full-time students. Tuition and fees for in-state undergraduate students in Virginia increased less than the SREB median for Four-Year 3 institutions over the past ten years. Since , in-state undergraduate student charges in Virginia rose 127 percent while median charges in the region went up 175 percent. Virginia s tuition and fees are now 125 percent (less than the 151 percent in , and down from 255 percent in ) of the SREB regional median for Four-Year 3 institutions. In Virginia s in-state tuition and required fees were $1,795 above the regional median for comparable institutions. The chart above shows how Virginia s changes in tuition and fees have been more variable than the SREB region institutions as a whole. 6

7 The following two charts illustrate Virginia s percentage ranking for in-state and out-of-state tuition and fees as compared to the SREB institutional median (middle score). Virginia Highlights Percent of SREB Median Tuition and Fees by Residence, SREB Classification Percent of In- State Median Percent of Outof-State Median Four-Year 1 Universities 116% 116% Four-Year 2 Universities 190% 172% Four-Year 3 Universities, including JMU and Radford 126% 123% Four-Year 5 Colleges and Universities 180% 128% Baccalaureate 6 Colleges and Universities 145% 167% Two-Year Colleges 124% 127% Source: SREB Data Exchange, February

8 1.3 State Trends Among the Commonwealth s fifteen four-year public colleges and universities, JMU's in-state tuition ranks 12 th highest, required fees ranks 5 th, and room and board ranks 10 th. Total in-state tuition, required fees, and room and board ranks 11 th and JMU s out-of-state total cost ranks 10 th. Compared with Virginia s most expensive institutions for out-of-state students, UVA and W&M, JMU is a bargain. In-State and Out-of-State Undergraduate Tuition, Required Fees, and Room and Board for Virginia's State-Supported Institutions of Higher Education, Rank In-State Out-of-State Required Room and Total Total Tuition Tuition Fees Board In-State Out-of-State 1 W&M $12,564 UVA $40,118 VMI $8,020 $10,344 W&M $28,000 UVA $52,236 2 UVA $10,932 W&M $34,824 W&M $5,092 UVAW $10,340 VMI $23,890 W&M $50,260 3 VCU $10,356 VMI $29,554 CNU $4,684 CNU $10,314 CNU $21,960 VMI $45,946 4 VT $10,197 VCU $28,417 LU $4,650 VSU $10,128 VCU $21,716 VCU $39,777 5 GMU $7,562 GMU $27,140 JMU $4,256 UVA $10,052 UVA $21,425 GMU $39,392 6 VMI $7,498 VT $26,228 UVAW $3,856 GMU $9,432 LU $20,836 VT $35,972 7 UMW $7,146 ODU $21,983 ODU $3,437 UMW $9,430 VT $19,914 UVAW $34,842 8 CNU $6,962 LU $20,700 UMW $3,106 VCU $9,318 GMU $19,814 ODU $34,688 9 LU $6,930 CNU $20,646 VSU $2,924 ODU $9,268 UMW $19,682 LU $34, RU $6,440 UMW $20,432 RU $2,920 JMU $9,256 UVAW $19,208 JMU $33, ODU $5,813 JMU $20,266 NSU $2,916 NSU $8,624 JMU $18,858 UMW $32, JMU $5,406 RU $19,126 GMU $2,820 LU $8,448 ODU $18,518 CNU $32, VSU $5,078 UVAW $18,943 UVA $2,066 RU $8,406 VSU $18,130 RU $30, UVAW $5,012 VSU $17,680 VCU $2,042 VMI $8,372 RU $17,766 NSU $29, NSU $4,536 NSU $14,914 VT $1,820 VT $7,924 NSU $16,076 VSU $26,068 Source: SCHEV Report on Tuition and Fees, Appendices D-1 and D-2. 8

9 Full-Time In-State Undergraduate Student Charges, Institution Tuition and Mandatory Fees Percent Increase Mandatory Non- E&G Fees Percent Increase Room and Board1 Percent Increase Total Percent Increase W&M3 $12, /2.8/0% $5, $10, $28, /3.9/2.7% VMI $7, $8, $8, $23, UVA $10, $2, $10, $23, CNU $6, $4, $10, $21, VCU2 $10, $2, $9, $21, LU $6, $4, $9, $20, VT $10, $1, $7, $19, GMU $7, $2, $9, $19, UMW $7, $3, $9, $19, UVA-Wise $5, $3, $10, $19, JMU $5, $4, $9, $18, ODU $5, $3, $9, $18, VSU $5, $2, $10, $18, RU $6, $2, $8, $17, NSU $4, $2, $8, $16, RBC4 $3, $1, $8, $13, Avg. 4yr $7, $3, $9, $20, VCCS $4, $ N/A N/A $4, Avg. All Insts.6 $6, $3, $9, $18, (1) Charges listed here represent the weighted average double occupancy room charge and the maximum weekly meal plan offered, not necessarily the plan used by most students. (2) The Tuition and mandatory E&G fees for resident undergraduates will increase by 4% in Tuition for credit hour undergraduate students is calculated on a sliding per credit hour basis with a 50% discount for 15 and more credit hours per semester. (3) The tuition and mandatory E&G fee for first-time freshmen and transfer students is $12,564, an increase of 19.3%. Tuition for sophomore students remains at $10,531, a 0% increase. The charge for junior and senior students is $9,182, an increase of 2.8%. The college adopted guaranteed tuition for incoming in-state undergraduate students in The tuition charged in their freshmen year is frozen for all four years of their undergraduate attendance. Source: SCHEV Report on Tuition and Fees, Appendix B. Annual increases in Virginia for the senior institutions for in-state tuition, required fees, and room and board ranged from 1.9 percent at Virginia State University to 10.8 percent at the College of William and Mary. JMU s percentage increase (4.5) was slightly above the average of the other senior institutions (4.4 percent). All higher institutions are searching for ways to manage tuition changes. Both the College of William and Mary and Virginia Commonwealth University have instituted new differential charging processes. See footnotes above. JMU so far has only begun to charge students taking College of Business and Nursing courses higher per credit fees due to the high costs of these programs. 9

10 Full-Time Out-of-State Undergraduate Student Charges, Institution Tuition and Mandatory Fees Percent Increase Mandatory Non- E&G Fees Percent Increase Room and Board Percent Increase Total Percent Increase UVA $40, $2, $10, $52, W&M $34, $5, $10, $50, VMI $29, $8, $8, $45, VCU $28, $2,042 0 $9, $39, GMU $27, $2, $9, $39, VT $26, $1, $7, $35, UVA-Wise $20, $3, $10, $34, ODU $21, $3, $9, $34, LU $20, $4, $9, $34, JMU $20, $4, $9, $33, UMW $20, $3, $9, $32, CNU $17, $4, $10, $32, RU $19, $2, $8, $30, NSU $17, $2, $8, $29, VSU $14, $2, $10, $27, RBC $13, $1, $8, $23, VCCS 2,3,4 $9, $14 0 N/A N/A $9, Avg. 4yr $23, $3, $9, $36, Avg. All Insts.6 $22, $3, $9, $34, Source: SCHEV Report on Tuition and Fees, Appendix D-2. Annual percent changes in Virginia for out-of-state tuition and required fees for the senior institutions ranged from 0.5 percent at Norfolk State University to 5.7 percent at the Virginia Military Institute. 10

11 The following excerpt from SCHEV s annual tuition and fee report illustrates the increasing inability of the average Virginian to afford higher education at one of the Commonwealth's public colleges or universities. For students and their parents, the cost of a college education is determined by the total charges they will have to pay relative to the level of resources available to them. One commonly cited indicator of college affordability is the relationship between total charges (tuition, all mandatory fees, room and board, and other ancillary charges) and per capita disposable income. According to the Bureau of Economic Analysis (BEA) at the U.S. Department of Commerce, per capita disposable income is the income that is available to persons for spending and saving. It is calculated as personal income less the sum of personal income tax payments and personal non-tax payments (donations, fees, fines, and forfeitures) to the government. Chart 7A below shows that Virginia s average in-state undergraduate charges as a percentage of per capita disposable income have exceeded the national average every year since SCHEV began tracking this measure with the exception of FY2006 and FY2010. In 1990, Virginia s cost share of per capita disposable income was 6.3 percentage points higher than the national average. Nationally, total charges represented 28.3% of per capita disposable income, while the rate in Virginia was 34.6%. Since reaching the low point (most affordable) of 31.7% in FY2002 after several years of state mandated tuition controls, this measure of affordability has crept steadily higher and is estimated to be at 46.9% in FY2015. This rate surpasses the record of 45.6% set last year. Further, the BEA data show per capita disposable income in Virginia declined by 0.2% between FY2013 and FY2014. However, the average total charge at Virginia s public four-year institutions increased by 4.4%. If the rate of increase for tuition and fees continues to outpace the rate of increase for income, affordability and access to public higher education in Virginia will be further compromised. 11

12 1.4 JMU Tuition and Fee 10-Year History JMU Tuition, Fee, and Room and Board Charges, to Year Percent Change IN-STATE Tuition & Fees $2,998 $3,228 $3,420 $3,556 $3,734 $4,182 $4,642 $4,862 $5,104 $5,406 80% Comp. Fee $2,888 $3,062 $3,246 $3,408 $3,510 $3,678 $3,806 $3,946 $4,072 $4,256 47% Total Commuter $5,886 $6,290 $6,666 $6,964 $7,244 $7,860 $8,448 $8,808 $9,176 $9,662 64% Room & Board 1 $6,372 $6,756 $7,108 $7,458 $7,690 $8,020 $8,340 $8,630 $8,873 $9,196 44% Total On-Campus $12,258 $13,046 $13,774 $14,422 $14,934 $15,880 $16,788 $17,438 $18,049 $18,858 54% OUT-OF-STATE Tuition & Fees $12,434 $13,174 $14,140 $15,050 $15,866 $16,946 $17,932 $18,850 $19,582 $20,266 63% Comp. Fee $2,888 $3,062 $3,246 $3,408 $3,510 $3,678 $3,806 $3,946 $4,072 $4,256 47% Total Commuter $15,322 $16,236 $17,386 $18,458 $19,376 $20,624 $21,738 $22,796 $23,654 $24,522 60% Room & Board* $6,372 $6,756 $7,108 $7,458 $7,690 $8,020 $8,340 $8,630 $8,873 $9,196 44% Total On-Campus $21,694 $22,992 $24,494 $25,916 $27,066 $28,644 $30,078 $31,426 $32,527 $33,718 55% Source: JMU Budget Office 1 Based on 19-meal plan JMU Tuition and Fee History to