UWM Tuition Strategies for the Biennium

Transcription

1 UWM Tuition Strategies for the Biennium Marija Gajdardziska-Josifovska & Jerry Tarrer, With: Cindy Cluge, Joey Zafra, Shane Dunlap, and Amanda Kinateder

2 From: Raymond Cross; To: Chancellors Subject: Tuition Proposals As you are aware, the biennial budget includes a tuition freeze for resident undergraduate students. However, tuition increases for nonresident and graduate students may be possible. Please review your current nonresident and graduate/professional program pricing and consider what changes you would like to propose to reflect your market and affordability concerns. I understand that opportunities will vary by institution, and am mindful that tuition increases for nonresident and graduate students could result in enrollment reductions if not priced carefully. Please provide market information to support your request.

3 UW-Milwaukee Tuition Proposal (Feb. 6 ADC) 1) UWM advocates for equal treatment of all Wisconsin students and proposes to include resident graduate students in the tuition freeze for resident undergraduate students; 2) UWM proposes 2.5% TBD annual increase of tuition for the nonresident undergraduate and graduate students; 3) UWM Business and Health Sciences masters programs with previously established different rates will increase by TBD); 4) UWM seeks permission to plan changes to plateau from 12 to 13 credits for undergraduate and from 8 to 9 credits for graduate students starting with ; 5) UWM seeks permission to develop broader differentiation for specific programs starting with ;

4 Economic Implications (February 24 th ADC) E1: We need to have strong market arguments to increase rates on: residents graduate students nonresident graduate students nonresident undergraduate students E2: Enrollment reduction is expected but hard to quantify in the current hyper-competitive market E3: NEW INFORMATION ON: Increase of graduate tuition would generate additional tuition income, and additional tuition costs for graduate assistant and fellow benefits that are unevenly distributed across schools/colleges.

5 Political Implications (February 24 th ADC) P1: If we do not increase tuition rates when given the opportunity we can give an erroneous impression that we are able to absorb the $40M campus budget cuts. P2. If we increase tuition, especially on resident students, we can appear unsympathetic to the plight of the (Wisconsin) students and parents. P3: If we increase tuition on resident graduate students, we would treat them differently from their residents undergraduate peers, labeling research at a doctoral university less worthy of state support than classroom teaching.

6 ^ Range of quoted tuition levels; dependent on programs * Quoted per credit; calculated for 8cr UWM plateau ^^ differential graduate tuition for some programs Grad Rates

7 c) Differential tuition per credit for three schools/colleges Lubar ( level) $21.22 CEAS (all levels) $21.63 SARUP ( level) $ Rates UWM currently has all three models for rates: a) Flat rate for most disciplines (per semester, full time, with fees)) Graduate 8 credits $5,843 $12,076 Dissertator 3 credits $1,894 $2,494 Undergrad 12 credits $4,695 $9,560 b) Different disciplinary rates for three masters programs Business Masters $6,540 $12,808 Health Science Masters $6,882 $14,361

8 Graduate Tuition Rates We already have relatively high graduate tuition rates, both in-state and out-of-state, in comparison with other public universities in the group. The Minnesota reciprocity rate suggests that we might be able to go up. Model tuition raise of 2.5% or 5.5% at current plateau: A starting model would keep the same general rate for all disciplines and the 8 credit plateau, while adding desired % increases in in-state and out of state tuition per year in each of the two years of the biennium. Decide raise based on program and residency. NEW INFORMATION from UW-Madison: Conversations with Graduate Dean indicate Madison s plan to leave the graduate rates unchanged with exceptions for Business, Medicine and perhaps Pharmacy, Nursing and Public Health. Plans to increase nonresident undergraduate tuition.

9 Model tuition income from raises of 2.5% or 5.5% at current plateau: 2.5% Per Credit Per Credit Tuition Tuition Undergraduate Per Semester 12 credits Graduate Per Semester 8 credits Non-resident 1, $10,411,055 Resident 3,225 $ $17,167,301 Non-resident 1,481 1, $17,345,197 Estimate for Fall 10,411,055 Estimate for Fall $34,512,497 Estimate for Spring 9,578,170 Estimate for Spring $31,751,497 Estimated Estimated Remissions* (599,677) Remissions* (29,156,158) 19,389,548 $37,107,837 Estimated annual add'l tuition rev - UG 472,916 Estimated annual add'l tuition rev - Grad $905, % Per Credit Per Credit Tuition Tuition Undergraduate Per Semester 12 credits Graduate Per Semester 8 credits Non-resident 1, $10,715,768 Resident 3,225 $ $17,669,758 Non-resident 1,481 1, $17,852,861 Estimate for Fall 10,715,768 Estimate for Fall $35,522,619 Estimate for Spring 9,858,507 Estimate for Spring $32,680,810 Estimated Estimated Remissions* (617,228) Remissions* (30,009,509) 19,957,047 $38,193,920 Estimated annual add'l tuition rev - UG 1,040,415 Estimated annual add'l tuition rev - Grad $1,991,152

10 The plateau model is used by most, but there are significant exceptions to the plateau rule. Four institutions quote tuition rates per credit without a mention of a plateau. Some mix and match (e.g. the City College of New York uses plateaus for some students (mostly in-state) and per credit for others). Louisville has a graduate plateau of 9 credits. University of Illinois Chicago has three different plateaus (I: 12cr; II:6-11cr; III: 1-5 cr) and also a 0 credit range (flat fee). Undergraduate Plateau is 12 credits (or 4 courses); Change to 13 credits (MN level) would help retention and graduation rates Model Raises in Plateau Plateaux

11 Plateaux Model Raises in Plateau (without raises in tuition) Undergraduate Plateau Additional Income from Undergraduates (R + NR) Graduate Plateau Additional Income from Graduates (R + NR) 12 current 8 current 13 $1,839,896 9 $919, $3,116, $5,911,485

12 Market and Affordability 1) How have we assessed market and affordability in past proposals to UW System for tuition increases? System did not require market analysis in past ten years; 5.5% for used for resident undergraduates (amount $); Same amount ( $) was added to nonresident and to graduate student bases producing different % increases for each group; Separate increases were used for dissertators Nonresident graduate tuition was frozen for 8 years We need to develop a methodology for campus-level modeling of tuition that includes analysis of market and affordability concerns in addition to the proposed GPR budget cuts.

13 Affordability Affordability UWM 18.1%

14 CASH Harvard CASH Method Draft Adaptation to UWM Tuition Market Analysis Collect data from measurement tools; Are our tools and skills up to date? Analysis of data; What constitutes growth for us? Standard of performance; How do we compare with our peer and aspiration groups now? History of performance. Trends for us and our peers?

15 UWM History $12,500 $11,500 $10,500 $9,500 $8,500 $7,500 $6,500 $5,500 $4,500 $3,500 UWM Graduate Tuition $2,500 $2,300 $2,100 $1,900 $1,700 $1,500 $1,300 $1,100 $900 $700 UWM Dissertator Tuition $2, Graduate Resident Tuition (1 Semester; 8 credits) Graduate Non-Resident Tuition (1 Semester; 8 credits) Graduate MN Reciprocity (1 Semester; 8 credits) $ Dissertator Resident Tuition (1 Semester; 3 credits) Dissertator Non-Resident Tuition (1 Semester; 3 credits) Dissertator MN Reciprocity (1 Semester; 3 credits)

16 UWM History Nonresident (&MN)/Resident Graduate Tuition Ratios Grad NR/R Grad MN/R Nonresident (&MN)/Resident Dissertator Tuition Ratios Diss NR/R Diss MN/R

17 UWS Data CASH Methodology for UWM Tuition Analysis (Draft) Collect and Analyze Data for UW-System Doctoral Cluster (for proposals that are intended for Board of Regents (BOR) and/or Joint Finance Committee) Source: University of Wisconsin Tuition, Informational Paper 33, prepared by Emily Pope for Wisconsin Legislative Fiscal Bureau (January, 2015)

18 UWS Data

19 Standards Who are UWM s Peers for Market Analysis? Graduate School s Urban Research Universities? WI Legislative Bureau s UWM Peers (Undergraduate)? WI Legislative Bureau Big 10 for UW-Madison? Graduate Feeder Colleges? Other???

20 Urban Research U INSTITUTION RESIDENT Graduate Tuition (Full-Time Per Semester 8cr*) NONRESIDENT Graduate Tuition (Full-Time Per Semester 8cr*) NR/R Peer and Aspiration: UW-Madison $5,364 $12, UW-Milwaukee $5,193 $11, Marquette $8,200 City College of NY^ $4,315-$7,095 $5,960-$7,320 Cleveland State University^ $4,251-$4,552 $7,991-$8,593 Indiana University*^ $2,733-$6,528 $8,350-$10,496 Purdue University $5,001 $9, Northern IL University* $2,793 $5, Florida A&M $3,245 $8, Georgia State University $3,960 $10, Portland State University $3,155 $4, Rutgers (Newark)^ $7,944-$12,406 $12,972-$18,720 University of Houston^ $2,728-$5,904 $6,496-$9,600 University of IL Chicago^^ $3,751 $7, University of Louisville*^ $5,034-$5,834 $10,475-$11,275 University of Mass. Boston $15,018 $29, ^ Range of quoted tuition levels; dependent on programs * Quoted per credit; calculated for 8cr UWM plateau ^^ differential graduate tuition for some programs

21 Legislative Bureau Peers

22 midpoint for nonresident Tuition and Fees at UWM and Peer Institutions graduates (per and WI third Legislative from the Bureau) top in cost. Let s look at Madison Undergraduate Graduate and the big 10 group. Peer Institutions Legislative Bureau We Peers are 16% ahead the peer Peer Institutions Resident Nonresident N/R ratio Resident Nonresident N/R ratio U. of Texas-Dallas 2 11,806 31, U. of Cincinnati 14,468 26, Georgia State 10,240 28, Rutgers-Newark 15,888 25, Rutgers-Newark 13,297 28, UW-Milwaukee 11,687 24, U. of Illinois-Chicago 2 14,588 26, U. of Toledo 13,759 24, U. of Cincinnati 11,000 26, U. of Louisville 11,326 23, Temple 1, 2 14,696 24, SUNY-Buffalo 12,485 22, Wayne State University 1, 3, 4 11,448 24, Georgia State 7,920 21, U. of Louisville 10,236 24, Wayne State University 9,820 20, U. of Missouri-Kansas City 9,476 22, U. of Texas-Dallas 11,004 20, SUNY-Buffalo 8,871 22, Temple 12,880 17, U. of New Orleans 7,482 21, Cleveland State 8,502 15, UW-Milwaukee 9,391 19, U. of Illinois-Chicago 7,502 15, U. of Toledo 9,242 18, U. of Missouri-Kansas City 6,424 15, U. of Akron 9,920 18, U. of Akron 7,292 12, Cleveland State 9,636 12, U. of New Orleans 6,184 10, Average (Excl. WI) 10,755 23, Average (Excl. WI) 10,476 19, Midpoint (Excl. WI) 10,236 24, Midpoint (Excl. WI) 9,820 20, WI distance to midpoint , WI distance to midpoint 1,867 3, Rate shown is for lower-level students; tuition for upper-level students is higher. number of different courses and programs. 2 Differential tuition applies to students enrolled in a number of different courses and programs. 3 Residents of Minnesota, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania, and New York pay a substantially discounted rate. 4 Differential tuitions are charged to students enrolled in Business Administration, Fine, Performing, and Communication Arts, Engineering, Sciences, and Nursing.

23 Legislative Bureau Peers We should not exceed Tuition and Fees at UWM UW-Madison s and Big 10 Institutions graduate tuition!!!??? Undergraduate Graduate Big 10 + UWM Resident Nonresident N/R ratio Big 10 + UWM Resident Nonresident N/R ratio Michigan 13,486 $41, Michigan 20,406 $40, Michigan State 13,200 34, Pennsylvania State 19,746 33, Indiana 10,388 33, Ohio State 12,425 30, Pennsylvania State $17,502 30, Michigan State 15,504 30, Illinois 15,602 30, Illinois 15,560 29, Maryland 9,428 29, Purdue 10,002 28, Purdue 10,002 28, Rutgers 17,922 28, Rutgers 13,813 28, Maryland 13,530 27, Iowa 8,079 27, Indiana 9,497 26, UW-Madison 10,410 26, Iowa 9,507 26, Ohio State 10,037 26, UW-Madison 11,865 25, Nebraska 8,070 21, Minnesota 16,853 25, Minnesota 13,560 20, UW-Milwaukee 11,687 24, UW-Milwaukee 9,391 19, Nebraska 8,350 21, Average (Excl. WI) $12,125 $29, Average (Excl. WI) 14,109 29, Midpoint (Excl. WI) $11,805 $29, Midpoint (Excl. WI) 14,517 28, UW distance to midpoint -$1,395 -$2, UW distance to midpoint -$2,652 -$3, UWM to midpoint -$2,414 -$10, UWM to midpoint -$2,830 -$4,

24 Assistants and Fellows Graduate Assistants and Fellows Implications Approximately ¼ of the UWM graduate students are supported as Graduate Assistants (GA=TA+RA+PA) and Fellows Increase of nonresident graduate tuition will not create additional cost to campus, deans, or faculty PIs for GAs and Fellow. Increase of resident graduate tuition will increase cost of some GAs in different ways (see next table).

25 GA Type and Funding Source TA & PA Intramural (101 or 131 funds) TA & PA Intramural (136, 189 or other) RA Intramural (any fund) RA Extramural (133 and 144 funds) PA Extramural Grant (133 and 144 funds) Assistants and Fellows Resident Tuition Cost Waived (remitted, revenue forgone) Non-Resident Tuition Cost Waived SCH Income to Schools None Paid by School Waived None Paid by School (RGI paid by OR) 1/3 Paid by School 2/3 Paid by Campus (above $200k quota) Paid by Grant Waived 25% of salary rate paid by 144 grant (towards NRTR pool) 25% of salary rate paid by 144 grant (towards NRTR pool) None None None Grad School Fellows Paid by Grad School Waived Collected by Schools

26 $25,000 History of UW-Milwaukee Tuition ( ) Academic Year Tuition ($) $23,000 $21,000 $19,000 $17,000 $15,000 Increase nonresident tuition by 2.5%/yr: $13,000 G+NR: Now: $22,852 (8 cr.) Yr 1: $23,423 Yr 2: $24,008 U+NR: Now: $17,820 (12 cr.) Yr 1: $18,266 Yr 2: $18,722 $11,000 $9,000 $7,000 G+NR U+NR G+R U+R $5, Undergraduate Resident Tuition Year Undergraduate Non-Resident Tuition 2.5% Raise Graduate Resident Tuition Graduate Non-Resident Tuition 2.5% Raise

27 UW-Milwaukee Tuition Proposal (Feb. 6 ADC and March 9 CEMAT) 1) UWM advocates for equal treatment of all Wisconsin students and proposes to include resident graduate students in the tuition freeze for resident undergraduate students; 2) UWM proposes a 2.5% increase of tuition for for nonresident undergraduate and graduate students based on market and affordability data and analysis; 3) UWM Health Sciences Master s Programs (Communications Science and Disorders and Occupational Therapy) with previously established formula for higher rates (1.20 times the standard rate) will increase the nonresident graduate tuition by 3% for the academic year;

28 UW-Milwaukee Tuition Proposal cont. 4) UWM Business Master s Programs with previously established different rates for resident and nonresident students will increase both rates by XYZ based on a separate market and affordability analysis; 5) UWM seeks permission to plan changes to plateau from 12 to 13 credits for undergraduate and from 8 to 9 credits for graduate students starting with ; 6) UWM seeks permission to develop broader differentiation for specific programs starting with ;