1. 1 Tuition Policy Advisory Committee November 2007 Recommendations Public Forums

2. 2 The Tuition Setting Process Aug 2007: Aug 2007: Constitute TPAC – 4 students, 2 deans, 1 faculty member, 2 administrators Sept-Nov 2007: Sept-Nov 2007: Assess critical needs, formulate proposal Nov 2007: Nov 2007: Recommend tuition policy to President, present proposal to campus & solicit feedback Dec 2007: Dec 2007: President develops tuition proposal, submits to UT System Mar 2008: Mar 2008: Regents consider and vote on campus proposal

3. 3 Summary of TPAC Recommendations to President  Continue to target a total student population of 49,700 students.  Allow the 2-year Energy Fee to expire as originally planned.  Increase average resident undergraduate total cost by $318/semester (7.8%) fall 2008-09 and $303/semester (6.9%) fall 2009-10. Total Cost for resident graduate students will be increased similarly.  Establish a flat-rate tuition structure for graduate and professional students.  Continue an aggressive UT Grant financial aid set-aside program to provide aid to students of families earning up to $80,000/year.

4. 4 Incremental Needs and Funding Sources ($ in Millions)

5. 5 Growth Rate of Funding Sources NOTE: The Higher Education Price Index (HEPI) is 5.0% for 2006 compared to the Consumer Price Index (CPI) of 3.8%.

6. 6 Diminishing State Support

7. 7 The Permanent University Fund (PUF) UT System West Texas Lands PUF Lands (minerals & surface rights) 2007 Market Value $14.1B Available University Fund 2/3 UT System1/3 A&M System UT System UT Austin receives about 30% of the total AUF income from the PUF 4.75% payout Fy07-08 $142.5M UTIMCO PUF Endowment Fund Investments $ Financial Return Return UT Austin 55% 45%

8. 8 Private Endowments Total 2007 Value $3.0B Payout of 4.75% equals $110M

9. 9 Historical Tuition Increases – Full-Time Undergraduate Resident Students In 2003, the Legislature initially proposed a $46/SCH tuition increase or $690 for 15 SCH. Ultimately, the Legislature passed deregulated tuition instead. Of the $779 increase in fall 2004, $690 would have come from a “catch up” by the Legislature.

10. 10 Financial Aid – Grant Awards per Semester for Continuing Students Annual Family Income AwardAward Resident Undergraduate Student2008-092009-10 $0-$40,000$1,450$1,540 $40,001-$60,00075% of above 75% of above $60,001-$80,00050% of above 50% of above Resident Independent Student50% of above50% of above Graduate Student50% of above 50% of above

11. 11 Financial Aid – Grant Awards per Semester for New Students (entering summer 2008 or later) Annual Family Income AwardAward Resident Undergraduate Student2008-092009-10 $0-$40,000$1,250$1,450 $40,001-$60,00075% of above 75% of above $60,001-$80,00050% of above 50% of above Resident Independent Student50% of above50% of above Graduate Student50% of above 50% of above

12. 12 How many students currently benefit from the UT Grant program? Fall 2007 Number of Students Annual Family Income Receiving UT Grants $0-$40,0008,801 $40,001-$60,0002,147 $60,001-$80,0001,580 TOTAL 12,528 The above figures only include students who applied for financial assistance. About 56% of students receive some form of financial assistance.

13. 13 Graduate Flat Rate Tuition Revenue neutral: No matter how many hours a student takes, their tuition bill will not be significantly higher or lower under this plan than it would be in current system Not intended to change behavior: Undergraduate flat rate system provides an incentive for taking more credit hours – Graduate flat rate does not Greater transparency: Student will know ahead of time how much total bill will be, and so will the university More fair for dual degrees: Eliminates redundant fees

14. 14 National Comparison of Tuition

15. 15 Questions? A copy of this presentation and other tuition information is available on the TUITION DOLLARS AND SENSE WEBSITE: http://www.utexas.edu/tuition/

16. 16 Supplemental Materials

17. 17 Forecast

18. 18 Resident Undergraduate Tuition per Semester 2008-09

19. 19 Resident Undergraduate Tuition per Semester 2009-10

20. 20 Resident Graduate Tuition per Semester 2008-09

21. 21 Resident Graduate Tuition per Semester 2009-10

22. 22 National Comparison of Tuition