1. FY10 Statutory Tuition Revenue Projections Different Rates for UG and GR; Resident and Non-resident Undergraduate, Resident $50 / Semester Credit Hour Graduate, Resident$100 / Semester Credit Hour Non-Resident Rate established by THECB average NR tuition of the 5 most populous states FY08 Rate: UG $328 / SCH GR $656 / SCH FY09 Rate: UG $331 / SCH GR $662 / SCH FY10 Rate: UG $327 / SCHGR $654 / SCH 1

2. Texas Public Education Grants Mandatory financial aid ‘set-aside’ for Texas Public Education Grants (TPEG) per Ed Code 56.033(a)(2) –Funds for TPEG are netted from statutory tuition revenue: 15% of Resident tuition 3% of Non Resident tuition (can be reset each biennium by the legislature) 2

3. FY10 Statutory Tuition Revenue Projections We are liable for the actual TPEG requirement by Ed Code based on census data not budget data: –Budgeted TPEG is adjusted for the: Estimated Change in mix of ‘paying’ students: –UG/GR –Res/NR –Other legislative changes (e.g. set-aside rate) 3

4. FY10 Statutory Tuition Revenue Projections Difficult to know with precision what future enrollment mix will be: –How many non-residents paying the out of state tuition rate? Non-resident & international students appointed to a 20 hour per week TA/GA position pay in-state tuition rates Graduate student taking undergraduate level courses, pay UG tuition rate –Over estimating non-resident tuition can have substantial financial impacts; for example, a shift of 10 FTE UG NR students (30 SCH each) = $ 98,100 annualized (next year’s rate) 10 FTE GR NR students (18 SCH each) = $117,720 annualized (next year’s rate) 4

5. Last Year at this time: We were expecting a loss of student head count in FY09 due to admissions criteria –800 students FY09 tuition budgets were conservatively based on –648,648 SCH –No change in mix of students 5

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7. 7 Projection is 0.2% SCH less than projected FY09, with a 5.5% decline for UG NR SCH (20 FTE UG) and 7% decline for GR NR SCH (10 FTE GR).

8. FY10 Designated Tuition Revenue Projections Normally, easier to compute – Board approved rate times SCH –Summer is the trailing semester. –Predicting next year’s total SCH / Summer trailing semester Legislature may change the FY10 Board approved rate Rate Projection Scenarios: –No rate increase –Board Approved Rate –5% Designated Tuition Rate Cap –5% Total Academic Cost Cap 8

9. FY10 Designated Tuition Revenue Projections FY10 SCH Basis: of projected FY09 or 670,450 SCH –3.4% increase over FY09 budgeted SCH Even the flat rate scenario will generate additional base budget given prior year conservative projections 9

10. 10 Scenario 1: Designated Tuition Rate is flat.

11. 11 Scenario 2: FY10 DT Rate is capped at 5%

12. 12 Scenario 3: FY10 Total Academic Costs Capped at 5% but Designated Tuition Rate is Maximized

13. 13 Scenario 4: Board of Regents’ Approved FY10 Designated Tuition Rate