Approval and Adoption of Final Tuition Recommendations for the 2018-2019 Academic Year David Jewell and Kyle Moore Financial Affairs and Enrollment Management Presentation to the Board of Trustees - March 2018

Summary - comparison of study results Huron analysis Topic Internal analysis Colorado, Nebraska Scope All out-of-state students Full-time Type of student Full-time, part-time, and distance 302 Sample size 3,175 80% Students receiving tuition discounts 44% $9,170 Average net tuition revenue $9,800

Additional background – projected revenue losses Annual Tuition (@ 30 Credit Hours) $15,480 $12,500 $11,500 $10,500 $9,500 Cost Per Credit Hour $516 $416 $383 $350 $316 Moving to a non-resident tuition of $316/credit hour ($9,500/year for 30 credit hours) for Fall 2018 would result in an estimated revenue loss of $5M-$6M for FY19 in addition to continuing to dedicate $3.5M-$4.0M of the block grant to maintaining the discount/waiver for existing full-time, non- resident undergraduate students who are currently paying an Average NTR less than $9,500.

Additional background – tuition by type of student Type of Non-Resident Undergraduate Student Average Population Size Average NTR (Tuition Only) Average Per Credit Hour Full-Time Receiving Discount 1,319 $8,141   Full-Time No-Discount 1,307 $14,482 Part-Time No-Discount 248 $5,793 $452 Summer No-Discount 885 $2,320 $468

Additional background – Comparisons from target states Institution Resident Tuition @ 30 Credit Hours Resident Tuition & Mandatory Fees $9,1511 $11,519* $11,502 $14,386   $13,598 $12,528 $11,284 $1,348 (fees only) UW values represent mandatory fees only *Includes discount/stipend of $77/credit hour from the Colorado College Opportunity Fund (COF) for eligible Colorado residents

Additional background – current and suggested tuition   Current Tuition Administration Recommendation BOT Tuition Policy of 4% Increase 2017-18 AY (FY2018) 2018-19 AY (FY2019) (Per Credit Hour) Undergraduate Resident Tuition $129 $134 Undergraduate Non-Resident Tuition $516 $537 Graduate Resident Tuition $251 $261 Graduate Non-Resident Tuition $750 $780

Additional background – resource allocation Model for revenue generated by a 4% tuition increase Item Amount Compensation ~$1,000,000 Academic Unit Support Budgets ~$500,000 University Libraries ~$250,000 Information Technology TOTAL ~$2,000,000 Compensation figure includes faculty promotion and tenure raises

Administration’s draft recommendations No increase to non-resident undergraduate tuition rate No increase to resident undergraduate tuition rate No increase to non-resident or resident graduate tuition rates Institute policy limiting the number of distance/on-line classes and/or credit hours Reduce the undergraduate, graduate and certificate non-resident online/distance tuition rates Continue analysis and discussion of reduced non-resident undergraduate tuition Pause for questions or end of slideshow

Administration’s proposed timeline May 2018 Administration to share findings of its in-depth analysis (including detailed financial modeling and supporting calculations) July 2018 Administration addresses and shares any follow-up analyses requested by the BOT at the May 2018 meeting and presents its tuition pricing recommendations for the 2019-2020 AY (FY2020) August/ September 2018 Administration requests BOT approval of proposed 2019-2020 AY tuition rates

Questions?