1 Tuition Policy Advisory Committee November 2007 Recommendations Public Forums

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 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 and $303/semester (6.9%) fall 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 Incremental Needs and Funding Sources ($ in Millions)

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 Diminishing State Support

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

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 Financial Aid – Grant Awards per Semester for Continuing Students Annual Family Income AwardAward Resident Undergraduate Student $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 Financial Aid – Grant Awards per Semester for New Students (entering summer 2008 or later) Annual Family Income AwardAward Resident Undergraduate Student $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 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 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 National Comparison of Tuition

15 Questions? A copy of this presentation and other tuition information is available on the TUITION DOLLARS AND SENSE WEBSITE:

16 Supplemental Materials

17 Forecast

18 Resident Undergraduate Tuition per Semester

19 Resident Undergraduate Tuition per Semester

20 Resident Graduate Tuition per Semester

21 Resident Graduate Tuition per Semester

22 National Comparison of Tuition