1. Setting Tuition for
April 27, Pullman

2. Historical & Current State Budgets
State Budget Cycle
Historical & Current State Budgets

3. State Budget Cycle
Budgets are enacted on a two-year cycle, beginning on July 1 of each odd-numbered year.
The biennial budget for remains in effect from July 1, 2011 through June 30, 2013.
The biennial budget can be modified in any legislative session. These revisions are known as supplemental budgets.
The supplemental budget recently passed by the Legislature and awaiting the Governor's signature includes no further cuts for WSU, however, the $40M cuts in the biennial budget are still in effect.

4. 2007-09 Biennial Budget (July 1, 2007 – June 30, 2009)
10/10/2017
Biennial Budget (July 1, 2007 – June 30, 2009)
FY2008
No Reduction
Included funds for increases in WSU enrollment, research funding, and salary increases for WSU employees.
‘High water mark’ in state funding preceding the economic downturn.

5. 10/10/2017
2009 Supplemental Budget
FY2008
No Reduction
2009 Supplemental Budget
$10.5M one-time cut
WSU was required to return $10.5M in state appropriations by June 30, 2009 on a one-time basis.

6. 2009-11 Biennial Budget (July 1, 2009 – June 30, 2011)
10/10/2017
Biennial Budget (July 1, 2009 – June 30, 2011)
FY2008
No Reduction
2009 Supplemental Budget
$10.5M one-time cut
Biennial Budget
$27M permanent cut per year
WSU's state appropriations reduced by $112M, or $56M per year.
$16M in Federal stimulus funds appropriated to help offset state cuts.
Tuition increased 14% each year of the biennium.
Net reduction of $54M for the biennium, or $27M per year.

7. 2010 & 2011 Supplemental Budgets
10/10/2017
2010 & 2011 Supplemental Budgets
May 2010, the Legislature approved the 2010 supplemental budget reducing WSU's allocation by an additional $13.5 million for the biennium.
During a December 2010 special session, the Legislature approved the 2011 supplemental budget including a $7.5 million one-time budget reduction for WSU.
Total permanent reductions for the biennium of approximately $68 million.
FY2008
No Reduction
FY2009 Supplemental Budget
$10.5M one-time
Biennial Budget
$27M permanent cut per year
2010 & 11 Supplemental Budgets
$13.5M permanent cut
&
$7.5M one-time cut

8. 2011-13 Biennial Budget (July 1, 2011 – June 30, 2013)
10/10/2017
Biennial Budget (July 1, 2011 – June 30, 2013)
WSU's state appropriations reduced $108M, or $54M per year.
The legislative budget assumed a 16% tuition increase for resident undergraduates in each year of the biennium as well increases in other tuition categories.
Net reductions of $40M for the biennium, or $20M per year.

9. 10/10/2017
2012 Supplemental Budget
April 2012: Legislature passed the supplemental budget. (Currently awaiting the Governor's signature).
No additional reductions to higher education.
The enacted budget for the biennium remains in effect and includes $20M in annual cuts for WSU.
These cuts are AFTER an assumed 16% tuition increase for resident undergraduates in each year of the biennium and increases in other categories.

10. Background and Timeline
Tuition Setting
Background and Timeline

11. Tuition Defined
RCW 28B : The term "tuition fees" as used in this chapter shall mean the fees charged students registering at the state's colleges and universities which consist of:      (1) The "building fees" as defined in RCW 28B ; and      (2) The "operating fees" as defined in RCW 28B

12. Regents’ Tuition Setting Authority
For the biennium governing boards are authorized to increase tuition (including operating and building fees)
For resident undergraduates: up to 16% per year*
For all other categories of students: by any amount
*Institutions have authority to go higher, triggering financial aid mitigation requirements.

13. Tuition Rates
Typically the WSU Regents approve tuition rates for both years of the biennium at one time.
Last spring rates were approved for one year only due to uncertainty of future economic conditions and the possibility of additional supplemental budget cuts.
Fiscal Year 2013 rates will be adopted by the Regents this spring and will go into effect in the fall of 2012.

14. Tuition Setting Timeline
March 2012 – Convene University Tuition Committee comprised of faculty, staff, and students from all campuses to make recommendations for FY13 rates.
April 2012 – Engage WSU’s shared governance process via open forums with students and the university community. Public review and comment period.
May 2012 – Rate recommendations presented to Board of Regents along with input gathered from the online comment site and the public meetings.
August 2012 – Rates adopted by the Board of Regents go into effect.

15. Tuition Committee Recommendations

16. Tuition Committee Key Considerations
Despite the recent 'no cuts' supplemental budget, the enacted biennial budget contains $40M in cuts for WSU after an assumed 16% increase in resident undergraduate tuition rates for both years of the biennium and assumed increases in other tuition categories.
Rate increases less than the rates assumed by the Legislature would result in the need for deeper cuts to WSU programs, services, and course offerings.
Legislative action in recent years has moved to ‘semi- privatize’ public higher education institutions, forcing a greater share of the overall cost of education on students and their families.

17. State and Tuition Funding per FTE (in 2013 Dollars)
84%
65%
16%
35%
Adjusted for inflation, the total cost of educating a student at WSU has remained steady during 20 years of declining state investments.
Student tuition now covers 65% of the cost of education Chart from the Council of Presidents

18. Key Considerations (cont.)
Approximately 83% of total tuition is from undergraduates.
If double digit increases are inevitable for resident undergraduate students, similar increases should apply to non-residents.

19. Tuition Committee Recommendations
The percentage increases for most categories of students are the same as Fiscal Year 2012.
The Legislature left little flexibility in setting resident undergraduate rates by assuming annual tuition rate increases to backfill the $108M cut to state appropriations in the biennial budget.
Undergraduate non-resident rates are recommended to increase 16% - the same as resident undergraduates. This is an increase over the FY2012 8% increase.
Non-resident DDP rates will be adjusted to equal resident DDP rates in conformity with industry standards for distance education.

20. Tuition Committee Recommendations

21. President Floyd’s Recommendations for Regent Consideration
Rates as recommended by the tuition committee except:
Non-resident DDP rates will be held flat at the FY12 rate. The equalizing of resident and non-resident DDP rates will be accomplished in a phased process.
An 8% increase for the resident MBA rate.

22. President’s Recommendations for Regent Consideration

23. Next Steps Invite feedback on the proposed tuition rates for 2012-13.
Comments and feedback accepted through the Budget Office website at:
The input gathered from the online comment site and the public meetings will be shared with the Board of Regents for review during their consideration of the proposed tuition rates.

25. R-Undergrad Rate History
HISTORICAL TUITION AND FEES
Resident Undergraduate
Building
Operating
Total
$ Incr
% Incr
206
3,939
4,145
571
16%
220
4,215
4,435
290 7%
235
4,510
4,745
310
251
4,826
5,077
332
269
5,163
5,432
355
288
5,524
5,812
380
308
5,910
6,218
406
351
6,737
7,088
870
14%
400
7,680
8,080
992
464
8,910
9,374
1,294

26. R-Graduate Rate History
Resident Graduate
Building
Operating
Total
$ Incr
% Incr
173
5,590
5,763
222
4.0%
176
5,701
5,877
114
2.0%
180
5,815
5,995
118
189
6,106
6,295
300
5.0%
198
6,412
6,610
315
212
6,860
7,072
462
7.0%
227
7,339
7,566
494
238
7,706
7,944
378
249
8,091
8,340
396
289
9,387
9,676
1,336
16.0%

27. NR Undergrad Rate History
HISTORICAL TUITION AND FEES
Non-Resident Undergraduate
Building
Operating
Total
$ Incr
% Incr
537
11,403
11,940
985 9%
564
11,973
12,537
597 5%
592
12,571
13,163
626
633
13,452
14,085
922 7%
677
14,395
15,072
987
724
15,402
16,126
1,054
775
16,479
17,254
1,128
815
17,349
18,164
910
857
18,265
19,122
958
926
19,726
20,652
1,530 8%

28. NR Graduate Rate History
Non-Resident Graduate
Building
Operating
Total
$ Incr
% Incr
511
14,091
14,602
562
4.0%
521
14,372
14,893
291
2.0%
531
14,658
15,189
296
558
15,391
15,949
760
5.0%
586
16,162
16,748
799
627
17,293
17,920
1,172
7.0%
671
18,503
19,174
1,254
704
19,428
20,132
958
739
20,399
21,138
1,006
798
22,032
22,830
1,692
8.0%

29. Dollar Change Comparison-Resident Students

30. Dollar Change Comparison-Nonresident Students

31. Resident Student Tuition Increases
Increase over prior year
Delta G to
Resident
Undergraduate
Graduate UG
571
222
(349)
290
114
(176)
310
118
(192)
332
300
(32)
355
315
(40)
380
462 82
406
494 88
870
378
(492)
992
396
(596)
1,294
1,336 42
Total
5,800
4,135
(1,665)

32. Nonresident Student Tuition Increases
Increase over prior year
Delta G to
Resident
Undergraduate
Graduate UG
985
562
(423)
597
291
(306)
626
296
(330)
922
760
(162)
987
799
(188)
1,054
1,172
118
1,128
1,254
126
910
958 48
1,006
1,530
1,692
162
Total
9,697
8,790
(907)