1. Tuition & Aid Advisory Board A Discussion of UCB Priorities and Funding Strategies September 27, 2004

2. University of Colorado at Boulder UCB Priorities Enhance quality Avoid budget cuts in FY06 (COF value + Fee for Service > FY05 appropriation) Gain approval for tuition rate increases sufficient to meet expense needs over multi-year planning horizon –Cover fixed cost increases –Provide funds to remain competitive w/in AAU Define substance of enterprise status

3. University of Colorado at Boulder Investment Strategy Maintain outstanding faculty –Competitive salaries and benefits –Start-up and matching funds –Selective allocation of faculty lines –PhD support and enrollment growth –Encourage innovative instruction and interdisciplinary research

4. University of Colorado at Boulder Investment Strategy Attract improved student quality –Greater selectivity and diversity in admissions –Increase financial aid/scholarships –Offer small group learning experiences and increased research opportunities for undergraduates –Improve tenure-track faculty to student ratio

5. University of Colorado at Boulder Investment Strategy Provide necessary infrastructure –Develop and renovate instructional, research and support facilities –Enhance student support services –Promote staff development –Upgrade and improve business systems and operations

6. University of Colorado at Boulder STATE SUPPORT FOR HIGHER ED

7. University of Colorado at Boulder State Effort, FY04 State Higher Ed Appropriation per $1000 Personal Income

8. University of Colorado at Boulder CU-Boulder Tuition & Fees vs. AAU Publics & Colorado Privates FY04

9. University of Colorado at Boulder UCB Affordability

10. University of Colorado at Boulder State Tax Support & Tuition Per Resident Student FTE $8,879 below average

11. University of Colorado at Boulder

12. SB-189 New Funding Model College Opportunity Fund –Provides UG per credit hour grant for residents up to 145 hours ($80/hr est.) –50% grant for Pell-eligible students at certain Colorado private institutions –Replaces current direct state tax appropriation to institutions Allows enterprise status for qualifying institutions –Removes revenues from state TABOR limits –Authorizes revenue bonding authority for academic facilities

13. University of Colorado at Boulder SB-189 New Funding Model Performance Contracts –May replace Quality Indicator System accountability reporting to CCHE –May provide opportunity for increased management flexibility Fee for Service –Contract for services beyond UG COF grant –Provides funding for graduate/professional education

14. University of Colorado at Boulder The Cost of a Quality Education Non-Resident: Cost $17,800 Tuition-$20,592 Net/Over $ 2,792 Resident: Cost $17,800 COF-$ 2,400 NRes Cr.-$ 1,396 Endw/Gft.-$ 2,628 Tuition-$ 3,480 Net/Under($ 7,896)

15. University of Colorado at Boulder Bridging the Resource Gap To address the shortfall in funding resident education: –Endowment income and annual gifts will need to double, –Entrepreneurial revenues will need to increase, and; –Resident tuition rates may need to address remaining shortfalls –To do this will require a multi-year implementation strategy

16. University of Colorado at Boulder A Proposed Tuition Plan Establish UG resident base tuition increases over six year planning horizon Utilize “fixed tuition” plan to minimize impacts to students –One-time increase per cohort – then tuition fixed for five years –One-time increase would approximate total of normal annual increases Utilize financial aid to ensure accessibility and student quality

17. University of Colorado at Boulder Moving Toward a New Economy Establish fund-raising targets by Schools/Colleges and CUF Establish a tuition and fee advisory board to evaluate market tuition and financial aid goals Expand other revenue opportunities, such as executive education, summer school, technology transfer, real estate, and investment income

18. University of Colorado at Boulder Summary A world renowned institution with a significant role in Colorado’s future Long known for efficiency, but precariously maintaining competitiveness With the right financial model and legislative support, UCB can sustain its excellence, and enhance Colorado’s economic future and quality of life