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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 1 Affordability Strategies in the States Moderator: Laura King (Minnesota) Presenter: Deborah Greene (Texas) Presenter: Sandra Woodley (Kentucky)
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 2 Background April 2004 Survey 9 responses (18% response rate) –8 have affordability policies –Delaware has no statewide policy for setting tuition at its colleges (Plus Kentucky and Minnesota) (22% response rate)
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 3 Florida Financial aid fee for community colleges, technical centers, and universities since early 1980s that is indexed to tuition –Up to 5% for colleges and universities –Up to 10% for the technical centers –Majority of the aid provided is need based
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 4 Florida - continued Prior to 1984, universities charged two financial aid fees –For distribution to own university students –For need-based distribution statewide Late 1980s through early 1990s Early 1990s –State policy targets charges to in-state undergraduates at 25% of cost of HE
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 5 Florida -continued Florida Council of 100 recommendations –Indexing need-based aid to 19% of tuition revenues (January 2004) –Tying authority to increase tuition to performance on accountability measures related to maintaining access
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 6 Illinois IBHE Committee to Study Affordability (1994) –High priority of making college affordable –Affordability includes institutional ability to control costs as well as student & family ability to pay –Affordability is inextricably linked to academic preparation and college academic progress
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 7 Illinois - continued 1994 study – continued –Lack of financial resources should not be a barrier to higher education; aid should be need based and student focused –College education should be affordable & accessible to all students; students & their families should not be asked to assume a greater share of education costs than they are currently paying
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 8 Illinois - continued “Final Report & Recommendations of the Committee on Affordability” (August 2003) –20 recommendations Enhancing academic preparation and progress Assisting needy students Keeping core costs affordable –Builds on the 1994 study The Illinois Commitment – Goal 3 –No Illinois citizen will be denied an opportunity for a college education because of financial need.
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 9 Iowa Intense tuition and financial aid study completed in mid-May (11 categories of tuition-related policies covered) Tuition set-asides: 15% of gross tuition revenues continued –No less than half to undergraduates, of which no less than half is need based –Authority to use up to additional 10% for strategic enrollment goals, without restriction
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 10 Missouri Bills introduced but not passed by the Missouri General Assembly in their recent session, which ended in May 2004 –HB 1674 (Smith)/SB 780 (Caskey) – would have frozen tuition rates from the time Missouri undergraduates enter college until they graduate
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 11 Ohio 6% cap on in-state undergraduate instructional and general fees (FY 2004 and FY 2005) –Additional 3.9% per year permitted if revenues are used to fund scholarships for low-income students or to provide additional or improved technology services to students OSU permitted 9% cap plus 3.9% add on Miami University was permitted a pilot fee schedule similar to an independent university
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 12 Texas Affordability Strategy in Closing the Gaps by 2015 (October 2000) –Providing grants & scholarships to cover tuition, fees, & books for every student with financial need –Setting tuition & fees in a manner that closes gaps in participation & success –Establishing incentives that increase affordability through academic & administrative efficiencies in the higher education system
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 13 Texas - continued The amount of grants and scholarships must be increased. Economically disadvantaged students should be considered a high priority for gift aid. Colleges and universities should also monitor the cost of higher education as compared to what a family can pay based upon its effective family contribution.
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 14 Texas - continued Tuition Deregulation (Fall 2003) –Boards of Regents given the authority to set “designated tuition” at any level to allow institutions of higher education to operate efficiently –20% of amount above the then current cap of $46/SCH required to be set aside for financial aid –This is above the 15% required for “statutory tuition”
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 15 Utah Regents’ policy on tuition and fees –Addresses marginal percentage increases rather than affordability “First tier” rate increases – uniform for all institutions “Second tier” rate increases – optional, to meet institutional needs, may be program specific –Identified factors that should be reviewed annually for “fairness and price competitiveness”
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 16 Utah - continued –Explicitly states the Board should consider requesting state appropriation increases for Utah Centennial Opportunity Program for Education when tuition is increased Board usually requested an increase but the Legislature has not regularly appropriated increases Board usually requested an increase but the Legislature has not regularly appropriated increases
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 17 Virginia Limited tuition increases through 3% cap for in-state students (1994) Tuition freeze (1996) 20% reduction in tuition (2000-2002) Tuition increases (avg. 15% per year) to offset state budget cuts (2003-2004) Tuition set-asides for financial aid (2002- 2004 Biennium)
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 18 Virginia - continued Joint Legislative Subcommittee on Higher Education Funding Guidelines approved cost-sharing policy for all in-state students (2004-2006 Biennium) –67% general fund support –33% tuition revenue
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 19 More Ideas Tuition as a portion of median family or household income –E.G., VA: total charges to students (tuition, fees, room & board) = 36.6% of per capita disposable income Inverse relationship between state appropriations for higher education and tuition rates (national Center for Public Policy and Higher Education, February 2002)
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SHEEO Prof. Dev. Conference THECB August 13, 2004 Philadelphia 20 More Ideas - continued Prepaid College Tuition Programs College Savings Programs Need-Based versus Merit-Based State Aid Others?
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